Title I: Improving the Academic Achievement of the Disadvantaged - Revises ESEA title I as Improving the Academic Achievement of the Disadvantaged (currently Helping Disadvantaged Children Meet High Standards) and its part A (Improving Basic Programs Operated by Local Educational Agencies) (I-A).
(Sec. 101) Establishes I-A requirements for: (1) yearly testing and assessments of student performance; (2) State standards for and assessments of Adequate Yearly Progress (AYP); (3) local educational agency (LEA) identification of schools for improvement and corrective actions; (4) reporting to parents and the public on school performance and teacher quality; (5) eligibility requirements for schoolwide programs; and (6) increased qualifications of teachers and paraprofessionals. Provides alternatives for students at public schools failing to meet AYP standards within certain periods, including: (1) public school transfer options for all students at such schools; and (2) supplementary educational services for low-income children who remain at such schools, with such services allowed to be provided by various entities (which may be public or private, nonprofit or for-profit, and may include religious institution-based ones, provided all content and instruction under such services are secular, neutral, and nonideological).
Reauthorizes and revises other requirements under the I-A-1 basic program for: (1) State and LEA plans; (2) eligible school attendance areas; (3) schoolwide programs; (4) targeted assistance schools; (5) State reservation of funds for school support, improvement, and recognition; (6) parental involvement; (7) participation of children enrolled in private schools, and (8) certain fiscal and coordination requirements.
Revises allocations (I-A-2) to States, outlying areas, and the Bureau of Indian Affairs, as well as under LEA Basic, Concentration, Targeted, and Education Finance Incentive Grants programs. Sets forth accountability requirements for State educational agencies (SEAs), local educational agencies (LEAs), and schools to ensure that their students meet such standards.
Requires each State to define AYP in a specified manner, which includes separate measurable annual objectives for continuous and substantial improvement for the achievement of all public elementary school and secondary school students in the State, and for the achievement of specific groups: (1) economically disadvantaged students; (2) students from major racial and ethnic groups; (3) students with disabilities; and (4) students with limited English proficiency.
Requires States, by the 2005-2006 school year, to conduct annual academic standards-based assessments in mathematics and reading or language arts in grades 3 through 8. Requires such assessments in science at three grade levels by the 2007-2008 school year. Provides for grants to States to develop such assessments.
Requires distribution to parents and communities of State and LEA report cards on the academic quality of all schools, including the qualifications of teachers and teachers' aides. Includes among required information in State report cards: (1) comparisons between the actual achievement levels of the specified groups of students and the State's annual measurable objectives for such groups; and (2) 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.
Establishes requirements for academic assessment and for LEA and school improvement. Requires LEAs receiving I-A funds to identify for school improvement any elementary school or secondary school served under I-A that fails, for two consecutive years, to make AYP as defined in the State's plan. Makes such requirement inapplicable to a school if almost every student in each of specified groups enrolled in such school is meeting or exceeding the State's proficient level of academic achievement. Allows LEAs, for schools that are conducting targeted assistance programs, to opt to review the progress of only the students in the school who are served, or are eligible for services, under I-A.
Requires an LEA to provide all students enrolled in a school identified for improvement with the option to transfer to another public (including charter) school served by the LEA and not identified for improvement, unless such an option is prohibited by State law. (Requires, to the extent practicable, cooperative agreements with other LEAs in the area for such transfers if all the LEA's public schools are identified for school improvement, corrective action or restructuring.) Requires priority in providing such option to be given to the lowest achieving children from low-income families. Requires LEAs to pay for transportation for students who exercise such option. Requires LEAs to permit children who remain at the school to which they transferred until they have completed the highest grade in that school; but terminates an LEA's obligation to provide for transportation at the end of a school year, if the LEA determines that the former school is no longer identified for improvement or subject to corrective action or restructuring. Requires LEAs to use certain amounts for paying for such transportation (and for providing supplemental educational services for eligible low-income children at schools that fail to make AYP one year after being identified for improvement).
Requires an LEA, before identifying a school for improvement (or for failure to make AYP after identification for corrective action, or for restructuring due to failure after corrective action), give the school an opportunity to review school-level data and present evidence. Requires each school identified for improvement, after such review is resolved, to develop or revise a two-year school plan in consultation with parents, school staff, the LEA, and outside experts. Requires such plans to include a mentoring program for teachers. Requires LEAs to provide specified types of technical assistance to schools identified for improvement.
Requires an LEA, for any school served under I-A that fails to make AYP by the end of the first full school year after identification for improvement, to: (1) continue to provide technical assistance to the school and the public school transfer option to all the school's students; and (2) make tutoring and other supplemental educational services available to eligible low-income children. Allows such supplemental educational services to be provided by an LEA, nonprofit entity, or for-profit entity that: (1) has a demonstrated record of effectiveness in increasing student academic achievement; (2) can provide such services consistent with the LEA's instructional program and the academic standards described in the State's plan; and (3) is financially sound. Requires such providers to agree to various criteria, including all content and instruction provided through such services are secular, neutral, and nonideological.
Requires LEAs to promptly notify parents of students in schools identified for improvement, corrective action, or restructuring.
Requires LEAs to implement systems of corrective actions for schools identified for improvement. Requires LEAs, by the end of the second full school year after such identification, to: (1) continue to provide all students enrolled in the school with the option to transfer to another public school served by the LEA; (2) continue to provide specified types of technical assistance while instituting any corrective action; (3) continue to make supplemental educational services available to children who remain in the school; and (4) identify the school for corrective action. Requires the LEA, in the case of a school identified for corrective action, to do at least one of the following: (1) replace the school staff who are relevant to the failure to make AYP; (2) 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 AYP; (3) significantly decrease management authority at the school level; (4) appoint an outside expert to advise the school on its progress toward making AYP, based on its school plan; (5) extend the school's school year or school day; or (6) restructure the school's internal organizational structure.
Allows the LEA to delay for not more than one year implementation of requirements relating to failure to make AYP after identification, corrective action, or restructuring, if: (1) a school makes AYP for one year; or (2) a school's failure to make AYP is due to exceptional or uncontrollable circumstances, such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the LEA or school.
Requires LEAs to publish and disseminate information regarding any corrective action at a school to the public and to students' parents.
Sets forth restructuring requirements for schools that continue to fail to make AYP after a full year of corrective action. Requires LEAS to: (1) continue to provide public school transfer options to all students enrolled there, as well as supplemental educational services for eligible children who remain in the school; and (2) plan and implement a major restructuring of the school's governance arrangement that makes fundamental reforms and has substantial promise of enabling the school to make AYP. Includes among such restructuring arrangements for a school: (1) reopening as a public charter school; (2) replacing all or most of the staff (which may include the principal) relevant to the AYP failure; (3) making a contract for operation of the public school by a public or private entity with a demonstrated record of effectiveness; or (4) SEA operation of the school. Directs the Secretary to provide technical assistance for such restructuring to certain small, rural LEAs that request it. Requires an LEA to promptly notify teachers and parents of students at a school to be restructured, and provide them adequate opportunity to comment on any such action and participate in developing any such plan.
Prohibits an LEA from continuing to subject a school to requirements of school improvement, corrective action, or restructuring or to identify the school for school improvement for the succeeding school year, if the school makes AYP for two consecutive school years.
Requires SEAs to provide: (1) technical assistance for school assessment and improvement; (2) annual review of LEA compliance with school assessment and improvement requirements; and (3) notice to the Secretary of schools or LEAs identified for improvement.
Authorizes States to make certain rewards to LEAs that have exceeded AYP for two consecutive years.
Requires States to identify for improvement LEAs that have failed to make AYP for two consecutive years. Requires such LEAs to make improvement plans. Directs each State to: (1) provide technical or other assistance to identified LEAs to develop and implement their plans and work with schools needing improvement; and (2) implement a system of corrective action for such LEAs. Requires States, if an LEA fails to make AYP after two school years after its identification, to continue technical assistance and to take at least one of the following corrective actions: (1) deferring programmatic funds or reducing administrative funds; (2) 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; (3) replacing LEA personnel relevant to AYP failure; (4) removing particular schools from LEA jurisdiction, establishing alternative arrangements for such schools' public governance and supervision; and (5) appointing a receiver or trustee to administer LEA affairs in place of the superintendent and school board.
Revises requirements for statewide systems school support, improvement, and recognition.
Revises and renames I-B as Student Reading Skills Improvement Grants to: (1) establish programs for Reading First and Early Reading First initiatives, under new subparts 1 and 2; (2) revise and reauthorize the William F. Goodling Even Start Family Literacy Programs, under subpart 3; and (3) establish a subpart 4 program for Improving Literacy through School Libraries.
Establishes, under I-B-1, the Reading First program to provide: (1) increased funding for improving classroom reading instruction; (2) assistance to SEAs and LEAs to establish scientific research-based reading programs for all children in kindergarten through grade three; and (3) professional development for teachers to identify children at-risk for reading failure and give effective early instruction to overcome specific barriers to reading proficiency. Allocates 80 percent of program funds to States based on poverty rates. Reserves 20 percent of program funds for two-year discretionary performance-based grants to States that reduce the number of children who cannot read. Allows States to use up to15 percent of the funds for professional development. Requires States to distribute at least 80 percent of funds to LEAs on a competitive basis with priority for high poverty areas in which there is a high percentage of students in grades kindergarten through three reading below grade level. Requires funds to be used for diagnostic assessments and instructional materials that include the essential components of reading instruction.
Establishes, under I-B-2, the Early Reading First program of competitive grants for supporting enhanced reading readiness for children ages three through five in high poverty areas where there are high numbers of students who are not reading at grade level. Provides for development of verbal skills, phonemic awareness, pre-reading development, and assistance for professional development for teachers in child care centers or Head Start centers in instructional activities that would prepare children for formal reading instruction in kindergarten and grade one.
Revises and reauthorizes, under I-B-3, the William F. Goodling Even Start Family Literacy Programs.
Sets forth the I-B-4 Improving Literacy Through School Libraries program, to provide students with increased access to up-to-date school library materials, well-equipped, technologically advanced school library media centers, and well-trained, professionally certified school library media specialists. Requires formula grants to SEAs if appropriations reach a specified level or, otherwise, competitive grants to eligible LEAs .
Revises and reauthorizes I-C (Education of Migratory Children). Revises eligibility requirements for receiving funds, and provides States with increased flexibility in use of funds. Directs the Secretary to assist States in developing effective methods for the transfer of student records and for determining minimum data elements to be transferred.
Revises, renames, and reauthorizes I-D (Prevention and Intervention Programs for Children and Youth Who Are Neglected, Delinquent, or At-Risk). Requires States to set aside 15 percent (currently ten percent) of subpart 1 State Agency Programs funds for transition of youth in State correctional facilities back to their local schools. Includes among required uses of subpart 2 Local Agency Programs funds the operation of programs in local schools for children and youth returning from local correctional facilities, and allows such programs to serve other at-risk children and youth.
Establishes, as I-E, a National Assessment of Title I. Directs the Secretary to conduct a national assessment of the impact of the policies enacted into law under ESEA title I on States, LEAs, schools, and students. Revises and reauthorizes provisions for: (1) evaluations; (2) demonstrations of innovative practices; and (3) assessment evaluation.
Reauthorizes the Close Up Fellowship Program, administered by the Close Up Foundation, which provides financial aid to enable low-income middle school and secondary school students, their teachers, older Americans, recent immigrants, and children of migrant parents to come to Washington, D.C. to study the operations of the three branches of government.
Establishes a I-F program for Comprehensive School Reform. Authorizes the Secretary to award grants to States to make subgrants to LEAs to provide incentives for schools to develop comprehensive reforms so that all children can meet challenging State content and academic achievement standards. Requires such reforms to be based on scientifically-based research and effective practices, and to emphasize basic academics and parental involvement.
Access to High Standards Act - Establishes, as I-G, Advanced Placement (AP) Programs of assistance to increase the access of low-income students to AP high school courses and AP tests to earn advanced placement and credits at institutions of higher education.
Dropout Prevention Act - Establishes, as I-H, School Dropout Prevention provisions, including: (1) a Coordinated National Strategy (subpart 1); and (2) a National School Dropout Prevention Initiative (subpart 2).
Revises and reauthorizes part I, general provisions of title I, including negotiated Federal rulemaking, State rulemaking, a State committee of practitioners to advise the State in carrying out its responsibilities under title I, LEA spending audits, and State reports on dropout data.
Provides that nothing in title I authorizes Federal mandates with regard to a State's, LEA's, or school's: (1) specific instructional content, academic achievement standards and assessments, curriculum, or program of instruction; or (2) equalized spending per pupil.
Title II: Preparing, Training, and Recruiting High Quality Teachers and Principals - Revises ESEA title II, as Preparing, Training, and Recruiting High Quality Teachers and Principals, to replace and consolidate the current Eisenhower Professional Development and Class-Size Reduction programs by establishing a part A Teacher Quality and Principal Training and Recruiting Fund (II-A) as a State formula grant program (subpart 1), with subgrants to LEAs (subpart 2) and to eligible partnerships (subpart 3), to support various similar and additional activities to improve elementary and secondary school teaching. Allows States and LEAs additional flexibility in the use of II-A funds, in exchange for their demonstrating that student achievement is increasing. Sets forth I-A-4 provisions for accountability and technical assistance. Authorizes the following I-A-5 national activities: (1) a national teacher recruitment campaign, including a clearinghouse; (2) national principal and assistant principal recruitment program grants to high-need LEAs, or consortia of such LEAs, or partnerships of such LEAs with nonprofit organizations, and higher education institutions; (3) grants to eligible entities for advanced certification or credentialing activities; (4) a grant to the University of Northern Colorado to provide assistance to other higher education institutions in training special education teachers; (5) early childhood educator professional development grants to eligible partnerships to improve knowledge and skills of early childhood educators who work in communities that have high concentrations of children living in poverty; and (6) a National Panel on Teacher Mobility to study and report on strategies for increasing mobility and employment opportunities for highly qualified teachers, especially for States with teacher shortages and States with school districts or school that are difficult to staff.
(Sec. 201) Establishes, as II-B, a Mathematics and Science Partnerships program of grants to: (1) SEAs; or (2) if appropriations do not reach a specified level, eligible partnerships of SEAs, higher education mathematics, engineering, or science departments, high-need LEAs, and specified optional entities.
Sets forth II-C, Innovation for Teacher Quality. Revises and reauthorizes, under subpart 1 Transitions to Teaching, requirements for the following programs: (1) the Troops-to-Teachers program for recruiting military retirees into teaching and for innovative preretirement teacher certification programs for members of the Armed Forces; and (2) the Transition to Teaching program for professionals seeking to change careers.
Revises and reauthorizes the National Writing Project under II-C-2 (currently under title X part K).
Education for Democracy Act - Revises and reauthorizes Civic Education programs under II-C-3 (currently under title X, part F). Authorizes the Secretary to make grants to or contracts with: (1) the Center for Civic Education to carry out civic education activities under the We the People... The Citizen and the Constitution program and The Project Citizen program, and under Cooperative Educational Exchange (CEE) programs; and (2) the National Council on Economic Education to carry out economic education activities under CEE programs. Makes eligible for CEE programs Central or Eastern European countries, Lithuania, Latvia, Estonia, and the independent states of the former Soviet Union, the Republic of Ireland, the province of Northern Ireland in the United Kingdom, and any developing country with a democratic form of government (as determined by the Secretary with the concurrence of the Secretary of State).
Establishes, as II-C-4, a program for Teaching of Traditional American History. Authorizes the Secretary to make competitive grants to LEAs in partnership with higher education institutions, nonprofit history or humanities organizations, or libraries or museums.
Paul Coverdell Teacher Protection Act of 2001 - Sets forth, as II-C-5, Teacher Liability Protection. Preempts State law, except where it provides additional protection of teachers from liability. Makes such provisions inapplicable to any civil action in State court against a teacher in which all parties are citizens of the State if such State enacts a statute electing that such provisions not apply. Provides that no teacher in a school shall be liable for harm caused by an act or omission on behalf of the school if the teacher was acting within the scope of employment or responsibilities relating to providing educational services, subject to specified requirements and exceptions. Limits punitive damages and liability for non-economic loss.
Enhancing Education Through Technology Act of 2001 - Sets forth, as II-D, Enhancing Education Through Technology, provisions which revise and reauthorize some programs under the current title III (Education for Technology).
Consolidates such program activities for telecommunications and technology access into a formula grant program for State and local technology programs under II-D-1 (State and Local Technology Grants). Includes among authorized State and local activities enabling teachers to use the Internet to retrieve learning resources and to communicate with other teachers, parents, principals, and administrators.
Authorizes certain national activities and a national education technology plan under II-D-2, National Technology Activities.
Sets forth, under II-D-3, Ready-to-Learn Television provisions which revise and reauthorize programs under current III-C.
Prohibits use of II-D funds by certain elementary or secondary schools to purchase computers used to access the Internet or pay direct costs of Internet access, unless such schools have Internet safety policies that include operation of technology protection measures that prevent access to visual depictions that are obscene, or child pornography, or harmful to minors.
(Sec. 202) Provides for continuation of prior awards of: (1) funds under the Department of Education Appropriations Act, 2001 for new teacher recruitment initiatives; and (2) grants or contracts under the National Writing Project.
Title III: Language Instruction for Limited English Proficient and Immigrant Students - Revises ESEA title III as Language Instruction for Limited English Proficient and Immigrant Students (current title VII is Bilingual Education, Language Enhancement, and Language Acquisition Programs). (Current title III Technology for Education programs are eliminated, but some similar activities are consolidated under the new II-D, and the Star Schools program is reauthorized under V-D-7.)
(Sec. 301) Consolidates and revises current Bilingual Education Act (BEA) programs (III-A) and the Emergency Immigrant Education Program (III-B-4) into a program of formula grants to States for education of limited English proficient (LEP) and immigrant children, when appropriations reach a specified level for such III-A to be in effect (otherwise, III-B is in effect). (Transfers the Foreign Language Assistance Program to title V.)
English Language Acquisition, Language Enhancement, and Academic Achievement Act - Sets forth, as title III part A, an Education of Limited English Proficient and Immigrant Children Act (III-A).
Bases III-A grant distribution to States on enrollment levels of limited English proficient (LEP) and immigrant students. Bases within-State distribution on enrollment of LEP students. Allows State reservation of a portion of such funds for grants to LEAs with large influxes of recent immigrant students. Requires local use of 95 percent of III-A funds. Reduces administrative funds if a State fails to have a majority of LEP children become English language proficient.
Requires students who have been in U.S. schools for at least three years to be tested for reading in English. Requires LEAs to obtain informed parental consent prior to placing children in an instructional program that is not taught primarily in English. Allows parents to: (1) choose among instructional programs if more than one type of program is offered; and (2) immediately remove their child from a program for LEP children.
Sets forth certain language program exceptions for programs that serve Native American and Native Pacific Island children and children in the Commonwealth of Puerto Rico.
Improving Language Instruction Educational Programs for Academic Achievement Act - Sets forth, as III-B (when appropriations levels are not high enough for III-A to be in effect), provisions for Improving Language Instruction Educational Programs.
Sets forth III-B-1, Program Development and Enhancement, with grants to LEAs, higher education institutions, and community-based organizations for activities for program enhancement and for comprehensive school and systemwide improvement.
Sets forth III-B-2, Research, Evaluation, and Dissemination. Directs the Secretary to conduct such activities through the Office of Educational Research and Improvement in coordination with the Office of English Language Acquisition, Language Enhancement, and Academic Achievement for Limited English Proficient Students. Authorizes the Secretary to make grants to: (1) SEAs to make awards to recognize LEA and other public and nonprofit entity programs demonstrating significant progress in assisting LEP students to learn English and meet academic standards; and (3) for instructional materials development in Native American (including Hawaiian, Pacific Islanders, and outlying area) languages and other low-incidence languages in the United States for which such materials are not readily available.
Sets forth III-B-3, Professional Development, to authorize the Secretary to award grants to SEAs, LEAs, higher education institutions, or consortia of such entities, for professional development programs and activities to improve instruction and services for LEP children.
Reauthorizes and revises, under III-B-4, the Emergency Immigrant Education Program. (Provides for funds for such program as part of III-A formula grants or separately under III-B, depending on whether A or B is in effect.)
Sets forth III-C general provisions, including requirements for parental notification. Directs the Secretary to establish a National Clearinghouse for English Language Acquisition and Language Instruction Educational Programs, to be administered as an adjunct clearinghouse of the Educational Resources Information Center (ERIC) Clearinghouses system supported by the Office of Educational Research and Improvement.
Title IV: 21st Century Schools - Revises and renames ESEA title IV as 21st Century Schools (currently Safe and Drug-Free Schools and Communities).
Safe and Drug-Free Schools and Communities Act - Sets forth title IV, part A, Safe and Drug-Free Schools and Communities. Reauthorizes and revises programs of drug and violence prevention in elementary and secondary schools (currently under IV, the Safe and Drug-Free Schools and Communities Act of 1994).
Sets forth IV-A-1, State Grants. Revises certain fund allocation formulas to give priority to schools with high proportions of low-income students. Requires drug and violence prevention programs to be consistent with certain principles of effectiveness. Requires States to establish policies allowing transfer to a safe public school within their LEA to students who attend persistently dangerous schools or who are victims of violent crimes in school or on school grounds. Allows States to carry out programs through grants and contracts with charitable, religious, and other private organizations, in addition to LEAs. Provides that certain limitations on LEA program expenditures under IV-A do not apply to the hiring and training of school resource officers.
Sets forth, under IV-A-2, National Programs, revising and reauthorizing provisions for: (1) Federal activities; (2) impact evaluation; and (3) hate crime prevention grants to LEAs and community-based organizations to assist localities most directly affected by hate crimes.
Establishes the Safe and Drug Free Schools and Communities Advisory Committee.
Authorizes the Secretary to make grants to: (1) LEAs, for hiring drug prevention and school safety program coordinators, through a National Coordinator Program; (2) States, for programs requiring community service by students who are expelled or suspended from school; (3) LEAs, for programs to reduce alcohol abuse in secondary schools; and (4) LEAs, nonprofit community organizations, or partnerships of these entities, for mentoring programs and activities for children with the greatest need.
Provides for establishment of a School Technology and Resource Center. Authorizes the Secretary, the Attorney General, and the Secretary of Energy to enter into an agreement to establish such Center at the Sandia National Laboratories, in partnership with the National Law Enforcement and Corrections Technology Center-Southwest and the National Center for Rural Law Enforcement in Little Rock, Arkansas. Directs the Attorney general to administer such Center.
Authorizes the Secretary and the Attorney General to establish a National Center for School and Youth Safety, to carry out emergency response, anonymous student hotline, consultation, information, and outreach.
Gun-Free Schools Act - Sets forth, under IV-A-3, Gun Possession, certain gun-free school requirements (currently under IX-F, the Gun-Free Schools Act), including requiring State laws to provide a minimum one-year expulsion of any student bringing a firearm to school or possessing one there (allowing LEA chief administrative officers to make case-by-case modifications).
Sets forth, as title IV part B, 21st Century Community Learning Centers, provisions which reauthorize and revise before-and-after-school programs for youth (currently under X-I, the 21st Century Community Learning Centers Act). Allots funds through a formula to the States based on school-age population and on title I participation. Requires States to use such funds to provide competitive grants to LEAs, community-based organizations, and other private and public organizations to administer such programs. Requires States, if they opt to require local matching funds for such grants, to allow in-kind contributions.
Pro-Children Act of 2001 - Sets forth, as title IV part C, Environmental Tobacco Smoke, prohibitions for schools (provisions similar to those for a tobacco smoke-free environment for schools under part C of title X of the Goals 2000: Educate America Act, which is repealed under this Act). Reauthorizes prohibitions against smoking within any indoor facility used for routine or regular provision of children's services (up to age 18), including health, day care, early development, education, or library services. Sets forth procedures for civil penalties and administrative compliance orders to be enforced by the Secretary of Health and Human Services.
Title V: Promoting Informed Parental Choice and Innovative Programs - Sets forth a new ESEA title V, Promoting Informed Parental Choice and Innovative Programs. Includes and revises, under this new title V, Magnet School Assistance and Public Charter Schools (current parts A and B under current title V, Promoting Equity), as well as certain parts of Innovative Education Program Strategies (current VI), the Foreign Language Assistance Program (current VII-B), and Programs of National Significance (current title X).
(Sec. 501) Revises and reauthorizes as V-A Innovative Programs: (1) subpart 1 State and Local Innovative Programs (current VI-A); (2) subpart 2 State Programs (current VI-B); and (3) subpart 3 Local Innovative Education Programs (current VI-C).
Revises formulas relating to distribution of innovative program funds to LEAs (under V-A-1). Includes among authorized State uses of program funds support for arrangements that provide for independent analysis to measure and report on school district achievement. Adds to authorized local uses of program funds activities involving: (1) professional development and hiring of teachers; (2) promotion of consumer, economic, and personal finance education; (3) expanded and improved school-based mental health services; (4) community service programs using qualified school personnel to train youths to strengthen their communities through nonviolence, responsibility, compassion, respect, and moral courage; (5) improvement of civics and government education; (6) alternative educational programs for students who have been expelled or suspended; (7) hiring and support of school nurses; (8) prekindergarten programs for children ages three through five; (9) academic intervention programs to support academic enrichment and counseling for at-risk students during the school day, operated jointed with community-based organizations; (10) programs for cardiopulmonary resuscitation (CPR) training in schools; and (11) programs to establish smaller learning communities. Reauthorizes other innovative activities, including those to promote, implement, or expand public school choice.
Revises provisions for Public Charter Schools (as V-B; currently X-C). Reauthorizes: (1) grants for charter school programs (V-B-1); and (2) credit enhancement initiatives to assist charter school facility acquisition, construction, and renovation (V-B-2). Establishes a program of competitive grants to eligible entities to establish or expand voluntary public school choice programs.
Reauthorizes the Magnet Schools Assistance program (as V-C; currently under V-A).
Sets forth, under title V part D (Fund for the Improvement of Education), various programs, including such Fund, which are currently under title X (Programs of National Significance) and other ESEA titles.
Revises provisions for such Fund (current X-A) under V-D-1, redesignating some of the Fund's programs under separate subparts. Authorizes certain Fund programs and activities. Directs the Secretary to carry out studies of national significance regarding: (1) unhealthy public school buildings; (2) the effects of children's exposure to violent entertainment; and (3) sexual abuse in schools.
Sets forth, as V-D-2, Elementary and Secondary School Counseling Programs, to reauthorize, revise, and expand the elementary school counseling demonstration program (under current X-A) to include secondary school counseling programs.
Sets forth, as V-D-3, a Partnerships in Character Education program to revise, reauthorize, and expand a pilot project currently under X-A. Authorizes the Secretary to make grants to eligible entities in partnerships to design and implement State and local character education programs incorporating the elements of caring, civic virtue and citizenship, justice and fairness, respect, responsibility, trustworthiness, and giving, as well as any other elements deemed appropriate by the members of the eligible entity, and any additional elements defined after consultation with the schools and communities served.
Reauthorizes, as Smaller Learning Communities (V-D-4), a program of grants to LEAs for certain activities relating to creation of smaller learning communities (currently under X-A).
Reauthorizes the Reading Is Fundamental, Inexpensive Book Distribution Program for reading motivation (V-D-5) (current X-E).
Jacob K. Javits Gifted and Talented Students Education Act of 2001 - Reauthorizes and revises Gifted and Talented Children programs (as V-D-6; currently under title X, part B).
Star Schools Act - Reauthorizes the Star Schools Program (as V-D-7; current III-B).
Sets forth, as V-D-8, a Ready to Teach program of grants for digital educational programming and other related activities to improve teachers skills and knowledge of core curriculum subjects.
Foreign Language Assistance Act of 2001 - Revises and reauthorizes the program of Foreign Language Assistance (V-D-9) (current VII-B), including: (1) grants to SEAs and LEAs for elementary and secondary school foreign language programs; and (2) incentive payments to elementary schools that provide students a program leading to communicative competency in a foreign language.
Carol M. White Physical Education Program - Sets forth, as V-D-10, Physical Education, to revise provisions similar to the current Physical Education for Progress program (current X-L).
Sets forth, as V-D-11, provisions for grants, contracts, and cooperative agreements for Community Technology Centers.
Alaska Native and Native Hawaiian Education Through Cultural and Historical Organizations Act - Sets forth, as V-D-12, provisions for grants and contracts for Educational, Cultural, Apprenticeship, and Exchange Programs for Alaska Natives, Native Hawaiians, and Their Historical Whaling and Trading Partners in Massachusetts.
Excellence in Economic Education Act of 2001 - Establishes, as V-D-13, an Excellence in Economic Education program authorizing the Secretary to award a competitive grant to a national nonprofit educational organization that has as its primary purpose improving student understanding of personal finance and economics through classroom teaching.
Establishes, under V-D-14, Grants to Improve the Mental Health of Children: (1) a program of grants, contracts, and cooperative agreements with SEAs, LEAs, and Indian tribes for the integration of schools and mental health systems; and (2) a program of Foundations for Learning Grants to LEAs, local councils, community-based organizations, and other public and private nonprofit entities, for promotion of school readiness through early childhood emotional and social development.
Revises Arts Education programs (as V-D-15; currently under title X, part D) to provide for: (1) increased participation of local organizations; (2) collaborative efforts by arts educators and State and local arts agencies; and (3) consultation about grant awards by the Secretary with arts educators and organizations. Reauthorizes arts and education programs that ensure participation in mainstream settings for individuals with disabilities through the Kennedy Center, Very Special Arts (VSA), and other arrangements. Requires Federal arts education funds to be used only to supplement and not supplant non-federal arts activities. Eliminates the Cultural Partnerships for At-Risk Children and Youth program.
Establishes programs for: (1) Parental Assistance and Local Family Information Centers (V-D-16); (2) Combating Domestic Violence (V-D-17); (3) Healthy, High-Performance Schools (V-D-18); (4) Grants for Capital Expenses of Providing Equitable Services for Private School Students (V-D-19); and (5) Additional Assistance for Certain Local Educational Agencies Impacted by Federal Property Acquisition (V-D-20).
Women's Educational Equity Act of 2001 - Sets forth, as V-D-21, the Women's Educational Equity Act (current V-B).
Title VI: Flexibility and Accountability - Revises ESEA title VI as Flexibility and Accountability.
(Sec. 601) Sets forth VI-A, Improving Academic Achievement. Sets forth, as VI-A-1, Accountability provisions. Directs the Secretary to make: (1) grants to States for certain costs relating to developing or administering newly-required State assessments, standards, and related activities; and (2) competitive grants to SEAs for enhanced assessment instruments. Provides funding for: (1) administration of State assessments under the National Assessment of Educational Progress (NAEP); and (2) VI-A-1 grants to States and SEAs.
State and Local Transferability Act - Sets forth VI-A-2, Transferability of Funds. Authorizes State and LEA transfers of funds: (1) among specified ESEA formula grant programs (relating to teachers, technology, safe and drug-free schools, and innovative programs); and (2) from such programs to their allocations for ESEA title I, but does not allow transfer of title I funds to other programs. Allows States to transfer up to 50 percent of State activity funds among such programs, as well as the 21st Century Community Learning Centers program. Allows LEAs to transfer up to 50 percent of funds among such programs, but limits this to 30 percent for LEAs failing to meet State AYP requirements and only for improvement activities to address such failure.
State and Local Flexibility Demonstration Act - Sets forth VI-A-3, State and Local Flexibility Demonstration, with: (1) a chapter A program of State flexibility authority agreements for up to seven eligible SEAs, for performance agreements with at least four and not more than ten eligible LEAs in each such State (at least half of which are high poverty LEAs); and (2) a chapter B program of local flexibility demonstration agreements for up to 80 eligible LEAs (up to three LEAs in each State which does not have a chapter A agreement). Provides for consolidation of funds from specified ESEA programs (under the State chapter A program, from I-A, Reading First, Even Start, teachers, technology, safe and drug-free schools, 21st Century Community Learning Centers, and innovative programs; and under the local chapter B program, from teachers, technology, safe and drug-free schools, and innovative programs) for use for any purpose authorized under any ESEA program, for a five-year period, with loss of such authority by any such State or LEA that fails to meet State AYP requirements.
Allows up to 80 LEAs to consolidate all their funds under specified ESEA programs relating to for any purpose authorized under any ESEA program. Grants such authority for a five-year period. Provides that any such State LEA will lose such authority if it fails to meet State AYP requirements for two consecutive years.
Sets forth, as VI-A-4, provisions for State Accountability for Adequate Yearly Progress (AYP). Directs the Secretary to use an annual peer review process to determine whether each State that has a plan under I-A-1 and III-A-1 has: (1) made AYP for each of specified groups of students under title I; and (2) met its annual measurable achievement objectives (annual objectives) under title III. Requires the Secretary to provide technical assistance to States that have failed to make AYP for two consecutive years. Authorizes such assistance for States that have failed to achieve annual objectives for two consecutive years. Directs the Secretary to report annually to specified congressional committees on States that have not made AYP or met annual objectives, and on such technical assistance.
Rural Education Achievement Program - Revises, reauthorizes, and transfers to VI-B ESEA requirements for a Rural Education Initiative, with State formula grants for: (1) subpart 1 Small, Rural School Achievement Program; and (2) subpart 2 Rural and Low-Income School Program.
Sets forth part C general provisions with respect to title VI, including: (1) a prohibition against Federal mandates, direction, or control; and (2) a rule of construction on equalized spending.
Amends the National Education Statistics Act of 1994 with respect to State assessments. Directs the Commissioner of Education Statistics to conduct biennial State NAEP assessments in reading and mathematics in grades 4 and 8. Authorizes the Commissioner to conduct State NAEP assessments: (1) in reading and mathematics in grade 12; and (2) in additional subject matter in grades 4, 8, and 12.
Title VII: Indian, Native Hawaiian, and Alaska Native Education - Reauthorizes and revises ESEA requirements for Indian, Native Hawaiian, and Alaska Native Education (currently under title IX parts A, B, and C) under this new title VII.
(Sec. 701) Revises and reauthorizes provisions relating to Indian Education, as VII-A. Allows certain LEAs to combine Indian Education Act funds with other Federal funds they receive for Indian students in order to carry out demonstration projects integrating services for such students.
Native Hawaiian Education Act - Revises and reauthorizes, as VII-B Native Hawaiian Education (the Native Hawaiian Education Act, current IX-B).
Alaska Native Educational Equity, Support, and Assistance Act - Revises and reauthorizes, as VII-C, Alaska Native Education (the Alaska Native Educational Equity Support and Assistance Act, current IX-C).
Title VIII: Impact Aid Program - Revises and reauthorizes the Impact Aid Program (continues as title VIII of ESEA).
(Sec. 801) Revises a hold-harmless formula for distributing impact aid payments for Federal acquisition of real property for fiscal years in which insufficient funds are appropriated.
(Sec. 802) Revises impact aid provisions for certain heavily impacted LEAs, under the program of payments for eligible federally connected children.
(Sec. 803) Revises impact aid requirements for construction through school facility emergency and modernization grants.
(Sec. 804) Revises requirements relating to State consideration of impact aid payments in providing State aid.
(Sec. 805) Extends the authorization of appropriations for impact aid.
Title IX: General Provisions - Revises ESEA General Provisions (title IX), including definitions, flexibility in the use of administrative and other funds, coordination of programs, consolidated plans and applications, waivers, uniform provisions, and evaluations.
(Sec. 901) Sets forth additional uniform provisions. Provides that nothing in ESEA shall be construed to affect: (1) home schools, whether or not one is treated as a home school or a private school under State law, nor shall any home schooled student be required to participate in any assessment referenced in ESEA; or (2) any private school that does not receive funds or services under ESEA, nor shall any student who attends such a school be required to participate in any assessment referenced in ESEA.
Requires specified privacy protections for any results from individual assessments referenced in ESEA which become part of the education records of a student.
Requires LEAs, as a condition of receiving ESEA funds, to certify that they have no policy that prevents or otherwise denies participation in constitutionally-protected prayer in public schools.
Boy Scouts of America Equal Access Act - Prohibits any SEA, LEA, or public school that receives Department of Education funds from discriminating, in providing equal access to school premises or facilities that have been designated as open or limited public forums, against any group officially affiliated with the Boy Scouts of America or any other youth group listed as a patriotic society, on the basis of such group's membership or leadership criteria or oath of allegiance.
Prohibits use of ESEA funds for programs of contraceptive (currently, condom) distribution at schools.
Prohibits the Department of Education from using any of its funds to endorse, approve, or sanction any elementary or secondary school curriculum. Prohibits use of ESEA funds to require States, as a condition of ESEA assistance, to have Federal approval or certification of academic content or student achievement standards. Provides that nothing in ESEA shall be construed to mandate national school building standards for a State, LEA, or school.
Requires any secondary school that receives ESEA funds to permit regular U.S. Armed Services recruitment activities on school grounds, in a manner reasonably accessible to all its students.
Prohibits: (1) use of ESEA funds for federally-sponsored national testing, unless specifically authorized by law, with an exception for representative samples in certain international comparative assessments; and (2) use of Federal funds or sanctions for mandatory national certification of teachers and paraprofessionals.
Provides that nothing in ESEA shall be construed to permit the development of a national database of personally identifiable information on individuals involved in studies or in data collection efforts under ESEA.
Requires States receiving ESEA funds to establish policies allowing transfer to a safe public school within their LEA for students who attend persistently dangerous schools or who are victims of violent crimes in school or on school grounds.
Title X: Repeals, Redesignations, And Amendments to Other Statutes - Part A: Repeals - Repeals provisions relating to the Advanced Placement: (1) fee payment program, under the Higher Education Amendments of 1992; and (2) incentive program, under the Higher Education Amendments of 1998. Repeals certain provisions relating to Ready to Learn Television, under the General Education Provisions Act (but reauthorizes such program under ESEA II-D-4).
(Sec. 1011) Repeals provisions under the Goals 2000: Educate America Act for: (1) the National Education Goals Panel; and (2) an International Education Program.
Repeals the following ESEA provisions: (1) title X, Programs of National Significance (many of which are revised and reauthorized under the new title V, part D); (2) title XI, Coordinated Services; (3) title XII, School Facilities Infrastructure Improvement, a program of grants for school construction and renovation; (4) specified provisions relating to title XIII support and assistance programs to improve education (which are redesignated under another Act); and (5) title XIV (General Provisions, which are revised and redesignated as title IX).
Repeals the Troops-to-Teachers Program Act of 1999 (but sets forth a revised form of the Troops-to-Teachers Program under title II of this Act).
Part B: Redesignations - Redesignates and revises the following current parts of ESEA as new parts of the Educational Research, Development, Dissemination, and Improvement Act of 1994: (1) Comprehensive Regional Assistance Centers (current title XIII part A as new part K); (2) National Diffusion Network (current XIII-B as new L); (3) Eisenhower Regional Mathematics and Science Education Consortia (current XIII-C as new M); and (4) technology-based technical assistance (current XIII-D as new N).
Part C: Homeless Education - McKinney-Vento Homeless Education Assistance Improvement Act of 2001 - Amends the McKinney-Vento Homeless Assistance Act to revise and reauthorize requirements for education for homeless children and youth. Requires schools to: (1) immediately enroll homeless children and youth; and (2) keep children in their school of origin whenever possible and appropriate. Requires public notice of the educational rights of homeless children and youth to be disseminated in school districts. Prohibits States receiving such program funds from segregating a homeless child, either in a separate school or in a separate program within a school, based on that student's status as homeless. Allows States flexibility in use of program funds for Statewide support and technical assistance activities. Increases the amount of program funds available to small States.
Part D: Native American Education Improvement - Native American Education Improvement Act of 2001 - Amends the Education Amendments of 1978 to revise provisions for Bureau of Indian Affairs (BIA) programs. Requires BIA schools to be accredited within a specified period. Authorizes the Secretary of the Interior to take certain corrective actions for BIA schools still unaccredited after such period.
(Sec. 1043) Amends the Tribally Controlled Schools Act of 1988 to revise and reauthorize grant and school endowment programs.
(Sec. 1044) Authorizes the Ojibwa Indian School in Belcourt, North Dakota, to use funds under the Tribally Controlled Schools Act of 1988 to make certain lease payments.
(Sec. 1045) Amends the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments Act of 1988 to prohibit the Secretary of the Interior from disqualifying from continued receipt of BIA general assistance payment an otherwise eligible Indian because such individual is enrolled at least half-time and making satisfactory in a study or training program.
Part E: Higher Education Act of 1965 - Amends the Higher Education Act of 1965 (HEA) to establish a program for Preparing Tomorrow's Teachers to Use Technology as a new part B of title II of HEA. Provides for continuation of awards under a similar program currently under ESEA.
Part F: General Education Provisions Act - Amends the General Education Provisions Act with respect to student privacy, parental access to information, and administration of certain physical examinations to minors.
Part G: Miscellaneous Other Statutes - Amends Federal law relating to compensation for an Under Secretary of Education.
(Sec. 1072) Amends the Department of Education Organization Act to: (1) direct the Secretary to designate an office and appoint a coordinator of Department of Education activities as they relate to outlying areas; and (2) rename the Office of Bilingual Education and Minority Languages Affairs as the Office of Educational Services for Limited English Proficient Children.
(Sec. 1073) Amends the Education Flexibility Partnership Act of 1999 to revise references to specified ESEA and other program requirements that may be waived under such Act.
(Sec. 1074) Amends the Educational Research, Development, Dissemination, and Improvement Act of 1994 to provide for continuation of awards for certain multiyear grants and contracts.
(Sec. 1075) Amends the National Child Protection Act of 1993 to allow certain funds under such Act to be made available for background checks on individuals who are employed, or seek employment, with schools in any capacity, including as a child care provider, teacher, or another member of school personnel.
[107th Congress Public Law 110]
[From the U.S. Government Publishing Office]
<DOC>
[DOCID: f:publ110.107]
[[Page 115 STAT. 1425]]
Public Law 107-110
107th Congress
An Act
To close the achievement gap with accountability, flexibility, and
choice, so that no child is left behind. <<NOTE: Jan. 8, 2002 - [H.R.
1]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: No Child Left
Behind Act of 2001. Education. Inter-governmental relations.>>
SECTION 1. SHORT TITLE. <<NOTE: 20 USC 6301 note.>>
This title may be cited as the ``No Child Left Behind Act of 2001''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.
Sec. 6. Table of contents of Elementary and Secondary Education Act of
1965.
TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
Sec. 101. Improving the academic achievement of the disadvantaged.
TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND
PRINCIPALS
Sec. 201. Teacher and principal training and recruiting fund.
Sec. 202. Continuation of awards.
TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
Sec. 301. Language instruction for limited English proficient children
and immigrant children and youth.
TITLE IV--21ST CENTURY SCHOOLS
Sec. 401. 21st Century schools.
TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
Sec. 501. Innovative programs and parental choice provisions.
Sec. 502. Continuation of awards.
TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
Sec. 601. Flexibility and accountability.
Sec. 602. Amendment to the National Education Statistics Act of 1994.
TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
Sec. 701. Indians, Native Hawaiians, and Alaska Natives.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.
TITLE VIII--IMPACT AID PROGRAM
Sec. 801. Payments relating to Federal acquisition of real property.
[[Page 115 STAT. 1426]]
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.
TITLE IX--GENERAL PROVISIONS
Sec. 901. General provisions.
TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES
Part A--Repeals
Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.
Part B--Redesignations
Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education
Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.
Part C--Homeless Education
Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.
Part D--Native American Education Improvement
Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian School.
Sec. 1045. Enrollment and general assistance payments.
Part E--Higher Education Act of 1965
Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.
Part F--General Education Provisions Act
Sec. 1061. Student privacy, parental access to information, and
administration of certain physical examinations to minors.
Sec. 1062. Technical corrections.
Part G--Miscellaneous Other Statutes
Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and
Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.
SEC. 3. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.).
SEC. 4. TRANSITION. <<NOTE: 20 USC 6301 note.>>
(a) Multi-Year Awards.--Except as otherwise provided in this Act,
the recipient of a multi-year award under the Elementary and Secondary
Education Act of 1965, as that Act was in effect prior to the date of
enactment of this Act, shall continue to receive funds in accordance
with the terms of that award, except that no additional funds may be
awarded after September 30, 2002.
[[Page 115 STAT. 1427]]
(b) Planning and Transition.--Notwithstanding any other provision of
law, a recipient of funds under the Elementary and Secondary Education
Act of 1965, as that Act was in effect prior to the date of enactment of
this Act, may use funds available to the recipient under that
predecessor authority to carry out necessary and reasonable planning and
transition activities in order to ensure an orderly implementation of
programs authorized by this Act, and the amendments made by this Act.
(c) Orderly Transition.--The Secretary shall take such steps as are
necessary to provide for the orderly transition to, and implementation
of, programs authorized by this Act, and by the amendments made by this
Act, from programs authorized by the Elementary and Secondary Education
Act of 1965, as that Act was in effect prior to the date of enactment of
this Act.
SEC. 5. EFFECTIVE DATE. <<NOTE: 20 USC 6301 note.>>
(a) In General.--Except as otherwise provided in this Act, this Act,
and the amendments made by this Act, shall be effective upon the date of
enactment of this Act.
(b) Noncompetitive Programs.--With respect to noncompetitive
programs under which any funds are allotted by the Secretary of
Education to recipients on the basis of a formula, this Act, and the
amendments made by this Act, shall take effect on July 1, 2002.
(c) Competitive Programs.--With respect to programs that are
conducted by the Secretary on a competitive basis, this Act, and the
amendments made by this Act, shall take effect with respect to
appropriations for use under those programs for fiscal year 2002.
(d) Impact Aid.--With respect to title VIII (Impact Aid), this Act,
and the amendments made by this Act, shall take effect with respect to
appropriations for use under that title for fiscal year 2002.
SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY EDUCATION ACT OF
1965.
The Act is amended--
(1) in the heading of section 1, <<NOTE: 20 USC 6301
note.>> by striking ``table of contents'' and inserting ``short
title''; and
(2) by adding after section 1 the following new section:
``SEC. 2. TABLE OF CONTENTS.
``The table of contents for this Act is as follows:
``Sec. 1. Short title.
``Sec. 2. Table of contents.
``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.
``Part A--Improving Basic Programs Operated by Local Educational
Agencies
``Subpart 1--Basic Program Requirements
``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.
[[Page 115 STAT. 1428]]
``Sec. 1115. Targeted assistance schools.
``Sec. 1116. Academic assessment and local educational agency and school
improvement.
``Sec. 1117. School support and recognition.
``Sec. 1118. Parental involvement.
``Sec. 1119. Qualifications for teachers and paraprofessionals.
``Sec. 1120. Participation of children enrolled in private schools.
``Sec. 1120A. Fiscal requirements.
``Sec. 1120B. Coordination requirements.
``Subpart 2--Allocations
``Sec. 1121. Grants for the outlying areas and the Secretary of the
Interior.
``Sec. 1122. Allocations to States.
``Sec. 1124. Basic grants to local educational agencies.
``Sec. 1124A. Concentration grants to local educational agencies.
``Sec. 1125. Targeted grants to local educational agencies.
``Sec. 1125AA. Adequacy of funding of targeted grants to local
educational agencies in fiscal years after fiscal year 2001.
``Sec. 1125A. Education finance incentive grant program.
``Sec. 1126. Special allocation procedures.
``Sec. 1127. Carryover and waiver.
``Part B--Student Reading Skills Improvement Grants
``Subpart 1--Reading First
``Sec. 1201. Purposes.
``Sec. 1202. Formula grants to State educational agencies.
``Sec. 1203. State formula grant applications.
``Sec. 1204. Targeted assistance grants.
``Sec. 1205. External evaluation.
``Sec. 1206. National activities.
``Sec. 1207. Information dissemination.
``Sec. 1208. Definitions.
``Subpart 2--Early Reading First
``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local Early Reading First grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.
``Subpart 3--William F. Goodling Even Start Family Literacy Programs
``Sec. 1231. Statement of purpose.
``Sec. 1232. Program authorized.
``Sec. 1233. State educational agency programs.
``Sec. 1234. Uses of funds.
``Sec. 1235. Program elements.
``Sec. 1236. Eligible participants.
``Sec. 1237. Applications.
``Sec. 1238. Award of subgrants.
``Sec. 1239. Evaluation.
``Sec. 1240. Indicators of program quality.
``Sec. 1241. Research.
``Sec. 1242. Construction.
``Subpart 4--Improving Literacy Through School Libraries
``Sec. 1251. Improving literacy through school libraries.
``Part C--Education of Migratory Children
``Sec. 1301. Program purpose.
``Sec. 1302. Program authorized.
``Sec. 1303. State allocations.
``Sec. 1304. State applications; services.
``Sec. 1305. Secretarial approval; peer review.
``Sec. 1306. Comprehensive needs assessment and service-delivery plan;
authorized activities.
``Sec. 1307. Bypass.
``Sec. 1308. Coordination of migrant education activities.
``Sec. 1309. Definitions.
[[Page 115 STAT. 1429]]
``Part D--Prevention and Intervention Programs for Children and Youth
who are Neglected, Delinquent, or At-risk
``Sec. 1401. Purpose and program authorization.
``Sec. 1402. Payments for programs under this part.
``Subpart 1--State Agency Programs
``Sec. 1411. Eligibility.
``Sec. 1412. Allocation of funds.
``Sec. 1413. State reallocation of funds.
``Sec. 1414. State plan and State agency applications.
``Sec. 1415. Use of funds.
``Sec. 1416. Institution-wide projects.
``Sec. 1417. Three-year programs or projects.
``Sec. 1418. Transition services.
``Sec. 1419. Evaluation; technical assistance; annual model program.
``Subpart 2--Local Agency Programs
``Sec. 1421. Purpose.
``Sec. 1422. Programs operated by local educational agencies.
``Sec. 1423. Local educational agency applications.
``Sec. 1424. Uses of funds.
``Sec. 1425. Program requirements for correctional facilities receiving
funds under this section.
``Sec. 1426. Accountability.
``Subpart 3--General Provisions
``Sec. 1431. Program evaluations.
``Sec. 1432. Definitions.
``Part E--National Assessment of Title I
``Sec. 1501. Evaluations.
``Sec. 1502. Demonstrations of innovative practices.
``Sec. 1503. Assessment evaluation.
``Sec. 1504. Close Up fellowship program.
``Part F--Comprehensive School Reform
``Sec. 1601. Purpose.
``Sec. 1602. Program authorization.
``Sec. 1603. State applications.
``Sec. 1604. State use of funds.
``Sec. 1605. Local applications.
``Sec. 1606. Local use of funds.
``Sec. 1607. Evaluation and reports.
``Sec. 1608. Quality initiatives.
``Part G--Advanced Placement Programs
``Sec. 1701. Short title.
``Sec. 1702. Purposes.
``Sec. 1703. Funding distribution rule.
``Sec. 1704. Advanced placement test fee program.
``Sec. 1705. Advanced placement incentive program grants.
``Sec. 1706. Supplement, not supplant.
``Sec. 1707. Definitions.
``Part H--School Dropout Prevention
``Sec. 1801. Short title.
``Sec. 1802. Purpose.
``Sec. 1803. Authorization of appropriations.
``Subpart 1--Coordinated National Strategy
``Sec. 1811. National activities.
``Subpart 2--School Dropout Prevention Initiative
``Sec. 1821. Definitions.
``Sec. 1822. Program authorized.
``Sec. 1823. Applications.
``Sec. 1824. State reservation.
``Sec. 1825. Strategies and capacity building.
``Sec. 1826. Selection of local educational agencies for subgrants.
[[Page 115 STAT. 1430]]
``Sec. 1827. Community based organizations.
``Sec. 1828. Technical assistance.
``Sec. 1829. School dropout rate calculation.
``Sec. 1830. Reporting and accountability.
``Part I--General Provisions
``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or
control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.
``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS
AND PRINCIPALS
``Part A--Teacher and Principal Training and Recruiting Fund
``Sec. 2101. Purpose.
``Sec. 2102. Definitions.
``Sec. 2103. Authorizations of appropriations.
``Subpart 1--Grants to States
``Sec. 2111. Allotments to States.
``Sec. 2112. State applications.
``Sec. 2113. State use of funds.
``Subpart 2--Subgrants to Local Educational Agencies
``Sec. 2121. Allocations to local educational agencies.
``Sec. 2122. Local applications and needs assessment.
``Sec. 2123. Local use of funds.
``Subpart 3--Subgrants to Eligible Partnerships
``Sec. 2131. Definitions.
``Sec. 2132. Subgrants.
``Sec. 2133. Applications.
``Sec. 2134. Use of funds.
``Subpart 4--Accountability
``Sec. 2141. Technical assistance and accountability.
``Subpart 5--National Activities
``Sec. 2151. National activities of demonstrated effectiveness.
``Part B--Mathematics and Science Partnerships
``Sec. 2201. Purpose; definitions.
``Sec. 2202. Grants for mathematics and science partnerships.
``Sec. 2203. Authorization of appropriations.
``Part C--Innovation for Teacher Quality
``Subpart 1--Transitions to Teaching
``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM
``Sec. 2301. Definitions.
``Sec. 2302. Authorization of Troops-to-Teachers Program.
``Sec. 2303. Recruitment and selection of program participants.
``Sec. 2304. Participation agreement and financial assistance.
``Sec. 2305. Participation by States.
``Sec. 2306. Support of innovative preretirement teacher certification
programs.
``Sec. 2307. Reporting requirements.
``CHAPTER B--TRANSITION TO TEACHING PROGRAM
``Sec. 2311. Purposes.
``Sec. 2312. Definitions.
``Sec. 2313. Grant program.
``Sec. 2314. Evaluation and accountability for recruiting and retaining
teachers.
``CHAPTER C--GENERAL PROVISIONS
``Sec. 2321. Authorization of appropriations.
[[Page 115 STAT. 1431]]
``Subpart 2--National Writing Project
``Sec. 2331. Purposes.
``Sec. 2332. National Writing Project.
``Subpart 3--Civic Education
``Sec. 2341. Short title.
``Sec. 2342. Purpose.
``Sec. 2343. General authority.
``Sec. 2344. We the People program.
``Sec. 2345. Cooperative civic education and economic education exchange
programs.
``Sec. 2346. Authorization of appropriations.
``Subpart 4--Teaching of Traditional American History
``Sec. 2351. Establishment of program.
``Sec. 2352. Authorization of appropriations.
``Subpart 5--Teacher Liability Protection
``Sec. 2361. Short title.
``Sec. 2362. Purpose.
``Sec. 2363. Definitions.
``Sec. 2364. Applicability.
``Sec. 2365. Preemption and election of State nonapplicability.
``Sec. 2366. Limitation on liability for teachers.
``Sec. 2367. Allocation of responsibility for noneconomic loss.
``Sec. 2368. Effective date.
``Part D--Enhancing Education Through Technology
``Sec. 2401. Short title.
``Sec. 2402. Purposes and goals.
``Sec. 2403. Definitions.
``Sec. 2404. Authorization of appropriations.
``Subpart 1--State and Local Technology Grants
``Sec. 2411. Allotment and reallotment.
``Sec. 2412. Use of allotment by State.
``Sec. 2413. State applications.
``Sec. 2414. Local applications.
``Sec. 2415. State activities.
``Sec. 2416. Local activities.
``Subpart 2--National Technology Activities
``Sec. 2421. National activities.
``Sec. 2422. National education technology plan.
``Subpart 3--Ready-to-Learn Television
``Sec. 2431. Ready-to-Learn Television.
``Subpart 4--Limitation on Availability of Certain Funds for Schools
``Sec. 2441. Internet safety.
``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
``Sec. 3001. Authorizations of appropriations; condition on
effectiveness of parts.
``Part A--English Language Acquisition, Language Enhancement, and
Academic Achievement Act
``Sec. 3101. Short title.
``Sec. 3102. Purposes.
``Subpart 1--Grants and Subgrants for English Language Acquisition and
Language Enhancement
``Sec. 3111. Formula grants to States.
``Sec. 3112. Native American and Alaska Native children in school.
``Sec. 3113. State and specially qualified agency plans.
``Sec. 3114. Within-State allocations.
``Sec. 3115. Subgrants to eligible entities.
``Sec. 3116. Local plans.
``Subpart 2--Accountability and Administration
``Sec. 3121. Evaluations.
[[Page 115 STAT. 1432]]
``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.
``Subpart 3--National Activities
``Sec. 3131. National professional development project.
``Subpart 4--Definitions
``Sec. 3141. Eligible entity.
``Part B--Improving Language Instruction Educational Programs
``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.
``Subpart 1--Program Development and Enhancement
``Sec. 3211. Financial assistance for language instruction educational
programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.
``Subpart 2--Research, Evaluation, and Dissemination
``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.
``Subpart 3--Professional Development
``Sec. 3231. Professional development grants.
``Subpart 4--Emergency Immigrant Education Program
``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.
``Subpart 5--Administration
``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.
``Part C--General Provisions
``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.
``TITLE IV--21ST CENTURY SCHOOLS
``Part A--Safe and Drug-Free Schools and Communities
``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.
``Subpart 1--State Grants
``Sec. 4111. Reservations and allotments.
[[Page 115 STAT. 1433]]
``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.
``Subpart 2--National Programs
``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory
Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.
``Subpart 3--Gun Possession
``Sec. 4141. Gun-free requirements.
``Subpart 4--General Provisions
``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.
``Part B--21st Century Community Learning Centers
``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.
``Part C--Environmental Tobacco Smoke
``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.
``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
``Part A--Innovative Programs
``Sec. 5101. Purposes, State and local responsibility.
``Subpart 1--State and Local Programs
``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.
``Subpart 2--State Programs
``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.
``Subpart 3--Local Innovative Education Programs
``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.
``Subpart 4--General Provisions
``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.
[[Page 115 STAT. 1434]]
``Part B--Public Charter Schools
``Subpart 1--Charter School Programs
``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for
successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.
``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
Facility Acquisition, Construction, and Renovation
``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.
``Subpart 3--Voluntary Public School Choice Programs
``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.
``Part C--Magnet Schools Assistance
``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.
``Part D--Fund for the Improvement of Education
``Sec. 5401. Authorization of appropriations.
``Subpart 1--Fund for the Improvement of Education
``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.
``Subpart 2--Elementary and Secondary School Counseling Programs
``Sec. 5421. Elementary and secondary school counseling programs.
``Subpart 3--Partnerships in Character Education
``Sec. 5431. Partnerships in Character Education program.
``Subpart 4--Smaller Learning Communities
``Sec. 5441. Smaller learning communities.
[[Page 115 STAT. 1435]]
``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution
Program
``Sec. 5451. Inexpensive book distribution program for reading
motivation.
``Subpart 6--Gifted and Talented Students
``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.
``Subpart 7--Star Schools Program
``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.
``Subpart 8--Ready to Teach
``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.
``Subpart 9--Foreign Language Assistance Program
``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.
``Subpart 10--Physical Education
``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.
``Subpart 11--Community Technology Centers
``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.
``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange
Programs for Alaska Natives, Native Hawaiians, and Their Historical
Whaling and Trading Partners in Massachusetts
``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.
``Subpart 13--Excellence in Economic Education
``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.
``Subpart 14--Grants to Improve the Mental Health of Children
``Sec. 5541. Grants for the integration of schools and mental health
systems.
[[Page 115 STAT. 1436]]
``Sec. 5542. Promotion of school readiness through early childhood
emotional and social development.
``Subpart 15--Arts in Education
``Sec. 5551. Assistance for arts education.
``Subpart 16--Parental Assistance and Local Family Information Centers
``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.
``Subpart 17--Combatting Domestic Violence
``Sec. 5571. Grants to combat the impact of experiencing or witnessing
domestic violence on elementary and secondary school
children.
``Subpart 18--Healthy, High-Performance Schools
``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.
``Subpart 19--Grants for Capital Expenses of Providing Equitable
Services for Private School Students
``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. Termination.
``Subpart 20--Additional Assistance for Certain Local Educational
Agencies Impacted by Federal Property Acquisition
``Sec. 5601. Reservation.
``Sec. 5602. Eligibility.
``Sec. 5603. Maximum amount.
``Subpart 21--Women's Educational Equity Act
``Sec. 5611. Short title and findings.
``Sec. 5612. Statement of purpose.
``Sec. 5613. Programs authorized.
``Sec. 5614. Applications.
``Sec. 5615. Criteria and priorities.
``Sec. 5616. Report.
``Sec. 5617. Administration.
``Sec. 5618. Amount.
``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
``Part A--Improving Academic Achievement
``Subpart 1--Accountability
``Sec. 6111. Grants for State assessments and related activities.
``Sec. 6112. Grants for enhanced assessment instruments.
``Sec. 6113. Funding.
``Subpart 2--Funding Transferability for State and Local Educational
Agencies
``Sec. 6121. Short title.
``Sec. 6122. Purpose.
``Sec. 6123. Transferability of funds.
``Subpart 3--State and Local Flexibility Demonstration
``Sec. 6131. Short title.
``Sec. 6132. Purpose.
``Sec. 6133. General provision.
[[Page 115 STAT. 1437]]
``CHAPTER A--STATE FLEXIBILITY AUTHORITY
``Sec. 6141. State flexibility.
``Sec. 6142. Consolidation and use of funds.
``Sec. 6143. Performance review and penalties.
``Sec. 6144. Renewal of grant of flexibility authority.
``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION
``Sec. 6151. Local flexibility demonstration agreements.
``Sec. 6152. Consolidation and use of funds.
``Sec. 6153. Limitations on administrative expenditures.
``Sec. 6154. Performance review and penalties.
``Sec. 6155. Renewal of local flexibility demonstration agreement.
``Sec. 6156. Reports.
``Subpart 4--State Accountability for Adequate Yearly Progress
``Sec. 6161. Accountability for adequate yearly progress.
``Sec. 6162. Peer review.
``Sec. 6163. Technical assistance.
``Sec. 6164. Report to Congress.
``Part B--Rural Education Initiative
``Sec. 6201. Short title.
``Sec. 6202. Purpose.
``Subpart 1--Small, Rural School Achievement Program
``Sec. 6211. Use of applicable funding.
``Sec. 6212. Grant program authorized.
``Sec. 6213. Accountability.
``Subpart 2--Rural and Low-Income School Program
``Sec. 6221. Program authorized.
``Sec. 6222. Uses of funds.
``Sec. 6223. Applications.
``Sec. 6224. Accountability.
``Subpart 3--General Provisions
``Sec. 6231. Annual average daily attendance determination.
``Sec. 6232. Supplement, not supplant.
``Sec. 6233. Rule of construction.
``Sec. 6234. orization of appropriations.
``Part C--General Provisions
``Sec. 6301. Prohibition against Federal mandates, direction, or
control.
``Sec. 6302. Rule of construction on equalized spending.
``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
``Part A--Indian Education
``Sec. 7101. Statement of policy.
``Sec. 7102. Purpose.
``Subpart 1--Formula Grants to Local Educational Agencies
``Sec. 7111. Purpose.
``Sec. 7112. Grants to local educational agencies and tribes.
``Sec. 7113. Amount of grants.
``Sec. 7114. Applications.
``Sec. 7115. Authorized services and activities.
``Sec. 7116. Integration of services authorized.
``Sec. 7117. Student eligibility forms.
``Sec. 7118. Payments.
``Sec. 7119. State educational agency review.
``Subpart 2--Special Programs and Projects To Improve Educational
Opportunities for Indian Children
``Sec. 7121. Improvement of educational opportunities for Indian
children.
``Sec. 7122. Professional development for teachers and education
professionals.
``Subpart 3--National Activities
``Sec. 7131. National research activities.
[[Page 115 STAT. 1438]]
``Sec. 7132. In-service training for teachers of Indian children.
``Sec. 7133. Fellowships for Indian students.
``Sec. 7134. Gifted and talented Indian students.
``Sec. 7135. Grants to tribes for education administrative planning and
development.
``Sec. 7136. Improvement of educational opportunities for adult Indians.
``Subpart 4--Federal Administration
``Sec. 7141. National Advisory Council on Indian Education.
``Sec. 7142. Peer review.
``Sec. 7143. Preference for Indian applicants.
``Sec. 7144. Minimum grant criteria.
``Subpart 5--Definitions; Authorizations of Appropriations
``Sec. 7151. Definitions.
``Sec. 7152. Authorizations of appropriations.
``Part B--Native Hawaiian Education
``Sec. 7201. Short title.
``Sec. 7202. Findings.
``Sec. 7203. Purposes.
``Sec. 7204. Native Hawaiian Education Council and island councils.
``Sec. 7205. Program authorized.
``Sec. 7206. Administrative provisions.
``Sec. 7207. Definitions.
``Part C--Aalaska Native Education
``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.
``TITLE VIII--IMPACT AID
``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
`Sec. 8004. Policies and procedures relating to children residing on
Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.
``TITLE IX--GENERAL PROVISIONS
``Part A--Definitions
``Sec. 9101. Definitions.
``Sec. 9102. Applicability of title.
``Sec. 9103. Applicability to Bureau of Indian Affairs operated schools.
``Part B--Flexibility in the use of Administrative and Other Funds
``Sec. 9201. Consolidation of State administrative funds for elementary
and secondary education programs.
``Sec. 9202. Single local educational agency States.
``Sec. 9203. Consolidation of funds for local administration.
``Sec. 9204. Consolidated set-aside for Department of the Interior
funds.
``Part C--Coordination of Programs; Consolidated State and Local Plans
and Applications
``Sec. 9301. Purpose.
``Sec. 9302. Optional consolidated State plans or applications.
``Sec. 9303. Consolidated reporting.
``Sec. 9304. General applicability of State educational agency
assurances.
``Sec. 9305. Consolidated local plans or applications.
[[Page 115 STAT. 1439]]
``Sec. 9306. Other general assurances.
``Part D--Waivers
``Sec. 9401. Waivers of statutory and regulatory requirements.
``Part E--Uniform Provisions
``Subpart 1--Private Schools
``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school
children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or
instruction.
``Sec. 9506. Private, religious, and home schools.
``Subpart 2--Other Provisions
``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal
funds.
``Sec. 9528. Armed Forces recruiter access to students and student
recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for
teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.
``Part F--Evaluations
``Sec. 9601. Evaluations.''.
TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED.
Title I of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.) is amended to read as follows:
``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED
``SEC. 1001. STATEMENT OF PURPOSE. <<NOTE: 20 USC 6301.>>
``The purpose of this title is to ensure that all children have a
fair, equal, and significant opportunity to obtain a high-quality
education and reach, at a minimum, proficiency on challenging State
academic achievement standards and state academic assessments. This
purpose can be accomplished by--
``(1) ensuring that high-quality academic assessments,
accountability systems, teacher preparation and training,
curriculum, and instructional materials are aligned with
challenging State academic standards so that students, teachers,
[[Page 115 STAT. 1440]]
parents, and administrators can measure progress against common
expectations for student academic achievement;
``(2) meeting the educational needs of low-achieving
children in our Nation's highest-poverty schools, limited
English proficient children, migratory children, children with
disabilities, Indian children, neglected or delinquent children,
and young children in need of reading assistance;
``(3) closing the achievement gap between high- and low-
performing children, especially the achievement gaps between
minority and nonminority students, and between disadvantaged
children and their more advantaged peers;
``(4) holding schools, local educational agencies, and
States accountable for improving the academic achievement of all
students, and identifying and turning around low-performing
schools that have failed to provide a high-quality education to
their students, while providing alternatives to students in such
schools to enable the students to receive a high-quality
education;
``(5) distributing and targeting resources sufficiently to
make a difference to local educational agencies and schools
where needs are greatest;
``(6) improving and strengthening accountability, teaching,
and learning by using State assessment systems designed to
ensure that students are meeting challenging State academic
achievement and content standards and increasing achievement
overall, but especially for the disadvantaged;
``(7) providing greater decisionmaking authority and
flexibility to schools and teachers in exchange for greater
responsibility for student performance;
``(8) providing children an enriched and accelerated
educational program, including the use of schoolwide programs or
additional services that increase the amount and quality of
instructional time;
``(9) promoting schoolwide reform and ensuring the access of
children to effective, scientifically based instructional
strategies and challenging academic content;
``(10) significantly elevating the quality of instruction by
providing staff in participating schools with substantial
opportunities for professional development;
``(11) coordinating services under all parts of this title
with each other, with other educational services, and, to the
extent feasible, with other agencies providing services to
youth, children, and families; and
``(12) affording parents substantial and meaningful
opportunities to participate in the education of their children.
``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6302.>>
``(a) Local Educational Agency Grants.--For the purpose of carrying
out part A, there are authorized to be appropriated--
``(1) $13,500,000,000 for fiscal year 2002;
``(2) $16,000,000,000 for fiscal year 2003;
``(3) $18,500,000,000 for fiscal year 2004;
``(4) $20,500,000,000 for fiscal year 2005;
``(5) $22,750,000,000 for fiscal year 2006; and
``(6) $25,000,000,000 for fiscal year 2007.
``(b) Reading First.--
[[Page 115 STAT. 1441]]
``(1) Reading first.--For the purpose of carrying out
subpart 1 of part B, there are authorized to be appropriated
$900,000,000 for fiscal year 2002 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
``(2) Early reading first.--For the purpose of carrying out
subpart 2 of part B, there are authorized to be appropriated
$75,000,000 for fiscal year 2002 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
``(3) Even start.--For the purpose of carrying out subpart 3
of part B, there are authorized to be appropriated $260,000,000
for fiscal year 2002 and such sums as may be necessary for each
of the 5 succeeding fiscal years.
``(4) Improving literacy through school libraries.--For the
purpose of carrying out subpart 4 of part B, there are
authorized to be appropriated $250,000,000 for fiscal year 2002
and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(c) Education of Migratory Children.--For the purpose of carrying
out part C, there are authorized to be appropriated $410,000,000 for
fiscal year 2002 and such sums as may be necessary for each of the 5
succeeding fiscal years.
``(d) Prevention and Intervention Programs for Youth Who Are
Neglected, Delinquent, or at Risk.--For the purpose of carrying out part
D, there are authorized to be appropriated $50,000,000 for fiscal year
2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(e) Federal Activities.--
``(1) Sections 1501 and 1502.--For the purpose of carrying
out sections 1501 and 1502, there are authorized to be
appropriated such sums as may be necessary for fiscal year 2002
and each of the 5 succeeding fiscal years.
``(2) Section 1504.--
``(A) In general.--For the purpose of carrying out
section 1504, there are authorized to be appropriated
such sums as may be necessary for fiscal year 2002 and
for each of the 5 succeeding fiscal years.
``(B) Special rule.--Of the funds appropriated
pursuant to subparagraph (A), not more than 30 percent
may be used for teachers associated with students
participating in the programs described in subsections
(a)(1), (b)(1), and (c)(1).
``(f) Comprehensive School Reform.--For the purpose of carrying out
part F, there are authorized to be appropriated such sums as may be
necessary for fiscal year 2002 and each of the 5 succeeding fiscal
years.
``(g) Advanced Placement.--For the purposes of carrying out part G,
there are authorized to be appropriated such sums for fiscal year 2002
and each 5 succeeding fiscal year.
``(h) School Dropout Prevention.--For the purpose of carrying out
part H, there are authorized to be appropriated $125,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years, of which--
``(1) up to 10 percent shall be available to carry out
subpart 1 of part H for each fiscal year; and
``(2) the remainder shall be available to carry out subpart
2 of part H for each fiscal year.
[[Page 115 STAT. 1442]]
``(i) School Improvement.--For the purpose of carrying out section
1003(g), there are authorized to be appropriated $500,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``SEC. 1003. <<NOTE: 20 USC 6303.>> SCHOOL IMPROVEMENT.
``(a) State Reservations.--Each State shall reserve 2 percent of the
amount the State receives under subpart 2 of part A for fiscal years
2002 and 2003, and 4 percent of the amount received under such subpart
for fiscal years 2004 through 2007, to carry out subsection (b) and to
carry out the State's responsibilities under sections 1116 and 1117,
including carrying out the State educational agency's statewide system
of technical assistance and support for local educational agencies.
``(b) Uses.--Of the amount reserved under subsection (a) for any
fiscal year, the State educational agency--
``(1) shall allocate not less than 95 percent of that amount
directly to local educational agencies for schools identified
for school improvement, corrective action, and restructuring,
for activities under section 1116(b); or
``(2) may, with the approval of the local educational
agency, directly provide for these activities or arrange for
their provision through other entities such as school support
teams or educational service agencies.
``(c) Priority.--The State educational agency, in allocating funds
to local educational agencies under this section, shall give priority to
local educational agencies that--
``(1) serve the lowest-achieving schools;
``(2) demonstrate the greatest need for such funds; and
``(3) demonstrate the strongest commitment to ensuring that
such funds are used to enable the lowest-achieving schools to
meet the progress goals in school improvement plans under
section 1116 (b)(3)(A)(v).
``(d) Unused Funds.--If, after consultation with local educational
agencies in the State, the State educational agency determines that the
amount of funds reserved to carry out subsection (b) is greater than the
amount needed to provide the assistance described in that subsection,
the State educational agency shall allocate the excess amount to local
educational agencies in accordance with--
``(1) the relative allocations the State educational agency
made to those agencies for that fiscal year under subpart 2 of
part A; or
``(2) section 1126(c).
``(e) Special Rule.--Notwithstanding any other provision of this
section, the amount of funds reserved by the State educational agency
under subsection (a) in any fiscal year shall not decrease the amount of
funds each local educational agency receives under subpart 2 below the
amount received by such local educational agency under such subpart for
the preceding fiscal year.
``(f) <<NOTE: Public information. Records.>> Reporting.--The State
educational agency shall make publicly available a list of those schools
that have received funds or services pursuant to subsection (b) and the
percentage of students from each school from families with incomes below
the poverty line.
``(g) Assistance for Local School Improvement.--
[[Page 115 STAT. 1443]]
``(1) Program authorized.--The Secretary shall award grants
to States to enable the States to provide subgrants to local
educational agencies for the purpose of providing assistance for
school improvement consistent with section 1116.
``(2) State allotments.--Such grants shall be allotted among
States, the Bureau of Indian Affairs, and the outlying areas, in
proportion to the funds received by the States, the Bureau of
Indian Affairs, and the outlying areas, respectively, for the
fiscal year under parts A, C, and D of this title. The Secretary
shall expeditiously allot a portion of such funds to States for
the purpose of assisting local educational agencies and schools
that were in school improvement status on the date preceding the
date of enactment of the No Child Left Behind Act of 2001.
``(3) Reallocations.--If a State does not receive funds
under this subsection, the Secretary shall reallocate such funds
to other States in the same proportion funds are allocated under
paragraph (2).
``(4) State applications.--Each State educational agency
that desires to receive funds under this subsection shall submit
an application to the Secretary at such time, and containing
such information, as the Secretary shall reasonably require,
except that such requirement shall be waived if a State
educational agency submitted such information as part of its
State plan under this part. Each State application shall
describe how the State educational agency will allocate such
funds in order to assist the State educational agency and local
educational agencies in complying with school improvement,
corrective action, and restructuring requirements of section
1116.
``(5) Local educational agency grants.--A grant to a local
educational agency under this subsection shall be--
``(A) of sufficient size and scope to support the
activities required under sections 1116 and 1117, but
not less than $50,000 and not more than $500,000 for
each participating school;
``(B) integrated with other funds awarded by the
State under this Act; and
``(C) renewable for two additional 1-year periods if
schools are meeting the goals in their school
improvement plans developed under section 1116.
``(6) Priority.--The State, in awarding such grants, shall
give priority to local educational agencies with the lowest-
achieving schools that demonstrate--
``(A) the greatest need for such funds; and
``(B) the strongest commitment to ensuring that such
funds are used to provide adequate resources to enable
the lowest-achieving schools to meet the goals under
school and local educational agency improvement,
corrective action, and restructuring plans under section
1116.
``(7) Allocation.--A State educational agency that receives
a grant under this subsection shall allocate at least 95 percent
of the grant funds directly to local educational agencies for
schools identified for school improvement, corrective action, or
restructuring to carry out activities under section 1116(b), or
may, with the approval of the local educational agency, directly
provide for these activities or arrange for their provision
[[Page 115 STAT. 1444]]
through other entities such as school support teams or
educational service agencies.
``(8) Administrative costs.--A State educational agency that
receives a grant award under this subsection may reserve not
more than 5 percent of such grant funds for administration,
evaluation, and technical assistance expenses.
``(9) Local awards.--Each local educational agency that
applies for assistance under this subsection shall describe how
it will provide the lowest-achieving schools the resources
necessary to meet goals under school and local educational
agency improvement, corrective action, and restructuring plans
under section 1116.
``SEC. 1004. STATE ADMINISTRATION. <<NOTE: 20 USC 6304.>>
``(a) In General.--Except as provided in subsection (b), to carry
out administrative duties assigned under parts A, C, and D of this
title, each State may reserve the greater of--
``(1) 1 percent of the amounts received under such parts; or
``(2) $400,000 ($50,000 in the case of each outlying area).
``(b) Exception.--If the sum of the amounts appropriated for parts
A, C, and D of this title is equal to or greater than $14,000,000,000,
then the reservation described in subsection (a)(1) shall not exceed 1
percent of the amount the State would receive, if $14,000,000,000 were
allocated among the States for parts A, C, and D of this title.
``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL
AGENCIES
``Subpart 1--Basic Program Requirements
``SEC. 1111. STATE PLANS. <<NOTE: 20 USC 6311.>>
``(a) Plans Required.--
``(1) In general.--For any State desiring to receive a grant
under this part, the State educational agency shall submit to
the Secretary a plan, developed by the State educational agency,
in consultation with local educational agencies, teachers,
principals, pupil services personnel, administrators (including
administrators of programs described in other parts of this
title), other staff, and parents, that satisfies the
requirements of this section and that is coordinated with other
programs under this Act, the Individuals with Disabilities
Education Act, the Carl D. Perkins Vocational and Technical
Education Act of 1998, the Head Start Act, the Adult Education
and Family Literacy Act, and the McKinney-Vento Homeless
Assistance Act.
``(2) Consolidated plan.--A State plan submitted under
paragraph (1) may be submitted as part of a consolidated plan
under section 9302.
``(b) Academic Standards, Academic Assessments, and
Accountability.--
``(1) Challenging academic standards.--
``(A) In general.--Each State plan shall demonstrate
that the State has adopted challenging academic content
standards and challenging student academic achievement
[[Page 115 STAT. 1445]]
standards that will be used by the State, its local
educational agencies, and its schools to carry out this
part, except that a State shall not be required to
submit such standards to the Secretary.
``(B) Same standards.--The academic standards
required by subparagraph (A) shall be the same academic
standards that the State applies to all schools and
children in the State.
``(C) Subjects.--The State shall have such academic
standards for all public elementary school and secondary
school children, including children served under this
part, in subjects determined by the State, but including
at least mathematics, reading or language arts, and
(beginning in the 2005-2006 school year) science, which
shall include the same knowledge, skills, and levels of
achievement expected of all children.
``(D) Challenging academic standards.--Standards
under this paragraph shall include--
``(i) challenging academic content standards
in academic subjects that--
``(I) specify what children are
expected to know and be able to do;
``(II) contain coherent and rigorous
content; and
``(III) encourage the teaching of
advanced skills; and
``(ii) challenging student academic
achievement standards that--
``(I) are aligned with the State's
academic content standards;
``(II) describe two levels of high
achievement (proficient and advanced)
that determine how well children are
mastering the material in the State
academic content standards; and
``(III) describe a third level of
achievement (basic) to provide complete
information about the progress of the
lower-achieving children toward
mastering the proficient and advanced
levels of achievement.
``(E) Information.--For the subjects in which
students will be served under this part, but for which a
State is not required by subparagraphs (A), (B), and (C)
to develop, and has not otherwise developed, such
academic standards, the State plan shall describe a
strategy for ensuring that students are taught the same
knowledge and skills in such subjects and held to the
same expectations as are all children.
``(F) Existing standards.--Nothing in this part
shall prohibit a State from revising, consistent with
this section, any standard adopted under this part
before or after the date of enactment of the No Child
Left Behind Act of 2001.
``(2) Accountability.--
``(A) In general.--Each State plan shall demonstrate
that the State has developed and is implementing a
single, statewide State accountability system that will
be effective in ensuring that all local educational
agencies, public
[[Page 115 STAT. 1446]]
elementary schools, and public secondary schools make
adequate yearly progress as defined under this
paragraph. Each State accountability system shall--
``(i) be based on the academic standards and
academic assessments adopted under paragraphs (1)
and (3), and other academic indicators consistent
with subparagraph (C)(vi) and (vii), and shall
take into account the achievement of all public
elementary school and secondary school students;
``(ii) be the same accountability system the
State uses for all public elementary schools and
secondary schools or all local educational
agencies in the State, except that public
elementary schools, secondary schools, and local
educational agencies not participating under this
part are not subject to the requirements of
section 1116; and
``(iii) include sanctions and rewards, such as
bonuses and recognition, the State will use to
hold local educational agencies and public
elementary schools and secondary schools
accountable for student achievement and for
ensuring that they make adequate yearly progress
in accordance with the State's definition under
subparagraphs (B) and (C).
``(B) Adequate yearly progress.--Each State plan
shall demonstrate, based on academic assessments
described in paragraph (3), and in accordance with this
paragraph, what constitutes adequate yearly progress of
the State, and of all public elementary schools,
secondary schools, and local educational agencies in the
State, toward enabling all public elementary school and
secondary school students to meet the State's student
academic achievement standards, while working toward the
goal of narrowing the achievement gaps in the State,
local educational agencies, and schools.
``(C) Definition.--`Adequate yearly progress' shall
be defined by the State in a manner that--
``(i) applies the same high standards of
academic achievement to all public elementary
school and secondary school students in the State;
``(ii) is statistically valid and reliable;
``(iii) results in continuous and substantial
academic improvement for all students;
``(iv) measures the progress of public
elementary schools, secondary schools and local
educational agencies and the State based primarily
on the academic assessments described in paragraph
(3);
``(v) includes separate measurable annual
objectives for continuous and substantial
improvement for each of the following:
``(I) The achievement of all public
elementary school and secondary school
students.
``(II) The achievement of--
``(aa) economically
disadvantaged students;
``(bb) students from major
racial and ethnic groups;
``(cc) students with
disabilities; and
[[Page 115 STAT. 1447]]
``(dd) students with limited
English proficiency;
except that disaggregation of data under
subclause (II) shall not be required in
a case in which the number of students
in a category is insufficient to yield
statistically reliable information or
the results would reveal personally
identifiable information about an
individual student;
``(vi) in accordance with subparagraph (D),
includes graduation rates for public secondary
school students (defined as the percentage of
students who graduate from secondary school with a
regular diploma in the standard number of years)
and at least one other academic indicator, as
determined by the State for all public elementary
school students; and
``(vii) in accordance with subparagraph (D),
at the State's discretion, may also include other
academic indicators, as determined by the State
for all public school students, measured
separately for each group described in clause (v),
such as achievement on additional State or locally
administered assessments, decreases in grade-to-
grade retention rates, attendance rates, and
changes in the percentages of students completing
gifted and talented, advanced placement, and
college preparatory courses.
``(D) Requirements for other indicators.--In
carrying out subparagraph (C)(vi) and (vii), the State--
``(i) shall ensure that the indicators
described in those provisions are valid and
reliable, and are consistent with relevant,
nationally recognized professional and technical
standards, if any; and
``(ii) except as provided in subparagraph
(I)(i), may not use those indicators to reduce the
number of, or change, the schools that would
otherwise be subject to school improvement,
corrective action, or restructuring under section
1116 if those additional indicators were not used,
but may use them to identify additional schools
for school improvement or in need of corrective
action or restructuring.
``(E) Starting point.--Each State, using data for
the 2001-2002 school year, shall establish the starting
point for measuring, under subparagraphs (G) and (H),
the percentage of students meeting or exceeding the
State's proficient level of academic achievement on the
State assessments under paragraph (3) and pursuant to
the timeline described in subparagraph (F). The starting
point shall be, at a minimum, based on the higher of the
percentage of students at the proficient level who are
in--
``(i) the State's lowest achieving group of
students described in subparagraph (C)(v)(II); or
``(ii) the school at the 20th percentile in
the State, based on enrollment, among all schools
ranked by the percentage of students at the
proficient level.
``(F) Timeline.--Each State shall establish a
timeline for adequate yearly progress. The timeline
shall ensure that not later than 12 years after the end
of the 2001-2002 school year, all students in each group
described
[[Page 115 STAT. 1448]]
in subparagraph (C)(v) will meet or exceed the State's
proficient level of academic achievement on the State
assessments under paragraph (3).
``(G) Measurable objectives.--Each State shall
establish statewide annual measurable objectives,
pursuant to subparagraph (C)(v), for meeting the
requirements of this paragraph, and which--
``(i) shall be set separately for the
assessments of mathematics and reading or language
arts under subsection (a)(3);
``(ii) shall be the same for all schools and
local educational agencies in the State;
``(iii) shall identify a single minimum
percentage of students who are required to meet or
exceed the proficient level on the academic
assessments that applies separately to each group
of students described in subparagraph (C)(v);
``(iv) shall ensure that all students will
meet or exceed the State's proficient level of
academic achievement on the State assessments
within the State's timeline under subparagraph
(F); and
``(v) may be the same for more than 1 year,
subject to the requirements of subparagraph (H).
``(H) Intermediate goals for annual yearly
progress.--Each State shall establish intermediate goals
for meeting the requirements, including the measurable
objectives in subparagraph (G), of this paragraph and
that shall--
``(i) increase in equal increments over the
period covered by the State's timeline under
subparagraph (F);
``(ii) provide for the first increase to occur
in not more than 2 years; and
``(iii) provide for each following increase to
occur in not more than 3 years.
``(I) Annual improvement for schools.--Each year,
for a school to make adequate yearly progress under this
paragraph--
``(i) each group of students described in
subparagraph (C)(v) must meet or exceed the
objectives set by the State under subparagraph
(G), except that if any group described in
subparagraph (C)(v) does not meet those objectives
in any particular year, the school shall be
considered to have made adequate yearly progress
if the percentage of students in that group who
did not meet or exceed the proficient level of
academic achievement on the State assessments
under paragraph (3) for that year decreased by 10
percent of that percentage from the preceding
school year and that group made progress on one or
more of the academic indicators described in
subparagraph (C)(vi) or (vii); and
``(ii) not less than 95 percent of each group
of students described in subparagraph (C)(v) who
are enrolled in the school are required to take
the assessments, consistent with paragraph
(3)(C)(xi) and with
[[Page 115 STAT. 1449]]
accommodations, guidelines, and alternative
assessments provided in the same manner as those
provided under section 612(a)(17)(A) of the
Individuals with Disabilities Education Act and
paragraph (3), on which adequate yearly progress
is based (except that the 95 percent requirement
described in this clause shall not apply in a case
in which the number of students in a category is
insufficient to yield statistically reliable
information or the results would reveal personally
identifiable information about an individual
student).
``(J) Uniform averaging procedure.--For the purpose
of determining whether schools are making adequate
yearly progress, the State may establish a uniform
procedure for averaging data which includes one or more
of the following:
``(i) The State may average data from the
school year for which the determination is made
with data from one or two school years immediately
preceding that school year.
``(ii) Until the assessments described in
paragraph (3) are administered in such manner and
time to allow for the implementation of the
uniform procedure for averaging data described in
clause (i), the State may use the academic
assessments that were required under paragraph (3)
as that paragraph was in effect on the day
preceding the date of enactment of the No Child
Left Behind Act of 2001, provided that nothing in
this clause shall be construed to undermine or
delay the determination of adequate yearly
progress, the requirements of section 1116, or the
implementation of assessments under this section.
``(iii) The State may use data across grades
in a school.
``(K) Accountability for charter schools.--The
accountability provisions under this Act shall be
overseen for charter schools in accordance with State
charter school law.
``(3) Academic assessments.--
``(A) In general.--Each State plan shall demonstrate
that the State educational agency, in consultation with
local educational agencies, has implemented a set of
high-quality, yearly student academic assessments that
include, at a minimum, academic assessments in
mathematics, reading or language arts, and science that
will be used as the primary means of determining the
yearly performance of the State and of each local
educational agency and school in the State in enabling
all children to meet the State's challenging student
academic achievement standards, except that no State
shall be required to meet the requirements of this part
relating to science assessments until the beginning of
the 2007-2008 school year.
``(B) Use of assessments.--Each State educational
agency may incorporate the data from the assessments
under this paragraph into a State-developed longitudinal
data system that links student test scores, length of
enrollment, and graduation records over time.
``(C) Requirements.--Such assessments shall--
[[Page 115 STAT. 1450]]
``(i) be the same academic assessments used to
measure the achievement of all children;
``(ii) be aligned with the State's challenging
academic content and student academic achievement
standards, and provide coherent information about
student attainment of such standards;
``(iii) be used for purposes for which such
assessments are valid and reliable, and be
consistent with relevant, nationally recognized
professional and technical standards;
``(iv) be used only if the State educational
agency provides to the Secretary evidence from the
test publisher or other relevant sources that the
assessments used are of adequate technical quality
for each purpose required under this Act and are
consistent with the requirements of this section,
and such evidence is made public by the Secretary
upon request;
``(v)(I) except as otherwise provided for
grades 3 through 8 under clause vii, measure the
proficiency of students in, at a minimum,
mathematics and reading or language arts, and be
administered not less than once during--
``(aa) grades 3 through 5;
``(bb) grades 6 through 9; and
``(cc) grades 10 through 12;
``(II) beginning not later than school year
2007-2008, measure the proficiency of all students
in science and be administered not less than one
time during--
``(aa) grades 3 through 5;
``(bb) grades 6 through 9; and
``(cc) grades 10 through 12;
``(vi) involve multiple up-to-date measures of
student academic achievement, including measures
that assess higher-order thinking skills and
understanding;
``(vii) <<NOTE: Deadline.>> beginning not
later than school year 2005-2006, measure the
achievement of students against the challenging
State academic content and student academic
achievement standards in each of grades 3 through
8 in, at a minimum, mathematics, and reading or
language arts, except that the Secretary may
provide the State 1 additional year if the State
demonstrates that exceptional or uncontrollable
circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the
financial resources of the State, prevented full
implementation of the academic assessments by that
deadline and that the State will complete
implementation within the additional 1-year
period;
``(viii) at the discretion of the State,
measure the proficiency of students in academic
subjects not described in clauses (v), (vi), (vii)
in which the State has adopted challenging
academic content and academic achievement
standards;
``(ix) provide for--
``(I) the participation in such
assessments of all students;
``(II) the reasonable adaptations
and accommodations for students with
disabilities (as defined
[[Page 115 STAT. 1451]]
under section 602(3) of the Individuals
with Disabilities Education Act)
necessary to measure the academic
achievement of such students relative to
State academic content and State student
academic achievement standards; and
``(III) the inclusion of limited
English proficient students, who shall
be assessed in a valid and reliable
manner and provided reasonable
accommodations on assessments
administered to such students under this
paragraph, including, to the extent
practicable, assessments in the language
and form most likely to yield accurate
data on what such students know and can
do in academic content areas, until such
students have achieved English language
proficiency as determined under
paragraph (7);
``(x) notwithstanding subclause (III), the
academic assessment (using tests written in
English) of reading or language arts of any
student who has attended school in the United
States (not including Puerto Rico) for three or
more consecutive school years, except that if the
local educational agency determines, on a case-by-
case individual basis, that academic assessments
in another language or form would likely yield
more accurate and reliable information on what
such student knows and can do, the local
educational agency may make a determination to
assess such student in the appropriate language
other than English for a period that does not
exceed two additional consecutive years, provided
that such student has not yet reached a level of
English language proficiency sufficient to yield
valid and reliable information on what such
student knows and can do on tests (written in
English) of reading or language arts;
``(xi) include students who have attended
schools in a local educational agency for a full
academic year but have not attended a single
school for a full academic year, except that the
performance of students who have attended more
than 1 school in the local educational agency in
any academic year shall be used only in
determining the progress of the local educational
agency;
``(xii) produce individual student
interpretive, descriptive, and diagnostic reports,
consistent with clause (iii) that allow parents,
teachers, and principals to understand and address
the specific academic needs of students, and
include information regarding achievement on
academic assessments aligned with State academic
achievement standards, and that are provided to
parents, teachers, and principals, as soon as is
practicably possible after the assessment is
given, in an understandable and uniform format,
and to the extent practicable, in a language that
parents can understand;
``(xiii) enable results to be disaggregated
within each State, local educational agency, and
school by gender, by each major racial and ethnic
group, by
[[Page 115 STAT. 1452]]
English proficiency status, by migrant status, by
students with disabilities as compared to
nondisabled students, and by economically
disadvantaged students as compared to students who
are not economically disadvantaged, except that,
in the case of a local educational agency or a
school, such disaggregation shall not be required
in a case in which the number of students in a
category is insufficient to yield statistically
reliable information or the results would reveal
personally identifiable information about an
individual student;
``(xiv) be consistent with widely accepted
professional testing standards, objectively
measure academic achievement, knowledge, and
skills, and be tests that do not evaluate or
assess personal or family beliefs and attitudes,
or publicly disclose personally identifiable
information; and
``(xv) enable itemized score analyses to be
produced and reported, consistent with clause
(iii), to local educational agencies and schools,
so that parents, teachers, principals, and
administrators can interpret and address the
specific academic needs of students as indicated
by the students' achievement on assessment items.
``(D) Deferral.--A State may defer the commencement,
or suspend the administration, but not cease the
development, of the assessments described in this
paragraph, that were not required prior to the date of
enactment of the No Child Left Behind Act of 2001, for 1
year for each year for which the amount appropriated for
grants under section 6113(a)(2) is less than--
``(i) $370,000,000 for fiscal year 2002;
``(ii) $380,000,000 for fiscal year 2003;
``(iii) $390,000,000 for fiscal year 2004; and
``(iv) $400,000,000 for fiscal years 2005
through 2007.
``(4) Special rule.--Academic assessment measures in
addition to those in paragraph (3) that do not meet the
requirements of such paragraph may be included in the assessment
under paragraph (3) as additional measures, but may not be used
in lieu of the academic assessments required under paragraph
(3). Such additional assessment measures may not be used to
reduce the number of or change, the schools that would otherwise
be subject to school improvement, corrective action, or
restructuring under section 1116 if such additional indicators
were not used, but may be used to identify additional schools
for school improvement or in need of corrective action or
restructuring except as provided in paragraph (2)(I)(i).
``(5) State authority.--If a State educational agency
provides evidence, which is satisfactory to the Secretary, that
neither the State educational agency nor any other State
government official, agency, or entity has sufficient authority,
under State law, to adopt curriculum content and student
academic achievement standards, and academic assessments aligned
with such academic standards, which will be applicable to all
students enrolled in the State's public elementary schools
[[Page 115 STAT. 1453]]
and secondary schools, then the State educational agency may
meet the requirements of this subsection by--
``(A) adopting academic standards and academic
assessments that meet the requirements of this
subsection, on a statewide basis, and limiting their
applicability to students served under this part; or
``(B) adopting and implementing policies that ensure
that each local educational agency in the State that
receives grants under this part will adopt curriculum
content and student academic achievement standards, and
academic assessments aligned with such standards,
which--
``(i) meet all of the criteria in this
subsection and any regulations regarding such
standards and assessments that the Secretary may
publish; and
``(ii) are applicable to all students served
by each such local educational agency.
``(6) Language assessments.--Each State plan shall identify
the languages other than English that are present in the
participating student population and indicate the languages for
which yearly student academic assessments are not available and
are needed. The State shall make every effort to develop such
assessments and may request assistance from the Secretary if
linguistically accessible academic assessment measures are
needed. Upon request, the Secretary shall assist with the
identification of appropriate academic assessment measures in
the needed languages, but shall not mandate a specific academic
assessment or mode of instruction.
``(7) Academic assessments of english language
proficiency. <<NOTE: Deadline.>> --Each State plan shall
demonstrate that local educational agencies in the State will,
beginning not later than school year 2002-2003, provide for an
annual assessment of English proficiency (measuring students'
oral language, reading, and writing skills in English) of all
students with limited English proficiency in the schools served
by the State educational agency, except that the Secretary may
provide the State 1 additional year if the State demonstrates
that exceptional or uncontrollable circumstances, such as a
natural disaster or a precipitous and unforeseen decline in the
financial resources of the State, prevented full implementation
of this paragraph by that deadline and that the State will
complete implementation within the additional 1-year period.
``(8) Requirement.--Each State plan shall describe--
``(A) how the State educational agency will assist
each local educational agency and school affected by the
State plan to develop the capacity to comply with each
of the requirements of sections 1112(c)(1)(D), 1114(b),
and 1115(c) that is applicable to such agency or school;
``(B) how the State educational agency will assist
each local educational agency and school affected by the
State plan to provide additional educational assistance
to individual students assessed as needing help to
achieve the State's challenging academic achievement
standards;
``(C) the specific steps the State educational
agency will take to ensure that both schoolwide programs
and targeted assistance schools provide instruction by
highly qualified instructional staff as required by
sections 1114(b)(1)(C) and 1115(c)(1)(E), including
steps that the
[[Page 115 STAT. 1454]]
State educational agency will take to ensure that poor
and minority children are not taught at higher rates
than other children by inexperienced, unqualified, or
out-of-field teachers, and the measures that the State
educational agency will use to evaluate and publicly
report the progress of the State educational agency with
respect to such steps;
``(D) an assurance that the State educational agency
will assist local educational agencies in developing or
identifying high-quality effective curricula aligned
with State academic achievement standards and how the
State educational agency will disseminate such curricula
to each local educational agency and school within the
State; and
``(E) such other factors the State educational
agency determines appropriate to provide students an
opportunity to achieve the knowledge and skills
described in the challenging academic content standards
adopted by the State.
``(9) Factors affecting student achievement.--Each State
plan shall include an assurance that the State educational
agency will coordinate and collaborate, to the extent feasible
and necessary as determined by the State educational agency,
with agencies providing services to children, youth, and
families, with respect to local educational agencies within the
State that are identified under section 1116 and that request
assistance with addressing major factors that have significantly
affected the academic achievement of students in the local
educational agency or schools served by such agency.
``(10) Use of academic assessment results to improve student
academic achievement.--Each State plan shall describe how the
State educational agency will ensure that the results of the
State assessments described in paragraph (3)--
``(A) will be promptly provided to local educational
agencies, schools, and teachers in a manner that is
clear and easy to understand, but not later than before
the beginning of the next school year; and
``(B) be used by those local educational agencies,
schools, and teachers to improve the educational
achievement of individual students.
``(c) Other Provisions To Support Teaching and Learning.--Each State
plan shall contain assurances that--
``(1) <<NOTE: Deadline.>> the State educational agency will
meet the requirements of subsection (h)(1) and, beginning with
the 2002-2003 school year, will produce the annual State report
cards described in such subsection, except that the Secretary
may provide the State educational agency 1 additional year if
the State educational agency demonstrates that exceptional or
uncontrollable circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the financial resources of
the State, prevented full implementation of this paragraph by
that deadline and that the State will complete implementation
within the additional 1-year period;
``(2) <<NOTE: Deadline.>> the State will, beginning in
school year 2002-2003, participate in biennial State academic
assessments of 4th and 8th grade reading and mathematics under
the National Assessment of Educational Progress carried out
under section 411(b)(2) of the National Education Statistics Act
of 1994 if the Secretary pays the costs of administering such
assessments;
[[Page 115 STAT. 1455]]
``(3) the State educational agency, in consultation with the
Governor, will include, as a component of the State plan, a plan
to carry out the responsibilities of the State under sections
1116 and 1117, including carrying out the State educational
agency's statewide system of technical assistance and support
for local educational agencies;
``(4) the State educational agency will work with other
agencies, including educational service agencies or other local
consortia, and institutions to provide technical assistance to
local educational agencies and schools, including technical
assistance in providing professional development under section
1119, technical assistance under section 1117, and technical
assistance relating to parental involvement under section 1118;
``(5)(A) where educational service agencies exist, the State
educational agency will consider providing professional
development and technical assistance through such agencies; and
``(B) where educational service agencies do not exist, the
State educational agency will consider providing professional
development and technical assistance through other cooperative
agreements such as through a consortium of local educational
agencies;
``(6) <<NOTE: Notification.>> the State educational agency
will notify local educational agencies and the public of the
content and student academic achievement standards and academic
assessments developed under this section, and of the authority
to operate schoolwide programs, and will fulfill the State
educational agency's responsibilities regarding local
educational agency improvement and school improvement under
section 1116, including such corrective actions as are
necessary;
``(7) the State educational agency will provide the least
restrictive and burdensome regulations for local educational
agencies and individual schools participating in a program
assisted under this part;
``(8) the State educational agency will inform the Secretary
and the public of how Federal laws, if at all, hinder the
ability of States to hold local educational agencies and schools
accountable for student academic achievement;
``(9) the State educational agency will encourage schools to
consolidate funds from other Federal, State, and local sources
for schoolwide reform in schoolwide programs under section 1114;
``(10) the State educational agency will modify or eliminate
State fiscal and accounting barriers so that schools can easily
consolidate funds from other Federal, State, and local sources
for schoolwide programs under section 1114;
``(11) the State educational agency has involved the
committee of practitioners established under section 1903(b) in
developing the plan and monitoring its implementation;
``(12) the State educational agency will inform local
educational agencies in the State of the local educational
agency's authority to transfer funds under title VI, to obtain
waivers under part D of title IX, and, if the State is an Ed-
Flex Partnership State, to obtain waivers under the Education
Flexibility Partnership Act of 1999;
``(13) the State educational agency will coordinate
activities funded under this part with other Federal activities
as appropriate; and
[[Page 115 STAT. 1456]]
``(14) the State educational agency will encourage local
educational agencies and individual schools participating in a
program assisted under this part to offer family literacy
services (using funds under this part), if the agency or school
determines that a substantial number of students served under
this part by the agency or school have parents who do not have a
secondary school diploma or its recognized equivalent or who
have low levels of literacy.
``(d) Parental Involvement.--Each State plan shall describe how the
State educational agency will support the collection and dissemination
to local educational agencies and schools of effective parental
involvement practices. Such practices shall--
``(1) be based on the most current research that meets the
highest professional and technical standards, on effective
parental involvement that fosters achievement to high standards
for all children; and
``(2) be geared toward lowering barriers to greater
participation by parents in school planning, review, and
improvement experienced.
``(e) Peer Review and Secretarial Approval.--
``(1) Secretarial duties.--The Secretary shall--
``(A) <<NOTE: Establishment.>> establish a peer-
review process to assist in the review of State plans;
``(B) appoint individuals to the peer-review process
who are representative of parents, teachers, State
educational agencies, and local educational agencies,
and who are familiar with educational standards,
assessments, accountability, the needs of low-performing
schools, and other educational needs of students;
``(C) <<NOTE: Deadline.>> approve a State plan
within 120 days of its submission unless the Secretary
determines that the plan does not meet the requirements
of this section;
``(D) if the Secretary determines that the State
plan does not meet the requirements of subsection (a),
(b), or (c), immediately notify the State of such
determination and the reasons for such determination;
``(E) not decline to approve a State's plan before--
``(i) offering the State an opportunity to
revise its plan;
``(ii) providing technical assistance in order
to assist the State to meet the requirements of
subsections (a), (b), and (c); and
``(iii) providing a hearing; and
``(F) have the authority to disapprove a State plan
for not meeting the requirements of this part, but shall
not have the authority to require a State, as a
condition of approval of the State plan, to include in,
or delete from, such plan one or more specific elements
of the State's academic content standards or to use
specific academic assessment instruments or items.
``(2) State revisions.--A State plan shall be revised by the
State educational agency if it is necessary to satisfy the
requirements of this section.
``(f) Duration of the Plan.--
``(1) In general.--Each State plan shall--
``(A) remain in effect for the duration of the
State's participation under this part; and
[[Page 115 STAT. 1457]]
``(B) be periodically reviewed and revised as
necessary by the State educational agency to reflect
changes in the State's strategies and programs under
this part.
``(2) Additional information.--If significant changes are
made to a State's plan, such as the adoption of new State
academic content standards and State student achievement
standards, new academic assessments, or a new definition of
adequate yearly progress, such information shall be submitted to
the Secretary.
``(g) Penalties.--
``(1) Failure to meet deadlines enacted in 1994.--
``(A) In general.--If a State fails to meet the
deadlines established by the Improving America's Schools
Act of 1994 (or under any waiver granted by the
Secretary or under any compliance agreement with the
Secretary) for demonstrating that the State has in place
challenging academic content standards and student
achievement standards, and a system for measuring and
monitoring adequate yearly progress, the Secretary shall
withhold 25 percent of the funds that would otherwise be
available to the State for State administration and
activities under this part in each year until the
Secretary determines that the State meets those
requirements.
``(B) No extension.--Notwithstanding any other
provision of law, 90 days after the date of enactment of
the No Child Left Behind Act of 2001 the Secretary shall
not grant any additional waivers of, or enter into any
additional compliance agreements to extend, the
deadlines described in subparagraph (A) for any State.
``(2) Failure to meet requirements enacted in 2001.--If a
State fails to meet any of the requirements of this section,
other than the requirements described in paragraph (1), then the
Secretary may withhold funds for State administration under this
part until the Secretary determines that the State has fulfilled
those requirements.
``(h) Reports.--
``(1) Annual state report card.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than the beginning of the 2002-2003 school year, unless
the State has received a 1-year extension pursuant to
subsection (c)(1), a State that receives assistance
under this part shall prepare and disseminate an annual
State report card.
``(B) Implementation.--The State report card shall
be--
``(i) concise; and
``(ii) presented in an understandable and
uniform format and, to the extent practicable,
provided in a language that the parents can
understand.
``(C) Required information.--The State shall include
in its annual State report card--
``(i) information, in the aggregate, on
student achievement at each proficiency level on
the State academic assessments described in
subsection (b)(3) (disaggregated by race,
ethnicity, gender, disability status, migrant
status, English proficiency, and status as
economically disadvantaged, except that such
disaggregation shall not be required in a case in
which
[[Page 115 STAT. 1458]]
the number of students in a category is
insufficient to yield statistically reliable
information or the results would reveal personally
identifiable information about an individual
student);
``(ii) information that provides a comparison
between the actual achievement levels of each
group of students described in subsection
(b)(2)(C)(v) and the State's annual measurable
objectives for each such group of students on each
of the academic assessments required under this
part;
``(iii) the percentage of students not tested
(disaggregated by the same categories and subject
to the same exception described in clause (i));
``(iv) the most recent 2-year trend in student
achievement in each subject area, and for each
grade level, for which assessments under this
section are required;
``(v) aggregate information on any other
indicators used by the State to determine the
adequate yearly progress of students in achieving
State academic achievement standards;
``(vi) graduation rates for secondary school
students consistent with subsection (b)(2)(C)(vi);
``(vii) information on the performance of
local educational agencies in the State regarding
making adequate yearly progress, including the
number and names of each school identified for
school improvement under section 1116; and
``(viii) the professional qualifications of
teachers in the State, the percentage of such
teachers teaching with emergency or provisional
credentials, and the percentage of classes in the
State not taught by highly qualified teachers, in
the aggregate and disaggregated by high-poverty
compared to low-poverty schools which, for the
purpose of this clause, means schools in the top
quartile of poverty and the bottom quartile of
poverty in the State.
``(D) Optional information.--The State may include
in its annual State report card such other information
as the State believes will best provide parents,
students, and other members of the public with
information regarding the progress of each of the
State's public elementary schools and public secondary
schools. Such information may include information
regarding--
``(i) school attendance rates;
``(ii) average class size in each grade;
``(iii) academic achievement and gains in
English proficiency of limited English proficient
students;
``(iv) the incidence of school violence, drug
abuse, alcohol abuse, student suspensions, and
student expulsions;
``(v) the extent and type of parental
involvement in the schools;
``(vi) the percentage of students completing
advanced placement courses, and the rate of
passing of advanced placement tests; and
[[Page 115 STAT. 1459]]
``(vii) a clear and concise description of the
State's accountability system, including a
description of the criteria by which the State
evaluates school performance, and the criteria
that the State has established, consistent with
subsection (b)(2), to determine the status of
schools regarding school improvement, corrective
action, and restructuring.
``(2) Annual local educational agency report cards.--
``(A) Report cards.--
``(i) <<NOTE: Deadline.>> In general.--Not
later than the beginning of the 2002-2003 school
year, a local educational agency that receives
assistance under this part shall prepare and
disseminate an annual local educational agency
report card, except that the State educational
agency may provide the local educational agency 1
additional year if the local educational agency
demonstrates that exceptional or uncontrollable
circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the
financial resources of the local educational
agency, prevented full implementation of this
paragraph by that deadline and that the local
educational agency will complete implementation
within the additional 1-year period.
``(ii) Special rule.--If a State educational
agency has received an extension pursuant to
subsection (c)(1), then a local educational agency
within that State shall not be required to include
the information required under paragraph (1)(C) in
such report card during such extension.
``(B) Minimum requirements.--The State educational
agency shall ensure that each local educational agency
collects appropriate data and includes in the local
educational agency's annual report the information
described in paragraph (1)(C) as applied to the local
educational agency and each school served by the local
educational agency, and--
``(i) in the case of a local educational
agency--
``(I) the number and percentage of
schools identified for school
improvement under section 1116(c) and
how long the schools have been so
identified; and
``(II) information that shows how
students served by the local educational
agency achieved on the statewide
academic assessment compared to students
in the State as a whole; and
``(ii) in the case of a school--
``(I) whether the school has been
identified for school improvement; and
``(II) information that shows how
the school's students achievement on the
statewide academic assessments and other
indicators of adequate yearly progress
compared to students in the local
educational agency and the State as a
whole.
``(C) Other information.--A local educational agency
may include in its annual local educational agency
report card any other appropriate information, whether
or not
[[Page 115 STAT. 1460]]
such information is included in the annual State report
card.
``(D) Data.--A local educational agency or school
shall only include in its annual local educational
agency report card data that are sufficient to yield
statistically reliable information, as determined by the
State, and that do not reveal personally identifiable
information about an individual student.
``(E) <<NOTE: Deadline.>> Public dissemination.--
The local educational agency shall, not later than the
beginning of the 2002-2003 school year, unless the local
educational agency has received a 1-year extension
pursuant to subparagraph (A), publicly disseminate the
information described in this paragraph to all schools
in the school district served by the local educational
agency and to all parents of students attending those
schools in an understandable and uniform format and, to
the extent practicable, provided in a language that the
parents can understand, and make the information widely
available through public means, such as posting on the
Internet, distribution to the media, and distribution
through public agencies, except that if a local
educational agency issues a report card for all
students, the local educational agency may include the
information under this section as part of such report.
``(3) Preexisting report cards.--A State educational agency
or local educational agency that was providing public report
cards on the performance of students, schools, local educational
agencies, or the State prior to the enactment of the No Child
Left Behind Act of 2001 may use those report cards for the
purpose of this subsection, so long as any such report card is
modified, as may be needed, to contain the information required
by this subsection.
``(4) <<NOTE: Deadlines.>> Annual state report to the
secretary.--Each State educational agency receiving assistance
under this part shall report annually to the Secretary, and make
widely available within the State--
``(A) beginning with school year 2002-2003,
information on the State's progress in developing and
implementing the academic assessments described in
subsection (b)(3);
``(B) beginning not later than school year 2002-
2003, information on the achievement of students on the
academic assessments required by subsection (b)(3),
including the disaggregated results for the categories
of students identified in subsection (b)(2)(C)(v);
``(C) in any year before the State begins to provide
the information described in subparagraph (B),
information on the results of student academic
assessments (including disaggregated results) required
under this section;
``(D) beginning not later than school year 2002-
2003, unless the State has received an extension
pursuant to subsection (c)(1), information on the
acquisition of English proficiency by children with
limited English proficiency;
``(E) the number and names of each school identified
for school improvement under section 1116(c), the reason
why each school was so identified, and the measures
taken to address the achievement problems of such
schools;
[[Page 115 STAT. 1461]]
``(F) the number of students and schools that
participated in public school choice and supplemental
service programs and activities under this title; and
``(G) beginning not later than the 2002-2003 school
year, information on the quality of teachers and the
percentage of classes being taught by highly qualified
teachers in the State, local educational agency, and
school.
``(5) Report to congress.--The Secretary shall transmit
annually to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health, Education,
Labor, and Pensions of the Senate a report that provides
national and State-level data on the information collected under
paragraph (4).
``(6) Parents right-to-know.--
``(A) <<NOTE: Notification.>> Qualifications.--At
the beginning of each school year, a local educational
agency that receives funds under this part shall notify
the parents of each student attending any school
receiving funds under this part that the parents may
request, and the agency will provide the parents on
request (and in a timely manner), information regarding
the professional qualifications of the student's
classroom teachers, including, at a minimum, the
following:
``(i) Whether the teacher has met State
qualification and licensing criteria for the grade
levels and subject areas in which the teacher
provides instruction.
``(ii) Whether the teacher is teaching under
emergency or other provisional status through
which State qualification or licensing criteria
have been waived.
``(iii) The baccalaureate degree major of the
teacher and any other graduate certification or
degree held by the teacher, and the field of
discipline of the certification or degree.
``(iv) Whether the child is provided services
by paraprofessionals and, if so, their
qualifications.
``(B) Additional information.--In addition to the
information that parents may request under subparagraph
(A), a school that receives funds under this part shall
provide to each individual parent--
``(i) information on the level of achievement
of the parent's child in each of the State
academic assessments as required under this part;
and
``(ii) timely notice that the parent's child
has been assigned, or has been taught for four or
more consecutive weeks by, a teacher who is not
highly qualified.
``(C) Format.--The notice and information provided
to parents under this paragraph shall be in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand.
``(i) Privacy.--Information collected under this section shall be
collected and disseminated in a manner that protects the privacy of
individuals.
``(j) Technical Assistance.--The Secretary shall provide a State
educational agency, at the State educational agency's request, technical
assistance in meeting the requirements of this section, including the
provision of advice by experts in the development
[[Page 115 STAT. 1462]]
of high-quality academic assessments, the setting of State standards,
the development of measures of adequate yearly progress that are valid
and reliable, and other relevant areas.
``(k) Voluntary Partnerships.--A State may enter into a voluntary
partnership with another State to develop and implement the academic
assessments and standards required under this section.
``(l) Construction.--Nothing in this part shall be construed to
prescribe the use of the academic assessments described in this part for
student promotion or graduation purposes.
``(m) <<NOTE: Applicability.>> Special Rule With Respect to Bureau-
Funded Schools.--In determining the assessments to be used by each
operated or funded by BIA school receiving funds under this part, the
following shall apply:
``(1) Each such school that is accredited by the State in
which it is operating shall use the assessments the State has
developed and implemented to meet the requirements of this
section, or such other appropriate assessment as approved by the
Secretary of the Interior.
``(2) Each such school that is accredited by a regional
accrediting organization shall adopt an appropriate assessment,
in consultation with and with the approval of, the Secretary of
the Interior and consistent with assessments adopted by other
schools in the same State or region, that meets the requirements
of this section.
``(3) Each such school that is accredited by a tribal
accrediting agency or tribal division of education shall use an
assessment developed by such agency or division, except that the
Secretary of the Interior shall ensure that such assessment
meets the requirements of this section.
``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS. <<NOTE: 20 USC 6312.>>
``(a) Plans Required.--
``(1) Subgrants.--A local educational agency may receive a
subgrant under this part for any fiscal year only if such agency
has on file with the State educational agency a plan, approved
by the State educational agency, that is coordinated with other
programs under this Act, the Individuals with Disabilities
Education Act, the Carl D. Perkins Vocational and Technical
Education Act of 1998, the McKinney-Vento Homeless Assistance
Act, and other Acts, as appropriate.
``(2) Consolidated application.--The plan may be submitted
as part of a consolidated application under section 9305.
``(b) Plan Provisions.--
``(1) In general.--In order to help low-achieving children
meet challenging achievement academic standards, each local
educational agency plan shall include--
``(A) a description of high-quality student academic
assessments, if any, that are in addition to the
academic assessments described in the State plan under
section 1111(b)(3), that the local educational agency
and schools served under this part will use--
``(i) to determine the success of children
served under this part in meeting the State
student academic achievement standards, and to
provide information to teachers, parents, and
students on the progress being made toward meeting
the State student academic
[[Page 115 STAT. 1463]]
achievement standards described in section
1111(b)(1)(D)(ii);
``(ii) to assist in diagnosis, teaching, and
learning in the classroom in ways that best enable
low-achieving children served under this part to
meet State student achievement academic standards
and do well in the local curriculum;
``(iii) to determine what revisions are needed
to projects under this part so that such children
meet the State student academic achievement
standards; and
``(iv) to identify effectively students who
may be at risk for reading failure or who are
having difficulty reading, through the use of
screening, diagnostic, and classroom-based
instructional reading assessments, as defined
under section 1208;
``(B) at the local educational agency's discretion,
a description of any other indicators that will be used
in addition to the academic indicators described in
section 1111 for the uses described in such section;
``(C) a description of how the local educational
agency will provide additional educational assistance to
individual students assessed as needing help in meeting
the State's challenging student academic achievement
standards;
``(D) a description of the strategy the local
educational agency will use to coordinate programs under
this part with programs under title II to provide
professional development for teachers and principals,
and, if appropriate, pupil services personnel,
administrators, parents and other staff, including local
educational agency level staff in accordance with
sections 1118 and 1119;
``(E) a description of how the local educational
agency will coordinate and integrate services provided
under this part with other educational services at the
local educational agency or individual school level,
such as--
``(i) Even Start, Head Start, Reading First,
Early Reading First, and other preschool programs,
including plans for the transition of participants
in such programs to local elementary school
programs; and
``(ii) services for children with limited
English proficiency, children with disabilities,
migratory children, neglected or delinquent youth,
Indian children served under part A of title VII,
homeless children, and immigrant children in order
to increase program effectiveness, eliminate
duplication, and reduce fragmentation of the
instructional program;
``(F) an assurance that the local educational agency
will participate, if selected, in the State National
Assessment of Educational Progress in 4th and 8th grade
reading and mathematics carried out under section
411(b)(2) of the National Education Statistics Act of
1994;
``(G) a description of the poverty criteria that
will be used to select school attendance areas under
section 1113;
``(H) a description of how teachers, in consultation
with parents, administrators, and pupil services
personnel, in targeted assistance schools under section
1115, will identify
[[Page 115 STAT. 1464]]
the eligible children most in need of services under
this part;
``(I) a general description of the nature of the
programs to be conducted by such agency's schools under
sections 1114 and 1115 and, where appropriate,
educational services outside such schools for children
living in local institutions for neglected or delinquent
children, and for neglected and delinquent children in
community day school programs;
``(J) a description of how the local educational
agency will ensure that migratory children and formerly
migratory children who are eligible to receive services
under this part are selected to receive such services on
the same basis as other children who are selected to
receive services under this part;
``(K) if appropriate, a description of how the local
educational agency will use funds under this part to
support preschool programs for children, particularly
children participating in Early Reading First, or in a
Head Start or Even Start program, which services may be
provided directly by the local educational agency or
through a subcontract with the local Head Start agency
designated by the Secretary of Health and Human Services
under section 641 of the Head Start Act, or an agency
operating an Even Start program, an Early Reading First
program, or another comparable public early childhood
development program;
``(L) a description of the actions the local
educational agency will take to assist its low-achieving
schools identified under section 1116 as in need of
improvement;
``(M) a description of the actions the local
educational agency will take to implement public school
choice and supplemental services, consistent with the
requirements of section 1116;
``(N) a description of how the local educational
agency will meet the requirements of section 1119;
``(O) a description of the services the local
educational agency will provide homeless children,
including services provided with funds reserved under
section 1113(c)(3)(A);
``(P) a description of the strategy the local
educational agency will use to implement effective
parental involvement under section 1118; and
``(Q) where appropriate, a description of how the
local educational agency will use funds under this part
to support after school (including before school and
summer school) and school-year extension programs.
``(2) Exception.--The academic assessments and indicators
described in subparagraphs (A) and (B) of paragraph (1) shall
not be used--
``(A) in lieu of the academic assessments required
under section 1111(b)(3) and other State academic
indicators under section 1111(b)(2); or
``(B) to reduce the number of, or change which,
schools would otherwise be subject to school
improvement, corrective action, or restructuring under
section 1116, if such additional assessments or
indicators described in such subparagraphs were not
used, but such assessments and indicators may be used to
identify additional schools for
[[Page 115 STAT. 1465]]
school improvement or in need of corrective action or
restructuring.
``(c) Assurances.--
``(1) In general.--Each local educational agency plan shall
provide assurances that the local educational agency will--
``(A) inform eligible schools and parents of
schoolwide program authority and the ability of such
schools to consolidate funds from Federal, State, and
local sources;
``(B) provide technical assistance and support to
schoolwide programs;
``(C) work in consultation with schools as the
schools develop the schools' plans pursuant to section
1114 and assist schools as the schools implement such
plans or undertake activities pursuant to section 1115
so that each school can make adequate yearly progress
toward meeting the State student academic achievement
standards;
``(D) fulfill such agency's school improvement
responsibilities under section 1116, including taking
actions under paragraphs (7) and (8) of section 1116(b);
``(E) provide services to eligible children
attending private elementary schools and secondary
schools in accordance with section 1120, and timely and
meaningful consultation with private school officials
regarding such services;
``(F) take into account the experience of model
programs for the educationally disadvantaged, and the
findings of relevant scientifically based research
indicating that services may be most effective if
focused on students in the earliest grades at schools
that receive funds under this part;
``(G) in the case of a local educational agency that
chooses to use funds under this part to provide early
childhood development services to low-income children
below the age of compulsory school attendance, ensure
that such services comply with the performance standards
established under section 641A(a) of the Head Start Act;
``(H) work in consultation with schools as the
schools develop and implement their plans or activities
under sections 1118 and 1119;
``(I) comply with the requirements of section 1119
regarding the qualifications of teachers and
paraprofessionals and professional development;
``(J) inform eligible schools of the local
educational agency's authority to obtain waivers on the
school's behalf under title IX and, if the State is an
Ed-Flex Partnership State, to obtain waivers under the
Education Flexibility Partnership Act of 1999;
``(K) coordinate and collaborate, to the extent
feasible and necessary as determined by the local
educational agency, with the State educational agency
and other agencies providing services to children,
youth, and families with respect to a school in school
improvement, corrective action, or restructuring under
section 1116 if such a school requests assistance from
the local educational agency in addressing major factors
that have significantly affected student achievement at
the school;
[[Page 115 STAT. 1466]]
``(L) ensure, through incentives for voluntary
transfers, the provision of professional development,
recruitment programs, or other effective strategies,
that low-income students and minority students are not
taught at higher rates than other students by
unqualified, out-of-field, or inexperienced teachers;
``(M) use the results of the student academic
assessments required under section 1111(b)(3), and other
measures or indicators available to the agency, to
review annually the progress of each school served by
the agency and receiving funds under this part to
determine whether all of the schools are making the
progress necessary to ensure that all students will meet
the State's proficient level of achievement on the State
academic assessments described in section 1111(b)(3)
within 12 years from the end of the 2001-2002 school
year;
``(N) ensure that the results from the academic
assessments required under section 1111(b)(3) will be
provided to parents and teachers as soon as is
practicably possible after the test is taken, in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand; and
``(O) assist each school served by the agency and
assisted under this part in developing or identifying
examples of high-quality, effective curricula consistent
with section 1111(b)(8)(D).
``(2) Special rule.--In carrying out subparagraph (G) of
paragraph (1), the Secretary--
``(A) <<NOTE: Procedures.>> shall consult with the
Secretary of Health and Human Services and shall
establish procedures (taking into consideration existing
State and local laws, and local teacher contracts) to
assist local educational agencies to comply with such
subparagraph; and
``(B) shall disseminate to local educational
agencies the Head Start performance standards as in
effect under section 641A(a) of the Head Start Act, and
such agencies affected by such subparagraph shall plan
for the implementation of such subparagraph (taking into
consideration existing State and local laws, and local
teacher contracts), including pursuing the availability
of other Federal, State, and local funding sources to
assist in compliance with such subparagraph.
``(3) Inapplicability.--Paragraph (1)(G) of this subsection
shall not apply to preschool programs using the Even Start model
or to Even Start programs that are expanded through the use of
funds under this part.
``(d) Plan Development and Duration.--
``(1) Consultation.--Each local educational agency plan
shall be developed in consultation with teachers, principals,
administrators (including administrators of programs described
in other parts of this title), and other appropriate school
personnel, and with parents of children in schools served under
this part.
``(2) Duration.--Each such plan shall be submitted for the
first year for which this part is in effect following the date
of enactment of the No Child Left Behind Act of 2001
[[Page 115 STAT. 1467]]
and shall remain in effect for the duration of the agency's
participation under this part.
``(3) Review.--Each local educational agency shall
periodically review and, as necessary, revise its plan.
``(e) State Approval.--
``(1) In general.--Each local educational agency plan shall
be filed according to a schedule established by the State
educational agency.
``(2) Approval.--The State educational agency shall approve
a local educational agency's plan only if the State educational
agency determines that the local educational agency's plan--
``(A) enables schools served under this part to
substantially help children served under this part meet
the academic standards expected of all children
described in section 1111(b)(1); and
``(B) meets the requirements of this section.
``(3) Review.--The State educational agency shall review the
local educational agency's plan to determine if such agencies
activities are in accordance with sections 1118 and 1119.
``(f) Program Responsibility.--The local educational agency plan
shall reflect the shared responsibility of schools, teachers, and the
local educational agency in making decisions regarding activities under
sections 1114 and 1115.
``(g) Parental Notification.--
``(1) In general.--
``(A) <<NOTE: Deadline.>> Notice.--Each local
educational agency using funds under this part to
provide a language instruction educational program as
determined in part C of title III shall, not later than
30 days after the beginning of the school year, inform a
parent or parents of a limited English proficient child
identified for participation or participating in, such a
program of--
``(i) the reasons for the identification of
their child as limited English proficient and in
need of placement in a language instruction
educational program;
``(ii) the child's level of English
proficiency, how such level was assessed, and the
status of the child's academic achievement;
``(iii) the methods of instruction used in the
program in which their child is, or will be
participating, and the methods of instruction used
in other available programs, including how such
programs differ in content, instructional goals,
and the use of English and a native language in
instruction;
``(iv) how the program in which their child
is, or will be participating, will meet the
educational strengths and needs of their child;
``(v) how such program will specifically help
their child learn English, and meet age-
appropriate academic achievement standards for
grade promotion and graduation;
``(vi) the specific exit requirements for the
program, including the expected rate of transition
from such program into classrooms that are not
tailored for limited English proficient children,
and the expected rate of graduation from secondary
school for such program
[[Page 115 STAT. 1468]]
if funds under this part are used for children in
secondary schools;
``(vii) in the case of a child with a
disability, how such program meets the objectives
of the individualized education program of the
child;
``(viii) information pertaining to parental
rights that includes written guidance--
``(I) detailing--
``(aa) the right that
parents have to have their child
immediately removed from such
program upon their request; and
``(bb) the options that
parents have to decline to
enroll their child in such
program or to choose another
program or method of
instruction, if available; and
``(II) assisting parents in
selecting among various programs and
methods of instruction, if more than one
program or method is offered by the
eligible entity.
``(B) <<NOTE: Deadline.>> Separate notification.--
In addition to providing the information required to be
provided under paragraph (1), each eligible entity that
is using funds provided under this part to provide a
language instruction educational program, and that has
failed to make progress on the annual measurable
achievement objectives described in section 3122 for any
fiscal year for which part A is in effect, shall
separately inform a parent or the parents of a child
identified for participation in such program, or
participating in such program, of such failure not later
than 30 days after such failure occurs.
``(2) Notice.--The notice and information provided in
paragraph (1) to a parent or parents of a child identified for
participation in a language instruction educational program for
limited English proficient children shall be in an
understandable and uniform format and, to the extent
practicable, provided in a language that the parents can
understand.
``(3) <<NOTE: Deadline.>> Special rule applicable during
the school year.--For those children who have not been
identified as limited English proficient prior to the beginning
of the school year the local educational agency shall notify
parents within the first 2 weeks of the child being placed in a
language instruction educational program consistent with
paragraphs (1) and (2).
``(4) Parental participation.--Each local educational agency
receiving funds under this part shall implement an effective
means of outreach to parents of limited English proficient
students to inform the parents regarding how the parents can be
involved in the education of their children, and be active
participants in assisting their children to attain English
proficiency, achieve at high levels in core academic subjects,
and meet challenging State academic achievement standards and
State academic content standards expected of all students,
including holding, and sending notice of opportunities for,
regular meetings for the purpose of formulating and responding
to recommendations from parents of students assisted under this
part.
``(5) Basis for admission or exclusion.--A student shall not
be admitted to, or excluded from, any federally assisted
[[Page 115 STAT. 1469]]
education program on the basis of a surname or language-minority
status.
``SEC. 1113. <<NOTE: 20 USC 6313.>> ELIGIBLE SCHOOL ATTENDANCE AREAS.
``(a) Determination.--
``(1) In general.--A local educational agency shall use
funds received under this part only in eligible school
attendance areas.
``(2) Eligible school attendance areas.--For the purposes of
this part--
``(A) the term `school attendance area' means, in
relation to a particular school, the geographical area
in which the children who are normally served by that
school reside; and
``(B) the term `eligible school attendance area'
means a school attendance area in which the percentage
of children from low-income families is at least as high
as the percentage of children from low-income families
served by the local educational agency as a whole.
``(3) Ranking order.--If funds allocated in accordance with
subsection (c) are insufficient to serve all eligible school
attendance areas, a local educational agency shall--
``(A) annually rank, without regard to grade spans,
such agency's eligible school attendance areas in which
the concentration of children from low-income families
exceeds 75 percent from highest to lowest according to
the percentage of children from low-income families; and
``(B) serve such eligible school attendance areas in
rank order.
``(4) Remaining funds.--If funds remain after serving all
eligible school attendance areas under paragraph (3), a local
educational agency shall--
``(A) annually rank such agency's remaining eligible
school attendance areas from highest to lowest either by
grade span or for the entire local educational agency
according to the percentage of children from low-income
families; and
``(B) serve such eligible school attendance areas in
rank order either within each grade-span grouping or
within the local educational agency as a whole.
``(5) Measures.--The local educational agency shall use the
same measure of poverty, which measure shall be the number of
children ages 5 through 17 in poverty counted in the most recent
census data approved by the Secretary, the number of children
eligible for free and reduced priced lunches under the Richard
B. Russell National School Lunch Act, the number of children in
families receiving assistance under the State program funded
under part A of title IV of the Social Security Act, or the
number of children eligible to receive medical assistance under
the Medicaid program, or a composite of such indicators, with
respect to all school attendance areas in the local educational
agency--
``(A) to identify eligible school attendance areas;
``(B) to determine the ranking of each area; and
``(C) to determine allocations under subsection (c).
[[Page 115 STAT. 1470]]
``(6) Exception.--This subsection shall not apply to a local
educational agency with a total enrollment of less than 1,000
children.
``(7) Waiver for desegregation plans.--The Secretary may
approve a local educational agency's written request for a
waiver of the requirements of subsections (a) and (c), and
permit such agency to treat as eligible, and serve, any school
that children attend with a State-ordered, court-ordered school
desegregation plan or a plan that continues to be implemented in
accordance with a State-ordered or court-ordered desegregation
plan, if--
``(A) the number of economically disadvantaged
children enrolled in the school is at least 25 percent
of the school's total enrollment; and
``(B) the Secretary determines on the basis of a
written request from such agency and in accordance with
such criteria as the Secretary establishes, that
approval of that request would further the purposes of
this part.
``(b) Local Educational Agency Discretion.--
``(1) In general.--Notwithstanding subsection (a)(2), a
local educational agency may--
``(A) designate as eligible any school attendance
area or school in which at least 35 percent of the
children are from low-income families;
``(B) use funds received under this part in a school
that is not in an eligible school attendance area, if
the percentage of children from low-income families
enrolled in the school is equal to or greater than the
percentage of such children in a participating school
attendance area of such agency;
``(C) designate and serve a school attendance area
or school that is not eligible under this section, but
that was eligible and that was served in the preceding
fiscal year, but only for 1 additional fiscal year; and
``(D) elect not to serve an eligible school
attendance area or eligible school that has a higher
percentage of children from low-income families if--
``(i) the school meets the comparability
requirements of section 1120A(c);
``(ii) the school is receiving supplemental
funds from other State or local sources that are
spent according to the requirements of section
1114 or 1115; and
``(iii) the funds expended from such other
sources equal or exceed the amount that would be
provided under this part.
``(2) Special rule.--Notwithstanding paragraph (1)(D), the
number of children attending private elementary schools and
secondary schools who are to receive services, and the
assistance such children are to receive under this part, shall
be determined without regard to whether the public school
attendance area in which such children reside is assisted under
subparagraph (A).
``(c) Allocations.--
``(1) In general.--A local educational agency shall allocate
funds received under this part to eligible school attendance
areas or eligible schools, identified under subsections (a) and
[[Page 115 STAT. 1471]]
(b), in rank order, on the basis of the total number of children
from low-income families in each area or school.
``(2) Special rule.--
``(A) In general.--Except as provided in
subparagraph (B), the per-pupil amount of funds
allocated to each school attendance area or school under
paragraph (1) shall be at least 125 percent of the per-
pupil amount of funds a local educational agency
received for that year under the poverty criteria
described by the local educational agency in the plan
submitted under section 1112, except that this paragraph
shall not apply to a local educational agency that only
serves schools in which the percentage of such children
is 35 percent or greater.
``(B) Exception.--A local educational agency may
reduce the amount of funds allocated under subparagraph
(A) for a school attendance area or school by the amount
of any supplemental State and local funds expended in
that school attendance area or school for programs that
meet the requirements of section 1114 or 1115.
``(3) Reservation.--A local educational agency shall reserve
such funds as are necessary under this part to provide services
comparable to those provided to children in schools funded under
this part to serve--
``(A) homeless children who do not attend
participating schools, including providing educationally
related support services to children in shelters and
other locations where children may live;
``(B) children in local institutions for neglected
children; and
``(C) if appropriate, children in local institutions
for delinquent children, and neglected or delinquent
children in community day school programs.
``(4) Financial incentives and rewards reservation.--A local
educational agency may reserve such funds as are necessary from
those funds received by the local educational agency under title
II, and not more than 5 percent of those funds received by the
local educational agency under subpart 2, to provide financial
incentives and rewards to teachers who serve in schools eligible
under this section and identified for school improvement,
corrective action, and restructuring under section 1116(b) for
the purpose of attracting and retaining qualified and effective
teachers.
``SEC. 1114. <<NOTE: 20 USC 6314.>> SCHOOLWIDE PROGRAMS.
``(a) Use of Funds for Schoolwide Programs.--
``(1) In general.--A local educational agency may
consolidate and use funds under this part, together with other
Federal, State, and local funds, in order to upgrade the entire
educational program of a school that serves an eligible school
attendance area in which not less than 40 percent of the
children are from low-income families, or not less than 40
percent of the children enrolled in the school are from such
families.
``(2) Identification of students not required.--
``(A) In general.--No school participating in a
schoolwide program shall be required--
``(i) to identify particular children under
this part as eligible to participate in a
schoolwide program; or
[[Page 115 STAT. 1472]]
``(ii) to provide services to such children
that are supplementary, as otherwise required by
section 1120A(b).
``(B) Supplemental funds.--A school participating in
a schoolwide program shall use funds available to carry
out this section only to supplement the amount of funds
that would, in the absence of funds under this part, be
made available from non-Federal sources for the school,
including funds needed to provide services that are
required by law for children with disabilities and
children with limited English proficiency.
``(3) Exemption from statutory and regulatory
requirements.--
``(A) Exemption.--Except as provided in subsection
(b), the Secretary may, through publication of a notice
in the Federal Register, exempt schoolwide programs
under this section from statutory or regulatory
provisions of any other noncompetitive formula grant
program administered by the Secretary (other than
formula or discretionary grant programs under the
Individuals with Disabilities Education Act, except as
provided in section 613(a)(2)(D) of such Act), or any
discretionary grant program administered by the
Secretary, to support schoolwide programs if the intent
and purposes of such other programs are met.
``(B) Requirements.--A school that chooses to use
funds from such other programs shall not be relieved of
the requirements relating to health, safety, civil
rights, student and parental participation and
involvement, services to private school children,
maintenance of effort, comparability of services, uses
of Federal funds to supplement, not supplant non-Federal
funds, or the distribution of funds to State educational
agencies or local educational agencies that apply to the
receipt of funds from such programs.
``(C) Records.--A school that consolidates and uses
funds from different Federal programs under this section
shall not be required to maintain separate fiscal
accounting records, by program, that identify the
specific activities supported by those particular funds
as long as the school maintains records that demonstrate
that the schoolwide program, considered as a whole,
addresses the intent and purposes of each of the Federal
programs that were consolidated to support the
schoolwide program.
``(4) Professional development.--Each school receiving funds
under this part for any fiscal year shall devote sufficient
resources to effectively carry out the activities described in
subsection (b)(1)(D) in accordance with section 1119 for such
fiscal year, except that a school may enter into a consortium
with another school to carry out such activities.
``(b) Components of a Schoolwide Program.--
``(1) In general.--A schoolwide program shall include the
following components:
``(A) A comprehensive needs assessment of the entire
school (including taking into account the needs of
migratory children as defined in section 1309(2)) that
is based on information which includes the achievement
of children in relation to the State academic content
standards and
[[Page 115 STAT. 1473]]
the State student academic achievement standards
described in section 1111(b)(1).
``(B) Schoolwide reform strategies that--
``(i) provide opportunities for all children
to meet the State's proficient and advanced levels
of student academic achievement described in
section 1111(b)(1)(D);
``(ii) use effective methods and instructional
strategies that are based on scientifically based
research that--
``(I) strengthen the core academic
program in the school;
``(II) increase the amount and
quality of learning time, such as
providing an extended school year and
before- and after-school and summer
programs and opportunities, and help
provide an enriched and accelerated
curriculum; and
``(III) include strategies for
meeting the educational needs of
historically underserved populations;
``(iii)(I) include strategies to address the
needs of all children in the school, but
particularly the needs of low-achieving children
and those at risk of not meeting the State student
academic achievement standards who are members of
the target population of any program that is
included in the schoolwide program, which may
include--
``(aa) counseling, pupil services,
and mentoring services;
``(bb) college and career awareness
and preparation, such as college and
career guidance, personal finance
education, and innovative teaching
methods, which may include applied
learning and team-teaching strategies;
and
``(cc) the integration of vocational
and technical education programs; and
``(II) address how the school will determine
if such needs have been met; and
``(iv) are consistent with, and are designed
to implement, the State and local improvement
plans, if any.
``(C) Instruction by highly qualified teachers.
``(D) In accordance with section 1119 and subsection
(a)(4), high-quality and ongoing professional
development for teachers, principals, and
paraprofessionals and, if appropriate, pupil services
personnel, parents, and other staff to enable all
children in the school to meet the State's student
academic achievement standards.
``(E) Strategies to attract high-quality highly
qualified teachers to high-need schools.
``(F) Strategies to increase parental involvement in
accordance with section 1118, such as family literary
services.
``(G) Plans for assisting preschool children in the
transition from early childhood programs, such as Head
Start, Even Start, Early Reading First, or a State-run
preschool program, to local elementary school programs.
[[Page 115 STAT. 1474]]
``(H) Measures to include teachers in the decisions
regarding the use of academic assessments described in
section 1111(b)(3) in order to provide information on,
and to improve, the achievement of individual students
and the overall instructional program.
``(I) Activities to ensure that students who
experience difficulty mastering the proficient or
advanced levels of academic achievement standards
required by section 1111(b)(1) shall be provided with
effective, timely additional assistance which shall
include measures to ensure that students' difficulties
are identified on a timely basis and to provide
sufficient information on which to base effective
assistance.
``(J) Coordination and integration of Federal,
State, and local services and programs, including
programs supported under this Act, violence prevention
programs, nutrition programs, housing programs, Head
Start, adult education, vocational and technical
education, and job training.
``(2) Plan.--
``(A) In general.--Any eligible school that desires
to operate a schoolwide program shall first develop (or
amend a plan for such a program that was in existence on
the day before the date of enactment of the No Child
Left Behind Act of 2001), in consultation with the local
educational agency and its school support team or other
technical assistance provider under section 1117, a
comprehensive plan for reforming the total instructional
program in the school that--
``(i) describes how the school will implement
the components described in paragraph (1);
``(ii) describes how the school will use
resources under this part and from other sources
to implement those components;
``(iii) <<NOTE: Records.>> includes a list of
State educational agency and local educational
agency programs and other Federal programs under
subsection (a)(3) that will be consolidated in the
schoolwide program; and
``(iv) describes how the school will provide
individual student academic assessment results in
a language the parents can understand, including
an interpretation of those results, to the parents
of a child who participates in the academic
assessments required by section 1111(b)(3).
``(B) Plan development.--The comprehensive plan
shall be--
``(i) developed during a one-year period,
unless--
``(I) the local educational agency,
after considering the recommendation of
the technical assistance providers under
section 1117, determines that less time
is needed to develop and implement the
schoolwide program; or
``(II) the school is operating a
schoolwide program on the day preceding
the date of enactment of the No Child
Left Behind Act of 2001, in which case
such school may continue to operate such
program, but shall develop amendments to
its existing plan during the first year
of assistance
[[Page 115 STAT. 1475]]
after that date to reflect the
provisions of this section;
``(ii) developed with the involvement of
parents and other members of the community to be
served and individuals who will carry out such
plan, including teachers, principals, and
administrators (including administrators of
programs described in other parts of this title),
and, if appropriate, pupil services personnel,
technical assistance providers, school staff, and,
if the plan relates to a secondary school,
students from such school;
``(iii) in effect for the duration of the
school's participation under this part and
reviewed and revised, as necessary, by the school;
``(iv) available to the local educational
agency, parents, and the public, and the
information contained in such plan shall be in an
understandable and uniform format and, to the
extent practicable, provided in a language that
the parents can understand; and
``(v) if appropriate, developed in
coordination with programs under Reading First,
Early Reading First, Even Start, Carl D. Perkins
Vocational and Technical Education Act of 1998,
and the Head Start Act.
``(c) Prekindergarten Program.--A school that is eligible for a
schoolwide program under this section may use funds made available under
this part to establish or enhance prekindergarten programs for children
below the age of 6, such as Even Start programs or Early Reading First
programs.
``SEC. 1115. TARGETED ASSISTANCE SCHOOLS. <<NOTE: 20 USC 6315.>>
``(a) In General.--In all schools selected to receive funds under
section 1113(c) that are ineligible for a schoolwide program under
section 1114, or that choose not to operate such a schoolwide program, a
local educational agency serving such school may use funds received
under this part only for programs that provide services to eligible
children under subsection (b) identified as having the greatest need for
special assistance.
``(b) Eligible Children.--
``(1) Eligible population.--
``(A) In general.--The eligible population for
services under this section is--
``(i) children not older than age 21 who are
entitled to a free public education through grade
12; and
``(ii) children who are not yet at a grade
level at which the local educational agency
provides a free public education.
``(B) Eligible children from eligible population.--
From the population described in subparagraph (A),
eligible children are children identified by the school
as failing, or most at risk of failing, to meet the
State's challenging student academic achievement
standards on the basis of multiple, educationally
related, objective criteria established by the local
educational agency and supplemented by the school,
except that children from preschool through grade 2
shall be selected solely on the basis of such criteria
as teacher judgment, interviews with parents, and
developmentally appropriate measures.
[[Page 115 STAT. 1476]]
``(2) Children included.--
``(A) In general.--Children who are economically
disadvantaged, children with disabilities, migrant
children or limited English proficient children, are
eligible for services under this part on the same basis
as other children selected to receive services under
this part.
``(B) Head start, even start, or early reading first
children.--A child who, at any time in the 2 years
preceding the year for which the determination is made,
participated in a Head Start, Even Start, or Early
Reading First program, or in preschool services under
this title, is eligible for services under this part.
``(C) Part c children.--A child who, at any time in
the 2 years preceding the year for which the
determination is made, received services under part C is
eligible for services under this part.
``(D) Neglected or delinquent children.--A child in
a local institution for neglected or delinquent children
and youth or attending a community day program for such
children is eligible for services under this part.
``(E) Homeless children.--A child who is homeless
and attending any school served by the local educational
agency is eligible for services under this part.
``(3) Special rule.--Funds received under this part may not
be used to provide services that are otherwise required by law
to be made available to children described in paragraph (2) but
may be used to coordinate or supplement such services.
``(c) Components of a Targeted Assistance School Program.--
``(1) In general.--To assist targeted assistance schools and
local educational agencies to meet their responsibility to
provide for all their students served under this part the
opportunity to meet the State's challenging student academic
achievement standards in subjects as determined by the State,
each targeted assistance program under this section shall--
``(A) use such program's resources under this part
to help participating children meet such State's
challenging student academic achievement standards
expected for all children;
``(B) ensure that planning for students served under
this part is incorporated into existing school planning;
``(C) use effective methods and instructional
strategies that are based on scientifically based
research that strengthens the core academic program of
the school and that--
``(i) give primary consideration to providing
extended learning time, such as an extended school
year, before- and after-school, and summer
programs and opportunities;
``(ii) help provide an accelerated, high-
quality curriculum, including applied learning;
and
``(iii) minimize removing children from the
regular classroom during regular school hours for
instruction provided under this part;
``(D) coordinate with and support the regular
education program, which may include services to assist
preschool children in the transition from early
childhood programs
[[Page 115 STAT. 1477]]
such as Head Start, Even Start, Early Reading First or
State-run preschool programs to elementary school
programs;
``(E) provide instruction by highly qualified
teachers;
``(F) in accordance with subsection (e)(3) and
section 1119, provide opportunities for professional
development with resources provided under this part,
and, to the extent practicable, from other sources, for
teachers, principals, and paraprofessionals, including,
if appropriate, pupil services personnel, parents, and
other staff, who work with participating children in
programs under this section or in the regular education
program;
``(G) provide strategies to increase parental
involvement in accordance with section 1118, such as
family literacy services; and
``(H) coordinate and integrate Federal, State, and
local services and programs, including programs
supported under this Act, violence prevention programs,
nutrition programs, housing programs, Head Start, adult
education, vocational and technical education, and job
training.
``(2) Requirements.--Each school conducting a program under
this section shall assist participating children selected in
accordance with subsection (b) to meet the State's proficient
and advanced levels of achievement by--
``(A) the coordinating of resources provided under
this part with other resources; and
``(B) reviewing, on an ongoing basis, the progress
of participating children and revising the targeted
assistance program, if necessary, to provide additional
assistance to enable such children to meet the State's
challenging student academic achievement standards, such
as an extended school year, before- and after-school,
and summer programs and opportunities, training for
teachers regarding how to identify students who need
additional assistance, and training for teachers
regarding how to implement student academic achievement
standards in the classroom.
``(d) Integration of Professional Development.--To promote the
integration of staff supported with funds under this part into the
regular school program and overall school planning and improvement
efforts, public school personnel who are paid with funds received under
this part may--
``(1) participate in general professional development and
school planning activities; and
``(2) assume limited duties that are assigned to similar
personnel who are not so paid, including duties beyond classroom
instruction or that do not benefit participating children, so
long as the amount of time spent on such duties is the same
proportion of total work time as prevails with respect to
similar personnel at the same school.
``(e) Special Rules.--
``(1) Simultaneous service.--Nothing in this section shall
be construed to prohibit a school from serving students under
this section simultaneously with students with similar
educational needs, in the same educational settings where
appropriate.
``(2) Comprehensive services.--If--
[[Page 115 STAT. 1478]]
``(A) health, nutrition, and other social services
are not otherwise available to eligible children in a
targeted assistance school and such school, if
appropriate, has engaged in a comprehensive needs
assessment and established a collaborative partnership
with local service providers; and
``(B) funds are not reasonably available from other
public or private sources to provide such services, then
a portion of the funds provided under this part may be
used as a last resort to provide such services,
including--
``(i) the provision of basic medical
equipment, such as eyeglasses and hearing aids;
``(ii) compensation of a coordinator; and
``(iii) professional development necessary to
assist teachers, pupil services personnel, other
staff, and parents in identifying and meeting the
comprehensive needs of eligible children.
``(3) Professional development.--Each school receiving funds
under this part for any fiscal year shall devote sufficient
resources to carry out effectively the professional development
activities described in subparagraph (F) of subsection (c)(1) in
accordance with section 1119 for such fiscal year, and a school
may enter into a consortium with another school to carry out
such activities.
``SEC. 1116. <<NOTE: 20 USC 6316.>> ACADEMIC ASSESSMENT AND LOCAL
EDUCATIONAL AGENCY AND SCHOOL IMPROVEMENT.
``(a) Local Review.--
``(1) In general.--Each local educational agency receiving
funds under this part shall--
``(A) use the State academic assessments and other
indicators described in the State plan to review
annually the progress of each school served under this
part to determine whether the school is making adequate
yearly progress as defined in section 1111(b)(2);
``(B) at the local educational agency's discretion,
use any academic assessments or any other academic
indicators described in the local educational agency's
plan under section 1112(b)(1)(A) and (B) to review
annually the progress of each school served under this
part to determine whether the school is making adequate
yearly progress as defined in section 1111(b)(2), except
that the local educational agency may not use such
indicators (other than as provided for in section
1111(b)(2)(I)) if the indicators reduce the number or
change the schools that would otherwise be subject to
school improvement, corrective action, or restructuring
under section 1116 if such additional indicators were
not used, but may identify additional schools for school
improvement or in need of corrective action or
restructuring;
``(C) publicize and disseminate the results of the
local annual review described in paragraph (1) to
parents, teachers, principals, schools, and the
community so that the teachers, principals, other staff,
and schools can continually refine, in an
instructionally useful manner, the program of
instruction to help all children served under this
[[Page 115 STAT. 1479]]
part meet the challenging State student academic
achievement standards established under section
1111(b)(1); and
``(D) review the effectiveness of the actions and
activities the schools are carrying out under this part
with respect to parental involvement, professional
development, and other activities assisted under this
part.
``(2) Available results.--The State educational agency shall
ensure that the results of State academic assessments
administered in that school year are available to the local
educational agency before the beginning of the next school year.
``(b) School Improvement.--
``(1) General requirements.--
``(A) Identification.--Subject to subparagraph (C),
a local educational agency shall identify for school
improvement any elementary school or secondary school
served under this part that fails, for 2 consecutive
years, to make adequate yearly progress as defined in
the State's plan under section 1111(b)(2).
``(B) Deadline.--The identification described in
subparagraph (A) shall take place before the beginning
of the school year following such failure to make
adequate yearly progress.
``(C) Application.--Subparagraph (A) shall not apply
to a school if almost every student in each group
specified in section 1111(b)(2)(C)(v) enrolled in such
school is meeting or exceeding the State's proficient
level of academic achievement.
``(D) Targeted assistance schools.--To determine if
an elementary school or a secondary school that is
conducting a targeted assistance program under section
1115 should be identified for school improvement,
corrective action, or restructuring under this section,
a local educational agency may choose to review the
progress of only the students in the school who are
served, or are eligible for services, under this part.
``(E) Public school choice.--
``(i) In general.--In the case of a school
identified for school improvement under this
paragraph, the local educational agency shall, not
later than the first day of the school year
following such identification, provide all
students enrolled in the school with the option to
transfer to another public school served by the
local educational agency, which may include a
public charter school, that has not been
identified for school improvement under this
paragraph, unless such an option is prohibited by
State law.
``(ii) Rule.--In providing students the option
to transfer to another public school, the local
educational agency shall give priority to the
lowest achieving children from low-income
families, as determined by the local educational
agency for purposes of allocating funds to schools
under section 1113(c)(1).
``(F) Transfer.--Students who use the option to
transfer under subparagraph (E) and paragraph (5)(A),
(7)(C)(i), or (8)(A)(i) or subsection (c)(10)(C)(vii)
shall be enrolled in classes and other activities in the
public school
[[Page 115 STAT. 1480]]
to which the students transfer in the same manner as all
other children at the public school.
``(2) Opportunity to review and present evidence; time
limit.--
``(A) Identification.--Before identifying an
elementary school or a secondary school for school
improvement under paragraphs (1) or (5)(A), for
corrective action under paragraph (7), or for
restructuring under paragraph (8), the local educational
agency shall provide the school with an opportunity to
review the school-level data, including academic
assessment data, on which the proposed identification is
based.
``(B) Evidence.--If the principal of a school
proposed for identification under paragraph (1), (5)(A),
(7), or (8) believes, or a majority of the parents of
the students enrolled in such school believe, that the
proposed identification is in error for statistical or
other substantive reasons, the principal may provide
supporting evidence to the local educational agency,
which shall consider that evidence before making a final
determination.
``(C) <<NOTE: Deadline. Public information.>> Final
determination.--Not later than 30 days after a local
educational agency provides the school with the
opportunity to review such school-level data, the local
educational agency shall make public a final
determination on the status of the school with respect
to the identification.
``(3) School plan.--
``(A) <<NOTE: Deadline.>> Revised plan.--After the
resolution of a review under paragraph (2), each school
identified under paragraph (1) for school improvement
shall, not later than 3 months after being so
identified, develop or revise a school plan, in
consultation with parents, school staff, the local
educational agency serving the school, and outside
experts, for approval by such local educational agency.
The school plan shall cover a 2-year period and--
``(i) incorporate strategies based on
scientifically based research that will strengthen
the core academic subjects in the school and
address the specific academic issues that caused
the school to be identified for school
improvement, and may include a strategy for the
implementation of a comprehensive school reform
model that includes each of the components
described in part F;
``(ii) adopt policies and practices concerning
the school's core academic subjects that have the
greatest likelihood of ensuring that all groups of
students specified in section 1111(b)(2)(C)(v) and
enrolled in the school will meet the State's
proficient level of achievement on the State
academic assessment described in section
1111(b)(3) not later than 12 years after the end
of the 2001-2002 school year;
``(iii) provide an assurance that the school
will spend not less than 10 percent of the funds
made available to the school under section 1113
for each fiscal year that the school is in school
improvement status, for the purpose of providing
to the school's teachers and principal high-
quality professional development that--
[[Page 115 STAT. 1481]]
``(I) directly addresses the
academic achievement problem that caused
the school to be identified for school
improvement;
``(II) meets the requirements for
professional development activities
under section 1119; and
``(III) is provided in a manner that
affords increased opportunity for
participating in that professional
development;
``(iv) specify how the funds described in
clause (iii) will be used to remove the school
from school improvement status;
``(v) <<NOTE: Deadline.>> establish specific
annual, measurable objectives for continuous and
substantial progress by each group of students
specified in section 1111(b)(2)(C)(v) and enrolled
in the school that will ensure that all such
groups of students will, in accordance with
adequate yearly progress as defined in section
1111(b)(2), meet the State's proficient level of
achievement on the State academic assessment
described in section 1111(b)(3) not later than 12
years after the end of the 2001-2002 school year;
``(vi) describe how the school will provide
written notice about the identification to parents
of each student enrolled in such school, in a
format and, to the extent practicable, in a
language that the parents can understand;
``(vii) specify the responsibilities of the
school, the local educational agency, and the
State educational agency serving the school under
the plan, including the technical assistance to be
provided by the local educational agency under
paragraph (4) and the local educational agency's
responsibilities under section 1120A;
``(viii) include strategies to promote
effective parental involvement in the school;
``(ix) incorporate, as appropriate, activities
before school, after school, during the summer,
and during any extension of the school year; and
``(x) incorporate a teacher mentoring program.
``(B) Conditional approval.--The local educational
agency may condition approval of a school plan under
this paragraph on--
``(i) inclusion of one or more of the
corrective actions specified in paragraph
(7)(C)(iv); or
``(ii) feedback on the school improvement plan
from parents and community leaders.
``(C) <<NOTE: Deadline.>> Plan implementation.--
Except as provided in subparagraph (D), a school shall
implement the school plan (including a revised plan)
expeditiously, but not later than the beginning of the
next full school year following the identification under
paragraph (1).
``(D) Plan approved during school year.--
Notwithstanding subparagraph (C), if a plan is not
approved prior to the beginning of a school year, such
plan shall be implemented immediately upon approval.
[[Page 115 STAT. 1482]]
``(E) Local educational agency approval.--The local
educational agency, within 45 days of receiving a school
plan, shall--
``(i) <<NOTE: Establishment.>> establish a
peer review process to assist with review of the
school plan; and
``(ii) promptly review the school plan, work
with the school as necessary, and approve the
school plan if the plan meets the requirements of
this paragraph.
``(4) Technical assistance.--
``(A) In general.--For each school identified for
school improvement under paragraph (1), the local
educational agency serving the school shall ensure the
provision of technical assistance as the school develops
and implements the school plan under paragraph (3)
throughout the plan's duration.
``(B) Specific assistance.--Such technical
assistance--
``(i) shall include assistance in analyzing
data from the assessments required under section
1111(b)(3), and other examples of student work, to
identify and address problems in instruction, and
problems if any, in implementing the parental
involvement requirements described in section
1118, the professional development requirements
described in section 1119, and the
responsibilities of the school and local
educational agency under the school plan, and to
identify and address solutions to such problems;
``(ii) shall include assistance in identifying
and implementing professional development,
instructional strategies, and methods of
instruction that are based on scientifically based
research and that have proven effective in
addressing the specific instructional issues that
caused the school to be identified for school
improvement;
``(iii) shall include assistance in analyzing
and revising the school's budget so that the
school's resources are more effectively allocated
to the activities most likely to increase student
academic achievement and to remove the school from
school improvement status; and
``(iv) may be provided--
``(I) by the local educational
agency, through mechanisms authorized
under section 1117; or
``(II) by the State educational
agency, an institution of higher
education (that is in full compliance
with all the reporting provisions of
title II of the Higher Education Act of
1965), a private not-for-profit
organization or for-profit organization,
an educational service agency, or
another entity with experience in
helping schools improve academic
achievement.
``(C) Scientifically based research.--Technical
assistance provided under this section by a local
educational agency or an entity approved by that agency
shall be based on scientifically based research.
``(5) Failure to make adequate yearly progress after
identification.--In the case of any school served under this
[[Page 115 STAT. 1483]]
part that fails to make adequate yearly progress, as set out in
the State's plan under section 1111(b)(2), by the end of the
first full school year after identification under paragraph (1),
the local educational agency serving such school--
``(A) shall continue to provide all students
enrolled in the school with the option to transfer to
another public school served by the local educational
agency in accordance with subparagraphs (E) and (F);
``(B) shall make supplemental educational services
available consistent with subsection (e)(1); and
``(C) shall continue to provide technical
assistance.
``(6) Notice to parents.--A local educational agency shall
promptly provide to a parent or parents (in an understandable
and uniform format and, to the extent practicable, in a language
the parents can understand) of each student enrolled in an
elementary school or a secondary school identified for school
improvement under paragraph (1), for corrective action under
paragraph (7), or for restructuring under paragraph (8)--
``(A) an explanation of what the identification
means, and how the school compares in terms of academic
achievement to other elementary schools or secondary
schools served by the local educational agency and the
State educational agency involved;
``(B) the reasons for the identification;
``(C) an explanation of what the school identified
for school improvement is doing to address the problem
of low achievement;
``(D) an explanation of what the local educational
agency or State educational agency is doing to help the
school address the achievement problem;
``(E) an explanation of how the parents can become
involved in addressing the academic issues that caused
the school to be identified for school improvement; and
``(F) an explanation of the parents' option to
transfer their child to another public school under
paragraphs (1)(E), (5)(A), (7)(C)(i), (8)(A)(i), and
subsection (c)(10)(C)(vii) (with transportation provided
by the agency when required by paragraph (9)) or to
obtain supplemental educational services for the child,
in accordance with subsection (e).
``(7) Corrective action.--
``(A) In general.--In this subsection, the term
`corrective action' means action, consistent with State
law, that--
``(i) substantially and directly responds to--
``(I) the consistent academic
failure of a school that caused the
local educational agency to take such
action; and
``(II) any underlying staffing,
curriculum, or other problems in the
school; and
``(ii) is designed to increase substantially
the likelihood that each group of students
described in 1111(b)(2)(C) enrolled in the school
identified for corrective action will meet or
exceed the State's proficient levels of
achievement on the State academic assessments
described in section 1111(b)(3).
[[Page 115 STAT. 1484]]
``(B) System.--In order to help students served
under this part meet challenging State student academic
achievement standards, each local educational agency
shall implement a system of corrective action in
accordance with subparagraphs (C) through (E).
``(C) Role of local educational agency.--In the case
of any school served by a local educational agency under
this part that fails to make adequate yearly progress,
as defined by the State under section 1111(b)(2), by the
end of the second full school year after the
identification under paragraph (1), the local
educational agency shall--
``(i) continue to provide all students
enrolled in the school with the option to transfer
to another public school served by the local
educational agency, in accordance with paragraph
(1)(E) and (F);
``(ii) continue to provide technical
assistance consistent with paragraph (4) while
instituting any corrective action under clause
(iv);
``(iii) continue to make supplemental
educational services available, in accordance with
subsection (e), to children who remain in the
school; and
``(iv) identify the school for corrective
action and take at least one of the following
corrective actions:
``(I) Replace the school staff who
are relevant to the failure to make
adequate yearly progress.
``(II) Institute and fully implement
a new curriculum, including providing
appropriate professional development for
all relevant staff, that is based on
scientifically based research and offers
substantial promise of improving
educational achievement for low-
achieving students and enabling the
school to make adequate yearly progress.
``(III) Significantly decrease
management authority at the school
level.
``(IV) Appoint an outside expert to
advise the school on its progress toward
making adequate yearly progress, based
on its school plan under paragraph (3).
``(V) Extend the school year or
school day for the school.
``(VI) Restructure the internal
organizational structure of the school.
``(D) Delay.--Notwithstanding any other provision of
this paragraph, the local educational agency may delay,
for a period not to exceed 1 year, implementation of the
requirements under paragraph (5), corrective action
under this paragraph, or restructuring under paragraph
(8) if the school makes adequate yearly progress for 1
year or if its failure to make adequate yearly progress
is due to exceptional or uncontrollable circumstances,
such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the
local educational agency or school. No such period shall
be taken into account in determining the number of
consecutive years of failure to make adequate yearly
progress.
[[Page 115 STAT. 1485]]
``(E) Publication and dissemination.--The local
educational agency shall publish and disseminate
information regarding any corrective action the local
educational agency takes under this paragraph at a
school--
``(i) to the public and to the parents of each
student enrolled in the school subject to
corrective action;
``(ii) in an understandable and uniform format
and, to the extent practicable, provided in a
language that the parents can understand; and
``(iii) through such means as the Internet,
the media, and public agencies.
``(8) Restructuring.--
``(A) Failure to make adequate yearly progress.--If,
after 1 full school year of corrective action under
paragraph (7), a school subject to such corrective
action continues to fail to make adequate yearly
progress, then the local educational agency shall--
``(i) continue to provide all students
enrolled in the school with the option to transfer
to another public school served by the local
educational agency, in accordance with paragraph
(1)(E) and (F);
``(ii) continue to make supplemental
educational services available, in accordance with
subsection (e), to children who remain in the
school; and
``(iii) prepare a plan and make necessary
arrangements to carry out subparagraph (B).
``(B) <<NOTE: Deadline.>> Alternative governance.--
Not later than the beginning of the school year
following the year in which the local educational agency
implements subparagraph (A), the local educational
agency shall implement one of the following alternative
governance arrangements for the school consistent with
State law:
``(i) Reopening the school as a public charter
school.
``(ii) Replacing all or most of the school
staff (which may include the principal) who are
relevant to the failure to make adequate yearly
progress.
``(iii) Entering into a contract with an
entity, such as a private management company, with
a demonstrated record of effectiveness, to operate
the public school.
``(iv) Turning the operation of the school
over to the State educational agency, if permitted
under State law and agreed to by the State.
``(v) Any other major restructuring of the
school's governance arrangement that makes
fundamental reforms, such as significant changes
in the school's staffing and governance, to
improve student academic achievement in the school
and that has substantial promise of enabling the
school to make adequate yearly progress as defined
in the State plan under section 1111(b)(2). In the
case of a rural local educational agency with a
total of less than 600 students in average daily
attendance at the schools that are served by the
agency and all of whose schools have a School
Locale Code of 7 or 8, as determined by the
Secretary, the Secretary shall, at such agency's
request, provide
[[Page 115 STAT. 1486]]
technical assistance to such agency for the
purpose of implementing this clause.
``(C) Prompt notice.--The local educational agency
shall--
``(i) provide prompt notice to teachers and
parents whenever subparagraph (A) or (B) applies;
and
``(ii) provide the teachers and parents with
an adequate opportunity to--
``(I) comment before taking any
action under those subparagraphs; and
``(II) participate in developing any
plan under subparagraph (A)(iii).
``(9) Transportation.--In any case described in paragraph
(1)(E) for schools described in paragraphs (1)(A), (5),
(7)(C)(i), and (8)(A), and subsection (c)(10)(C)(vii), the local
educational agency shall provide, or shall pay for the provision
of, transportation for the student to the public school the
student attends.
``(10) Funds for transportation and supplemental educational
services.--
``(A) In general.--Unless a lesser amount is needed
to comply with paragraph (9) and to satisfy all requests
for supplemental educational services under subsection
(e), a local educational agency shall spend an amount
equal to 20 percent of its allocation under subpart 2,
from which the agency shall spend--
``(i) an amount equal to 5 percent of its
allocation under subpart 2 to provide, or pay for,
transportation under paragraph (9);
``(ii) an amount equal to 5 percent of its
allocation under subpart 2 to provide supplemental
educational services under subsection (e); and
``(iii) an amount equal to the remaining 10
percent of its allocation under subpart 2 for
transportation under paragraph (9), supplemental
educational services under subsection (e), or
both, as the agency determines.
``(B) Total amount.--The total amount described in
subparagraph (A)(ii) is the maximum amount the local
educational agency shall be required to spend under this
part on supplemental educational services described in
subsection (e).
``(C) Insufficient funds.--If the amount of funds
described in subparagraph (A)(ii) or (iii) and available
to provide services under this subsection is
insufficient to provide supplemental educational
services to each child whose parents request the
services, the local educational agency shall give
priority to providing the services to the lowest-
achieving children.
``(D) Prohibition.--A local educational agency shall
not, as a result of the application of this paragraph,
reduce by more than 15 percent the total amount made
available under section 1113(c) to a school described in
paragraph (7)(C) or (8)(A) of subsection (b).
``(11) Cooperative agreement.--In any case described in
paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection
(c)(10)(C)(vii) if all public schools served by the local
educational agency to which a child may transfer are identified
for school improvement, corrective action or restructuring, the
agency
[[Page 115 STAT. 1487]]
shall, to the extent practicable, establish a cooperative
agreement with other local educational agencies in the area for
a transfer.
``(12) Duration.--If any school identified for school
improvement, corrective action, or restructuring makes adequate
yearly progress for two consecutive school years, the local
educational agency shall no longer subject the school to the
requirements of school improvement, corrective action, or
restructuring or identify the school for school improvement for
the succeeding school year.
``(13) Special rule.--A local educational agency shall
permit a child who transferred to another school under this
subsection to remain in that school until the child has
completed the highest grade in that school. The obligation of
the local educational agency to provide, or to provide for,
transportation for the child ends at the end of a school year if
the local educational agency determines that the school from
which the child transferred is no longer identified for school
improvement or subject to corrective action or restructuring.
``(14) State educational agency responsibilities.--The State
educational agency shall--
``(A) make technical assistance under section 1117
available to schools identified for school improvement,
corrective action, or restructuring under this
subsection consistent with section 1117(a)(2);
``(B) if the State educational agency determines
that a local educational agency failed to carry out its
responsibilities under this subsection, take such
corrective actions as the State educational agency
determines to be appropriate and in compliance with
State law;
``(C) ensure that academic assessment results under
this part are provided to schools before any
identification of a school may take place under this
subsection; and
``(D) for local educational agencies or schools
identified for improvement under this subsection, notify
the Secretary of major factors that were brought to the
attention of the State educational agency under section
1111(b)(9) that have significantly affected student
academic achievement.
``(c) State Review and Local Educational Agency Improvement.--
``(1) In general.--A State shall--
``(A) annually review the progress of each local
educational agency receiving funds under this part to
determine whether schools receiving assistance under
this part are making adequate yearly progress as defined
in section 1111(b)(2) toward meeting the State's student
academic achievement standards and to determine if each
local educational agency is carrying out its
responsibilities under this section and sections 1117,
1118, and 1119; and
``(B) publicize and disseminate to local educational
agencies, teachers and other staff, parents, students,
and the community the results of the State review,
including statistically sound disaggregated results, as
required by section 1111(b)(2).
``(2) Rewards.--In the case of a local educational agency
that, for 2 consecutive years, has exceeded adequate yearly
progress as defined in the State plan under section 1111(b)(2),
[[Page 115 STAT. 1488]]
the State may make rewards of the kinds described under section
1117 to the agency.
``(3) Identification of local educational agency for
improvement.--A State shall identify for improvement any local
educational agency that, for 2 consecutive years, including the
period immediately prior to the date of enactment of the No
Child Left Behind Act of 2001, failed to make adequate yearly
progress as defined in the State's plan under section
1111(b)(2).
``(4) Targeted assistance schools.--When reviewing targeted
assistance schools served by a local educational agency, a State
educational agency may choose to review the progress of only the
students in such schools who are served, or are eligible for
services, under this part.
``(5) Opportunity to review and present evidence.--
``(A) Review.--Before identifying a local
educational agency for improvement under paragraph (3)
or corrective action under paragraph (10), a State
educational agency shall provide the local educational
agency with an opportunity to review the data, including
academic assessment data, on which the proposed
identification is based.
``(B) <<NOTE: Deadline.>> Evidence.--If the local
educational agency believes that the proposed
identification is in error for statistical or other
substantive reasons, the agency may provide supporting
evidence to the State educational agency, which shall
consider the evidence before making a final
determination not later than 30 days after the State
educational agency provides the local educational agency
with the opportunity to review such data under
subparagraph (A).
``(6) Notification to parents.--The State educational agency
shall promptly provide to the parents (in a format and, to the
extent practicable, in a language the parents can understand) of
each student enrolled in a school served by a local educational
agency identified for improvement, the results of the review
under paragraph (1) and, if the agency is identified for
improvement, the reasons for that identification and how parents
can participate in upgrading the quality of the local
educational agency.
``(7) Local educational agency revisions.--
``(A) <<NOTE: Deadline.>> Plan.--Each local
educational agency identified under paragraph (3) shall,
not later than 3 months after being so identified,
develop or revise a local educational agency plan, in
consultation with parents, school staff, and others.
Such plan shall--
``(i) incorporate scientifically based
research strategies that strengthen the core
academic program in schools served by the local
educational agency;
``(ii) identify actions that have the greatest
likelihood of improving the achievement of
participating children in meeting the State's
student academic achievement standards;
``(iii) address the professional development
needs of the instructional staff serving the
agency by committing to spend not less than 10
percent of the funds received by the local
educational agency under subpart 2 for each fiscal
year in which the agency is identified
[[Page 115 STAT. 1489]]
for improvement for professional development
(including funds reserved for professional
development under subsection (b)(3)(A)(iii)), but
excluding funds reserved for professional
development under section 1119;
``(iv) include specific measurable achievement
goals and targets for each of the groups of
students identified in the disaggregated data
pursuant to section 1111(b)(2)(C)(v), consistent
with adequate yearly progress as defined under
section 1111(b)(2);
``(v) address the fundamental teaching and
learning needs in the schools of that agency, and
the specific academic problems of low-achieving
students, including a determination of why the
local educational agency's prior plan failed to
bring about increased student academic
achievement;
``(vi) incorporate, as appropriate, activities
before school, after school, during the summer,
and during an extension of the school year;
``(vii) specify the responsibilities of the
State educational agency and the local educational
agency under the plan, including specifying the
technical assistance to be provided by the State
educational agency under paragraph (9) and the
local educational agency's responsibilities under
section 1120A; and
``(viii) include strategies to promote
effective parental involvement in the school.
``(B) <<NOTE: Deadline.>> Implementation.--The
local educational agency shall implement the plan
(including a revised plan) expeditiously, but not later
than the beginning of the next school year after the
school year in which the agency was identified for
improvement.
``(9) State educational agency responsibility.--
``(A) Technical or other assistance.--For each local
educational agency identified under paragraph (3), the
State educational agency shall provide technical or
other assistance if requested, as authorized under
section 1117, to better enable the local educational
agency to--
``(i) develop and implement the local
educational agency's plan; and
``(ii) work with schools needing improvement.
``(B) Methods and strategies.--Technical assistance
provided under this section by the State educational
agency or an entity authorized by such agency shall be
supported by effective methods and instructional
strategies based on scientifically based research. Such
technical assistance shall address problems, if any, in
implementing the parental involvement activities
described in section 1118 and the professional
development activities described in section 1119.
``(10) Corrective action.--In order to help students served
under this part meet challenging State student academic
achievement standards, each State shall implement a system of
corrective action in accordance with the following:
``(A) Definition.--As used in this paragraph, the
term `corrective action' means action, consistent with
State law, that--
[[Page 115 STAT. 1490]]
``(i) substantially and directly responds to
the consistent academic failure that caused the
State to take such action and to any underlying
staffing, curricular, or other problems in the
agency; and
``(ii) is designed to meet the goal of having
all students served under this part achieve at the
proficient and advanced student academic
achievement levels.
``(B) General requirements.--After providing
technical assistance under paragraph (9) and subject to
subparagraph (E), the State--
``(i) may take corrective action at any time
with respect to a local educational agency that
has been identified under paragraph (3);
``(ii) shall take corrective action with
respect to any local educational agency that fails
to make adequate yearly progress, as defined by
the State, by the end of the second full school
year after the identification of the agency under
paragraph (3); and
``(iii) shall continue to provide technical
assistance while instituting any corrective action
under clause (i) or (ii).
``(C) Certain corrective actions required.--In the
case of a local educational agency identified for
corrective action, the State educational agency shall
take at least one of the following corrective actions:
``(i) Deferring programmatic funds or reducing
administrative funds.
``(ii) Instituting and fully implementing a
new curriculum that is based on State and local
academic content and achievement standards,
including providing appropriate professional
development based on scientifically based research
for all relevant staff, that offers substantial
promise of improving educational achievement for
low-achieving students.
``(iii) Replacing the local educational agency
personnel who are relevant to the failure to make
adequate yearly progress.
``(iv) Removing particular schools from the
jurisdiction of the local educational agency and
establishing alternative arrangements for public
governance and supervision of such schools.
``(v) Appointing, through the State
educational agency, a receiver or trustee to
administer the affairs of the local educational
agency in place of the superintendent and school
board.
``(vi) Abolishing or restructuring the local
educational agency.
``(vii) Authorizing students to transfer from
a school operated by the local educational agency
to a higher-performing public school operated by
another local educational agency in accordance
with subsections (b)(1)(E) and (F), and providing
to such students transportation (or the costs of
transportation) to such schools consistent with
subsection (b)(9), in conjunction with carrying
out not less than one additional action described
under this subparagraph.
[[Page 115 STAT. 1491]]
``(D) <<NOTE: Notice. Deadline.>> Hearing.--Prior
to implementing any corrective action under this
paragraph, the State educational agency shall provide
notice and a hearing to the affected local educational
agency, if State law provides for such notice and
hearing. The hearing shall take place not later than 45
days following the decision to implement corrective
action.
``(E) <<NOTE: Publication.>> Notice to parents.--
The State educational agency shall publish, and
disseminate to parents and the public, information on
any corrective action the State educational agency takes
under this paragraph through such means as the Internet,
the media, and public agencies.
``(F) Delay.--Notwithstanding subparagraph (B)(ii),
a State educational agency may delay, for a period not
to exceed 1 year, implementation of corrective action
under this paragraph if the local educational agency
makes adequate yearly progress for 1 year or its failure
to make adequate yearly progress is due to exceptional
or uncontrollable circumstances, such as a natural
disaster or a precipitous and unforeseen decline in the
financial resources of the local educational agency. No
such period shall be taken into account in determining
the number of consecutive years of failure to make
adequate yearly progress.
``(11) Special rule.--If a local educational agency makes
adequate yearly progress for two consecutive school years
beginning after the date of identification of the agency under
paragraph (3), the State educational agency need no longer
identify the local educational agency for improvement or subject
the local educational agency to corrective action for the
succeeding school year.
``(d) Construction.--Nothing in this section shall be construed to
alter or otherwise affect the rights, remedies, and procedures afforded
school or school district employees under Federal, State, or local laws
(including applicable regulations or court orders) or under the terms of
collective bargaining agreements, memoranda of understanding, or other
agreements between such employees and their employers.
``(e) Supplemental Educational Services.--
``(1) Supplemental educational services.--In the case of any
school described in paragraph (5), (7), or (8) of subsection
(b), the local educational agency serving such school shall,
subject to this subsection, arrange for the provision of
supplemental educational services to eligible children in the
school from a provider with a demonstrated record of
effectiveness, that is selected by the parents and approved for
that purpose by the State educational agency in accordance with
reasonable criteria, consistent with paragraph (5), that the
State educational agency shall adopt.
``(2) Local educational agency responsibilities.--Each local
educational agency subject to this subsection shall--
``(A) provide, at a minimum, annual notice to
parents (in an understandable and uniform format and, to
the extent practicable, in a language the parents can
understand) of--
``(i) the availability of services under this
subsection;
[[Page 115 STAT. 1492]]
``(ii) the identity of approved providers of
those services that are within the local
educational agency or whose services are
reasonably available in neighboring local
educational agencies; and
``(iii) a brief description of the services,
qualifications, and demonstrated effectiveness of
each such provider;
``(B) if requested, assist parents in choosing a
provider from the list of approved providers maintained
by the State;
``(C) apply fair and equitable procedures for
serving students if the number of spaces at approved
providers is not sufficient to serve all students; and
``(D) not disclose to the public the identity of any
student who is eligible for, or receiving, supplemental
educational services under this subsection without the
written permission of the parents of the student.
``(3) Agreement.--In the case of the selection of an
approved provider by a parent, the local educational agency
shall enter into an agreement with such provider. Such agreement
shall--
``(A) require the local educational agency to
develop, in consultation with parents (and the provider
chosen by the parents), a statement of specific
achievement goals for the student, how the student's
progress will be measured, and a timetable for improving
achievement that, in the case of a student with
disabilities, is consistent with the student's
individualized education program under section 614(d) of
the Individuals with Disabilities Education Act;
``(B) describe how the student's parents and the
student's teacher or teachers will be regularly informed
of the student's progress;
``(C) provide for the termination of such agreement
if the provider is unable to meet such goals and
timetables;
``(D) contain provisions with respect to the making
of payments to the provider by the local educational
agency; and
``(E) prohibit the provider from disclosing to the
public the identity of any student eligible for, or
receiving, supplemental educational services under this
subsection without the written permission of the parents
of such student.
``(4) State educational agency responsibilities.--A State
educational agency shall--
``(A) in consultation with local educational
agencies, parents, teachers, and other interested
members of the public, promote maximum participation by
providers to ensure, to the extent practicable, that
parents have as many choices as possible;
``(B) develop and apply objective criteria,
consistent with paragraph (5), to potential providers
that are based on a demonstrated record of effectiveness
in increasing the academic proficiency of students in
subjects relevant to meeting the State academic content
and student achievement standards adopted under section
1111(b)(1);
``(C) <<NOTE: Records.>> maintain an updated list
of approved providers across the State, by school
district, from which parents may select;
[[Page 115 STAT. 1493]]
``(D) <<NOTE: Reports. Public information.>>
develop, implement, and publicly report on standards and
techniques for monitoring the quality and effectiveness
of the services offered by approved providers under this
subsection, and for withdrawing approval from providers
that fail, for 2 consecutive years, to contribute to
increasing the academic proficiency of students served
under this subsection as described in subparagraph (B);
and
``(E) <<NOTE: Notice.>> provide annual notice to
potential providers of supplemental educational services
of the opportunity to provide services under this
subsection and of the applicable procedures for
obtaining approval from the State educational agency to
be an approved provider of those services.
``(5) Criteria for providers.--In order for a provider to be
included on the State list under paragraph (4)(C), a provider
shall agree to carry out the following:
``(A) Provide parents of children receiving
supplemental educational services under this subsection
and the appropriate local educational agency with
information on the progress of the children in
increasing achievement, in a format and, to the extent
practicable, a language that such parents can
understand.
``(B) Ensure that instruction provided and content
used by the provider are consistent with the instruction
provided and content used by the local educational
agency and State, and are aligned with State student
academic achievement standards.
``(C) Meet all applicable Federal, State, and local
health, safety, and civil rights laws.
``(D) Ensure that all instruction and content under
this subsection are secular, neutral, and
nonideological.
``(6) Amounts for supplemental educational services.--The
amount that a local educational agency shall make available for
supplemental educational services for each child receiving those
services under this subsection shall be the lesser of--
``(A) the amount of the agency's allocation under
subpart 2, divided by the number of children from
families below the poverty level counted under section
1124(c)(1)(A); or
``(B) the actual costs of the supplemental
educational services received by the child.
``(7) Funds provided by state educational agency.--Each
State educational agency may use funds that the agency reserves
under this part, and part A of title V, to assist local
educational agencies that do not have sufficient funds to
provide services under this subsection for all eligible students
requesting such services.
``(8) Duration.--The local educational agency shall continue
to provide supplemental educational services to a child
receiving such services under this subsection until the end of
the school year in which such services were first received.
``(9) Prohibition.--Nothing contained in this subsection
shall permit the making of any payment for religious worship or
instruction.
``(10) Waiver.--
[[Page 115 STAT. 1494]]
``(A) Requirement.--At the request of a local
educational agency, a State educational agency may
waive, in whole or in part, the requirement of this
subsection to provide supplemental educational services
if the State educational agency determines that--
``(i) none of the providers of those services
on the list approved by the State educational
agency under paragraph (4)(C) makes those services
available in the area served by the local
educational agency or within a reasonable distance
of that area; and
``(ii) the local educational agency provides
evidence that it is not able to provide those
services.
``(B) <<NOTE: Deadline.>> Notification.--The State
educational agency shall notify the local educational
agency, within 30 days of receiving the local
educational agency's request for a waiver under
subparagraph (A), whether the request is approved or
disapproved and, if disapproved, the reasons for the
disapproval, in writing.
``(11) Special rule.--If State law prohibits a State
educational agency from carrying out one or more of its
responsibilities under paragraph (4) with respect to those who
provide, or seek approval to provide, supplemental educational
services, each local educational agency in the State shall carry
out those responsibilities with respect to its students who are
eligible for those services.
``(12) Definitions.--In this subsection--
``(A) the term `eligible child' means a child from a
low-income family, as determined by the local
educational agency for purposes of allocating funds to
schools under section 1113(c)(1);
``(B) the term `provider' means a non-profit entity,
a for-profit entity, or a local educational agency
that--
``(i) has a demonstrated record of
effectiveness in increasing student academic
achievement;
``(ii) is capable of providing supplemental
educational services that are consistent with the
instructional program of the local educational
agency and the academic standards described under
section 1111; and
``(iii) is financially sound; and
``(C) the term `supplemental educational services'
means tutoring and other supplemental academic
enrichment services that are--
``(i) in addition to instruction provided
during the school day; and
``(ii) are of high quality, research-based,
and specifically designed to increase the academic
achievement of eligible children on the academic
assessments required under section 1111 and attain
proficiency in meeting the State's academic
achievement standards.
``(f) Schools and LEAs Previously Identified for Improvement or
Corrective Action.--
``(1) Schools.--
``(A) School improvement.--
``(i) Schools in school-improvement status
before date of enactment.--Any school that was in
the first year of school improvement status under
[[Page 115 STAT. 1495]]
this section on the day preceding the date of
enactment of the No Child Left Behind Act of 2001
(as this section was in effect on such day) shall
be treated by the local educational agency as a
school that is in the first year of school
improvement status under paragraph (1).
``(ii) Schools in school-improvement status
for 2 or more years before date of enactment.--Any
school that was in school improvement status under
this section for two or more consecutive school
years preceding the date of enactment of the No
Child Left Behind Act of 2001 (as this section was
in effect on such day) shall be treated by the
local educational agency as a school described in
subsection (b)(5).
``(B) Corrective action.--Any school that was in
corrective action status under this section on the day
preceding the date of enactment of the No Child Left
Behind Act of 2001 (as this section was in effect on
such day) shall be treated by the local educational
agency as a school described in paragraph (7).
``(2) LEAs.--
``(A) LEA improvement.--A State shall identify for
improvement under subsection (c)(3) any local
educational agency that was in improvement status under
this section as this section was in effect on the day
preceding the date of enactment of the No Child Left
Behind Act of 2001.
``(B) Corrective action.--A State shall identify for
corrective action under subsection (c)(10) any local
educational agency that was in corrective action status
under this section as this section was in effect on the
day preceding the date of enactment of the No Child Left
Behind Act of 2001.
``(C) <<NOTE: Deadline.>> Special rule.--For the
schools and other local educational agencies described
under paragraphs (1) and (2), as required, the State
shall ensure that public school choice in accordance
with subparagraphs (b)(1)(E) and (F) and supplemental
education services in accordance with subsection (e) are
provided not later than the first day of the 2002-2003
school year.
``(D) Transition.--With respect to a determination
that a local educational agency has for 2 consecutive
years failed to make adequate yearly progress as defined
in the State plan under section 1111(b)(2), such
determination shall include in such 2-year period any
continuous period of time immediately preceding the date
of enactment of the No Child Left Behind Act of 2001
during which the agency has failed to make such
progress.
``(g) Schools Funded by the Bureau of Indian Affairs.--
``(1) Adequate yearly progress for bureau funded schools.--
``(A) Development of definition.--
``(i) Definition.--The Secretary of the
Interior, in consultation with the Secretary if
the Secretary of Interior requests the
consultation, using the process set out in section
1138(b) of the Education Amendments of 1978, shall
define adequate yearly progress,
[[Page 115 STAT. 1496]]
consistent with section 1111(b), for the schools
funded by the Bureau of Indian Affairs on a
regional or tribal basis, as appropriate, taking
into account the unique circumstances and needs of
such schools and the students served by such
schools.
``(ii) Use of definition.--The Secretary of
the Interior, consistent with clause (i), may use
the definition of adequate yearly progress that
the State in which the school that is funded by
the Bureau is located uses consistent with section
1111(b), or in the case of schools that are
located in more than one State, the Secretary of
the Interior may use whichever State definition of
adequate yearly progress that best meets the
unique circumstances and needs of such school or
schools and the students the schools serve.
``(B) Waiver.--The tribal governing body or school
board of a school funded by the Bureau of Indian Affairs
may waive, in part or in whole, the definition of
adequate yearly progress established pursuant to
paragraph (A) where such definition is determined by
such body or school board to be
inappropriate. <<NOTE: Deadline.>> If such definition
is waived, the tribal governing body or school board
shall, within 60 days thereafter, submit to the
Secretary of Interior a proposal for an alternative
definition of adequate yearly progress, consistent with
section 1111(b), that takes into account the unique
circumstances and needs of such school or schools and
the students served. The Secretary of the Interior, in
consultation with the Secretary if the Secretary of
Interior requests the consultation, shall approve such
alternative definition unless the Secretary determines
that the definition does not meet the requirements of
section 1111(b), taking into account the unique
circumstances and needs of such school or schools and
the students served.
``(C) Technical assistance.--The Secretary of
Interior shall, in consultation with the Secretary if
the Secretary of Interior requests the consultation,
either directly or through a contract, provide technical
assistance, upon request, to a tribal governing body or
school board of a school funded by the Bureau of Indian
Affairs that seeks to develop an alternative definition
of adequate yearly progress.
``(2) Accountability for bia schools.--For the purposes of
this section, schools funded by the Bureau of Indian Affairs
shall be considered schools subject to subsection (b), as
specifically provided for in this subsection, except that such
schools shall not be subject to subsection (c), or the
requirements to provide public school choice and supplemental
educational services under subsections (b) and (e).
``(3) School improvement for bureau schools.--
``(A) Contract and grant schools.--For a school
funded by the Bureau of Indian Affairs which is operated
under a contract issued by the Secretary of the Interior
pursuant to the Indian Self-Determination Act (25 U.S.C.
450 et seq.) or under a grant issued by the Secretary of
the Interior pursuant to the Tribally Controlled Schools
Act of 1988 (25 U.S.C. 2501 et seq.), the school board
[[Page 115 STAT. 1497]]
of such school shall be responsible for meeting the
requirements of subsection (b) relating to development
and implementation of any school improvement plan as
described in subsections (b)(1) through (b)(3), and
subsection (b)(5), other than subsection (b)(1)(E). The
Bureau of Indian Affairs shall be responsible for
meeting the requirements of subsection (b)(4) relating
to technical assistance.
``(B) Bureau operated schools.--For schools operated
by the Bureau of Indian Affairs, the Bureau shall be
responsible for meeting the requirements of subsection
(b) relating to development and implementation of any
school improvement plan as described in subsections
(b)(1) through (b)(5), other than subsection (b)(1)(E).
``(4) Corrective action and restructuring for bureau-funded
schools.--
``(A) Contract and grant schools.--For a school
funded by the Bureau of Indian Affairs which is operated
under a contract issued by the Secretary of the Interior
pursuant to the Indian Self-Determination Act (25 U.S.C.
450 et seq.) or under a grant issued by the Secretary of
the Interior pursuant to the Tribally Controlled Schools
Act of 1988 (25 U.S.C. 2501 et seq.), the school board
of such school shall be responsible for meeting the
requirements of subsection (b) relating to corrective
action and restructuring as described in subsection
(b)(7) and (b)(8). Any action taken by such school board
under subsection (b)(7) or (b)(8) shall take into
account the unique circumstances and structure of the
Bureau of Indian Affairs-funded school system and the
laws governing that system.
``(B) Bureau operated schools.--For schools operated
by the Bureau of Indian Affairs, the Bureau shall be
responsible for meeting the requirements of subsection
(b) relating to corrective action and restructuring as
described in subsection (b)(7) and (b)(8). Any action
taken by the Bureau under subsection (b)(7) or (b)(8)
shall take into account the unique circumstances and
structure of the Bureau of Indian Affairs-funded school
system and the laws governing that system.
``(5) Annual report.--On an annual basis, the Secretary of
the Interior shall report to the Secretary of Education and to
the appropriate committees of Congress regarding any schools
funded by the Bureau of Indian Affairs which have been
identified for school improvement. Such report shall include--
``(A) the identity of each school;
``(B) a statement from each affected school board
regarding the factors that lead to such identification;
and
``(C) an analysis by the Secretary of the Interior,
in consultation with the Secretary if the Secretary of
Interior requests the consultation, as to whether
sufficient resources were available to enable such
school to achieve adequate yearly progress.
``(h) Other Agencies.--After receiving the notice described in
subsection (b)(14)(D), the Secretary may notify, to the extent
[[Page 115 STAT. 1498]]
feasible and necessary as determined by the Secretary, other relevant
Federal agencies regarding the major factors that were determined by the
State educational agency to have significantly affected student academic
achievement.
``SEC. 1117. <<NOTE: 20 USC 6317.>> SCHOOL SUPPORT AND RECOGNITION.
``(a) System for Support.--
``(1) In general.--Each State shall establish a statewide
system of intensive and sustained support and improvement for
local educational agencies and schools receiving funds under
this part, in order to increase the opportunity for all students
served by those agencies and schools to meet the State's
academic content standards and student academic achievement
standards.
``(2) Priorities.--In carrying out this subsection, a State
shall--
``(A) first, provide support and assistance to local
educational agencies with schools subject to corrective
action under section 1116 and assist those schools, in
accordance with section 1116(b)(11), for which a local
educational agency has failed to carry out its
responsibilities under paragraphs (7) and (8) of section
1116(b);
``(B) second, provide support and assistance to
other local educational agencies with schools identified
as in need of improvement under section 1116(b); and
``(C) third, provide support and assistance to other
local educational agencies and schools participating
under this part that need that support and assistance in
order to achieve the purpose of this part.
``(3) Regional centers.--Such a statewide system shall, to
the extent practicable, work with and receive support and
assistance from the comprehensive regional technical assistance
centers and the regional educational laboratories under section
941(h) of the Educational Research, Development, Dissemination,
and Improvement Act of 1994, or other providers of technical
assistance.
``(4) Statewide system.--
``(A) In order to achieve the purpose described in
paragraph (1), the statewide system shall include, at a
minimum, the following approaches:
``(i) Establishing school support teams in
accordance with subparagraph (C) for assignment
to, and working in, schools in the State that are
described in paragraph (2).
``(ii) Providing such support as the State
educational agency determines necessary and
available in order to ensure the effectiveness of
such teams.
``(iii) Designating and using distinguished
teachers and principals who are chosen from
schools served under this part that have been
especially successful in improving academic
achievement.
``(iv) Devising additional approaches to
providing the assistance described in paragraph
(1), such as providing assistance through
institutions of higher education and educational
service agencies or other local consortia, and
private providers of scientifically based
technical assistance.
[[Page 115 STAT. 1499]]
``(B) Priority.--The State educational agency shall
give priority to the approach described in clause (i) of
subparagraph (A).
``(5) School support teams.--
``(A) Composition.--Each school support team
established under this section shall be composed of
persons knowledgeable about scientifically based
research and practice on teaching and learning and about
successful schoolwide projects, school reform, and
improving educational opportunities for low-achieving
students, including--
``(i) highly qualified or distinguished
teachers and principals;
``(ii) pupil services personnel;
``(iii) parents;
``(iv) representatives of institutions of
higher education;
``(v) representatives of regional educational
laboratories or comprehensive regional technical
assistance centers;
``(vi) representatives of outside consultant
groups; or
``(vii) other individuals as the State
educational agency, in consultation with the local
educational agency, may determine appropriate.
``(B) Functions.--Each school support team assigned
to a school under this section shall--
``(i) review and analyze all facets of the
school's operation, including the design and
operation of the instructional program, and assist
the school in developing recommendations for
improving student performance in that school;
``(ii) collaborate with parents and school
staff and the local educational agency serving the
school in the design, implementation, and
monitoring of a plan that, if fully implemented,
can reasonably be expected to improve student
performance and help the school meet its goals for
improvement, including adequate yearly progress
under section 1111(b)(2)(B);
``(iii) evaluate, at least semiannually, the
effectiveness of school personnel assigned to the
school, including identifying outstanding teachers
and principals, and make findings and
recommendations to the school, the local
educational agency, and, where appropriate, the
State educational agency; and
``(iv) make additional recommendations as the
school implements the plan described in clause
(ii) to the local educational agency and the State
educational agency concerning additional
assistance that is needed by the school or the
school support team.
``(C) Continuation of assistance.--After one school
year, from the beginning of the activities, such school
support team, in consultation with the local educational
agency, may recommend that the school support team
continue to provide assistance to the school, or that
the local educational agency or the State educational
agency, as
[[Page 115 STAT. 1500]]
appropriate, take alternative actions with regard to the
school.
``(b) State Recognition.--
``(1) Academic achievement awards program.--
``(A) In general.--Each State receiving a grant
under this part--
``(i) shall establish a program for making
academic achievement awards to recognize schools
that meet the criteria described in subparagraph
(B); and
``(ii) as appropriate and as funds are
available under subsection (c)(2)(A), may
financially reward schools served under this part
that meet the criteria described in clause (ii).
``(B) Criteria.--The criteria referred to in
subparagraph (A) are that a school--
``(i) significantly closed the achievement gap
between the groups of students described in
section 1111(b)(2); or
``(ii) exceeded their adequate yearly
progress, consistent with section 1111(b)(2), for
2 or more consecutive years.
``(2) Distinguished schools.--Of those schools meeting the
criteria described in paragraph (2), each State shall designate
as distinguished schools those schools that have made the
greatest gains in closing the achievement gap as described in
subparagraph (B)(i) or exceeding adequate yearly progress as
described in subparagraph (B)(ii). Such distinguished schools
may serve as models for and provide support to other schools,
especially schools identified for improvement under section
1116, to assist such schools in meeting the State's academic
content standards and student academic achievement standards.
``(3) Awards to teachers.--A State program under paragraph
(1) may also recognize and provide financial awards to teachers
teaching in a school described in such paragraph that
consistently makes significant gains in academic achievement in
the areas in which the teacher provides instruction, or to
teachers or principals designated as distinguished under
subsection (a)(4)(A)(iii).
``(c) Funding.--
``(1) In general.--Each State--
``(A) shall use funds reserved under section 1003(a)
and may use funds made available under section 1003(g)
for the approaches described under subsection (a)(4)(A);
and
``(B) shall use State administrative funds
authorized under section 1004(a) to establish the
statewide system of support described under subsection
(a).
``(2) Reservations of funds by state.--
``(A) Awards program.--For the purpose of carrying
out subsection (b)(1), each State receiving a grant
under this part may reserve, from the amount (if any) by
which the funds received by the State under subpart 2
for a fiscal year exceed the amount received by the
State under that subpart for the preceding fiscal year,
not more than 5 percent of such excess amount.
[[Page 115 STAT. 1501]]
``(B) Teacher awards.--For the purpose of carrying
out subsection (b)(3), a State educational agency may
reserve such funds as necessary from funds made
available under section 2113.
``(3) Use within 3 years.--Notwithstanding any other
provision of law, the amount reserved under subparagraph (A) by
a State for each fiscal year shall remain available to the State
until expended for a period not exceeding 3 years receipt of
funds.
``(4) Special allocation rule for schools in high-poverty
areas.--
``(A) In general.--Each State shall distribute not
less than 75 percent of any amount reserved under
paragraph (2)(A) for each fiscal year to schools
described in subparagraph (B), or to teachers in those
schools consistent with subsection (b)(3).
``(B) School described.--A school described in
subparagraph (A) is a school whose student population is
in the highest quartile of schools statewide in terms of
the percentage of children from low income families.
``SEC. 1118. PARENTAL INVOLVEMENT. <<NOTE: 20 USC 6318.>>
``(a) Local Educational Agency Policy.--
``(1) In general.--A local educational agency may receive
funds under this part only if such agency implements programs,
activities, and procedures for the involvement of parents in
programs assisted under this part consistent with this section.
Such programs, activities, and procedures shall be planned and
implemented with meaningful consultation with parents of
participating children.
``(2) Written policy.--Each local educational agency that
receives funds under this part shall develop jointly with, agree
on with, and distribute to, parents of participating children a
written parent involvement policy. The policy shall be
incorporated into the local educational agency's plan developed
under section 1112, establish the agency's expectations for
parent involvement, and describe how the agency will--
``(A) involve parents in the joint development of
the plan under section 1112, and the process of school
review and improvement under section 1116;
``(B) provide the coordination, technical
assistance, and other support necessary to assist
participating schools in planning and implementing
effective parent involvement activities to improve
student academic achievement and school performance;
``(C) build the schools' and parents' capacity for
strong parental involvement as described in subsection
(e);
``(D) coordinate and integrate parental involvement
strategies under this part with parental involvement
strategies under other programs, such as the Head Start
program, Reading First program, Early Reading First
program, Even Start program, Parents as Teachers
program, and Home Instruction Program for Preschool
Youngsters, and State-run preschool programs;
``(E) conduct, with the involvement of parents, an
annual evaluation of the content and effectiveness of
the parental involvement policy in improving the
academic
[[Page 115 STAT. 1502]]
quality of the schools served under this part, including
identifying barriers to greater participation by parents
in activities authorized by this section (with
particular attention to parents who are economically
disadvantaged, are disabled, have limited English
proficiency, have limited literacy, or are of any racial
or ethnic minority background), and use the findings of
such evaluation to design strategies for more effective
parental involvement, and to revise, if necessary, the
parental involvement policies described in this section;
and
``(F) involve parents in the activities of the
schools served under this part.
``(3) Reservation.--
``(A) In general.--Each local educational agency
shall reserve not less than 1 percent of such agency's
allocation under subpart 2 of this part to carry out
this section, including promoting family literacy and
parenting skills, except that this paragraph shall not
apply if 1 percent of such agency's allocation under
subpart 2 of this part for the fiscal year for which the
determination is made is $5,000 or less.
``(B) Parental input.--Parents of children receiving
services under this part shall be involved in the
decisions regarding how funds reserved under
subparagraph (A) are allotted for parental involvement
activities.
``(C) Distribution of funds.--Not less than 95
percent of the funds reserved under subparagraph (A)
shall be distributed to schools served under this part.
``(b) School Parental Involvement Policy.--
``(1) In general.--Each school served under this part shall
jointly develop with, and distribute to, parents of
participating children a written parental involvement policy,
agreed on by such parents, that shall describe the means for
carrying out the requirements of subsections (c) through
(f). <<NOTE: Notification.>> Parents shall be notified of the
policy in an understandable and uniform format and, to the
extent practicable, provided in a language the parents can
understand. <<NOTE: Public information.>> Such policy shall be
made available to the local community and updated periodically
to meet the changing needs of parents and the school.
``(2) Special rule.--If the school has a parental
involvement policy that applies to all parents, such school may
amend that policy, if necessary, to meet the requirements of
this subsection.
``(3) Amendment.--If the local educational agency involved
has a school district-level parental involvement policy that
applies to all parents, such agency may amend that policy, if
necessary, to meet the requirements of this subsection.
``(4) Parental comments.--If the plan under section 1112 is
not satisfactory to the parents of participating children, the
local educational agency shall submit any parent comments with
such plan when such local educational agency submits the plan to
the State.
``(c) Policy Involvement.--Each school served under this part
shall--
``(1) convene an annual meeting, at a convenient time, to
which all parents of participating children shall be invited and
encouraged to attend, to inform parents of their school's
[[Page 115 STAT. 1503]]
participation under this part and to explain the requirements of
this part, and the right of the parents to be involved;
``(2) offer a flexible number of meetings, such as meetings
in the morning or evening, and may provide, with funds provided
under this part, transportation, child care, or home visits, as
such services relate to parental involvement;
``(3) involve parents, in an organized, ongoing, and timely
way, in the planning, review, and improvement of programs under
this part, including the planning, review, and improvement of
the school parental involvement policy and the joint development
of the schoolwide program plan under section 1114(b)(2), except
that if a school has in place a process for involving parents in
the joint planning and design of the school's programs, the
school may use that process, if such process includes an
adequate representation of parents of participating children;
``(4) provide parents of participating children--
``(A) timely information about programs under this
part;
``(B) a description and explanation of the
curriculum in use at the school, the forms of academic
assessment used to measure student progress, and the
proficiency levels students are expected to meet; and
``(C) if requested by parents, opportunities for
regular meetings to formulate suggestions and to
participate, as appropriate, in decisions relating to
the education of their children, and respond to any such
suggestions as soon as practicably possible; and
``(5) if the schoolwide program plan under section
1114(b)(2) is not satisfactory to the parents of participating
children, submit any parent comments on the plan when the school
makes the plan available to the local educational agency.
``(d) Shared Responsibilities for High Student Academic
Achievement.--As a component of the school-level parental involvement
policy developed under subsection (b), each school served under this
part shall jointly develop with parents for all children served under
this part a school-parent compact that outlines how parents, the entire
school staff, and students will share the responsibility for improved
student academic achievement and the means by which the school and
parents will build and develop a partnership to help children achieve
the State's high standards. Such compact shall--
``(1) describe the school's responsibility to provide high-
quality curriculum and instruction in a supportive and effective
learning environment that enables the children served under this
part to meet the State's student academic achievement standards,
and the ways in which each parent will be responsible for
supporting their children's learning, such as monitoring
attendance, homework completion, and television watching;
volunteering in their child's classroom; and participating, as
appropriate, in decisions relating to the education of their
children and positive use of extracurricular time; and
``(2) address the importance of communication between
teachers and parents on an ongoing basis through, at a minimum--
[[Page 115 STAT. 1504]]
``(A) parent-teacher conferences in elementary
schools, at least annually, during which the compact
shall be discussed as the compact relates to the
individual child's achievement;
``(B) frequent reports to parents on their
children's progress; and
``(C) reasonable access to staff, opportunities to
volunteer and participate in their child's class, and
observation of classroom activities.
``(e) Building Capacity for Involvement.--To ensure effective
involvement of parents and to support a partnership among the school
involved, parents, and the community to improve student academic
achievement, each school and local educational agency assisted under
this part--
``(1) shall provide assistance to parents of children served
by the school or local educational agency, as appropriate, in
understanding such topics as the State's academic content
standards and State student academic achievement standards,
State and local academic assessments, the requirements of this
part, and how to monitor a child's progress and work with
educators to improve the achievement of their children;
``(2) shall provide materials and training to help parents
to work with their children to improve their children's
achievement, such as literacy training and using technology, as
appropriate, to foster parental involvement;
``(3) shall educate teachers, pupil services personnel,
principals, and other staff, with the assistance of parents, in
the value and utility of contributions of parents, and in how to
reach out to, communicate with, and work with parents as equal
partners, implement and coordinate parent programs, and build
ties between parents and the school;
``(4) shall, to the extent feasible and appropriate,
coordinate and integrate parent involvement programs and
activities with Head Start, Reading First, Early Reading First,
Even Start, the Home Instruction Programs for Preschool
Youngsters, the Parents as Teachers Program, and public
preschool and other programs, and conduct other activities, such
as parent resource centers, that encourage and support parents
in more fully participating in the education of their children;
``(5) shall ensure that information related to school and
parent programs, meetings, and other activities is sent to the
parents of participating children in a format and, to the extent
practicable, in a language the parents can understand;
``(6) may involve parents in the development of training for
teachers, principals, and other educators to improve the
effectiveness of such training;
``(7) may provide necessary literacy training from funds
received under this part if the local educational agency has
exhausted all other reasonably available sources of funding for
such training;
``(8) may pay reasonable and necessary expenses associated
with local parental involvement activities, including
transportation and child care costs, to enable parents to
participate in school-related meetings and training sessions;
``(9) may train parents to enhance the involvement of other
parents;
[[Page 115 STAT. 1505]]
``(10) may arrange school meetings at a variety of times, or
conduct in-home conferences between teachers or other educators,
who work directly with participating children, with parents who
are unable to attend such conferences at school, in order to
maximize parental involvement and participation;
``(11) may adopt and implement model approaches to improving
parental involvement;
``(12) may establish a districtwide parent advisory council
to provide advice on all matters related to parental involvement
in programs supported under this section;
``(13) may develop appropriate roles for community-based
organizations and businesses in parent involvement activities;
and
``(14) shall provide such other reasonable support for
parental involvement activities under this section as parents
may request.
``(f) Accessibility.--In carrying out the parental involvement
requirements of this part, local educational agencies and schools, to
the extent practicable, shall provide full opportunities for the
participation of parents with limited English proficiency, parents with
disabilities, and parents of migratory children, including providing
information and school reports required under section 1111 in a format
and, to the extent practicable, in a language such parents understand.
``(g) Information From Parental Information and Resource Centers.--
In a State where a parental information and resource center is
established to provide training, information, and support to parents and
individuals who work with local parents, local educational agencies, and
schools receiving assistance under this part, each local educational
agency or school that receives assistance under this part and is located
in the State shall assist parents and parental organizations by
informing such parents and organizations of the existence and purpose of
such centers.
``(h) Review.--The State educational agency shall review the local
educational agency's parental involvement policies and practices to
determine if the policies and practices meet the requirements of this
section.
``SEC. 1119. <<NOTE: 20 USC 6319.>> QUALIFICATIONS FOR TEACHERS AND
PARAPROFESSIONALS.
``(a) Teacher Qualifications and Measurable Objectives.--
``(1) In general.--Beginning with the first day of the first
school year after the date of enactment of the No Child Left
Behind Act of 2001, each local educational agency receiving
assistance under this part shall ensure that all teachers hired
after such day and teaching in a program supported with funds
under this part are highly qualified.
``(2) State plan.--As part of the plan described in section
1111, each State educational agency receiving assistance under
this part shall develop a plan to ensure that all teachers
teaching in core academic subjects within the State are highly
qualified not later than the end of the 2005-2006 school year.
Such plan shall establish annual measurable objectives for each
local educational agency and school that, at a minimum--
``(A) <<NOTE: Deadline.>> shall include an annual
increase in the percentage of highly qualified teachers
at each local educational agency and school, to ensure
that all teachers teaching in core
[[Page 115 STAT. 1506]]
academic subjects in each public elementary school and
secondary school are highly qualified not later than the
end of the 2005-2006 school year;
``(B) shall include an annual increase in the
percentage of teachers who are receiving high-quality
professional development to enable such teachers to
become highly qualified and successful classroom
teachers; and
``(C) may include such other measures as the State
educational agency determines to be appropriate to
increase teacher qualifications.
``(3) <<NOTE: Deadline.>> Local plan.--As part of the plan
described in section 1112, each local educational agency
receiving assistance under this part shall develop a plan to
ensure that all teachers teaching within the school district
served by the local educational agency are highly qualified not
later than the end of the 2005-2006 school year.
``(b) <<NOTE: Deadlines.>> Reports.--
``(1) Annual state and local reports.--
``(A) Local reports.--Each State educational agency
described in subsection (a)(2) shall require each local
educational agency receiving funds under this part to
publicly report, each year, beginning with the 2002-2003
school year, the annual progress of the local
educational agency as a whole and of each of the schools
served by the agency, in meeting the measurable
objectives described in subsection (a)(2).
``(B) State reports.--Each State educational agency
receiving assistance under this part shall prepare and
submit each year, beginning with the 2002-2003 school
year, a report to the Secretary, describing the State
educational agency's progress in meeting the measurable
objectives described in subsection (a)(2).
``(C) Information from other reports.--A State
educational agency or local educational agency may
submit information from the reports described in section
1111(h) for the purposes of this subsection, if such
report is modified, as may be necessary, to contain the
information required by this subsection, and may submit
such information as a part of the reports required under
section 1111(h).
``(2) Annual reports by the secretary.--Each year, beginning
with the 2002-2003 school year, the Secretary shall publicly
report the annual progress of State educational agencies, local
educational agencies, and schools, in meeting the measurable
objectives described in subsection (a)(2).
``(c) New Paraprofessionals.--
``(1) In general.--Each local educational agency receiving
assistance under this part shall ensure that all
paraprofessionals hired after the date of enactment of the No
Child Left Behind Act of 2001 and working in a program supported
with funds under this part shall have--
``(A) completed at least 2 years of study at an
institution of higher education;
``(B) obtained an associate's (or higher) degree; or
``(C) met a rigorous standard of quality and can
demonstrate, through a formal State or local academic
assessment--
[[Page 115 STAT. 1507]]
``(i) knowledge of, and the ability to assist
in instructing, reading, writing, and mathematics;
or
``(ii) knowledge of, and the ability to assist
in instructing, reading readiness, writing
readiness, and mathematics readiness, as
appropriate.
``(2) Clarification.--The receipt of a secondary school
diploma (or its recognized equivalent) shall be necessary but
not sufficient to satisfy the requirements of paragraph (1)(C).
``(d) <<NOTE: Deadline.>> Existing Paraprofessionals.--Each local
educational agency receiving assistance under this part shall ensure
that all paraprofessionals hired before the date of enactment of the No
Child Left Behind Act of 2001, and working in a program supported with
funds under this part shall, not later than 4 years after the date of
enactment satisfy the requirements of subsection (c).
``(e) Exceptions for Translation and Parental Involvement
Activities.--Subsections (c) and (d) shall not apply to a
paraprofessional--
``(1) who is proficient in English and a language other than
English and who provides services primarily to enhance the
participation of children in programs under this part by acting
as a translator; or
``(2) whose duties consist solely of conducting parental
involvement activities consistent with section 1118.
``(f) General Requirement for All Paraprofessionals.--Each local
educational agency receiving assistance under this part shall ensure
that all paraprofessionals working in a program supported with funds
under this part, regardless of the paraprofessionals' hiring date, have
earned a secondary school diploma or its recognized equivalent.
``(g) Duties of Paraprofessionals.--
``(1) In general.--Each local educational agency receiving
assistance under this part shall ensure that a paraprofessional
working in a program supported with funds under this part is not
assigned a duty inconsistent with this subsection.
``(2) Responsibilities paraprofessionals may be assigned.--A
paraprofessional described in paragraph (1) may be assigned--
``(A) to provide one-on-one tutoring for eligible
students, if the tutoring is scheduled at a time when a
student would not otherwise receive instruction from a
teacher;
``(B) to assist with classroom management, such as
organizing instructional and other materials;
``(C) to provide assistance in a computer
laboratory;
``(D) to conduct parental involvement activities;
``(E) to provide support in a library or media
center;
``(F) to act as a translator; or
``(G) to provide instructional services to students
in accordance with paragraph (3).
``(3) Additional limitations.--A paraprofessional described
in paragraph (1)--
``(A) may not provide any instructional service to a
student unless the paraprofessional is working under the
direct supervision of a teacher consistent with section
1119; and
``(B) may assume limited duties that are assigned to
similar personnel who are not working in a program
supported with funds under this part, including duties
beyond
[[Page 115 STAT. 1508]]
classroom instruction or that do not benefit
participating children, so long as the amount of time
spent on such duties is the same proportion of total
work time as prevails with respect to similar personnel
at the same school.
``(h) Use of Funds.--A local educational agency receiving funds
under this part may use such funds to support ongoing training and
professional development to assist teachers and paraprofessionals in
satisfying the requirements of this section.
``(i) Verification of Compliance.--
``(1) In general.--In verifying compliance with this
section, each local educational agency, at a minimum, shall
require that the principal of each school operating a program
under section 1114 or 1115 attest annually in writing as to
whether such school is in compliance with the requirements of
this section.
``(2) Availability of information.--Copies of attestations
under paragraph (1)--
``(A) shall be maintained at each school operating a
program under section 1114 or 1115 and at the main
office of the local educational agency; and
``(B) shall be available to any member of the
general public on request.
``(j) Combinations of Funds.--Funds provided under this part that
are used for professional development purposes may be combined with
funds provided under title II of this Act, other Acts, and other
sources.
``(k) Special Rule.--Except as provided in subsection (l), no State
educational agency shall require a school or a local educational agency
to expend a specific amount of funds for professional development
activities under this part, except that this paragraph shall not apply
with respect to requirements under section 1116(c)(3).
``(l) <<NOTE: Deadline.>> Minimum Expenditures.--Each local
educational agency that receives funds under this part shall use not
less than 5 percent, or more than 10 percent, of such funds for each of
fiscal years 2002 and 2003, and not less than 5 percent of the funds for
each subsequent fiscal year, for professional development activities to
ensure that teachers who are not highly qualified become highly
qualified not later than the end of the 2005-2006 school year.
``SEC. 1120. <<NOTE: 20 USC 6320.>> PARTICIPATION OF CHILDREN ENROLLED
IN PRIVATE SCHOOLS.
``(a) General Requirement.--
``(1) In general.--To the extent consistent with the number
of eligible children identified under section 1115(b) in the
school district served by a local educational agency who are
enrolled in private elementary schools and secondary schools, a
local educational agency shall, after timely and meaningful
consultation with appropriate private school officials, provide
such children, on an equitable basis, special educational
services or other benefits under this part (such as dual
enrollment, educational radio and television, computer equipment
and materials, other technology, and mobile educational services
and equipment) that address their needs, and shall ensure that
teachers and families of the children participate, on an
equitable basis, in services and activities developed pursuant
to sections 1118 and 1119.
[[Page 115 STAT. 1509]]
``(2) Secular, neutral, nonideological.--Such educational
services or other benefits, including materials and equipment,
shall be secular, neutral, and nonideological.
``(3) Equity.--Educational services and other benefits for
such private school children shall be equitable in comparison to
services and other benefits for public school children
participating under this part, and shall be provided in a timely
manner.
``(4) Expenditures.--Expenditures for educational services
and other benefits to eligible private school children shall be
equal to the proportion of funds allocated to participating
school attendance areas based on the number of children from
low-income families who attend private schools, which the local
educational agency may determine each year or every 2 years.
``(5) Provision of services.--The local educational agency
may provide services under this section directly or through
contracts with public and private agencies, organizations, and
institutions.
``(b) Consultation.--
``(1) In general.--To ensure timely and meaningful
consultation, a local educational agency shall consult with
appropriate private school officials during the design and
development of such agency's programs under this part, on issues
such as--
``(A) how the children's needs will be identified;
``(B) what services will be offered;
``(C) how, where, and by whom the services will be
provided;
``(D) how the services will be academically assessed
and how the results of that assessment will be used to
improve those services;
``(E) the size and scope of the equitable services
to be provided to the eligible private school children,
and the proportion of funds that is allocated under
subsection (a)(4) for such services;
``(F) the method or sources of data that are used
under subsection (c) and section 1113(c)(1) to determine
the number of children from low-income families in
participating school attendance areas who attend private
schools;
``(G) how and when the agency will make decisions
about the delivery of services to such children,
including a thorough consideration and analysis of the
views of the private school officials on the provision
of services through a contract with potential third-
party providers; and
``(H) how, if the agency disagrees with the views of
the private school officials on the provision of
services through a contract, the local educational
agency will provide in writing to such private school
officials an analysis of the reasons why the local
educational agency has chosen not to use a contractor.
``(2) Timing.--Such consultation shall include meetings of
agency and private school officials and shall occur before the
local educational agency makes any decision that affects the
opportunities of eligible private school children to participate
in programs under this part. Such meetings shall continue
throughout implementation and assessment of services provided
under this section.
[[Page 115 STAT. 1510]]
``(3) Discussion.--Such consultation shall include a
discussion of service delivery mechanisms a local educational
agency can use to provide equitable services to eligible private
school children.
``(4) Documentation.--Each local educational agency shall
maintain in the agency's records and provide to the State
educational agency involved a written affirmation signed by
officials of each participating private school that the
consultation required by this section has occurred. If such
officials do not provide such affirmation within a reasonable
period of time, the local educational agency shall forward the
documentation that such consultation has taken place to the
State educational agency.
``(5) Compliance.--
``(A) In general.--A private school official shall
have the right to complain to the State educational
agency that the local educational agency did not engage
in consultation that was meaningful and timely, or did
not give due consideration to the views of the private
school official.
``(B) Procedure.--If the private school official
wishes to complain, the official shall provide the basis
of the noncompliance with this section by the local
educational agency to the State educational agency, and
the local educational agency shall forward the
appropriate documentation to the State educational
agency.
``(c) Allocation for Equitable Service to Private School Students.--
``(1) Calculation.--A local educational agency shall have
the final authority, consistent with this section, to calculate
the number of children, ages 5 through 17, who are from low-
income families and attend private schools by--
``(A) using the same measure of low income used to
count public school children;
``(B) using the results of a survey that, to the
extent possible, protects the identity of families of
private school students, and allowing such survey
results to be extrapolated if complete actual data are
unavailable;
``(C) applying the low-income percentage of each
participating public school attendance area, determined
pursuant to this section, to the number of private
school children who reside in that school attendance
area; or
``(D) using an equated measure of low income
correlated with the measure of low income used to count
public school children.
``(2) Complaint process.--Any dispute regarding low-income
data for private school students shall be subject to the
complaint process authorized in section 9505.
``(d) Public Control of Funds.--
``(1) In general.--The control of funds provided under this
part, and title to materials, equipment, and property purchased
with such funds, shall be in a public agency, and a public
agency shall administer such funds, materials, equipment, and
property.
``(2) Provision of services.--
``(A) Provider.--The provision of services under
this section shall be provided--
``(i) by employees of a public agency; or
[[Page 115 STAT. 1511]]
``(ii) through contract by such public agency
with an individual, association, agency, or
organization.
``(B) Requirement.--In the provision of such
services, such employee, individual, association,
agency, or organization shall be independent of such
private school and of any religious organization, and
such employment or contract shall be under the control
and supervision of such public agency.
``(e) Standards for a Bypass.--If a local educational agency is
prohibited by law from providing for the participation in programs on an
equitable basis of eligible children enrolled in private elementary
schools and secondary schools, or if the Secretary determines that a
local educational agency has substantially failed or is unwilling, to
provide for such participation, as required by this section, the
Secretary shall--
``(1) waive the requirements of this section for such local
educational agency;
``(2) arrange for the provision of services to such children
through arrangements that shall be subject to the requirements
of this section and sections 9503 and 9504; and
``(3) in making the determination under this subsection,
consider one or more factors, including the quality, size,
scope, and location of the program and the opportunity of
eligible children to participate.
``SEC. 1120A. FISCAL REQUIREMENTS. <<NOTE: 20 USC 6321.>>
``(a) Maintenance of Effort.--A local educational agency may receive
funds under this part for any fiscal year only if the State educational
agency involved finds that the local educational agency has maintained
the agency's fiscal effort in accordance with section 9521.
``(b) Federal Funds To Supplement, Not Supplant, Non-Federal
Funds.--
``(1) In general.--A State educational agency or local
educational agency shall use Federal funds received under this
part only to supplement the funds that would, in the absence of
such Federal funds, be made available from non-Federal sources
for the education of pupils participating in programs assisted
under this part, and not to supplant such funds.
``(2) Special rule.--No local educational agency shall be
required to provide services under this part through a
particular instructional method or in a particular instructional
setting in order to demonstrate such agency's compliance with
paragraph (1).
``(c) Comparability of Services.--
``(1) In general.--
``(A) Comparable services.--Except as provided in
paragraphs (4) and (5), a local educational agency may
receive funds under this part only if State and local
funds will be used in schools served under this part to
provide services that, taken as a whole, are at least
comparable to services in schools that are not receiving
funds under this part.
``(B) Substantially comparable services.--If the
local educational agency is serving all of such agency's
schools under this part, such agency may receive funds
under this part only if such agency will use State and
[[Page 115 STAT. 1512]]
local funds to provide services that, taken as a whole,
are substantially comparable in each school.
``(C) Basis.--A local educational agency may meet
the requirements of subparagraphs (A) and (B) on a
grade-span by grade-span basis or a school-by-school
basis.
``(2) Written assurance.--
``(A) Equivalence.--A local educational agency shall
be considered to have met the requirements of paragraph
(1) if such agency has filed with the State educational
agency a written assurance that such agency has
established and implemented--
``(i) a local educational agency-wide salary
schedule;
``(ii) a policy to ensure equivalence among
schools in teachers, administrators, and other
staff; and
``(iii) a policy to ensure equivalence among
schools in the provision of curriculum materials
and instructional supplies.
``(B) Determinations.--For the purpose of this
subsection, in the determination of expenditures per
pupil from State and local funds, or instructional
salaries per pupil from State and local funds, staff
salary differentials for years of employment shall not
be included in such determinations.
``(C) Exclusions.--A local educational agency need
not include unpredictable changes in student enrollment
or personnel assignments that occur after the beginning
of a school year in determining comparability of
services under this subsection.
``(3) Procedures and records.--Each local educational agency
assisted under this part shall--
``(A) develop procedures for compliance with this
subsection; and
``(B) maintain records that are updated biennially
documenting such agency's compliance with this
subsection.
``(4) Inapplicability.--This subsection shall not apply to a
local educational agency that does not have more than one
building for each grade span.
``(5) Compliance.--For the purpose of determining compliance
with paragraph (1), a local educational agency may exclude State
and local funds expended for--
``(A) language instruction educational programs; and
``(B) the excess costs of providing services to
children with disabilities as determined by the local
educational agency.
``(d) Exclusion of Funds.--For the purpose of complying with
subsections (b) and (c), a State educational agency or local educational
agency may exclude supplemental State or local funds expended in any
school attendance area or school for programs that meet the intent and
purposes of this part.
``SEC. 1120B. COORDINATION REQUIREMENTS. <<NOTE: 20 USC 6322.>>
``(a) In General.--Each local educational agency receiving
assistance under this part shall carry out the activities described in
subsection (b) with Head Start agencies and, if feasible, other entities
carrying out early childhood development programs such as the Early
Reading First program.
[[Page 115 STAT. 1513]]
``(b) Activities.--The activities referred to in subsection (a) are
activities that increase coordination between the local educational
agency and a Head Start agency and, if feasible, other entities carrying
out early childhood development programs, such as the Early Reading
First program, serving children who will attend the schools of the local
educational agency, including--
``(1) developing and implementing a systematic procedure for
receiving records regarding such children, transferred with
parental consent from a Head Start program or, where applicable,
another early childhood development program such as the Early
Reading First program;
``(2) establishing channels of communication between school
staff and their counterparts (including teachers, social
workers, and health staff) in such Head Start agencies or other
entities carrying out early childhood development programs such
as the Early Reading First program, as appropriate, to
facilitate coordination of programs;
``(3) conducting meetings involving parents, kindergarten or
elementary school teachers, and Head Start teachers or, if
appropriate, teachers from other early childhood development
programs such as the Early Reading First program, to discuss the
developmental and other needs of individual children;
``(4) organizing and participating in joint transition-
related training of school staff, Head Start program staff,
Early Reading First program staff, and, where appropriate, other
early childhood development program staff; and
``(5) linking the educational services provided by such
local educational agency with the services provided by local
Head Start agencies and entities carrying out Early Reading
First programs.
``(c) Coordination of Regulations.--The Secretary shall work with
the Secretary of Health and Human Services to coordinate regulations
promulgated under this part with regulations promulgated under the Head
Start Act.
``Subpart 2--Allocations
``SEC. 1121. <<NOTE: 20 USC 6331.>> GRANTS FOR THE OUTLYING AREAS AND
THE SECRETARY OF THE INTERIOR.
``(a) Reservation of Funds.--From the amount appropriated for
payments to States for any fiscal year under section 1002(a) and
1125A(f), the Secretary shall reserve a total of 1 percent to provide
assistance to--
``(1) the outlying areas in the amount determined in
accordance with subsection (b); and
``(2) the Secretary of the Interior in the amount necessary
to make payments pursuant to subsection (d).
``(b) Assistance to Outlying Areas.--
``(1) Funds reserved.--From the amount made available for
any fiscal year under subsection (a), the Secretary shall award
grants to local educational agencies in the outlying areas.
``(2) Competitive grants.--Until each appropriate outlying
area enters into an agreement for extension of United States
educational assistance under the Compact of Free Association
after the date of enactment of the No Child Left Behind Act of
2001, the Secretary shall carry out the competition described
[[Page 115 STAT. 1514]]
in paragraph (3), except that the amount reserved to carry out
such competition shall not exceed $5,000,000.
``(3) Limitation for competitive grants.--
``(A) Competitive grants.--The Secretary shall use
funds described in paragraph (2) to award grants to the
outlying areas and freely associated States to carry out
the purposes of this part.
``(B) Award basis.--The Secretary shall award grants
under subparagraph (A) on a competitive basis, taking
into consideration the recommendations of the Pacific
Region Educational Laboratory in Honolulu, Hawaii.
``(C) Uses.--Except as provided in subparagraph (D),
grant funds awarded under this paragraph may be used
only--
``(i) for programs described in this Act,
including teacher training, curriculum
development, instructional materials, or general
school improvement and reform; and
``(ii) to provide direct educational services
that assist all students with meeting challenging
State academic content standards.
``(D) Administrative costs.--The Secretary may
provide not more than 5 percent of the amount reserved
for grants under this paragraph to pay the
administrative costs of the Pacific Region Educational
Laboratory under subparagraph (B).
``(4) Special rule.--The provisions of Public Law 95-134,
permitting the consolidation of grants by the outlying areas,
shall not apply to funds provided to the freely associated
States under this section.
``(c) Definitions.--For the purpose of subsections (a) and (b)--
``(1) the term `freely associated states' means the Republic
of the Marshall Islands, the Federated States of Micronesia, and
the Republic of Palau; and
``(2) the term `outlying area' means the United States
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(d) Allotment to the Secretary of the Interior.--
``(1) In general.--The amount allotted for payments to the
Secretary of the Interior under subsection (a)(2) for any fiscal
year shall be, as determined pursuant to criteria established by
the Secretary, the amount necessary to meet the special
educational needs of--
``(A) Indian children on reservations served by
elementary schools and secondary schools for Indian
children operated or supported by the Department of the
Interior; and
``(B) out-of-State Indian children in elementary
schools and secondary schools in local educational
agencies under special contracts with the Department of
the Interior.
``(2) Payments.--From the amount allotted for payments to
the Secretary of the Interior under subsection (a)(2), the
Secretary of the Interior shall make payments to local
educational agencies, on such terms as the Secretary determines
will best carry out the purposes of this part, with respect to
out-of-State Indian children described in paragraph (1). The
[[Page 115 STAT. 1515]]
amount of such payment may not exceed, for each such child, the
greater of--
``(A) 40 percent of the average per-pupil
expenditure in the State in which the agency is located;
or
``(B) 48 percent of such expenditure in the United
States.
``SEC. 1122. ALLOCATIONS TO STATES. <<NOTE: 20 USC 6332.>>
``(a) Allocation Formula.--Of the amount appropriated under section
1002(a) to carry out this part for each of fiscal years 2002-2007
(referred to in this subsection as the current fiscal year)--
``(1) an amount equal to the amount made available to carry
out section 1124 for fiscal year 2001 shall be allocated in
accordance with section 1124;
``(2) an amount equal to the amount made available to carry
out section 1124A for fiscal year 2001 shall be allocated in
accordance with section 1124A; and
``(3) an amount equal to 100 percent of the amount, if any,
by which the amount made available to carry out sections 1124,
1124A, and 1125 for the current fiscal year for which the
determination is made exceeds the amount available to carry out
sections 1124 and 1124A for fiscal year 2001 shall be allocated
in accordance with section 1125.
``(b) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this subpart
for any fiscal year are insufficient to pay the full amounts
that all local educational agencies in States are eligible to
receive under sections 1124, 1124A, and 1125 for such year, the
Secretary shall ratably reduce the allocations to such local
educational agencies, subject to subsections (c) and (d) of this
section.
``(2) Additional funds.--If additional funds become
available for making payments under sections 1124, 1124A, and
1125 for such fiscal year, allocations that were reduced under
paragraph (1) shall be increased on the same basis as they were
reduced.
``(c) Hold-Harmless Amounts.--
``(1) Amounts for sections 1124, 1124a, and 1125.--For each
fiscal year, the amount made available to each local educational
agency under each of sections 1124, 1124A, and 1125 shall be--
``(A) not less than 95 percent of the amount made
available for the preceding fiscal year if the number of
children counted for grants under section 1124 is not
less than 30 percent of the total number of children
aged 5 to 17 years, inclusive, in the local educational
agency;
``(B) not less than 90 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is between 15
percent and 30 percent; and
``(C) not less than 85 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is below 15
percent.
``(2) Payments.--If sufficient funds are appropriated, the
amounts described in paragraph (1) shall be paid to all local
educational agencies that received grants under section 1124A
for the preceding fiscal year, regardless of whether the local
[[Page 115 STAT. 1516]]
educational agency meets the minimum eligibility criteria for
that fiscal year described in section 1124A(a)(1)(A) except that
a local educational agency that does not meet such minimum
eligibility criteria for 4 consecutive years shall no longer be
eligible to receive a hold harmless amount referred to in
paragraph (1).
``(3) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the
fiscal year under any program administered by the Secretary
other than a program authorized under this part.
``(4) <<NOTE: Applicability.>> Population data.--For any
fiscal year for which the Secretary calculates grants on the
basis of population data for counties, the Secretary shall apply
the hold-harmless percentages in paragraphs (1) and (2) to
counties and, if the Secretary's allocation for a county is not
sufficient to meet the hold-harmless requirements of this
subsection for every local educational agency within that
county, the State educational agency shall reallocate funds
proportionately from all other local educational agencies in the
State that are receiving funds in excess of the hold-harmless
amounts specified in this subsection.
``(d) Ratable Reductions.--
``(1) In general.--If the sums made available under this
subpart for any fiscal year are insufficient to pay the full
amounts that local educational agencies in all States are
eligible to receive under subsection (c) for such year, the
Secretary shall ratably reduce such amounts for such year.
``(2) Additional funds.--If additional funds become
available for making payments under subsection (c) for such
fiscal year, amounts that were reduced under paragraph (1) shall
be increased on the same basis as such amounts were reduced.
``(e) Definition.--For the purpose of this section and sections
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50
States, the District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES. <<NOTE: 20 USC
6333.>>
``(a) Amount of Grants.--
``(1) Grants for local educational agencies and puerto
rico.--Except as provided in paragraph (4) and in section 1126,
the grant that a local educational agency is eligible to receive
under this section for a fiscal year is the amount determined by
multiplying--
``(A) the number of children counted under
subsection (c); and
``(B) 40 percent of the average per-pupil
expenditure in the State, except that the amount
determined under this subparagraph shall not be less
than 32 percent, or more than 48 percent, of the average
per-pupil expenditure in the United States.
``(2) Calculation of grants.--
``(A) Allocations to local educational agencies.--
The Secretary shall calculate grants under this section
on the basis of the number of children counted under
subsection (c) for local educational agencies, unless
the
[[Page 115 STAT. 1517]]
Secretary and the Secretary of Commerce determine that
some or all of those data are unreliable or that their
use would be otherwise inappropriate, in which case--
``(i) <<NOTE: Public information.>> the two
Secretaries shall publicly disclose the reasons
for their determination in detail; and
``(ii) <<NOTE: Applicability.>> paragraph (3)
shall apply.
``(B) Allocations to large and small local
educational agencies.--
``(i) For any fiscal year to which this
paragraph applies, the Secretary shall calculate
grants under this section for each local
educational agency.
``(ii) The amount of a grant under this
section for each large local educational agency
shall be the amount determined under clause (i).
``(iii) For small local educational agencies,
the State educational agency may either--
``(I) distribute grants under this
section in amounts determined by the
Secretary under clause (i); or
``(II) use an alternative method
approved by the Secretary to distribute
the portion of the State's total grants
under this section that is based on
those small agencies.
``(iv) An alternative method under clause
(iii)(II) shall be based on population data that
the State educational agency determines best
reflect the current distribution of children in
poor families among the State's small local
educational agencies that meet the eligibility
criteria of subsection (b).
``(v) <<NOTE: Deadline.>> If a small local
educational agency is dissatisfied with the
determination of its grant by the State
educational agency under clause (iii)(II), it may
appeal that determination to the Secretary, who
shall respond not later than 45 days after receipt
of such appeal.
``(vi) As used in this subparagraph--
``(I) the term `large local
educational agency' means a local
educational agency serving an area with
a total population of 20,000 or more;
and
``(II) the term `small local
educational agency' means a local
educational agency serving an area with
a total population of less than 20,000.
``(3) Allocations to counties.--
``(A) Calculation.--For any fiscal year to which
this paragraph applies, the Secretary shall calculate
grants under this section on the basis of the number of
children counted under subsection (c) for counties, and
State educational agencies shall suballocate county
amounts to local educational agencies, in accordance
with regulations issued by the Secretary.
``(B) Direct allocations.--In any State in which a
large number of local educational agencies overlap
county boundaries, or for which the State believes it
has data that would better target funds than allocating
them by county, the State educational agency may apply
to the Secretary for authority to make the allocations
under this subpart for a particular fiscal year directly
to local educational agencies without regard to
counties.
[[Page 115 STAT. 1518]]
``(C) Allocations to local educational agencies.--If
the Secretary approves the State educational agency's
application under subparagraph (B), the State
educational agency shall provide the Secretary an
assurance that such allocations shall be made--
``(i) using precisely the same factors for
determining a grant as are used under this
subpart; or
``(ii) using data that the State educational
agency submits to the Secretary for approval that
more accurately target poverty.
``(D) Appeal.--The State educational agency shall
provide the Secretary an assurance that it will
establish a procedure through which a local educational
agency that is dissatisfied with its determinations
under subparagraph (B) may appeal directly to the
Secretary for a final determination.
``(4) Puerto rico.--
``(A) In general.--For each fiscal year, the grant
that the Commonwealth of Puerto Rico shall be eligible
to receive under this section shall be the amount
determined by multiplying the number of children counted
under subsection (c) for the Commonwealth of Puerto Rico
by the product of--
``(i) subject to subparagraph (B), the
percentage that the average per-pupil expenditure
in the Commonwealth of Puerto Rico is of the
lowest average per-pupil expenditure of any of the
50 States; and
``(ii) 32 percent of the average per-pupil
expenditure in the United States.
``(B) Minimum percentage.--The percentage in
subparagraph (A)(i) shall not be less than--
``(i) for fiscal year 2002, 77.5 percent;
``(ii) for fiscal year 2003, 80.0 percent;
``(iii) for fiscal year 2004, 82.5 percent;
``(iv) for fiscal year 2005, 85.0 percent;
``(v) for fiscal year 2006, 92.5 percent; and
``(vi) for fiscal year 2007 and succeeding
fiscal years, 100.0 percent.
``(C) Limitation.--If the application of
subparagraph (B) would result in any of the 50 States or
the District of Columbia receiving less under this
subpart than it received under this subpart for the
preceding fiscal year, the percentage in subparagraph
(A) shall be the greater of--
``(i) the percentage in subparagraph (A)(i);
``(ii) the percentage specified in
subparagraph (B) for the preceding fiscal year; or
``(iii) the percentage used for the preceding
fiscal year.
``(b) Minimum Number of Children To Qualify.--A local educational
agency is eligible for a basic grant under this section for any fiscal
year only if the number of children counted under subsection (c) for
that agency is both--
``(1) 10 or more; and
``(2) more than 2 percent of the total school-age population
in the agency's jurisdiction.
``(c) Children To Be Counted.--
[[Page 115 STAT. 1519]]
``(1) Categories of children.--The number of children to be
counted for purposes of this section is the aggregate of--
``(A) the number of children aged 5 to 17,
inclusive, in the school district of the local
educational agency from families below the poverty level
as determined under paragraph (2);
``(B) the number of children (determined under
paragraph (4) for either the preceding year as described
in that paragraph, or for the second preceding year, as
the Secretary finds appropriate) aged 5 to 17,
inclusive, in the school district of such agency in
institutions for neglected and delinquent children
(other than such institutions operated by the United
States), but not counted pursuant to subpart 1 of part D
for the purposes of a grant to a State agency, or being
supported in foster homes with public funds; and
``(C) the number of children aged 5 to 17,
inclusive, in the school district of such agency from
families above the poverty level as determined under
paragraph (4).
``(2) Determination of number of children.--For the purposes
of this section, the Secretary shall determine the number of
children aged 5 to 17, inclusive, from families below the
poverty level on the basis of the most recent satisfactory data,
described in paragraph (3), available from the Department of
Commerce. The District of Columbia and the Commonwealth of
Puerto Rico shall be treated as individual local educational
agencies. If a local educational agency contains two or more
counties in their entirety, then each county will be treated as
if such county were a separate local educational agency for
purposes of calculating grants under this part. The total of
grants for such counties shall be allocated to such a local
educational agency, which local educational agency shall
distribute to schools in each county within such agency a share
of the local educational agency's total grant that is no less
than the county's share of the population counts used to
calculate the local educational agency's grant.
``(3) Population updates.--
``(A) In general.--In fiscal year 2002 and each
subsequent fiscal year, the Secretary shall use updated
data on the number of children, aged 5 to 17, inclusive,
from families below the poverty level for counties or
local educational agencies, published by the Department
of Commerce, unless the Secretary and the Secretary of
Commerce determine that the use of the updated
population data would be inappropriate or unreliable. If
appropriate and reliable data are not available
annually, the Secretary shall use data which are updated
every 2 years.
``(B) <<NOTE: Public information.>> Inappropriate
or unreliable data.--If the Secretary and the Secretary
of Commerce determine that some or all of the data
referred to in subparagraph (A) are inappropriate or
unreliable, the Secretary and the Secretary of Commerce
shall publicly disclose their reasons.
``(C) Criteria of poverty.--In determining the
families that are below the poverty level, the Secretary
shall use the criteria of poverty used by the Bureau of
the Census in compiling the most recent decennial
census,
[[Page 115 STAT. 1520]]
as the criteria have been updated by increases in the
Consumer Price Index for All Urban Consumers, published
by the Bureau of Labor Statistics.
``(4) Other children to be counted.--
``(A) For the purpose of this section, the Secretary
shall determine the number of children aged 5 to 17,
inclusive, from families above the poverty level on the
basis of the number of such children from families
receiving an annual income, in excess of the current
criteria of poverty, from payments under a State program
funded under part A of title IV of the Social Security
Act; and in making such determinations, the Secretary
shall use the criteria of poverty used by the Bureau of
the Census in compiling the most recent decennial census
for a family of four in such form as those criteria have
been updated by increases in the Consumer Price Index
for All Urban Consumers, published by the Bureau of
Labor Statistics.
``(B) The Secretary shall determine the number of
such children and the number of children aged 5 through
17 living in institutions for neglected or delinquent
children, or being supported in foster homes with public
funds, on the basis of the caseload data for the month
of October of the preceding fiscal year (using, in the
case of children described in the preceding sentence,
the criteria of poverty and the form of such criteria
required by such sentence which were determined for the
calendar year preceding such month of October) or, to
the extent that such data are not available to the
Secretary before January of the calendar year in which
the Secretary's determination is made, then on the basis
of the most recent reliable data available to the
Secretary at the time of such determination.
``(C) <<NOTE: Deadline.>> Except for the data on
children living in institutions for neglected or
delinquent children, the Secretary of Health and Human
Services shall collect and transmit the information
required by this subparagraph to the Secretary not later
than January 1 of each year.
``(D) For the purpose of this section, the Secretary
shall consider all children who are in correctional
institutions to be living in institutions for delinquent
children.
``(5) Estimate.--When requested by the Secretary, the
Secretary of Commerce shall make a special updated estimate of
the number of children of such ages who are from families below
the poverty level (as determined under paragraph (1)(A)) in each
school district, and the Secretary is authorized to pay (either
in advance or by way of reimbursement) the Secretary of Commerce
the cost of making this special estimate. The Secretary of
Commerce shall give consideration to any request of the chief
executive of a State for the collection of additional census
information.
``(d) State Minimum.--Notwithstanding section 1122, the aggregate
amount allotted for all local educational agencies within a State may
not be less than the lesser of--
``(1) 0.25 percent of the total amount allocated to States
under this section for fiscal year 2001, plus 0.35 percent of
the total amount allocated to States under this section in
excess of the amount allocated for fiscal year 2001; or
[[Page 115 STAT. 1521]]
``(2) the average of--
``(A) the amount calculated in paragraph (1), above;
and
``(B) the number of children in such State counted
under subsection (c) in the fiscal year multiplied by
150 percent of the national average per-pupil payment
made with funds available under this section for that
year.
``SEC. 1124A. <<NOTE: 20 USC 6334.>> CONCENTRATION GRANTS TO LOCAL
EDUCATIONAL AGENCIES.
``(a) Eligibility for and Amount of Grants.--
``(1) In general.--(A) Except as otherwise provided in this
paragraph, each local educational agency which is eligible for a
grant under section 1124 for any fiscal year is eligible for an
additional grant under this section for that fiscal year if the
number of children counted under section 1124(c) in the agency
exceeds either--
``(i) 6,500; or
``(ii) 15 percent of the total number of children
aged 5 through 17 in the agency.
``(B) Notwithstanding section 1122, no State shall receive
less than the lesser of--
``(i) 0.25 percent of the total amount allocated to
States under this section for fiscal year 2001, plus
0.35 percent of the total amount allocated to States
under this section in excess of the amount allocated for
fiscal year 2001; or
``(ii) the average of--
``(I) the amount calculated under clause (i);
and
``(II) the greater of--
``(aa) $340,000; or
``(bb) the number of children in
such State counted for purposes of this
section in that fiscal year multiplied
by 150 percent of the national average
per-pupil payment made with funds
available under this section for that
year.
``(2) Determination.--For each county or local educational
agency eligible to receive an additional grant under this
section for any fiscal year, the Secretary shall determine the
product of--
``(A) the number of children counted under section
1124(c) for that fiscal year; and
``(B) the amount in section 1124(a)(1)(B) for each
State except the Commonwealth of Puerto Rico, and the
amount in section 1124(a)(4) for the Commonwealth of
Puerto Rico.
``(3) Amount.--The amount of the additional grant for which
an eligible local educational agency or county is eligible under
this section for any fiscal year shall be an amount which bears
the same ratio to the amount available to carry out this section
for that fiscal year as the product determined under paragraph
(2) for such local educational agency for that fiscal year bears
to the sum of such products for all local educational agencies
in the United States for that fiscal year.
``(4) Local allocations.--(A) Grant amounts under this
section shall be determined in accordance with section
1124(a)(2), (3), and (4).
[[Page 115 STAT. 1522]]
``(B) For any fiscal year for which the Secretary allocates
funds under this section on the basis of counties, a State may
reserve not more than 2 percent of its allocation under this
section to make grants to local educational agencies that meet
the criteria of paragraph (1)(A)(i) or (ii) and are in
ineligible counties that do not meet these criteria.
``(b) Small States.--In any State for which on the date of enactment
of the No Child Left Behind Act of 2001 the number of children counted
under section 1124(c) is less than 0.25 percent of the number of those
children counted for all States, the State educational agency shall
allocate funds under this section among the local educational agencies
in the State either--
``(1) in accordance with paragraphs (2) and (4) of
subsection (a); or
``(2) based on their respective concentrations and numbers
of children counted under section 1124(c), except that only
those local educational agencies with concentrations or numbers
of children counted under section 1124(c) that exceed the
statewide average percentage of such children or the statewide
average number of such children shall receive any funds on the
basis of this paragraph.
``SEC. 1125. <<NOTE: 20 USC 6335.>> TARGETED GRANTS TO LOCAL
EDUCATIONAL AGENCIES.
``(a) Eligibility of Local Educational Agencies.--
``(1) In general.--A local educational agency in a State is
eligible to receive a targeted grant under this section for any
fiscal year if--
``(A) the number of children in the local
educational agency counted under section 1124(c), before
application of the weighted child count described in
subsection (c), is at least 10; and
``(B) if the number of children counted for grants
under section 1124(c), before application of the
weighted child count described in subsection (c), is at
least 5 percent of the total number of children aged 5
to 17 years, inclusive, in the school district of the
local educational agency.
``(2) Special rule.--For any fiscal year for which the
Secretary allocates funds under this section on the basis of
counties, funds made available as a result of applying this
subsection shall be reallocated by the State educational agency
to other eligible local educational agencies in the State in
proportion to the distribution of other funds under this
section.
``(b) Grants for Local Educational Agencies, the District of
Columbia, and the Commonwealth of Puerto Rico.--
``(1) In general.--The amount of the grant that a local
educational agency in a State (other than the Commonwealth of
Puerto Rico) is eligible to receive under this section for any
fiscal year shall be the product of--
``(A) the weighted child count determined under
subsection (c); and
``(B) the amount determined under section
1124(a)(1)(B).
``(2) Puerto rico.--For each fiscal year, the amount of the
grant the Commonwealth of Puerto Rico is eligible to receive
under this section shall be equal to the number of children
counted under subsection (c) for the Commonwealth of Puerto
[[Page 115 STAT. 1523]]
Rico, multiplied by the amount determined in section 1124(a)(4)
for the Commonwealth of Puerto Rico.
``(c) Weighted Child Count.--
``(1) Weights for allocations to counties.--
``(A) In general.--For each fiscal year for which
the Secretary uses county population data to calculate
grants, the weighted child count used to determine a
county's allocation under this section is the larger of
the two amounts determined under subparagraphs (B) and
(C).
``(B) By percentage of children.--The amount
referred to in subparagraph (A) is determined by
adding--
``(i) the number of children determined under
section 1124(c) for that county who constitute not
more than 15.00 percent, inclusive, of the
county's total population aged 5 to 17, inclusive,
multiplied by 1.0;
``(ii) the number of such children who
constitute more than 15.00 percent, but not more
than 19.00 percent, of such population, multiplied
by 1.75;
``(iii) the number of such children who
constitute more than 19.00 percent, but not more
than 24.20 percent, of such population, multiplied
by 2.5;
``(iv) the number of such children who
constitute more than 24.20 percent, but not more
than 29.20 percent, of such population, multiplied
by 3.25; and
``(v) the number of such children who
constitute more than 29.20 percent of such
population, multiplied by 4.0.
``(C) By number of children.--The amount referred to
in subparagraph (A) is determined by adding--
``(i) the number of children determined under
section 1124(c) who constitute not more than
2,311, inclusive, of the county's total population
aged 5 to 17, inclusive, multiplied by 1.0;
``(ii) the number of such children between
2,312 and 7,913, inclusive, in such population,
multiplied by 1.5;
``(iii) the number of such children between
7,914 and 23,917, inclusive, in such population,
multiplied by 2.0;
``(iv) the number of such children between
23,918 and 93,810, inclusive, in such population,
multiplied by 2.5; and
``(v) the number of such children in excess of
93,811 in such population, multiplied by 3.0.
``(D) Puerto rico.--Notwithstanding subparagraph
(A), the weighting factor for the Commonwealth of Puerto
Rico under this paragraph shall not be greater than the
total number of children counted under section 1124(c)
multiplied by 1.82.
``(2) Weights for allocations to local educational
agencies.--
``(A) In general.--For each fiscal year for which
the Secretary uses local educational agency data, the
weighted child count used to determine a local
educational agency's grant under this section is the
larger of the two amounts determined under subparagraphs
(B) and (C).
[[Page 115 STAT. 1524]]
``(B) By percentage of children.--The amount
referred to in subparagraph (A) is determined by
adding--
``(i) the number of children determined under
section 1124(c) for that local educational agency
who constitute not more than 15.58 percent,
inclusive, of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(ii) the number of such children who
constitute more than 15.58 percent, but not more
than 22.11 percent, of such population, multiplied
by 1.75;
``(iii) the number of such children who
constitute more than 22.11 percent, but not more
than 30.16 percent, of such population, multiplied
by 2.5;
``(iv) the number of such children who
constitute more than 30.16 percent, but not more
than 38.24 percent, of such population, multiplied
by 3.25; and
``(v) the number of such children who
constitute more than 38.24 percent of such
population, multiplied by 4.0.
``(C) By number of children.--The amount referred to
in subparagraph (A) is determined by adding--
``(i) the number of children determined under
section 1124(c) who constitute not more than 691,
inclusive, of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(ii) the number of such children between 692
and 2,262, inclusive, in such population,
multiplied by 1.5;
``(iii) the number of such children between
2,263 and 7,851, inclusive, in such population,
multiplied by 2.0;
``(iv) the number of such children between
7,852 and 35,514, inclusive, in such population,
multiplied by 2.5; and
``(v) the number of such children in excess of
35,514 in such population, multiplied by 3.0.
``(D) Puerto rico.--Notwithstanding subparagraph
(A), the weighting factor for the Commonwealth of Puerto
Rico under this paragraph shall not be greater than the
total number of children counted under section 1124(c)
multiplied by 1.82.
``(d) Calculation of Grant Amounts.--Grant amounts under this
section shall be calculated in the same manner as grant amounts are
calculated under section 1124(a)(2) and (3).
``(e) State Minimum.--Notwithstanding any other provision of this
section or section 1122, from the total amount available for any fiscal
year to carry out this section, each State shall be allotted at least
the lesser of--
``(1) 0.35 percent of the total amount available to carry
out this section; or
``(2) the average of--
``(A) 0.35 percent of the total amount available to
carry out this section; and
``(B) 150 percent of the national average grant
under this section per child described in section
1124(c), without application of a weighting factor,
multiplied by the State's total number of children
described in section 1124(c), without application of a
weighting factor.
[[Page 115 STAT. 1525]]
``SEC. <<NOTE: 20 USC 6336.>> 1125AA. ADEQUACY OF FUNDING OF TARGETED
GRANTS TO LOCAL EDUCATIONAL AGENCIES IN FISCAL YEARS AFTER
FISCAL YEAR 2001.
``(a) Findings.--Congress makes the following findings:
``(1) The current Basic Grant Formula for the distribution
of funds under this part often does not provide funds for the
economically disadvantaged students for which such funds are
targeted.
``(2) Any school district in which more than 2 percent of
the students live below the poverty level qualifies for funding
under the Basic Grant Formula. As a result, 9 out of every 10
school districts in the country receive some form of aid under
the Formula.
``(3) Fifty-eight percent of all schools receive at least
some funding under this part, including many suburban schools
with predominantly well-off students.
``(4) One out of every 5 schools with concentrations of poor
students between 50 and 75 percent receive no funding at all
under this part.
``(5) In passing the Improving America's Schools Act in
1994, Congress declared that grants under this part would more
sharply target high poverty schools by using the Targeted Grant
Formula, but annual appropriation Acts have prevented the use of
that Formula.
``(6) The advantage of the Targeted Grant Formula over other
funding formulas under this part is that the Targeted Grant
Formula provides increased grants per poor child as the
percentage of economically disadvantaged children in a school
district increases.
``(7) Studies have found that the poverty of a child's
family is much more likely to be associated with educational
disadvantage if the family lives in an area with large
concentrations of poor families.
``(8) States with large populations of high poverty students
would receive significantly more funding if more funds under
this part were allocated through the Targeted Grant Formula.
``(9) Congress has an obligation to allocate funds under
this part so that such funds will positively affect the largest
number of economically disadvantaged students.
``(b) Limitation on Allocation of Title I Funds Contingent on
Adequate Funding of Targeted Grants.--Pursuant to section 1122, the
total amount allocated in any fiscal year after fiscal year 2001 for
programs and activities under this part shall not exceed the amount
allocated in fiscal year 2001 for such programs and activities unless
the amount available for targeted grants to local educational agencies
under section 1125 in the applicable fiscal year meets the requirements
of section 1122(a).
``SEC. <<NOTE: 20 USC 6337.>> 1125A. EDUCATION FINANCE INCENTIVE GRANT
PROGRAM.
``(a) Grants.--From funds appropriated under subsection (f) the
Secretary is authorized to make grants to States, from allotments under
subsection (b), to carry out the programs and activities of this part.
``(b) Distribution Based Upon Fiscal Effort and Equity.--
``(1) In general.--
``(A) In general.--Except as provided in
subparagraph (B), funds appropriated pursuant to
subsection (f) shall
[[Page 115 STAT. 1526]]
be allotted to each State based upon the number of
children counted under section 1124(c) in such State
multiplied by the product of--
``(i) the amount in section 1124(a)(1)(B) for
all States other than the Commonwealth of Puerto
Rico, except that the amount determined under that
subparagraph shall not be less that 34 percent or
more than 46 percent of the average per pupil
expenditure in the United States, and the amount
in section 1124(a)(4) for the Commonwealth of
Puerto Rico, except that the amount in section
1124(a)(4)(A)(ii) shall be 34 percent of the
average per pupil expenditure in the United
States; multiplied by
``(ii) such State's effort factor described in
paragraph (2); multiplied by
``(iii) 1.30 minus such State's equity factor
described in paragraph (3).
``(B) State minimum.--Notwithstanding any other
provision of this section or section 1122, from the
total amount available for any fiscal year to carry out
this section, each State shall be allotted at least the
lesser of--
``(i) 0.35 percent of total appropriations; or
``(ii) the average of--
``(I) 0.35 percent of the total
amount available to carry out this
section; and
``(II) 150 percent of the national
average grant under this section per
child described in section 1124(c),
without application of a weighting
factor, multiplied by the State's total
number of children described in section
1124(c), without application of a
weighting factor.
``(2) Effort factor.--
``(A) In general.--Except as provided in
subparagraph (B), the effort factor for a State shall be
determined in accordance with the succeeding sentence,
except that such factor shall not be less than 0.95 nor
greater than 1.05. The effort factor determined under
this sentence shall be a fraction the numerator of which
is the product of the 3-year average per-pupil
expenditure in the State multiplied by the 3-year
average per capita income in the United States and the
denominator of which is the product of the 3-year
average per capita income in such State multiplied by
the 3-year average per-pupil expenditure in the United
States.
``(B) Commonwealth of puerto rico.--The effort
factor for the Commonwealth of Puerto Rico shall be
equal to the lowest effort factor calculated under
subparagraph (A) for any State.
``(3) Equity factor.--
``(A) Determination.--
``(i) In general.--Except as provided in
subparagraph (B), the Secretary shall determine
the equity factor under this section for each
State in accordance with clause (ii).
``(ii) Computation.--
[[Page 115 STAT. 1527]]
``(I) In general.--For each State,
the Secretary shall compute a weighted
coefficient of variation for the per-
pupil expenditures of local educational
agencies in accordance with subclauses
(II), (III), and (IV).
``(II) Variation.--In computing
coefficients of variation, the Secretary
shall weigh the variation between per-
pupil expenditures in each local
educational agency and the average per-
pupil expenditures in the State
according to the number of pupils served
by the local educational agency.
``(III) Number of pupils.--In
determining the number of pupils under
this paragraph served by each local
educational agency and in each State,
the Secretary shall multiply the number
of children counted under section
1124(c) by a factor of 1.4.
``(IV) Enrollment requirement.--In
computing coefficients of variation, the
Secretary shall include only those local
educational agencies with an enrollment
of more than 200 students.
``(B) Special rule.--The equity factor for a State
that meets the disparity standard described in section
222.162 of title 34, Code of Federal Regulations (as
such section was in effect on the day preceding the date
of enactment of the No Child Left Behind Act of 2001) or
a State with only one local educational agency shall be
not greater than 0.10.
``(c) Use of Funds; Eligibility of Local Educational Agencies.--All
funds awarded to each State under this section shall be allocated to
local educational agencies under the following provisions. Within local
educational agencies, funds allocated under this section shall be
distributed to schools on a basis consistent with section 1113, and may
only be used to carry out activities under this part. A local
educational agency in a State is eligible to receive a targeted grant
under this section for any fiscal year if--
``(A) the number of children in the local educational agency
counted under section 1124(c), before application of the
weighted child count described in paragraph (3), is at least 10;
and
``(B) if the number of children counted for grants under
section 1124(c), before application of the weighted child count
described in paragraph (3), is at least 5 percent of the total
number of children aged 5 to 17 years, inclusive, in the school
district of the local educational agency.
``For any fiscal year for which the Secretary allocates funds under
this section on the basis of counties, funds made available as a result
of applying this subsection shall be reallocated by the State
educational agency to other eligible local educational agencies in the
State in proportion to the distribution of other funds under this
section.
``(d) Allocation of Funds to Eligible Local Educational Agencies.--
Funds received by States under this section shall be allocated within
States to eligible local educational agencies on the basis of weighted
child counts calculated in accordance with paragraph (1), (2), or (3),
as appropriate for each State.
[[Page 115 STAT. 1528]]
``(1) States with an equity factor less than .10.--In States
with an equity factor less than .10, the weighted child counts
referred to in subsection (d) shall be calculated as follows:
``(A) Weights for allocations to counties.--
``(i) In general.--For each fiscal year for
which the Secretary uses county population data to
calculate grants, the weighted child count used to
determine a county's allocation under this section
is the larger of the two amounts determined under
clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause ``(i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that county who constitute not more than
15.00 percent, inclusive, of the
county's total population aged 5 to 17,
inclusive, multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.00 percent,
but not more than 19.00 percent, of such
population, multiplied by 1.75;
``(III) the number of such children
who constitute more than 19.00 percent,
but not more than 24.20 percent, of such
population, multiplied by 2.5;
``(IV) the number of such children
who constitute more than 24.20 percent,
but not more than 29.20 percent, of such
population, multiplied by 3.25; and
``(V) the number of such children
who constitute more than 29.20 percent
of such population, multiplied by 4.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by adding
``(I) the number of children
determined under section 1124(c) who
constitute not more than 2,311,
inclusive, of the county's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 2.0;
``(IV) the number of such children
between 23,918 and 93,810, inclusive, in
such population, multiplied by 2.5; and
``(V) the number of such children in
excess of 93,811 in such population,
multiplied by 3.0.
``(B) Weights for allocations to local educational
agencies.--
``(i) In general.--For each fiscal year for
which the Secretary uses local educational agency
data, the weighted child count used to determine a
local educational agency's grant under this
section is the larger
[[Page 115 STAT. 1529]]
of the two amounts determined under clauses (ii)
and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that local educational agency who
constitute not more than 15.58 percent,
inclusive, of the agency's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.58 percent,
but not more than 22.11 percent, of such
population, multiplied by 1.75;
``(III) the number of such children
who constitute more than 22.11 percent,
but not more than 30.16 percent, of such
population, multiplied by 2.5;
``(IV) the number of such children
who constitute more than 30.16 percent,
but not more than 38.24 percent, of such
population, multiplied by 3.25; and
``(V) the number of such children
who constitute more than 38.24 percent
of such population, multiplied by 4.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 691, inclusive,
of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(II) the number of such children
between 692 and 2,262, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 2,263 and 7,851, inclusive, in
such population, multiplied by 2.0;
``(IV) the number of such children
between 7,852 and 35,514, inclusive, in
such population, multiplied by 2.5; and
``(V) the number of such children in
excess of 35,514 in such population,
multiplied by 3.0.
``(2) States with an equity factor greater than or equal to
.10 and less than .20.--In States with an equity factor greater
than or equal to .10 and less than .20, the weighted child
counts referred to in subsection (d) shall be calculated as
follows:
``(A) Weights for allocations to counties.--
``(i) In general.--For each fiscal year for
which the Secretary uses county population data to
calculate grants, the weighted child count used to
determine a county's allocation under this section
is the larger of the two amounts determined under
clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that county who constitute not
[[Page 115 STAT. 1530]]
more than 15.00 percent, inclusive, of
the county's total population aged 5 to
17, inclusive, multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.00 percent,
but not more than 19.00 percent, of such
population, multiplied by 1.5;
``(III) the number of such children
who constitute more than 19.00 percent,
but not more than 24.20 percent, of such
population, multiplied by 3.0;
``(IV) the number of such children
who constitute more than 24.20 percent,
but not more than 29.20 percent, of such
population, multiplied by 4.5; and
``(V) the number of such children
who constitute more than 29.20 percent
of such population, multiplied by 6.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 2,311,
inclusive, of the county's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 2.25;
``(IV) the number of such children
between 23,918 and 93,810, inclusive, in
such population, multiplied by 3.375;
and
``(V) the number of such children in
excess of 93,811 in such population,
multiplied by 4.5.
``(B) Weights for allocations to local educational
agencies.--
``(i) In general.--For each fiscal year for
which the Secretary uses local educational agency
data, the weighted child count used to determine a
local educational agency's grant under this
section is the larger of the two amounts
determined under clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that local educational agency who
constitute not more than 15.58 percent,
inclusive, of the agency's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.58 percent,
but not more than 22.11 percent, of such
population, multiplied by 1.5;
``(III) the number of such children
who constitute more than 22.11 percent,
but not more
[[Page 115 STAT. 1531]]
than 30.16 percent, of such population,
multiplied by 3.0;
``(IV) the number of such children
who constitute more than 30.16 percent,
but not more than 38.24 percent, of such
population, multiplied by 4.5; and
``(V) the number of such children
who constitute more than 38.24 percent
of such population, multiplied by 6.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 691, inclusive,
of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
``(II) the number of such children
between 692 and 2,262, inclusive, in
such population, multiplied by 1.5;
``(III) the number of such children
between 2,263 and 7,851, inclusive, in
such population, multiplied by 2.25;
``(IV) the number of such children
between 7,852 and 35,514, inclusive, in
such population, multiplied by 3.375;
and
``(V) the number of such children in
excess of 35,514 in such population,
multiplied by 4.5.
``(3) States with an equity factor greater than or equal to
.20.--In States with an equity factor greater than or equal to
.20, the weighted child counts referred to in subsection (d)
shall be calculated as follows:
``(A) Weights for allocations to counties.--
``(i) In general.--For each fiscal year for
which the Secretary uses county population data to
calculate grants, the weighted child count used to
determine a county's allocation under this section
is the larger of the two amounts determined under
clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that county who constitute not more than
15.00 percent, inclusive, of the
county's total population aged 5 to 17,
inclusive, multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.00 percent,
but not more than 19.00 percent, of such
population, multiplied by 2.0;
``(III) the number of such children
who constitute more than 19.00 percent,
but not more than 24.20 percent, of such
population, multiplied by 4.0;
``(IV) the number of such children
who constitute more than 24.20 percent,
but not more than 29.20 percent, of such
population, multiplied by 6.0; and
[[Page 115 STAT. 1532]]
``(V) the number of such children
who constitute more than 29.20 percent
of such population, multiplied by 8.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 2,311,
inclusive, of the county's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
between 2,312 and 7,913, inclusive, in
such population, multiplied by 2.0;
``(III) the number of such children
between 7,914 and 23,917, inclusive, in
such population, multiplied by 3.0;
``(IV) the number of such children
between 23,918 and 93,810, inclusive, in
such population, multiplied by 4.5; and
``(V) the number of such children in
excess of 93,811 in such population,
multiplied by 6.0.
``(B) Weights for allocations to local educational
agencies.--
``(i) In general.--For each fiscal year for
which the Secretary uses local educational agency
data, the weighted child count used to determine a
local educational agency's grant under this
section is the larger of the two amounts
determined under clauses (ii) and (iii).
``(ii) By percentage of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) for
that local educational agency who
constitute not more than 15.58 percent,
inclusive, of the agency's total
population aged 5 to 17, inclusive,
multiplied by 1.0;
``(II) the number of such children
who constitute more than 15.58 percent,
but not more than 22.11 percent, of such
population, multiplied by 2.0;
``(III) the number of such children
who constitute more than 22.11 percent,
but not more than 30.16 percent, of such
population, multiplied by 4.0;
``(IV) the number of such children
who constitute more than 30.16 percent,
but not more than 38.24 percent, of such
population, multiplied by 6.0; and
``(V) the number of such children
who constitute more than 38.24 percent
of such population, multiplied by 8.0.
``(iii) By number of children.--The amount
referred to in clause (i) is determined by
adding--
``(I) the number of children
determined under section 1124(c) who
constitute not more than 691, inclusive,
of the agency's total population aged 5
to 17, inclusive, multiplied by 1.0;
[[Page 115 STAT. 1533]]
``(II) the number of such children
between 692 and 2,262, inclusive, in
such population, multiplied by 2.0;
``(III) the number of such children
between 2,263 and 7,851, inclusive, in
such population, multiplied by 3.0;
``(IV) the number of such children
between 7,852 and 35,514, inclusive, in
such population, multiplied by 4.5; and
``(V) the number of such children in
excess of 35,514 in such population,
multiplied by 6.0.
``(e) Maintenance of Effort.--
``(1) In general.--Except as provided in paragraph (2), a
State is entitled to receive its full allotment of funds under
this section for any fiscal year if the Secretary finds that
either the combined fiscal effort per student or the aggregate
expenditures within the State with respect to the provision of
free public education for the fiscal year preceding the fiscal
year for which the determination is made was not less than 90
percent of such combined fiscal effort or aggregate expenditures
for the second fiscal year preceding the fiscal year for which
the determination is made.
``(2) Reduction of funds.--The Secretary shall reduce the
amount of funds awarded to any State under this section in any
fiscal year in the exact proportion to which the State fails to
meet the requirements of paragraph (1) by falling below 90
percent of both the fiscal effort per student and aggregate
expenditures (using the measure most favorable to the State),
and no such lesser amount shall be used for computing the effort
required under paragraph (1) for subsequent years.
``(3) Waivers.--The Secretary may waive, for 1 fiscal year
only, the requirements of this subsection if the Secretary
determines that such a waiver would be equitable due to
exceptional or uncontrollable circumstances such as a natural
disaster or a precipitous and unforeseen decline in the
financial resources of the State.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary for
fiscal year 2002 and for each of the 5 succeeding fiscal years.
``(g) Adjustments Where Necessitated by Appropriations.--
``(1) In general.--If the sums available under this section
for any fiscal year are insufficient to pay the full amounts
that all local educational agencies in States are eligible to
receive under this section for such year, the Secretary shall
ratably reduce the allocations to such local educational
agencies, subject to paragraphs (2) and (3).
``(2) Additional funds.--If additional funds become
available for making payments under this section for such fiscal
year, allocations that were reduced under paragraph (1) shall be
increased on the same basis as they were reduced.
``(3) Hold-harmless amounts.--For each fiscal year, if
sufficient funds are available, the amount made available to
each local educational agency under this section shall be
``(A) not less than 95 percent of the amount made
available for the preceding fiscal year if the number of
children counted for grants under section 1124 is not
less
[[Page 115 STAT. 1534]]
than 30 percent of the total number of children aged 5
to 17 years, inclusive, in the local educational agency;
``(B) not less than 90 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is between 15
percent and 30 percent; and
``(C) not less than 85 percent of the amount made
available for the preceding fiscal year if the
percentage described in subparagraph (A) is below 15
percent.
``(4) Applicability.--Notwithstanding any other provision of
law, the Secretary shall not take into consideration the hold-
harmless provisions of this subsection for any fiscal year for
purposes of calculating State or local allocations for the
fiscal year under any program administered by the Secretary
other than a program authorized under this part.
``SEC. <<NOTE: 20 USC 6338.>> 1126. SPECIAL ALLOCATION PROCEDURES.
``(a) Allocations for Neglected Children.--
``(1) In general.--If a State educational agency determines
that a local educational agency in the State is unable or
unwilling to provide for the special educational needs of
children who are living in institutions for neglected children
as described in section 1124(c)(1)(B), the State educational
agency shall, if such agency assumes responsibility for the
special educational needs of such children, receive the portion
of such local educational agency's allocation under sections
1124, 1124A, 1125, and 1125A that is attributable to such
children.
``(2) Special rule.--If the State educational agency does
not assume such responsibility, any other State or local public
agency that does assume such responsibility shall receive that
portion of the local educational agency's allocation.
``(b) Allocations Among Local Educational Agencies.--The State
educational agency may allocate the amounts of grants under sections
1124, 1124A, 1125, and 1125A among the affected local educational
agencies--
``(1) if two or more local educational agencies serve, in
whole or in part, the same geographical area;
``(2) if a local educational agency provides free public
education for children who reside in the school district of
another local educational agency; or
``(3) to reflect the merger, creation, or change of
boundaries of one or more local educational agencies.
``(c) Reallocation.--If a State educational agency determines that
the amount of a grant a local educational agency would receive under
sections 1124, 1124A, 1125, and 1125A is more than such local
educational agency will use, the State educational agency shall make the
excess amount available to other local educational agencies in the State
that need additional funds in accordance with criteria established by
the State educational agency.
``SEC. <<NOTE: 20 USC 6339.>> 1127. CARRYOVER AND WAIVER.
``(a) Limitation on Carryover.--Notwithstanding section 421(b) of
the General Education Provisions Act or any other provision of law, not
more than 15 percent of the funds allocated to a local educational
agency for any fiscal year under this subpart (but not including funds
received through any reallocation under this subpart) may remain
available for obligation by such agency for one additional fiscal year.
[[Page 115 STAT. 1535]]
``(b) Waiver.--A State educational agency may, once every 3 years,
waive the percentage limitation in subsection (a) if--
``(1) the agency determines that the request of a local
educational agency is reasonable and necessary; or
``(2) supplemental appropriations for this subpart become
available.
``(c) Exclusion.--The percentage limitation under subsection (a)
shall not apply to any local educational agency that receives less than
$50,000 under this subpart for any fiscal year.
``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS
``Subpart 1--Reading First
``SEC. <<NOTE: 20 USC 6361.>> 1201. PURPOSES.
``The purposes of this subpart are as follows:
``(1) To provide assistance to State educational agencies
and local educational agencies in establishing reading programs
for students in kindergarten through grade 3 that are based on
scientifically based reading research, to ensure that every
student can read at grade level or above not later than the end
of grade 3.
``(2) To provide assistance to State educational agencies
and local educational agencies in preparing teachers, including
special education teachers, through professional development and
other support, so the teachers can identify specific reading
barriers facing their students and so the teachers have the
tools to effectively help their students learn to read.
``(3) To provide assistance to State educational agencies
and local educational agencies in selecting or administering
screening, diagnostic, and classroom-based instructional reading
assessments.
``(4) To provide assistance to State educational agencies
and local educational agencies in selecting or developing
effective instructional materials (including classroom-based
materials to assist teachers in implementing the essential
components of reading instruction), programs, learning systems,
and strategies to implement methods that have been proven to
prevent or remediate reading failure within a State.
``(5) To strengthen coordination among schools, early
literacy programs, and family literacy programs to improve
reading achievement for all children.
``SEC. <<NOTE: 20 USC 6362.>> 1202. FORMULA GRANTS TO STATE EDUCATIONAL
AGENCIES.
``(a) In General.--
``(1) Authorization to make grants.--In the case of each
State educational agency that in accordance with section 1203
submits to the Secretary an application for a 6-year period, the
Secretary, from amounts appropriated under section 1002(b)(1)
and subject to the application's approval, shall make a grant to
the State educational agency for the uses specified in
subsections (c) and (d). For each fiscal year, the funds
provided under the grant shall equal the allotment determined
for the State educational agency under subsection (b).
[[Page 115 STAT. 1536]]
``(2) Duration of grants.--Subject to subsection (e)(3), a
grant under this section shall be awarded for a period of not
more than 6 years.
``(b) Determination of Amount of Allotments.--
``(1) Reservations from appropriations.--From the total
amount made available to carry out this subpart for a fiscal
year, the Secretary--
``(A) shall reserve one-half of 1 percent for
allotments for the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among these outlying
areas on the basis of their relative need, as determined
by the Secretary in accordance with the purposes of this
subpart;
``(B) shall reserve one-half of 1 percent for the
Secretary of the Interior for programs under this
subpart in schools operated or funded by the Bureau of
Indian Affairs;
``(C) may reserve not more than 2\1/2\ percent or
$25,000,000, whichever is less, to carry out section
1205 (relating to external evaluation) and section 1206
(relating to national activities);
``(D) shall reserve $5,000,000 to carry out sections
1207 and 1224 (relating to information dissemination);
and
``(E) for any fiscal year, beginning with fiscal
year 2004, for which the amount appropriated to carry
out this subpart exceeds the amount appropriated for
fiscal year 2003, shall reserve, to carry out section
1204, the lesser of--
``(i) $90,000,000; or
``(ii) 10 percent of such excess amount.
``(2) State allotments.--In accordance with paragraph (3),
the Secretary shall allot among each of the States the total
amount made available to carry out this subpart for any fiscal
year and not reserved under paragraph (1).
``(3) Determination of state allotment amounts.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall allot the amount made available under
paragraph (2) for a fiscal year among the States in
proportion to the number of children, aged 5 to 17, who
reside within the State and are from families with
incomes below the poverty line for the most recent
fiscal year for which satisfactory data are available,
compared to the number of such individuals who reside in
all such States for that fiscal year.
``(B) Exceptions.--
``(i) Minimum grant amount.--Subject to clause
(ii), no State receiving an allotment under
subparagraph (A) may receive less than one-fourth
of 1 percent of the total amount allotted under
such subparagraph.
``(ii) Puerto rico.--The percentage of the
amount allotted under subparagraph (A) that is
allotted to the Commonwealth of Puerto Rico for a
fiscal year may not exceed the percentage that was
received by the Commonwealth of Puerto Rico of the
funds allocated to all States under subpart 2 of
part A for the preceding fiscal year.
``(4) Distribution of subgrants.--The Secretary may make a
grant to a State educational agency only if the State
[[Page 115 STAT. 1537]]
educational agency agrees to expend at least 80 percent of the
amount of the funds provided under the grant for the purpose of
making, in accordance with subsection (c), competitive subgrants
to eligible local educational agencies.
``(5) Reallotment.--If a State educational agency described
in paragraph (2) does not apply for an allotment under this
section for any fiscal year, or if the State educational
agency's application is not approved, the Secretary shall
reallot such amount to the remaining State educational agencies
in accordance with paragraph (3).
``(6) Definition of state.--For purposes of this subsection,
the term `State' means each of the 50 States, the District of
Columbia, and the Commonwealth of Puerto Rico.
``(c) Subgrants to Local Educational Agencies.--
``(1) Authorization to make subgrants.--In accordance with
paragraph (2), a State educational agency that receives a grant
under this section shall make competitive subgrants to eligible
local educational agencies.
``(2) Allocation.--
``(A) Minimum subgrant amount.--In making subgrants
under paragraph (1), a State educational agency shall
allocate to each eligible local educational agency that
receives such a subgrant, at a minimum, an amount that
bears the same relation to the funds made available
under subsection (b)(4) as the amount the eligible local
educational agency received under part A for the
preceding fiscal year bears to the amount all the local
educational agencies in the State received under part A
for the preceding fiscal year.
``(B) Priority.--In making subgrants under paragraph
(1), a State educational agency shall give priority to
eligible local educational agencies in which at least--
``(i) 15 percent of the children served by the
eligible local educational agency are from
families with incomes below the poverty line; or
``(ii) 6,500 children served by the eligible
local educational agency are from families with
incomes below the poverty line.
``(3) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all eligible local
educational agencies in the State of the availability of
competitive subgrants under this subsection and of the
requirements for applying for the subgrants.
``(4) Local application.--To be eligible to receive a
subgrant under this subsection, an eligible local educational
agency shall submit an application to the State educational
agency at such time, in such manner, and containing such
information as the State educational agency may reasonably
require.
``(5) State requirement.--In distributing subgrant funds to
eligible local educational agencies under this subsection, a
State educational agency shall--
``(A) provide funds in sufficient size and scope to
enable the eligible local educational agencies to
improve reading instruction; and
[[Page 115 STAT. 1538]]
``(B) provide the funds in amounts related to the
number or percentage of students in kindergarten through
grade 3 who are reading below grade level.
``(6) Limitation to certain schools.--In distributing
subgrant funds under this subsection, an eligible local
educational agency shall provide funds only to schools that
both--
``(A) are among the schools served by that eligible
local educational agency with the highest percentages or
numbers of students in kindergarten through grade 3
reading below grade level, based on the most currently
available data; and
``(B)(i) are identified for school improvement under
section 1116(b); or
``(ii) have the highest percentages or numbers of
children counted under section 1124(c).
``(7) Local uses of funds.--
``(A) Required uses.--Subject to paragraph (8), an
eligible local educational agency that receives a
subgrant under this subsection shall use the funds
provided under the subgrant to carry out the following
activities:
``(i) Selecting and administering screening,
diagnostic, and classroom-based instructional
reading assessments.
``(ii) Selecting and implementing a learning
system or program of reading instruction based on
scientifically based reading research that--
``(I) includes the essential
components of reading instruction; and
``(II) provides such instruction to
the children in kindergarten through
grade 3 in the schools served by the
eligible local educational agency,
including children who--
``(aa) may have reading
difficulties;
``(bb) are at risk of being
referred to special education
based on these difficulties;
``(cc) have been evaluated
under section 614 of the
Individuals with Disabilities
Education Act but, in accordance
with section 614(b)(5) of that
Act, have not been identified as
being a child with a disability
(as defined in section 602 of
that Act);
``(dd) are being served
under such Act primarily due to
being identified as being a
child with a specific learning
disability (as defined in
section 602 of that Act) related
to reading;
``(ee) are deficient in the
essential components of reading
skills, as listed in
subparagraphs (A) through (E) of
section 1208(3); or
``(ff) are identified as
having limited English
proficiency.
``(iii) Procuring and implementing
instructional materials, including education
technology such as software and other digital
curricula, that are based on scientifically based
reading research.
``(iv) Providing professional development for
teachers of kindergarten through grade 3, and
special
[[Page 115 STAT. 1539]]
education teachers of kindergarten through grade
12, that--
``(I) will prepare these teachers in
all of the essential components of
reading instruction;
``(II) shall include--
``(aa) information on
instructional materials,
programs, strategies, and
approaches based on
scientifically based reading
research, including early
intervention, classroom reading
materials, and remedial programs
and approaches; and
``(bb) instruction in the
use of screening, diagnostic,
and classroom-based
instructional reading
assessments and other procedures
that effectively identify
students who may be at risk for
reading failure or who are
having difficulty reading;
``(III) shall be provided by
eligible professional development
providers; and
``(IV) will assist teachers in
becoming highly qualified in reading
instruction in accordance with the
requirements of section 1119.
``(v) Collecting and summarizing data--
``(I) to document the effectiveness
of activities carried out under this
subpart in individual schools and in the
local educational agency as a whole; and
``(II) to stimulate and accelerate
improvement by identifying the schools
that produce significant gains in
reading achievement.
``(vi) Reporting data for all students and
categories of students described in section
1111(b)(2)(C)(v)(II).
``(vii) Promoting reading and library programs
that provide access to engaging reading material,
including coordination with programs funded
through grants received under subpart 4, where
applicable.
``(B) Additional uses.--Subject to paragraph (8), an
eligible local educational agency that receives a
subgrant under this subsection may use the funds
provided under the subgrant to carry out the following
activities:
``(i) Humanities-based family literacy
programs (which may be referred to as `Prime Time
Family Reading Time') that bond families around
the acts of reading and using public libraries.
``(ii) Providing training in the essential
components of reading instruction to a parent or
other individual who volunteers to be a student's
reading tutor, to enable such parent or individual
to support instructional practices that are based
on scientifically based reading research and are
being used by the student's teacher.
``(iii) Assisting parents, through the use of
materials and reading programs, strategies, and
approaches (including family literacy services)
that are based on scientifically based reading
research, to encourage reading and support their
child's reading development.
[[Page 115 STAT. 1540]]
``(8) Local planning and administration.--An eligible local
educational agency that receives a subgrant under this
subsection may use not more than 3.5 percent of the funds
provided under the subgrant for planning and administration.
``(d) State Uses of Funds.--
``(1) In general.--A State educational agency that receives
a grant under this section may expend not more than a total of
20 percent of the grant funds to carry out the activities
described in paragraphs (3), (4), and (5).
``(2) Priority.--A State educational agency shall give
priority to carrying out the activities described in paragraphs
(3), (4), and (5) for schools described in subsection (c)(6).
``(3) Professional inservice and preservice development and
review.--A State educational agency may expend not more than 65
percent of the amount of the funds made available under
paragraph (1)--
``(A) to develop and implement a program of
professional development for teachers, including special
education teachers, of kindergarten through grade 3
that--
``(i) will prepare these teachers in all the
essential components of reading instruction;
``(ii) shall include--
``(I) information on instructional
materials, programs, strategies, and
approaches based on scientifically based
reading research, including early
intervention and reading remediation
materials, programs, and approaches; and
``(II) instruction in the use of
screening, diagnostic, and classroom-
based instructional reading assessments
and other scientifically based
procedures that effectively identify
students who may be at risk for reading
failure or who are having difficulty
reading; and
``(iii) shall be provided by eligible
professional development providers;
``(B) to strengthen and enhance preservice courses
for students preparing, at all public institutions of
higher education in the State, to teach kindergarten
through grade 3 by--
``(i) reviewing such courses to determine
whether the courses' content is consistent with
the findings of the most current scientifically
based reading research, including findings on the
essential components of reading instruction;
``(ii) following up such reviews with
recommendations to ensure that such institutions
offer courses that meet the highest standards; and
``(iii) <<NOTE: Reports. Public
information. Internet.>> preparing a report on the
results of such reviews, submitting the report to
the reading and literacy partnership for the State
established under section 1203(d), and making the
report available for public review by means of the
Internet; and
``(C) to make recommendations on how the State
licensure and certification standards in the area of
reading might be improved.
``(4) Technical assistance for local educational agencies
and schools.--A State educational agency may expend
[[Page 115 STAT. 1541]]
not more than 25 percent of the amount of the funds made
available under paragraph (1) for one or more of the following:
``(A) Assisting local educational agencies in
accomplishing the tasks required to design and implement
a program under this subpart, including--
``(i) selecting and implementing a program or
programs of reading instruction based on
scientifically based reading research;
``(ii) selecting screening, diagnostic, and
classroom-based instructional reading assessments;
and
``(iii) identifying eligible professional
development providers to help prepare reading
teachers to teach students using the programs and
assessments described in clauses (i) and (ii).
``(B) Providing expanded opportunities to students
in kindergarten through grade 3 who are served by
eligible local educational agencies for receiving
reading assistance from alternative providers that
includes--
``(i) screening, diagnostic, and classroom-
based instructional reading assessments; and
``(ii) as need is indicated by the assessments
under clause (i), instruction based on
scientifically based reading research that
includes the essential components of reading
instruction.
``(5) Planning, administration, and reporting.--
``(A) Expenditure of funds.--A State educational
agency may expend not more than 10 percent of the amount
of funds made available under paragraph (1) for the
activities described in this paragraph.
``(B) Planning and administration.--A State
educational agency that receives a grant under this
section may expend funds made available under
subparagraph (A) for planning and administration
relating to the State uses of funds authorized under
this subpart, including the following:
``(i) Administering the distribution of
competitive subgrants to eligible local
educational agencies under subsection (c) and
section 1204(d).
``(ii) Assessing and evaluating, on a regular
basis, eligible local educational agency
activities assisted under this subpart, with
respect to whether they have been effective in
increasing the number of children in grades 1, 2,
and 3 served under this subpart who can read at or
above grade level.
``(C) Annual reporting.--
``(i) In general.--A State educational agency
that receives a grant under this section shall
expend funds made available under subparagraph (A)
to provide the Secretary annually with a report on
the implementation of this subpart.
``(ii) Information included.--Each report
under this subparagraph shall include information
on the following:
``(I) Evidence that the State
educational agency is fulfilling its
obligations under this subpart.
[[Page 115 STAT. 1542]]
``(II) Specific identification of
those schools and local educational
agencies that report the largest gains
in reading achievement.
``(III) The progress the State
educational agency and local educational
agencies within the State are making in
reducing the number of students served
under this subpart in grades 1, 2, and 3
who are reading below grade level, as
demonstrated by such information as
teacher reports and school evaluations
of mastery of the essential components
of reading instruction.
``(IV) Evidence on whether the State
educational agency and local educational
agencies within the State have
significantly increased the number of
students reading at grade level or
above, significantly increased the
percentages of students described in
section 1111(b)(2)(C)(v)(II) who are
reading at grade level or above, and
successfully implemented this subpart.
``(iii) Privacy protection.--Data in the
report shall be reported in a manner that protects
the privacy of individuals.
``(iv) Contract.--To the extent practicable, a
State educational agency shall enter into a
contract with an entity that conducts
scientifically based reading research, under which
contract the entity will assist the State
educational agency in producing the reports
required to be submitted under this subparagraph.
``(e) Review.--
``(1) Progress report.--
``(A) <<NOTE: Deadline.>> Submission.--Not later
than 60 days after the termination of the third year of
the grant period, each State educational agency
receiving a grant under this section shall submit a
progress report to the Secretary.
``(B) Information included.--The progress report
shall include information on the progress the State
educational agency and local educational agencies within
the State are making in reducing the number of students
served under this subpart in grades 1, 2, and 3 who are
reading below grade level (as demonstrated by such
information as teacher reports and school evaluations of
mastery of the essential components of reading
instruction). The report shall also include evidence
from the State educational agency and local educational
agencies within the State that the State educational
agency and the local educational agencies have
significantly increased the number of students reading
at grade level or above, significantly increased the
percentages of students described in section
1111(b)(2)(C)(v)(II) who are reading at grade level or
above, and successfully implemented this subpart.
``(2) Peer review.--The progress report described in
paragraph (1) shall be reviewed by the peer review panel
convened under section 1203(c)(2).
``(3) Consequences of insufficient progress.--After
submission of the progress report described in paragraph (1), if
the Secretary determines that the State educational agency is
not making significant progress in meeting the purposes
[[Page 115 STAT. 1543]]
of this subpart, the Secretary may withhold from the State
educational agency, in whole or in part, further payments under
this section in accordance with section 455 of the General
Education Provisions Act or take such other action authorized by
law as the Secretary determines necessary, including providing
technical assistance upon request of the State educational
agency.
``(f) Funds not Used for State Level Activities.--Any portion of
funds described in subsection (d)(1) that a State educational agency
does not expend in accordance with subsection (d)(1) shall be expended
for the purpose of making subgrants in accordance with subsection (c).
``SEC. <<NOTE: 20 USC 6363.>> 1203. STATE FORMULA GRANT APPLICATIONS.
``(a) Applications.--
``(1) In general.--A State educational agency that desires
to receive a grant under section 1202 shall submit an
application to the Secretary at such time and in such form as
the Secretary may require. The application shall contain the
information described in subsection (b).
``(2) Special application provisions.--For those State
educational agencies that have received a grant under part C of
title II (as such part was in effect on the day before the date
of enactment of the No Child Left Behind Act of 2001), the
Secretary shall establish a modified set of requirements for an
application under this section that takes into account the
information already submitted and approved under that program
and minimizes the duplication of effort on the part of such
State educational agencies.
``(b) Contents.--An application under this section shall contain the
following:
``(1) An assurance that the Governor of the State, in
consultation with the State educational agency, has established
a reading and literacy partnership described in subsection (d),
and a description of how such partnership--
``(A) coordinated the development of the
application; and
``(B) will assist in the oversight and evaluation of
the State educational agency's activities under this
subpart.
``(2) A description, if applicable, of the State's strategy
to expand, continue, or modify activities authorized under part
C of title II (as such part was in effect on the day before the
date of enactment of the No Child Left Behind Act of 2001).
``(3) An assurance that the State educational agency, and
any local educational agencies receiving a subgrant from that
State educational agency under section 1202, will, if requested,
participate in the external evaluation under section 1205.
``(4) A State educational agency plan containing a
description of the following:
``(A) How the State educational agency will assist
local educational agencies in identifying screening,
diagnostic, and classroom-based instructional reading
assessments.
``(B) How the State educational agency will assist
local educational agencies in identifying instructional
materials, programs, strategies, and approaches, based
on scientifically based reading research, including
early intervention
[[Page 115 STAT. 1544]]
and reading remediation materials, programs, and
approaches.
``(C) How the State educational agency will ensure
that professional development activities related to
reading instruction and provided under section 1202
are--
``(i) coordinated with other Federal, State,
and local level funds, and used effectively to
improve instructional practices for reading; and
``(ii) based on scientifically based reading
research.
``(D) How the activities assisted under section 1202
will address the needs of teachers and other
instructional staff in implementing the essential
components of reading instruction.
``(E) How subgrants made by the State educational
agency under section 1202 will meet the requirements of
section 1202, including how the State educational agency
will ensure that eligible local educational agencies
receiving subgrants under section 1202 will use
practices based on scientifically based reading
research.
``(F) How the State educational agency will, to the
extent practicable, make grants to eligible local
educational agencies in both rural and urban areas.
``(G) How the State educational agency will build
on, and promote coordination among literacy programs in
the State (including federally funded programs such as
programs under the Adult Education and Family Literacy
Act, the Individuals with Disabilities Education Act,
and subpart 2), to increase the effectiveness of the
programs in improving reading for adults and children
and to avoid duplication of the efforts of the program.
``(H) How the State educational agency will assess
and evaluate, on a regular basis, eligible local
educational agency activities assisted under section
1202, with respect to whether the activities have been
effective in achieving the purposes of section 1202.
``(I) Any other information that the Secretary may
reasonably require.
``(c) Approval of Applications.--
``(1) In general.--The Secretary shall approve an
application of a State educational agency under this section
only if such application meets the requirements of this section.
``(2) Peer review.--
``(A) In general.--The Secretary, in consultation
with the National Institute for Literacy, shall convene
a panel to evaluate applications under this section. At
a minimum, the panel shall include--
``(i) three individuals selected by the
Secretary;
``(ii) three individuals selected by the
National Institute for Literacy;
``(iii) three individuals selected by the
National Research Council of the National Academy
of Sciences; and
``(iv) three individuals selected by the
National Institute of Child Health and Human
Development.
``(B) Experts.--The panel shall include--
[[Page 115 STAT. 1545]]
``(i) experts who are competent, by virtue of
their training, expertise, or experience, to
evaluate applications under this section;
``(ii) experts who provide professional
development to individuals who teach reading to
children and adults based on scientifically based
reading research;
``(iii) experts who provide professional
development to other instructional staff based on
scientifically based reading research; and
``(iv) an individual who has expertise in
screening, diagnostic, and classroom-based
instructional reading assessments.
``(C) Recommendations.--The panel shall recommend
grant applications from State educational agencies under
this section to the Secretary for funding or for
disapproval.
``(d) Reading and Literacy Partnerships.--
``(1) In general.--For a State educational agency to receive
a grant under section 1202, the Governor of the State, in
consultation with the State educational agency, shall establish
a reading and literacy partnership.
``(2) Required participants.--The reading and literacy
partnership shall include the following participants:
``(A) The Governor of the State.
``(B) The chief State school officer.
``(C) The chairman and the ranking member of each
committee of the State legislature that is responsible
for education policy.
``(D) A representative, selected jointly by the
Governor and the chief State school officer, of at least
one eligible local educational agency.
``(E) A representative, selected jointly by the
Governor and the chief State school officer, of a
community-based organization working with children to
improve their reading skills, particularly a community-
based organization using tutors and scientifically based
reading research.
``(F) State directors of appropriate Federal or
State programs with a strong reading component, selected
jointly by the Governor and the chief State school
officer.
``(G) A parent of a public or private school student
or a parent who educates the parent's child in the
parent's home, selected jointly by the Governor and the
chief State school officer.
``(H) A teacher, who may be a special education
teacher, who successfully teaches reading, and another
instructional staff member, selected jointly by the
Governor and the chief State school officer.
``(I) A family literacy service provider selected
jointly by the Governor and the chief State school
officer.
``(3) Optional participants.--The reading and literacy
partnership may include additional participants, who shall be
selected jointly by the Governor and the chief State school
officer, and who may include a representative of--
``(A) an institution of higher education operating a
program of teacher preparation in the State that is
based on scientifically based reading research;
``(B) a local educational agency;
[[Page 115 STAT. 1546]]
``(C) a private nonprofit or for-profit eligible
professional development provider providing instruction
based on scientifically based reading research;
``(D) an adult education provider;
``(E) a volunteer organization that is involved in
reading programs; or
``(F) a school library or a public library that
offers reading or literacy programs for children or
families.
``(4) Preexisting partnership.--If, before the date of
enactment of the No Child Left Behind Act of 2001, a State
educational agency established a consortium, partnership, or any
other similar body that was considered a reading and literacy
partnership for purposes of part C of title II of this Act (as
such part was in effect on the day before the date of enactment
of No Child Left Behind Act of 2001), that consortium,
partnership, or body may be considered a reading and literacy
partnership for purposes of this subsection consistent with the
provisions of this subpart.
``SEC. <<NOTE: 20 USC 6364.>> 1204. TARGETED ASSISTANCE GRANTS.
``(a) Eligibility Criteria for Awarding Targeted Assistance Grants
to States.--Beginning <<NOTE: Effective date.>> with fiscal year 2004,
from funds appropriated under section 1202(b)(1)(E), the Secretary shall
make grants, on a competitive basis, to those State educational agencies
that--
``(1) for each of 2 consecutive years, demonstrate that an
increasing percentage of third graders in each of the groups
described in section 1111(b)(2)(C)(v)(II) in the schools served
by the local educational agencies receiving funds under section
1202 are reaching the proficient level in reading; and
``(2) for each of the same such consecutive 2 years,
demonstrate that schools receiving funds under section 1202 are
improving the reading skills of students in grades 1, 2, and 3
based on screening, diagnostic, and classroom-based
instructional reading assessments.
``(b) Continuation of Performance Awards.--For any State educational
agency that receives a competitive grant under this section, the
Secretary shall make an award for each of the succeeding years that the
State educational agency demonstrates it is continuing to meet the
criteria described in subsection (a).
``(c) Distribution of Targeted Assistance Grants.--
``(1) In general.--The Secretary shall make a grant to each
State educational agency with an application approved under this
section in an amount that bears the same relation to the amount
made available to carry out this section for a fiscal year as
the number of children counted under section 1124(c) for the
State bears to the number of such children so counted for all
States with applications approved for that year.
``(2) Peer review.--The peer review panel convened under
section 1203(c)(2) shall review the applications submitted under
this subsection. The panel shall recommend such applications to
the Secretary for funding or for disapproval.
``(3) Application contents.--A State educational agency that
desires to receive a grant under this section shall submit an
application to the Secretary at such time, in such manner,
[[Page 115 STAT. 1547]]
and accompanied by such information as the Secretary may
require. Each such application shall include the following:
``(A) Evidence that the State educational agency has
carried out its obligations under section 1203.
``(B) Evidence that the State educational agency has
met the criteria described in subsection (a).
``(C) The amount of funds requested by the State
educational agency and a description of the criteria the
State educational agency intends to use in distributing
subgrants to eligible local educational agencies under
this section to continue or expand activities under
subsection (d)(5).
``(D) Evidence that the State educational agency has
increased significantly the percentage of students
reading at grade level or above.
``(E) Any additional evidence that demonstrates
success in the implementation of this section.
``(d) Subgrants to Eligible Local Educational Agencies.--
``(1) In general.--The Secretary may make a grant to a State
educational agency under this section only if the State
educational agency agrees to expend 100 percent of the amount of
the funds provided under the grant for the purpose of making
competitive subgrants in accordance with this subsection to
eligible local educational agencies.
``(2) Notice.--A State educational agency receiving a grant
under this section shall provide notice to all local educational
agencies in the State of the availability of competitive
subgrants under this subsection and of the requirements for
applying for the subgrants.
``(3) Application.--To be eligible to receive a subgrant
under this subsection, an eligible local educational agency
shall submit an application to the State educational agency at
such time, in such manner, and containing such information as
the State educational agency may reasonably require.
``(4) Distribution.--
``(A) In general.--A State educational agency shall
distribute subgrants under this section through a
competitive process based on relative need of eligible
local educational agencies and the evidence described in
this paragraph.
``(B) Evidence used in all years.--For all fiscal
years, a State educational agency shall distribute
subgrants under this section based on evidence that an
eligible local educational agency--
``(i) satisfies the requirements of section
1202(c)(4);
``(ii) will carry out its obligations under
this subpart;
``(iii) will work with other local educational
agencies in the State that have not received a
subgrant under this subsection to assist such
nonreceiving agencies in increasing the reading
achievement of students; and
``(iv) is meeting the criteria described in
subsection (a).
``(5) Local uses of funds.--An eligible local educational
agency that receives a subgrant under this subsection--
[[Page 115 STAT. 1548]]
``(A) shall use the funds provided under the
subgrant to carry out the activities described in
section 1202(c)(7)(A); and
``(B) may use such funds to carry out the activities
described in section 1202(c)(7)(B).
``SEC. <<NOTE: 20 USC 6365.>> 1205. EXTERNAL EVALUATION.
``(a) <<NOTE: Contracts.>> In General.--From funds reserved under
section 1202(b)(1)(C), the Secretary shall contract with an independent
organization outside of the Department for a 5-year, rigorous,
scientifically valid, quantitative evaluation of this subpart.
``(b) Process.--The evaluation under subsection (a) shall be
conducted by an organization that is capable of designing and carrying
out an independent evaluation that identifies the effects of specific
activities carried out by State educational agencies and local
educational agencies under this subpart on improving reading
instruction. Such evaluation shall take into account factors influencing
student performance that are not controlled by teachers or education
administrators.
``(c) Analysis.--The evaluation under subsection (a) shall include
the following:
``(1) An analysis of the relationship between each of the
essential components of reading instruction and overall reading
proficiency.
``(2) An analysis of whether assessment tools used by State
educational agencies and local educational agencies measure the
essential components of reading.
``(3) An analysis of how State reading standards correlate
with the essential components of reading instruction.
``(4) An analysis of whether the receipt of a targeted
assistance grant under section 1204 results in an increase in
the number of children who read proficiently.
``(5) A measurement of the extent to which specific
instructional materials improve reading proficiency.
``(6) A measurement of the extent to which specific
screening, diagnostic, and classroom-based instructional reading
assessments assist teachers in identifying specific reading
deficiencies.
``(7) A measurement of the extent to which professional
development programs implemented by State educational agencies
using funds received under this subpart improve reading
instruction.
``(8) A measurement of how well students preparing to enter
the teaching profession are prepared to teach the essential
components of reading instruction.
``(9) An analysis of changes in students' interest in
reading and time spent reading outside of school.
``(10) Any other analysis or measurement pertinent to this
subpart that is determined to be appropriate by the Secretary.
``(d) Program Improvement.--The findings of the evaluation conducted
under this section shall be provided to State educational agencies and
local educational agencies on a periodic basis for use in program
improvement.
``SEC. <<NOTE: 20 USC 6366.>> 1206. NATIONAL ACTIVITIES.
``From funds reserved under section 1202(b)(1)(C), the Secretary--
[[Page 115 STAT. 1549]]
``(1) may provide technical assistance in achieving the
purposes of this subpart to State educational agencies, local
educational agencies, and schools requesting such assistance;
``(2) shall, at a minimum, evaluate the impact of services
provided to children under this subpart with respect to their
referral to, and eligibility for, special education services
under the Individuals with Disabilities Education Act (based on
their difficulties learning to read); and
``(3) shall carry out the external evaluation as described
in section 1205.
``SEC. <<NOTE: 20 USC 6367.>> 1207. INFORMATION DISSEMINATION.
``(a) In General.--From funds reserved under section 1202(b)(1)(D),
the National Institute for Literacy, in collaboration with the Secretary
of Education, the Secretary of Health and Human Services, and the
Director of the National Institute for Child Health and Human
Development shall--
``(1) disseminate information on scientifically based
reading research pertaining to children, youth, and adults;
``(2) identify and disseminate information about schools,
local educational agencies, and State educational agencies that
have effectively developed and implemented classroom reading
programs that meet the requirements of this subpart, including
those State educational agencies, local educational agencies,
and schools that have been identified as effective through the
evaluation and peer review provisions of this subpart; and
``(3) support the continued identification and dissemination
of information on reading programs that contain the essential
components of reading instruction as supported by scientifically
based reading research, that can lead to improved reading
outcomes for children, youth, and adults.
``(b) Dissemination and Coordination.--At a minimum, the National
Institute for Literacy shall disseminate the information described in
subsection (a) to--
``(1) recipients of Federal financial assistance under this
title, title III, the Head Start Act, the Individuals with
Disabilities Education Act, and the Adult Education and Family
Literacy Act; and
``(2) each Bureau funded school (as defined in section 1141
of the Education Amendments of 1978).
``(c) Use of Existing Networks.--In carrying out this section, the
National Institute for Literacy shall, to the extent practicable, use
existing information and dissemination networks developed and maintained
through other public and private entities including through the
Department and the National Center for Family Literacy.
``(d) National Institute for Literacy.--For purposes of funds
reserved under section 1202(b)(1)(D) to carry out this section, the
National Institute for Literacy shall administer such funds in
accordance with section 242(b) of Public Law 105-220 (relating to the
establishment and administration of the National Institute for
Literacy).
``SEC. <<NOTE: 20 USC 6368.>> 1208. DEFINITIONS.
``In this subpart:
``(1) Eligible local educational agency.--The term `eligible
local educational agency' means a local educational agency
that--
[[Page 115 STAT. 1550]]
``(A) is among the local educational agencies in the
State with the highest numbers or percentages of
students in kindergarten through grade 3 reading below
grade level, based on the most currently available data;
and
``(B) has--
``(i) jurisdiction over a geographic area that
includes an area designated as an empowerment
zone, or an enterprise community, under part I of
subchapter U of chapter 1 of the Internal Revenue
Code of 1986;
``(ii) jurisdiction over a significant number
or percentage of schools that are identified for
school improvement under section 1116(b); or
``(iii) the highest numbers or percentages of
children who are counted under section 1124(c), in
comparison to other local educational agencies in
the State.
``(2) Eligible professional development provider.--The term
`eligible professional development provider' means a provider of
professional development in reading instruction to teachers,
including special education teachers, that is based on
scientifically based reading research.
``(3) Essential components of reading instruction.--The term
`essential components of reading instruction' means explicit and
systematic instruction in--
``(A) phonemic awareness;
``(B) phonics;
``(C) vocabulary development;
``(D) reading fluency, including oral reading
skills; and
``(E) reading comprehension strategies.
``(4) Instructional staff.--The term `instructional staff'--
``(A) means individuals who have responsibility for
teaching children to read; and
``(B) includes principals, teachers, supervisors of
instruction, librarians, library school media
specialists, teachers of academic subjects other than
reading, and other individuals who have responsibility
for assisting children to learn to read.
``(5) Reading.--The term `reading' means a complex system of
deriving meaning from print that requires all of the following:
``(A) The skills and knowledge to understand how
phonemes, or speech sounds, are connected to print.
``(B) The ability to decode unfamiliar words.
``(C) The ability to read fluently.
``(D) Sufficient background information and
vocabulary to foster reading comprehension.
``(E) The development of appropriate active
strategies to construct meaning from print.
``(F) The development and maintenance of a
motivation to read.
``(6) Scientifically based reading research.--The term
`scientifically based reading research' means research that--
``(A) applies rigorous, systematic, and objective
procedures to obtain valid knowledge relevant to reading
development, reading instruction, and reading
difficulties; and
``(B) includes research that--
[[Page 115 STAT. 1551]]
``(i) employs systematic, empirical methods
that draw on observation or experiment;
``(ii) involves rigorous data analyses that
are adequate to test the stated hypotheses and
justify the general conclusions drawn;
``(iii) relies on measurements or
observational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations; and
``(iv) has been accepted by a peer-reviewed
journal or approved by a panel of independent
experts through a comparably rigorous, objective,
and scientific review.
``(7) Screening, diagnostic, and classroom-based
instructional reading assessments.--
``(A) In general.--The term `screening, diagnostic,
and classroom-based instructional reading assessments'
means--
``(i) screening reading assessments;
``(ii) diagnostic reading assessments; and
``(iii) classroom-based instructional reading
assessments.
``(B) Screening reading assessment.--The term
`screening reading assessment' means an assessment that
is--
``(i) valid, reliable, and based on
scientifically based reading research; and
``(ii) a brief procedure designed as a first
step in identifying children who may be at high
risk for delayed development or academic failure
and in need of further diagnosis of their need for
special services or additional reading
instruction.
``(C) Diagnostic reading assessment.--The term
`diagnostic reading assessment' means an assessment that
is--
``(i) valid, reliable, and based on
scientifically based reading research; and
``(ii) used for the purpose of--
``(I) identifying a child's specific
areas of strengths and weaknesses so
that the child has learned to read by
the end of grade 3;
``(II) determining any difficulties
that a child may have in learning to
read and the potential cause of such
difficulties; and
``(III) helping to determine
possible reading intervention strategies
and related special needs.
``(D) Classroom-based instructional reading
assessment.--The term `classroom-based instructional
reading assessment' means an assessment that--
``(i) evaluates children's learning based on
systematic observations by teachers of children
performing academic tasks that are part of their
daily classroom experience; and
``(ii) is used to improve instruction in
reading, including classroom instruction.
[[Page 115 STAT. 1552]]
``Subpart 2--Early Reading First
``SEC. <<NOTE: 20 USC 6371.>> 1221. PURPOSES; DEFINITIONS.
``(a) Purposes.--The purposes of this subpart are as follows:
``(1) To support local efforts to enhance the early
language, literacy, and prereading development of preschool age
children, particularly those from low-income families, through
strategies and professional development that are based on
scientifically based reading research.
``(2) To provide preschool age children with cognitive
learning opportunities in high-quality language and literature-
rich environments, so that the children can attain the
fundamental knowledge and skills necessary for optimal reading
development in kindergarten and beyond.
``(3) To demonstrate language and literacy activities based
on scientifically based reading research that supports the age-
appropriate development of--
``(A) recognition, leading to automatic recognition,
of letters of the alphabet;
``(B) knowledge of letter sounds, the blending of
sounds, and the use of increasingly complex vocabulary;
``(C) an understanding that written language is
composed of phonemes and letters each representing one
or more speech sounds that in combination make up
syllables, words, and sentences;
``(D) spoken language, including vocabulary and oral
comprehension abilities; and
``(E) knowledge of the purposes and conventions of
print.
``(4) To use screening assessments to effectively identify
preschool age children who may be at risk for reading failure.
``(5) To integrate such scientific reading research-based
instructional materials and literacy activities with existing
programs of preschools, child care agencies and programs, Head
Start centers, and family literacy services.
``(b) Definitions.--For purposes of this subpart:
``(1) Eligible applicant.--The term `eligible applicant'
means--
``(A) one or more local educational agencies that
are eligible to receive a subgrant under subpart 1;
``(B) one or more public or private organizations or
agencies, acting on behalf of one or more programs that
serve preschool age children (such as a program at a
Head Start center, a child care program, or a family
literacy program), which organizations or agencies shall
be located in a community served by a local educational
agency described in subparagraph (A); or
``(C) one or more local educational agencies
described in subparagraph (A) in collaboration with one
or more organizations or agencies described in
subparagraph (B).
``(2) Scientifically based reading research.--The term
`scientifically based reading research' has the same meaning
given to that term in section 1208.
``(3) Screening reading assessment.--The term `screening
reading assessment' has the same meaning given to that term in
section 1208.
[[Page 115 STAT. 1553]]
``SEC. <<NOTE: 20 USC 6372.>> 1222. LOCAL EARLY READING FIRST GRANTS.
``(a) Program Authorized.--From amounts appropriated under section
1002(b)(2), the Secretary shall award grants, on a competitive basis,
for periods of not more than 6 years, to eligible applicants to enable
the eligible applicants to carry out the authorized activities described
in subsection (d).
``(b) Applications.--An eligible applicant that desires to receive a
grant under this section shall submit an application to the Secretary,
which shall include a description of--
``(1) the programs to be served by the proposed project,
including demographic and socioeconomic information on the
preschool age children enrolled in the programs;
``(2) how the proposed project will enhance the school
readiness of preschool age children in high-quality oral
language and literature-rich environments;
``(3) how the proposed project will prepare and provide
ongoing assistance to staff in the programs, through
professional development and other support, to provide high-
quality language, literacy, and prereading activities using
scientifically based reading research, for preschool age
children;
``(4) how the proposed project will provide services and use
instructional materials that are based on scientifically based
reading research on early language acquisition, prereading
activities, and the development of spoken vocabulary skills;
``(5) how the proposed project will help staff in the
programs to meet more effectively the diverse needs of preschool
age children in the community, including such children with
limited English proficiency, disabilities, or other special
needs;
``(6) how the proposed project will integrate such
instructional materials and literacy activities with existing
preschool programs and family literacy services;
``(7) how the proposed project will help children,
particularly children experiencing difficulty with spoken
language, prereading, and early reading skills, to make the
transition from preschool to formal classroom instruction in
school;
``(8) if the eligible applicant has received a subgrant
under subpart 1, how the activities conducted under this subpart
will be coordinated with the eligible applicant's activities
under subpart 1 at the kindergarten through grade 3 level;
``(9) how the proposed project will evaluate the success of
the activities supported under this subpart in enhancing the
early language, literacy, and prereading development of
preschool age children served by the project; and
``(10) such other information as the Secretary may require.
``(c) Approval of Local Applications.--The Secretary shall select
applicants for funding under this subpart based on the quality of the
applications and the recommendations of a peer review panel convened
under section 1203(c)(2), that includes, at a minimum, three
individuals, selected from the entities described in clauses (ii),
(iii), and (iv) of section 1203(c)(2)(A), who are experts in early
reading development and early childhood development.
``(d) Authorized Activities.--An eligible applicant that receives a
grant under this subpart shall use the funds provided under the grant to
carry out the following activities:
[[Page 115 STAT. 1554]]
``(1) Providing preschool age children with high-quality
oral language and literature-rich environments in which to
acquire language and prereading skills.
``(2) Providing professional development that is based on
scientifically based reading research knowledge of early
language and reading development for the staff of the eligible
applicant and that will assist in developing the preschool age
children's--
``(A) recognition, leading to automatic recognition,
of letters of the alphabet, knowledge of letters,
sounds, blending of letter sounds, and increasingly
complex vocabulary;
``(B) understanding that written language is
composed of phonemes and letters each representing one
or more speech sounds that in combination make up
syllables, words, and sentences;
``(C) spoken language, including vocabulary and oral
comprehension abilities; and
``(D) knowledge of the purposes and conventions of
print.
``(3) Identifying and providing activities and instructional
materials that are based on scientifically based reading
research for use in developing the skills and abilities
described in paragraph (2).
``(4) Acquiring, providing training for, and implementing
screening reading assessments or other appropriate measures that
are based on scientifically based reading research to determine
whether preschool age children are developing the skills
described in this subsection.
``(5) Integrating such instructional materials, activities,
tools, and measures into the programs offered by the eligible
applicant.
``(e) Award Amounts.--The Secretary may establish a maximum award
amount, or ranges of award amounts, for grants under this subpart.
``SEC. <<NOTE: 20 USC 6373.>> 1223. FEDERAL ADMINISTRATION.
``The Secretary shall consult with the Secretary of Health and Human
Services to coordinate the activities under this subpart with preschool
age programs administered by the Department of Health and Human
Services.
``SEC. 1224. <<NOTE: 20 USC 6374.>> INFORMATION DISSEMINATION.
``From the funds the National Institute for Literacy receives under
section 1202(b)(1)(D), the National Institute for Literacy, in
consultation with the Secretary, shall disseminate information regarding
projects assisted under this subpart that have proven effective.
``SEC. <<NOTE: 20 USC 6375.>> 1225. REPORTING REQUIREMENTS.
``Each eligible applicant receiving a grant under this subpart shall
report annually to the Secretary regarding the eligible applicant's
progress in addressing the purposes of this subpart. Such report shall
include, at a minimum, a description of--
``(1) the research-based instruction, materials, and
activities being used in the programs funded under the grant;
``(2) the types of programs funded under the grant and the
ages of children served by such programs;
[[Page 115 STAT. 1555]]
``(3) the qualifications of the program staff who provide
early literacy instruction under such programs and the type of
ongoing professional development provided to such staff; and
``(4) the results of the evaluation described in section
1222(b)(9).
``SEC. <<NOTE: 20 USC 6376.>> 1226. EVALUATION.
``(a) <<NOTE: Effective date. Termination date.>> In General.--From
the total amount made available under section 1002(b)(2) for the period
beginning October 1, 2002, and ending September 30, 2006, the Secretary
shall reserve not more than $3,000,000 to conduct an independent
evaluation of the effectiveness of this subpart.
``(b) <<NOTE: Deadlines.>> Reports.--
``(1) Interim report.--Not later than October 1, 2004, the
Secretary shall submit an interim report to the Committee on
Education and the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate.
``(2) Final report.--Not later than September 30, 2006, the
Secretary shall submit a final report to the committees
described in paragraph (1).
``(c) Contents.--The reports submitted under subsection (b) shall
include information on the following:
``(1) How the grant recipients under this subpart are
improving the prereading skills of preschool children.
``(2) The effectiveness of the professional development
program assisted under this subpart.
``(3) How early childhood teachers are being prepared with
scientifically based reading research on early reading
development.
``(4) What activities and instructional practices are most
effective.
``(5) How prereading instructional materials and literacy
activities based on scientifically based reading research are
being integrated into preschools, child care agencies and
programs, programs carried out under the Head Start Act, and
family literacy programs.
``(6) Any recommendations on strengthening or modifying this
subpart.
``Subpart 3--William F. Goodling Even Start Family Literacy Programs
``SEC. <<NOTE: 20 USC 6381.>> 1231. STATEMENT OF PURPOSE.
``It is the purpose of this subpart to help break the cycle of
poverty and illiteracy by--
``(1) improving the educational opportunities of the
Nation's low-income families by integrating early childhood
education, adult literacy or adult basic education, and
parenting education into a unified family literacy program, to
be referred to as `Even Start'; and
``(2) establishing a program that shall--
``(A) be implemented through cooperative projects
that build on high-quality existing community resources
to create a new range of services;
[[Page 115 STAT. 1556]]
``(B) promote the academic achievement of children
and adults;
``(C) assist children and adults from low-income
families to achieve to challenging State content
standards and challenging State student achievement
standards; and
``(D) use instructional programs based on
scientifically based reading research and addressing the
prevention of reading difficulties for children and
adults, to the extent such research is available.
``SEC. <<NOTE: 20 USC 6381a.>> 1232. PROGRAM AUTHORIZED.
``(a) Reservation for Migrant Programs, Outlying Areas, and Indian
Tribes.--
``(1) In general.--For each fiscal year, the Secretary shall
reserve 5 percent of the amount appropriated under section
1002(b)(3) (or, if such appropriated amount exceeds
$200,000,000, 6 percent of such amount) for programs, under such
terms and conditions as the Secretary shall establish, that are
consistent with the purpose of this subpart, and according to
their relative needs, for--
``(A) children of migratory workers;
``(B) the outlying areas; and
``(C) Indian tribes and tribal organizations.
``(2) Special rule.--After December 21, 2000, the Secretary
shall award a grant, on a competitive basis, of sufficient size
and for a period of sufficient duration to demonstrate the
effectiveness of a family literacy program in a prison that
houses women and their preschool age children and that has the
capability of developing a program of high quality.
``(3) Coordination of programs for american indians.--The
Secretary shall ensure that programs under paragraph (1)(C) are
coordinated with family literacy programs operated by the Bureau
of Indian Affairs in order to avoid duplication and to encourage
the dissemination of information on high-quality family literacy
programs serving American Indians.
``(b) Reservation for Federal Activities.--
``(1) Evaluation, technical assistance, program improvement,
and replication activities.--Subject to paragraph (2), from
amounts appropriated under section 1002(b)(3), the Secretary may
reserve not more than 3 percent of such amounts for purposes
of--
``(A) carrying out the evaluation required by
section 1239; and
``(B) providing, through grants or contracts with
eligible organizations, technical assistance, program
improvement, and replication activities.
``(2) Research.--In any fiscal year, if the amount
appropriated under section 1002(b)(3) for such year--
``(A) is equal to or less than the amount
appropriated for the preceding fiscal year, the
Secretary may reserve from such amount only the amount
necessary to continue multi-year activities carried out
pursuant to section 1241(b) that began during or prior
to the fiscal year preceding the fiscal year for which
the determination is made; or
``(B) exceeds the amount appropriated for the
preceding fiscal year, then the Secretary shall reserve
from such
[[Page 115 STAT. 1557]]
excess amount $2,000,000 or 50 percent, whichever is
less, to carry out section 1241(b).
``(c) Reservation for Grants.--
``(1) Grants authorized.--
``(A) In general.--For any fiscal year for which at
least one State educational agency applies and submits
an application that meets the requirements and goals of
this subsection and for which the amount appropriated
under section 1002(b)(3) exceeds the amount appropriated
under that section for the preceding fiscal year, the
Secretary shall reserve, from the amount of the excess
remaining after the application of subsection (b)(2),
the amount of the remainder or $1,000,000, whichever is
less, to award grants, on a competitive basis, to State
educational agencies to enable them to plan and
implement statewide family literacy initiatives to
coordinate and, where appropriate, integrate existing
Federal, State, and local literacy resources consistent
with the purposes of this subpart.
``(B) Coordination and integration.--The
coordination and integration described in subparagraph
(A) shall include coordination and integration of funds
available under the Adult Education and Family Literacy
Act, the Head Start Act, this subpart, part A of this
title, and part A of title IV of the Social Security
Act.
``(C) Restriction.--No State educational agency may
receive more than one grant under this subsection.
``(2) Consortia.--
``(A) Establishment.--To receive a grant under this
subsection, a State educational agency shall establish a
consortium of State-level programs under the following
provisions of laws:
``(i) This title (other than part D).
``(ii) The Head Start Act.
``(iii) The Adult Education and Family
Literacy Act.
``(iv) All other State-funded preschool
programs and programs providing literacy services
to adults.
``(B) Plan.--To receive a grant under this
subsection, the consortium established by a State
educational agency shall create a plan to use a portion
of the State educational agency's resources, derived
from the programs referred to in subparagraph (A), to
strengthen and expand family literacy services in the
State.
``(C) Coordination with subpart 1.--The consortium
shall coordinate its activities under this paragraph
with the activities of the reading and literacy
partnership for the State educational agency established
under section 1203(d), if the State educational agency
receives a grant under section 1202.
``(3) Reading instruction.--Statewide family literacy
initiatives implemented under this subsection shall base reading
instruction on scientifically based reading research.
``(4) Technical assistance.--The Secretary shall provide,
directly or through a grant or contract with an organization
with experience in the development and operation of successful
[[Page 115 STAT. 1558]]
family literacy services, technical assistance to State
educational agencies receiving a grant under this subsection.
``(5) Matching requirement.--The Secretary shall not make a
grant to a State educational agency under this subsection unless
the State educational agency agrees that, with respect to the
costs to be incurred by the eligible consortium in carrying out
the activities for which the grant was awarded, the State
educational agency will make available non-Federal contributions
in an amount equal to not less than the Federal funds provided
under the grant.
``(d) State Educational Agency Allocation.--
``(1) In general.--From amounts appropriated under section
1002(b)(3) and not reserved under subsection (a), (b), or (c),
the Secretary shall make grants to State educational agencies
from allocations under paragraph (2).
``(2) Allocations.--Except as provided in paragraph (3),
from the total amount available under paragraph (1) for
allocation to State educational agencies in any fiscal year,
each State educational agency shall be eligible to receive a
grant under paragraph (1) in an amount that bears the same ratio
to the total amount as the amount allocated under part A to that
State educational agency bears to the total amount allocated
under that part to all State educational agencies.
``(3) Minimum.--No State educational agency shall receive a
grant under paragraph (1) in any fiscal year in an amount that
is less than $250,000, or one-half of 1 percent of the amount
appropriated under section 1002(b)(3) and not reserved under
subsections (a), (b), and (c) for such year, whichever is
greater.
``(e) Definitions.--For the purpose of this subpart--
``(1) the term `eligible entity' means a partnership
composed of--
``(A) a local educational agency; and
``(B) a nonprofit community-based organization, a
public agency other than a local educational agency, an
institution of higher education, or a public or private
nonprofit organization other than a local educational
agency, of demonstrated quality;
``(2) the term `eligible organization' means any public or
private nonprofit organization with a record of providing
effective services to family literacy providers, such as the
National Center for Family Literacy, Parents as Teachers, Inc.,
the Home Instruction Program for Preschool Youngsters, and the
Home and School Institute, Inc.;
``(3) the terms `Indian tribe' and `tribal organization'
have the meanings given those terms in section 4 of the Indian
Self-Determination and Education Assistance Act;
``(4) the term `scientifically based reading research' has
the meaning given that term in section 1208; and
``(5) the term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. <<NOTE: 20 USC 6381b.>> 1233. STATE EDUCATIONAL AGENCY PROGRAMS.
``(a) State Educational Agency Level Activities.--Each State
educational agency that receives a grant under section 1232(d)(1) may
use not more than a total of 6 percent of the grant funds for the costs
of--
[[Page 115 STAT. 1559]]
``(1) administration, which amount shall not exceed half of
the total;
``(2) providing, through one or more subgrants or contracts,
technical assistance for program improvement and replication, to
eligible entities that receive subgrants under subsection (b);
and
``(3) carrying out sections 1240 and 1234(c).
``(b) Subgrants for Local Programs.--
``(1) In general.--Each State educational agency shall use
the grant funds received under section 1232(d)(1) and not
reserved under subsection (a) to award subgrants to eligible
entities to carry out Even Start programs.
``(2) Minimum subgrant amounts.--
``(A) In general.--Except as provided in
subparagraphs (B) and (C), no State educational agency
shall award a subgrant under paragraph (1) in an amount
less than $75,000.
``(B) Subgrantees in ninth and succeeding years.--No
State educational agency shall award a subgrant under
paragraph (1) in an amount less than $52,500 to an
eligible entity for a fiscal year to carry out an Even
Start program that is receiving assistance under this
subpart or its predecessor authority for the ninth (or
any subsequent) fiscal year.
``(C) Exception for single subgrant.--A State
educational agency may award one subgrant in each fiscal
year of sufficient size, scope, and quality to be
effective in an amount less than $75,000 if, after
awarding subgrants under paragraph (1) for that fiscal
year in accordance with subparagraphs (A) and (B), less
than $75,000 is available to the State educational
agency to award those subgrants.
``SEC. <<NOTE: 20 USC 6381c.>> 1234. USES OF FUNDS.
``(a) In General.--In carrying out an Even Start program under this
subpart, a recipient of funds under this subpart shall use those funds
to pay the Federal share of the cost of providing intensive family
literacy services that involve parents and children, from birth through
age 7, in a cooperative effort to help parents become full partners in
the education of their children and to assist children in reaching their
full potential as learners.
``(b) Federal Share Limitation.--
``(1) In general.--
``(A) Federal share.--Except as provided in
paragraph (2), the Federal share under this subpart may
not exceed--
``(i) 90 percent of the total cost of the
program in the first year that the program
receives assistance under this subpart or its
predecessor authority;
``(ii) 80 percent in the second year;
``(iii) 70 percent in the third year;
``(iv) 60 percent in the fourth year;
``(v) 50 percent in the fifth, sixth, seventh,
and eighth such years; and
``(vi) 35 percent in any subsequent year.
``(B) Remaining cost.--The remaining cost of a
program assisted under this subpart may be provided in
cash or in kind, fairly evaluated, and may be obtained
from any source, including other Federal funds under
this Act.
[[Page 115 STAT. 1560]]
``(2) Waiver.--The State educational agency may waive, in
whole or in part, the Federal share described in paragraph (1)
for an eligible entity if the entity--
``(A) demonstrates that it otherwise would not be
able to participate in the program assisted under this
subpart; and
``(B) negotiates an agreement with the State
educational agency with respect to the amount of the
remaining cost to which the waiver will be applicable.
``(3) Prohibition.--Federal funds provided under this
subpart may not be used for the indirect costs of a program
assisted under this subpart, except that the Secretary may waive
this paragraph if an eligible recipient of funds reserved under
section 1232(a)(1)(C) demonstrates to the Secretary's
satisfaction that the recipient otherwise would not be able to
participate in the program assisted under this subpart.
``(c) Use of Funds for Family Literacy Services.--
``(1) In general.--A State educational agency may use a
portion of funds reserved under section 1233(a), to assist
eligible entities receiving a subgrant under section 1233(b) in
improving the quality of family literacy services provided under
Even Start programs under this subpart, except that in no case
may a State educational agency's use of funds for this purpose
for a fiscal year result in a decrease from the level of
activities and services provided to program participants in the
preceding year.
``(2) Priority.--In carrying out paragraph (1), a State
educational agency shall give priority to programs that were of
low quality, as evaluated based on the indicators of program
quality developed by the State educational agency under section
1240.
``(3) Technical assistance to help local programs raise
additional funds.--In carrying out paragraph (1), a State
educational agency may use the funds referred to in that
paragraph to provide technical assistance to help local programs
of demonstrated effectiveness to access and leverage additional
funds for the purpose of expanding services and reducing waiting
lists, including requesting and applying for non-Federal
resources.
``(4) Technical assistance and training.--Assistance under
paragraph (1) shall be in the form of technical assistance and
training, provided by a State educational agency through a
grant, contract, or cooperative agreement with an entity that
has experience in offering high-quality training and technical
assistance to family literacy providers.
``SEC. <<NOTE: 20 USC 6381d.>> 1235. PROGRAM ELEMENTS.
``Each program assisted under this subpart shall--
``(1) include the identification and recruitment of families
most in need of services provided under this subpart, as
indicated by a low level of income, a low level of adult
literacy or English language proficiency of the eligible parent
or parents, and other need-related indicators;
``(2) include screening and preparation of parents,
including teenage parents, and children to enable those parents
and
[[Page 115 STAT. 1561]]
children to participate fully in the activities and services
provided under this subpart, including testing, referral to
necessary counselling, other developmental and support services,
and related services;
``(3) be designed to accommodate the participants' work
schedule and other responsibilities, including the provision of
support services, when those services are unavailable from other
sources, necessary for participation in the activities assisted
under this subpart, such as--
``(A) scheduling and locating of services to allow
joint participation by parents and children;
``(B) child care for the period that parents are
involved in the program provided under this subpart; and
``(C) transportation for the purpose of enabling
parents and their children to participate in programs
authorized by this subpart;
``(4) include high-quality, intensive instructional programs
that promote adult literacy and empower parents to support the
educational growth of their children, developmentally
appropriate early childhood educational services, and
preparation of children for success in regular school programs;
``(5) with respect to the qualifications of staff the cost
of whose salaries are paid, in whole or in part, with Federal
funds provided under this subpart, ensure that--
``(A) <<NOTE: Deadline.>> not later than December
21, 2004--
``(i) a majority of the individuals providing
academic instruction--
``(I) shall have obtained an
associate's, bachelor's, or graduate
degree in a field related to early
childhood education, elementary school
or secondary school education, or adult
education; and
``(II) if applicable, shall meet
qualifications established by the State
for early childhood education,
elementary school or secondary school
education, or adult education provided
as part of an Even Start program or
another family literacy program;
``(ii) the individual responsible for
administration of family literacy services under
this subpart has received training in the
operation of a family literacy program; and
``(iii) paraprofessionals who provide support
for academic instruction have a secondary school
diploma or its recognized equivalent; and
``(B) all new personnel hired to provide academic
instruction--
``(i) have obtained an associate's,
bachelor's, or graduate degree in a field related
to early childhood education, elementary school or
secondary school education, or adult education;
and
``(ii) if applicable, meet qualifications
established by the State for early childhood
education, elementary school or secondary school
education, or adult education provided as part of
an Even Start program or another family literacy
program;
[[Page 115 STAT. 1562]]
``(6) include special training of staff, including child-
care staff, to develop the skills necessary to work with parents
and young children in the full range of instructional services
offered through this subpart;
``(7) provide and monitor integrated instructional services
to participating parents and children through home-based
programs;
``(8) operate on a year-round basis, including the provision
of some program services, including instructional and enrichment
services, during the summer months;
``(9) be coordinated with--
``(A) other programs assisted under this Act;
``(B) any relevant programs under the Adult
Education and Family Literacy Act, the Individuals with
Disabilities Education Act, and title I of the Workforce
Investment Act of 1998; and
``(C) the Head Start program, volunteer literacy
programs, and other relevant programs;
``(10) use instructional programs based on scientifically
based reading research for children and adults, to the extent
that research is available;
``(11) encourage participating families to attend regularly
and to remain in the program a sufficient time to meet their
program goals;
``(12) include reading-readiness activities for preschool
children based on scientifically based reading research, to the
extent available, to ensure that children enter school ready to
learn to read;
``(13) if applicable, promote the continuity of family
literacy to ensure that individuals retain and improve their
educational outcomes;
``(14) ensure that the programs will serve those families
most in need of the activities and services provided by this
subpart; and
``(15) provide for an independent evaluation of the program,
to be used for program improvement.
``SEC. <<NOTE: 20 USC 6381e.>> 1236. ELIGIBLE PARTICIPANTS.
``(a) In General.--Except as provided in subsection (b), eligible
participants in an Even Start program are--
``(1) a parent or parents--
``(A) who are eligible for participation in adult
education and literacy activities under the Adult
Education and Family Literacy Act; or
``(B) who are within the State's compulsory school
attendance age range, so long as a local educational
agency provides (or ensures the availability of) the
basic education component required under this subpart,
or who are attending secondary school; and
``(2) the child or children, from birth through age 7, of
any individual described in paragraph (1).
``(b) Eligibility for Certain Other Participants.--
``(1) In general.--Family members of eligible participants
described in subsection (a) may participate in activities and
services provided under this subpart, when appropriate to serve
the purpose of this subpart.
[[Page 115 STAT. 1563]]
``(2) Special rule.--Any family participating in a program
assisted under this subpart that becomes ineligible to
participate as a result of one or more members of the family
becoming ineligible to participate may continue to participate
in the program until all members of the family become ineligible
to participate, which--
``(A) in the case of a family in which ineligibility
was due to the child or children of the family attaining
the age of 8, shall be in 2 years or when the parent or
parents become ineligible due to educational
advancement, whichever occurs first; and
``(B) in the case of a family in which ineligibility
was due to the educational advancement of the parent or
parents of the family, shall be when all children in the
family attain the age of 8.
``(3) Children 8 years of age or older.--If an Even Start
program assisted under this subpart collaborates with a program
under part A, and funds received under the part A program
contribute to paying the cost of providing programs under this
subpart to children 8 years of age or older, the Even Start
program may, notwithstanding subsection (a)(2), permit the
participation of children 8 years of age or older if the focus
of the program continues to remain on families with young
children.
``SEC. <<NOTE: 20 USC 6381f.>> 1237. APPLICATIONS.
``(a) Submission.--To be eligible to receive a subgrant under this
subpart, an eligible entity shall submit an application to the State
educational agency in such form and containing or accompanied by such
information as the State educational agency shall require.
``(b) Required Documentation.--Each application shall include
documentation, satisfactory to the State educational agency, that the
eligible entity has the qualified personnel needed--
``(1) to develop, administer, and implement an Even Start
program under this subpart; and
``(2) to provide access to the special training necessary to
prepare staff for the program, which may be offered by an
eligible organization.
``(c) Plan.--
``(1) In general.--The application shall also include a plan
of operation and continuous improvement for the program, that
includes--
``(A) a description of the program objectives,
strategies to meet those objectives, and how those
strategies and objectives are consistent with the
program indicators established by the State;
``(B) a description of the activities and services
that will be provided under the program, including a
description of how the program will incorporate the
program elements required by section 1235;
``(C) a description of the population to be served
and an estimate of the number of participants to be
served;
``(D) as appropriate, a description of the
applicant's collaborative efforts with institutions of
higher education, community-based organizations, the
State educational agency, private elementary schools, or
other eligible
[[Page 115 STAT. 1564]]
organizations in carrying out the program for which
assistance is sought;
``(E) a statement of the methods that will be used--
``(i) to ensure that the programs will serve
families most in need of the activities and
services provided by this subpart;
``(ii) to provide services under this subpart
to individuals with special needs, such as
individuals with limited English proficiency and
individuals with disabilities; and
``(iii) to encourage participants to remain in
the program for a time sufficient to meet the
program's purpose;
``(F) a description of how the plan is integrated
with other programs under this Act or other Acts, as
appropriate; and
``(G) a description of how the plan provides for
rigorous and objective evaluation of progress toward the
program objectives described in subparagraph (A) and for
continuing use of evaluation data for program
improvement.
``(2) Duration of the plan.--Each plan submitted under
paragraph (1) shall--
``(A) remain in effect for the duration of the
eligible entity's participation under this subpart; and
``(B) be periodically reviewed and revised by the
eligible entity as necessary.
``(d) Consolidated Application.--The plan described in subsection
(c)(1) may be submitted as part of a consolidated application under
section 9305.
``SEC. <<NOTE: 20 USC 6381g.>> 1238. AWARD OF SUBGRANTS.
``(a) Selection Process.--
``(1) In general.--The State educational agency shall
establish a review panel in accordance with paragraph (3) that
will approve applications that--
``(A) are most likely to be successful in--
``(i) meeting the purpose of this subpart; and
``(ii) effectively implementing the program
elements required under section 1235;
``(B) demonstrate that the area to be served by the
program has a high percentage or a large number of
children and families who are in need of those services
as indicated by high levels of poverty, illiteracy,
unemployment, limited English proficiency, or other
need-related indicators, such as a high percentage of
children to be served by the program who reside in a
school attendance area served by a local educational
agency eligible for participation in programs under part
A, a high number or percentage of parents who have been
victims of domestic violence, or a high number or
percentage of parents who are receiving assistance under
a State program funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
``(C) provide services for at least a 3-year age
range, which may begin at birth;
[[Page 115 STAT. 1565]]
``(D) demonstrate the greatest possible cooperation
and coordination between a variety of relevant service
providers in all phases of the program;
``(E) include cost-effective budgets, given the
scope of the application;
``(F) demonstrate the applicant's ability to provide
the non-Federal share required by section 1234(b);
``(G) are representative of urban and rural regions
of the State; and
``(H) show the greatest promise for providing models
that may be adopted by other family literacy projects
and other local educational agencies.
``(2) Priority for subgrants.--The State educational agency
shall give priority for subgrants under this subsection to
applications that--
``(A) target services primarily to families
described in paragraph (1)(B); or
``(B) are located in areas designated as empowerment
zones or enterprise communities.
``(3) Review panel.--A review panel shall consist of at
least three members, including one early childhood professional,
one adult education professional, and one individual with
expertise in family literacy programs, and may include other
individuals, such as one or more of the following:
``(A) A representative of a parent-child education
organization.
``(B) A representative of a community-based literacy
organization.
``(C) A member of a local board of education.
``(D) A representative of business and industry with
a commitment to education.
``(E) An individual who has been involved in the
implementation of programs under this title in the
State.
``(b) Duration.--
``(1) In general.--Subgrants under this subpart may be
awarded for a period not to exceed 4 years.
``(2) Startup period.--The State educational agency may
provide subgrant funds to an eligible recipient, at the
recipient's request, for a 3- to 6-month start-up period during
the first year of the 4-year grant period, which may include
staff recruitment and training, and the coordination of
services, before requiring full implementation of the program.
``(3) Continuing eligibility.--In awarding subgrant funds to
continue a program under this subpart after the first year, the
State educational agency shall review the progress of each
eligible entity in meeting the objectives of the program
referred to in section 1237(c)(1)(A) and shall evaluate the
program based on the indicators of program quality developed by
the State under section 1240.
``(4) Insufficient progress.--The State educational agency
may refuse to award subgrant funds to an eligible entity if the
agency finds that the eligible entity has not sufficiently
improved the performance of the program, as evaluated based on
the indicators of program quality developed by the State under
section 1240, after--
``(A) providing technical assistance to the eligible
entity; and
[[Page 115 STAT. 1566]]
``(B) affording the eligible entity notice and an
opportunity for a hearing.
``(5) Grant renewal.--(A) An eligible entity that has
previously received a subgrant under this subpart may reapply
under this subpart for additional subgrants.
``(B) The Federal share of any subgrant renewed under
subparagraph (A) shall be limited in accordance with section
1234(b).
``SEC. <<NOTE: 20 USC 6381h.>> 1239. EVALUATION.
``From funds reserved under section 1232(b)(1), the Secretary shall
provide for an independent evaluation of programs assisted under this
subpart--
``(1) to determine the performance and effectiveness of
programs assisted under this subpart;
``(2) to identify effective Even Start programs assisted
under this subpart that can be duplicated and used in providing
technical assistance to Federal, State, and local programs; and
``(3) to provide State educational agencies and eligible
entities receiving a subgrant under this subpart, directly or
through a grant or contract with an organization with experience
in the development and operation of successful family literacy
services, technical assistance to ensure that local evaluations
undertaken under section 1235(15) provide accurate information
on the effectiveness of programs assisted under this subpart.
``SEC. <<NOTE: 20 USC 6381i.>> 1240. INDICATORS OF PROGRAM QUALITY.
``Each State educational agency receiving funds under this subpart
shall develop, based on the best available research and evaluation data,
indicators of program quality for programs assisted under this subpart.
The indicators shall be used to monitor, evaluate, and improve those
programs within the State. The indicators shall include the following:
``(1) With respect to eligible participants in a program who
are adults--
``(A) achievement in the areas of reading, writing,
English-language acquisition, problem solving, and
numeracy;
``(B) receipt of a secondary school diploma or a
general equivalency diploma (GED);
``(C) entry into a postsecondary school, job
retraining program, or employment or career advancement,
including the military; and
``(D) such other indicators as the State may
develop.
``(2) With respect to eligible participants in a program who
are children--
``(A) improvement in ability to read on grade level
or reading readiness;
``(B) school attendance;
``(C) grade retention and promotion; and
``(D) such other indicators as the State may
develop.
``SEC. <<NOTE: 20 USC 6381j.>> 1241. RESEARCH.
``(a) In General.--The Secretary shall carry out, through grant or
contract, research into the components of successful family literacy
services, in order to--
[[Page 115 STAT. 1567]]
``(1) improve the quality of existing programs assisted
under this subpart or other family literacy programs carried out
under this Act or the Adult Education and Family Literacy Act;
and
``(2) develop models for new programs to be carried out
under this Act or the Adult Education and Family Literacy Act.
``(b) Scientifically Based Research on Family Literacy.--
``(1) In general.--From amounts reserved under section
1232(b)(2), the National Institute for Literacy, in consultation
with the Secretary, shall carry out research that--
``(A) is scientifically based reading research; and
``(B) determines--
``(i) the most effective ways of improving the
literacy skills of adults with reading
difficulties; and
``(ii) how family literacy services can best
provide parents with the knowledge and skills the
parents need to support their children's literacy
development.
``(2) Use of expert entity.--The National Institute for
Literacy, in consultation with the Secretary, shall carry out
the research under paragraph (1) through an entity, including a
Federal agency, that has expertise in carrying out longitudinal
studies of the development of literacy skills in children and
has developed effective interventions to help children with
reading difficulties.
``(c) Dissemination.--The National Institute for Literacy shall
disseminate, pursuant to section 1207, the results of the research
described in subsections (a) and (b) to State educational agencies and
recipients of subgrants under this subpart.
``SEC. <<NOTE: 20 USC 6381k.>> 1242. CONSTRUCTION.
``Nothing in this subpart shall be construed to prohibit a recipient
of funds under this subpart from serving students participating in Even
Start simultaneously with students with similar educational needs, in
the same educational settings where appropriate.
``Subpart 4--Improving Literacy Through School Libraries
``SEC. <<NOTE: 20 USC 6383.>> 1251. IMPROVING LITERACY THROUGH SCHOOL
LIBRARIES.
``(a) Purposes.--The purpose of this subpart is to improve literacy
skills and academic achievement of students by providing students with
increased access to up-to-date school library materials, a well-
equipped, technologically advanced school library media center, and
well-trained, professionally certified school library media specialists.
``(b) Reservation.--From the funds appropriated under section
1002(b)(4) for a fiscal year, the Secretary shall reserve--
``(1) one-half of 1 percent to award assistance under this
section to the Bureau of Indian Affairs to carry out activities
consistent with the purpose of this subpart; and
``(2) one-half of 1 percent to award assistance under this
section to the outlying areas according to their respective
needs for assistance under this subpart.
``(c) Grants.--
``(1) Competitive grants to eligible local educational
agencies.--If the amount of funds appropriated under section
[[Page 115 STAT. 1568]]
1002(b)(4) for a fiscal year is less than $100,000,000, then the
Secretary shall award grants, on a competitive basis, to
eligible local educational agencies under subsection (e).
``(2) Formula grants to states.--If the amount of funds
appropriated under section 1002(b)(4) for a fiscal year equals
or exceeds $100,000,000, then the Secretary shall award grants
to State educational agencies from allotments under subsection
(d).
``(3) Definition of eligible local educational agency.--In
this section the term `eligible local educational agency'
means--
``(A) in the case of a local educational agency
receiving assistance made available under paragraph (1),
a local educational agency in which 20 percent of the
students served by the local educational agency are from
families with incomes below the poverty line; and
``(B) in the case of a local educational agency
receiving assistance from State allocations made
available under paragraph (2), a local educational
agency in which--
``(i) 15 percent of the students who are
served by the local educational agency are from
such families; or
``(ii) the percentage of students from such
families who are served by the local educational
agency is greater than the statewide percentage of
children from such families.
``(d) State Grants.--
``(1) Allotments.--From funds made available under
subsection (c)(2) and not reserved under subsections (b) and (j)
for a fiscal year, the Secretary shall allot to each State
educational agency having an application approved under
subsection (f)(1) an amount that bears the same relation to the
funds as the amount the State educational agency received under
part A for the preceding fiscal year bears to the amount all
such State educational agencies received under part A for the
preceding fiscal year, to increase literacy and reading skills
by improving school libraries.
``(2) Competitive grants to eligible local educational
agencies.--Each State educational agency receiving an allotment
under paragraph (1) for a fiscal year--
``(A) may reserve not more than 3 percent of the
allotted funds to provide technical assistance,
disseminate information about school library media
programs that are effective and based on scientifically
based research, and pay administrative costs related to
activities under this section; and
``(B) shall use the allotted funds that remain after
making the reservation under subparagraph (A) to award
grants, for a period of 1 year, on a competitive basis,
to eligible local educational agencies in the State that
have an application approved under subsection (f)(2) for
activities described in subsection (g).
``(3) Reallotment.--If a State educational agency does not
apply for an allotment under this section for any fiscal year,
or if the State educational agency's application is not
approved, the Secretary shall reallot the amount of the State
[[Page 115 STAT. 1569]]
educational agency's allotment to the remaining State
educational agencies in accordance with paragraph (1).
``(e) Direct Competitive Grants to Eligible Local Educational
Agencies.--
``(1) In general.--From amounts made available under
subsection (c)(1) and not reserved under subsections (b) and (j)
for a fiscal year, the Secretary shall award grants, on a
competitive basis, to eligible local educational agencies that
have applications approved under subsection (f)(2) for
activities described in subsection (g).
``(2) Duration.--The Secretary shall award grants under this
subsection for a period of 1 year.
``(3) Distribution.--The Secretary shall ensure that grants
under this subsection are equitably distributed among the
different geographic regions of the United States, and among
local educational agencies serving urban and rural areas.
``(f) Applications.--
``(1) State educational agency.--Each State educational
agency desiring assistance under this section shall submit to
the Secretary an application at such time, in such manner, and
containing such information as the Secretary shall require. The
application shall contain a description of--
``(A) how the State educational agency will assist
eligible local educational agencies in meeting the
requirements of this section and in using scientifically
based research to implement effective school library
media programs; and
``(B) the standards and techniques the State
educational agency will use to evaluate the quality and
impact of activities carried out under this section by
eligible local educational agencies to determine the
need for technical assistance and whether to continue to
provide additional funding to the agencies under this
section.
``(2) Eligible local educational agency.--Each eligible
local educational agency desiring assistance under this section
shall submit to the Secretary or State educational agency, as
appropriate, an application at such time, in such manner, and
containing such information as the Secretary or State
educational agency, respectively, shall require. The application
shall contain a description of--
``(A) a needs assessment relating to the need for
school library media improvement, based on the age and
condition of school library media resources, including
book collections, access of school library media centers
to advanced technology, and the availability of well-
trained, professionally certified school library media
specialists, in schools served by the eligible local
educational agency;
``(B) the manner in which the eligible local
educational agency will use the funds made available
through the grant to carry out the activities described
in subsection (g);
``(C) how the eligible local educational agency will
extensively involve school library media specialists,
teachers, administrators, and parents in the activities
assisted under this section, and the manner in which the
eligible local educational agency will carry out the
activities described in subsection (g) using programs
and materials that are grounded in scientifically based
research;
[[Page 115 STAT. 1570]]
``(D) the manner in which the eligible local
educational agency will effectively coordinate the funds
and activities provided under this section with Federal,
State, and local funds and activities under this subpart
and other literacy, library, technology, and
professional development funds and activities; and
``(E) the manner in which the eligible local
educational agency will collect and analyze data on the
quality and impact of activities carried out under this
section by schools served by the eligible local
educational agency.
``(g) Local Activities.--Funds under this section may be used to--
``(1) acquire up-to-date school library media resources,
including books;
``(2) acquire and use advanced technology, incorporated into
the curricula of the school, to develop and enhance the
information literacy, information retrieval, and critical
thinking skills of students;
``(3) facilitate Internet links and other resource-sharing
networks among schools and school library media centers, and
public and academic libraries, where possible;
``(4) provide professional development described in section
1222(d)(2) for school library media specialists, and activities
that foster increased collaboration between school library media
specialists, teachers, and administrators; and
``(5) provide students with access to school libraries
during nonschool hours, including the hours before and after
school, during weekends, and during summer vacation periods.
``(h) Accountability and Reporting.--
``(1) Local reports.--Each eligible local educational agency
that receives funds under this section for a fiscal year shall
report to the Secretary or State educational agency, as
appropriate, on how the funding was used and the extent to which
the availability of, the access to, and the use of, up-to-date
school library media resources in the elementary schools and
secondary schools served by the eligible local educational
agency was increased.
``(2) State report.--Each State educational agency that
receives funds under this section shall compile the reports
received under paragraph (1) and submit the compiled reports to
the Secretary.
``(i) Supplement, Not Supplant.--Funds made available under this
section shall be used to supplement, and not supplant, other Federal,
State, and local funds expended to carry out activities relating to
library, technology, or professional development activities.
``(j) National Activities.--
``(1) Evaluations.--From the funds appropriated under
section 1002(b)(4) for each fiscal year, the Secretary shall
reserve not more than 1 percent for annual, independent,
national evaluations of the activities assisted under this
section and their impact on improving the reading skills of
students. The evaluations shall be conducted not later than 3
years after the date of enactment of the No Child Left Behind
Act of 2001, and biennially thereafter.
``(2) Report to congress.--The Secretary shall transmit the
State reports received under subsection (h)(2) and the
[[Page 115 STAT. 1571]]
evaluations conducted under paragraph (1) to the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Education and the Workforce of the House of
Representatives.
``PART C--EDUCATION OF MIGRATORY CHILDREN
``SEC. <<NOTE: 20 USC 6391.>> 1301. PROGRAM PURPOSE.
``It is the purpose of this part to assist States to--
``(1) support high-quality and comprehensive educational
programs for migratory children to help reduce the educational
disruptions and other problems that result from repeated moves;
``(2) ensure that migratory children who move among the
States are not penalized in any manner by disparities among the
States in curriculum, graduation requirements, and State
academic content and student academic achievement standards;
``(3) ensure that migratory children are provided with
appropriate educational services (including supportive services)
that address their special needs in a coordinated and efficient
manner;
``(4) ensure that migratory children receive full and
appropriate opportunities to meet the same challenging State
academic content and student academic achievement standards that
all children are expected to meet;
``(5) design programs to help migratory children overcome
educational disruption, cultural and language barriers, social
isolation, various health-related problems, and other factors
that inhibit the ability of such children to do well in school,
and to prepare such children to make a successful transition to
postsecondary education or employment; and
``(6) ensure that migratory children benefit from State and
local systemic reforms.
``SEC. <<NOTE: 20 USC 6392.>> 1302. PROGRAM AUTHORIZED.
``In order to carry out the purpose of this part, the Secretary
shall make grants to State educational agencies, or combinations of such
agencies, to establish or improve, directly or through local operating
agencies, programs of education for migratory children in accordance
with this part.
``SEC. <<NOTE: 20 USC 6393.>> 1303. STATE ALLOCATIONS.
``(a) State Allocations.--
``(1) Fiscal year 2002.--For fiscal year 2002, each State
(other than the Commonwealth of Puerto Rico) is entitled to
receive under this part an amount equal to--
``(A) the sum of the estimated number of migratory
children aged 3 through 21 who reside in the State full
time and the full-time equivalent of the estimated
number of migratory children aged 3 through 21 who
reside in the State part time, as determined in
accordance with subsection (e); multiplied by
``(B) 40 percent of the average per-pupil
expenditure in the State, except that the amount
determined under this paragraph shall not be less than
32 percent, nor more
[[Page 115 STAT. 1572]]
than 48 percent, of the average per-pupil expenditure in
the United States.
``(2) Subsequent years.--
``(A) Base amount.--
``(i) In general.--Except as provided in
subsection (b) and clause (ii), each State (other
than the Commonwealth of Puerto Rico) is entitled
to receive under this part, for fiscal year 2003
and succeeding fiscal years, an amount equal to--
``(I) the amount that such State
received under this part for fiscal year
2002; plus
``(II) the amount allocated to the
State under subparagraph (B).
``(ii) Nonparticipating states.--In the case
of a State (other than the Commonwealth of Puerto
Rico) that did not receive any funds for fiscal
year 2002 under this part, the State shall
receive, for fiscal year 2003 and succeeding
fiscal years, an amount equal to--
``(I) the amount that such State
would have received under this part for
fiscal year 2002 if its application
under section 1304 for the year had been
approved; plus
``(II) the amount allocated to the
State under subparagraph (B).
``(B) Allocation of additional amount.--For fiscal
year 2003 and succeeding fiscal years, the amount (if
any) by which the funds appropriated to carry out this
part for the year exceed such funds for fiscal year 2002
shall be allocated to a State (other than the
Commonwealth of Puerto Rico) so that the State receives
an amount equal to--
``(i) the sum of--
``(I) the number of identified
eligible migratory children, aged 3
through 21, residing in the State during
the previous year; and
``(II) the number of identified
eligible migratory children, aged 3
through 21, who received services under
this part in summer or intersession
programs provided by the State during
such year; multiplied by
``(ii) 40 percent of the average per-pupil
expenditure in the State, except that the amount
determined under this clause may not be less than
32 percent, or more than 48 percent, of the
average per-pupil expenditure in the United
States.
``(b) Allocation to Puerto Rico.--
``(1) In general.--For each fiscal year, the grant which the
Commonwealth of Puerto Rico shall be eligible to receive under
this part shall be the amount determined by multiplying the
number of children who would be counted under subsection
(a)(1)(A) if such subsection applied to the Commonwealth of
Puerto Rico by the product of--
``(A) the percentage which the average per-pupil
expenditure in the Commonwealth of Puerto Rico is of the
lowest average per-pupil expenditure of any of the 50
States; and
[[Page 115 STAT. 1573]]
``(B) 32 percent of the average per-pupil
expenditure in the United States.
``(2) Minimum percentage.--The percentage in paragraph
(1)(A) shall not be less than--
``(A) for fiscal year 2002, 77.5 percent;
``(B) for fiscal year 2003, 80.0 percent;
``(C) for fiscal year 2004, 82.5 percent; and
``(D) for fiscal year 2005 and succeeding fiscal
years, 85.0 percent.
``(3) Limitation.--If the application of paragraph (2) for
any fiscal year would result in any of the 50 States or the
District of Columbia receiving less under this part than it
received under this part for the preceding fiscal year, then the
percentage described in paragraph (1)(A) that is used for the
Commonwealth of Puerto Rico for the fiscal year for which the
determination is made shall be the greater of the percentage in
paragraph (1)(A) for such fiscal year or the percentage used for
the preceding fiscal year.
``(c) Ratable Reductions; Reallocations.--
``(1) In general.--(A) If, after the Secretary reserves
funds under section 1308(c), the amount appropriated to carry
out this part for any fiscal year is insufficient to pay in full
the amounts for which all States are eligible, the Secretary
shall ratably reduce each such amount.
``(B) If additional funds become available for making such
payments for any fiscal year, the Secretary shall allocate such
funds to States in amounts that the Secretary determines will
best carry out the purpose of this part.
``(2) Special rule.--(A) The Secretary shall further reduce
the amount of any grant to a State under this part for any
fiscal year if the Secretary determines, based on available
information on the numbers and needs of migratory children in
the State and the program proposed by the State to address such
needs, that such amount exceeds the amount required under
section 1304.
``(B) The Secretary shall reallocate such excess funds to
other States whose grants under this part would otherwise be
insufficient to provide an appropriate level of services to
migratory children, in such amounts as the Secretary determines
are appropriate.
``(d) Consortium Arrangements.--
``(1) In general.--In the case of a State that receives a
grant of $1,000,000 or less under this section, the Secretary
shall consult with the State educational agency to determine
whether consortium arrangements with another State or other
appropriate entity would result in delivery of services in a
more effective and efficient manner.
``(2) Proposals.--Any State, regardless of the amount of
such State's allocation, may submit a consortium arrangement to
the Secretary for approval.
``(3) Approval.--The Secretary shall approve a consortium
arrangement under paragraph (1) or (2) if the proposal
demonstrates that the arrangement will--
``(A) reduce administrative costs or program
function costs for State programs; and
[[Page 115 STAT. 1574]]
``(B) make more funds available for direct services
to add substantially to the welfare or educational
attainment of children to be served under this part.
``(e) Determining Numbers of Eligible Children.--In order to
determine the estimated number of migratory children residing in each
State for purposes of this section, the Secretary shall--
``(1) use such information as the Secretary finds most
accurately reflects the actual number of migratory children;
``(2) develop and implement a procedure for more accurately
reflecting cost factors for different types of summer and
intersession program designs;
``(3) adjust the full-time equivalent number of migratory
children who reside in each State to take into account--
``(A) the special needs of those children
participating in special programs provided under this
part that operate during the summer and intersession
periods; and
``(B) the additional costs of operating such
programs; and
``(4) conduct an analysis of the options for adjusting the
formula so as to better direct services to the child whose
education has been interrupted.
``SEC. <<NOTE: 20 USC 6394.>> 1304. STATE APPLICATIONS; SERVICES.
``(a) Application Required.--Any State desiring to receive a grant
under this part for any fiscal year shall submit an application to the
Secretary at such time and in such manner as the Secretary may require.
``(b) Program Information.--Each such application shall include--
``(1) a description of how, in planning, implementing, and
evaluating programs and projects assisted under this part, the
State and its local operating agencies will ensure that the
special educational needs of migratory children, including
preschool migratory children, are identified and addressed
through--
``(A) the full range of services that are available
for migratory children from appropriate local, State,
and Federal educational programs;
``(B) joint planning among local, State, and Federal
educational programs serving migrant children, including
language instruction educational programs under part A
or B of title III;
``(C) the integration of services available under
this part with services provided by those other
programs; and
``(D) measurable program goals and outcomes;
``(2) a description of the steps the State is taking to
provide all migratory students with the opportunity to meet the
same challenging State academic content standards and
challenging State student academic achievement standards that
all children are expected to meet;
``(3) a description of how the State will use funds received
under this part to promote interstate and intrastate
coordination of services for migratory children, including how,
consistent with procedures the Secretary may require, the State
will provide for educational continuity through the timely
transfer of pertinent school records, including information on
health,
[[Page 115 STAT. 1575]]
when children move from one school to another, whether or not
such move occurs during the regular school year;
``(4) a description of the State's priorities for the use of
funds received under this part, and how such priorities relate
to the State's assessment of needs for services in the State;
``(5) a description of how the State will determine the
amount of any subgrants the State will award to local operating
agencies, taking into account the numbers and needs of migratory
children, the requirements of subsection (d), and the
availability of funds from other Federal, State, and local
programs;
``(6) such budgetary and other information as the Secretary
may require; and
``(7) a description of how the State will encourage programs
and projects assisted under this part to offer family literacy
services if the program or project serves a substantial number
of migratory children who have parents who do not have a high
school diploma or its recognized equivalent or who have low
levels of literacy.
``(c) Assurances.--Each such application shall also include
assurances, satisfactory to the Secretary, that--
``(1) funds received under this part will be used only--
``(A) for programs and projects, including the
acquisition of equipment, in accordance with section
1306; and
``(B) to coordinate such programs and projects with
similar programs and projects within the State and in
other States, as well as with other Federal programs
that can benefit migratory children and their families;
``(2) such programs and projects will be carried out in a
manner consistent with the objectives of section 1114,
subsections (b) and (d) of section 1115, subsections (b) and (c)
of section 1120A, and part I;
``(3) in the planning and operation of programs and projects
at both the State and local agency operating level, there is
consultation with parent advisory councils for programs of 1
school year in duration, and that all such programs and projects
are carried out--
``(A) in a manner that provides for the same
parental involvement as is required for programs and
projects under section 1118, unless extraordinary
circumstances make such provision impractical; and
``(B) in a format and language understandable to the
parents;
``(4) in planning and carrying out such programs and
projects, there has been, and will be, adequate provision for
addressing the unmet education needs of preschool migratory
children;
``(5) the effectiveness of such programs and projects will
be determined, where feasible, using the same approaches and
standards that will be used to assess the performance of
students, schools, and local educational agencies under part A;
``(6) to the extent feasible, such programs and projects
will provide for--
``(A) advocacy and outreach activities for migratory
children and their families, including informing such
children and families of, or helping such children and
families gain access to, other education, health,
nutrition, and social services;
[[Page 115 STAT. 1576]]
``(B) professional development programs, including
mentoring, for teachers and other program personnel;
``(C) family literacy programs, including such
programs that use models developed under Even Start;
``(D) the integration of information technology into
educational and related programs; and
``(E) programs to facilitate the transition of
secondary school students to postsecondary education or
employment; and
``(7) the State will assist the Secretary in determining the
number of migratory children under paragraphs (1)(A) and
(2)(B)(i) of section 1303(a), through such procedures as the
Secretary may require.
``(d) Priority for Services.--In providing services with funds
received under this part, each recipient of such funds shall give
priority to migratory children who are failing, or most at risk of
failing, to meet the State's challenging State academic content
standards and challenging State student academic achievement standards,
and whose education has been interrupted during the regular school year.
``(e) Continuation of Services.--Notwithstanding any other provision
of this part--
``(1) a child who ceases to be a migratory child during a
school term shall be eligible for services until the end of such
term;
``(2) a child who is no longer a migratory child may
continue to receive services for 1 additional school year, but
only if comparable services are not available through other
programs; and
``(3) secondary school students who were eligible for
services in secondary school may continue to be served through
credit accrual programs until graduation.
``SEC. <<NOTE: 20 USC 6395.>> 1305. SECRETARIAL APPROVAL; PEER REVIEW.
``(a) Secretarial Approval.--The Secretary shall approve each State
application that meets the requirements of this part.
``(b) Peer Review.--The Secretary may review any such application
with the assistance and advice of State officials and other individuals
with relevant expertise.
``SEC. <<NOTE: 20 USC 6396.>> 1306. COMPREHENSIVE NEEDS ASSESSMENT AND
SERVICE-DELIVERY PLAN; AUTHORIZED ACTIVITIES.
``(a) Comprehensive Plan.--
``(1) In general.--Each State that receives assistance under
this part shall ensure that the State and its local operating
agencies identify and address the special educational needs of
migratory children in accordance with a comprehensive State plan
that--
``(A) is integrated with other programs under this
Act or other Acts, as appropriate;
``(B) may be submitted as a part of a consolidated
application under section 9302, if--
``(i) the special needs of migratory children
are specifically addressed in the comprehensive
State plan;
``(ii) the comprehensive State plan is
developed in collaboration with parents of
migratory children; and
[[Page 115 STAT. 1577]]
``(iii) the comprehensive State plan is not
used to supplant State efforts regarding, or
administrative funding for, this part;
``(C) provides that migratory children will have an
opportunity to meet the same challenging State academic
content standards and challenging State student academic
achievement standards that all children are expected to
meet;
``(D) specifies measurable program goals and
outcomes;
``(E) encompasses the full range of services that
are available for migratory children from appropriate
local, State, and Federal educational programs;
``(F) is the product of joint planning among such
local, State, and Federal programs, including programs
under part A, early childhood programs, and language
instruction educational programs under part A or B of
title III; and
``(G) provides for the integration of services
available under this part with services provided by such
other programs.
``(2) Duration of the plan.--Each such comprehensive State
plan shall--
``(A) remain in effect for the duration of the
State's participation under this part; and
``(B) be periodically reviewed and revised by the
State, as necessary, to reflect changes in the State's
strategies and programs under this part.
``(b) Authorized Activities.--
``(1) Flexibility.--In implementing the comprehensive plan
described in subsection (a), each State educational agency,
where applicable through its local educational agencies, shall
have the flexibility to determine the activities to be provided
with funds made available under this part, except that such
funds first shall be used to meet the identified needs of
migratory children that result from their migratory lifestyle,
and to permit these children to participate effectively in
school.
``(2) Unaddressed needs.--Funds provided under this part
shall be used to address the needs of migratory children that
are not addressed by services available from other Federal or
non-Federal programs, except that migratory children who are
eligible to receive services under part A may receive those
services through funds provided under that part, or through
funds under this part that remain after the agency addresses the
needs described in paragraph (1).
``(3) Construction.--Nothing in this part shall be construed
to prohibit a local educational agency from serving migratory
children simultaneously with students with similar educational
needs in the same educational settings, where appropriate.
``(4) Special rule.--Notwithstanding section 1114, a school
that receives funds under this part shall continue to address
the identified needs described in paragraph (1), and shall meet
the special educational needs of migratory children before using
funds under this part for schoolwide programs under section
1114.
[[Page 115 STAT. 1578]]
``SEC. <<NOTE: 20 USC 6397.>> 1307. BYPASS.
``The Secretary may use all or part of any State's allocation under
this part to make arrangements with any public or private nonprofit
agency to carry out the purpose of this part in such State if the
Secretary determines that--
``(1) the State is unable or unwilling to conduct
educational programs for migratory children;
``(2) such arrangements would result in more efficient and
economic administration of such programs; or
``(3) such arrangements would add substantially to the
welfare or educational attainment of such children.
``SEC. <<NOTE: 20 USC 6398.>> 1308. COORDINATION OF MIGRANT EDUCATION
ACTIVITIES.
``(a) Improvement of Coordination.--
``(1) In general.--The Secretary, in consultation with the
States, may make grants to, or enter into contracts with, State
educational agencies, local educational agencies, institutions
of higher education, and other public and private nonprofit
entities to improve the interstate and intrastate coordination
among such agencies' educational programs, including the
establishment or improvement of programs for credit accrual and
exchange, available to migratory students.
``(2) Duration.--Grants under this subsection may be awarded
for not more than 5 years.
``(b) Student Records.--
``(1) Assistance.--The Secretary shall assist States in
developing effective methods for the electronic transfer of
student records and in determining the number of migratory
children in each State.
``(2) Information system.--
``(A) In general.--The Secretary, in consultation
with the States, shall ensure the linkage of migrant
student record systems for the purpose of electronically
exchanging, among the States, health and educational
information regarding all migratory students. The
Secretary shall ensure such linkage occurs in a cost-
effective manner, utilizing systems used by the States
prior to, or developed after, the date of enactment of
the No Child Left Behind Act of 2001, and shall
determine the minimum data elements that each State
receiving funds under this part shall collect and
maintain. Such elements may include--
``(i) immunization records and other health
information;
``(ii) elementary and secondary academic
history (including partial credit), credit
accrual, and results from State assessments
required under section 1111(b);
``(iii) other academic information essential
to ensuring that migratory children achieve to
high standards; and
``(iv) eligibility for services under the
Individuals with Disabilities Education Act.
``(B) <<NOTE: Federal Register,
publication.>> Notice and comment.--After consulting
with the States under subparagraph (A), the Secretary
shall publish a notice in the Federal Register seeking
public comment on the proposed data elements that each
State receiving
[[Page 115 STAT. 1579]]
funds under this part shall be required to collect for
purposes of electronic transfer of migratory student
information and the requirements that States shall meet
for immediate electronic access to such
information. <<NOTE: Deadline.>> Such publication shall
occur not later than 120 days after the date of
enactment of the No Child Left Behind Act of 2001.
``(3) No cost for certain transfers.--A State educational
agency or local educational agency receiving assistance under
this part shall make student records available to another State
educational agency or local educational agency that requests the
records at no cost to the requesting agency, if the request is
made in order to meet the needs of a migratory child.
``(4) Report to congress.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than April 30, 2003, the Secretary shall report to the
Committee on Health, Education, Labor, and Pensions of
the Senate and the Committee on Education and the
Workforce of the House of Representatives the
Secretary's findings and recommendations regarding the
maintenance and transfer of health and educational
information for migratory students by the States.
``(B) Required contents.--The Secretary shall
include in such report--
``(i) a review of the progress of States in
developing and linking electronic records transfer
systems;
``(ii) recommendations for the development and
linkage of such systems; and
``(iii) recommendations for measures that may
be taken to ensure the continuity of services
provided for migratory students.
``(c) Availability of Funds.--For the purpose of carrying out this
section in any fiscal year, the Secretary shall reserve not more than
$10,000,000 of the amount appropriated to carry out this part for such
year.
``(d) Incentive Grants.--From the amounts made available to carry
out this section for any fiscal year, the Secretary may reserve not more
than $3,000,000 to award grants of not more than $250,000 on a
competitive basis to State educational agencies that propose a
consortium arrangement with another State or other appropriate entity
that the Secretary determines, pursuant to criteria that the Secretary
shall establish, will improve the delivery of services to migratory
children whose education is interrupted.
``(e) Data Collection.--The Secretary shall direct the National
Center for Education Statistics to collect data on migratory children.
``SEC. <<NOTE: 20 USC 6399.>> 1309. DEFINITIONS.
``As used in this part:
``(1) Local operating agency.--The term `local operating
agency' means--
``(A) a local educational agency to which a State
educational agency makes a subgrant under this part;
``(B) a public or nonprofit private agency with
which a State educational agency or the Secretary makes
an arrangement to carry out a project under this part;
or
``(C) a State educational agency, if the State
educational agency operates the State's migrant
education program or projects directly.
[[Page 115 STAT. 1580]]
``(2) Migratory child.--The term `migratory child' means a
child who is, or whose parent or spouse is, a migratory
agricultural worker, including a migratory dairy worker, or a
migratory fisher, and who, in the preceding 36 months, in order
to obtain, or accompany such parent or spouse, in order to
obtain, temporary or seasonal employment in agricultural or
fishing work--
``(A) has moved from one school district to another;
``(B) in a State that is comprised of a single
school district, has moved from one administrative area
to another within such district; or
``(C) resides in a school district of more than
15,000 square miles, and migrates a distance of 20 miles
or more to a temporary residence to engage in a fishing
activity.
``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH
WHO ARE NEGLECTED, DELINQUENT, OR AT-RISK
``SEC. <<NOTE: 20 USC 6421.>> 1401. PURPOSE AND PROGRAM AUTHORIZATION.
``(a) Purpose.--It is the purpose of this part--
``(1) to improve educational services for children and youth
in local and State institutions for neglected or delinquent
children and youth so that such children and youth have the
opportunity to meet the same challenging State academic content
standards and challenging State student academic achievement
standards that all children in the State are expected to meet;
``(2) to provide such children and youth with the services
needed to make a successful transition from institutionalization
to further schooling or employment; and
``(3) to prevent at-risk youth from dropping out of school,
and to provide dropouts, and children and youth returning from
correctional facilities or institutions for neglected or
delinquent children and youth, with a support system to ensure
their continued education.
``(b) Program Authorized.--In order to carry out the purpose of this
part and from amounts appropriated under section 1002(d), the Secretary
shall make grants to State educational agencies to enable such agencies
to award subgrants to State agencies and local educational agencies to
establish or improve programs of education for neglected, delinquent, or
at-risk children and youth.
``SEC. <<NOTE: 20 USC 6422.>> 1402. PAYMENTS FOR PROGRAMS UNDER THIS
PART.
``(a) Agency Subgrants.--Based on the allocation amount computed
under section 1412, the Secretary shall allocate to each State
educational agency an amount necessary to make subgrants to State
agencies under subpart 1.
``(b) Local Subgrants.--Each State shall retain, for the purpose of
carrying out subpart 2, funds generated throughout the State under part
A of this title based on children and youth residing in local
correctional facilities, or attending community day programs for
delinquent children and youth.
[[Page 115 STAT. 1581]]
``Subpart 1--State Agency Programs
``SEC. <<NOTE: 20 USC 6431.>> 1411. ELIGIBILITY.
``A State agency is eligible for assistance under this subpart if
such State agency is responsible for providing free public education for
children and youth--
``(1) in institutions for neglected or delinquent children
and youth;
``(2) attending community day programs for neglected or
delinquent children and youth; or
``(3) in adult correctional institutions.
``SEC. <<NOTE: 20 USC 6432.>> 1412. ALLOCATION OF FUNDS.
``(a) Subgrants to State Agencies.--
``(1) In general.--Each State agency described in section
1411 (other than an agency in the Commonwealth of Puerto Rico)
is eligible to receive a subgrant under this subpart, for each
fiscal year, in an amount equal to the product of--
``(A) the number of neglected or delinquent children
and youth described in section 1411 who--
``(i) are enrolled for at least 15 hours per
week in education programs in adult correctional
institutions; and
``(ii) are enrolled for at least 20 hours per
week--
``(I) in education programs in
institutions for neglected or delinquent
children and youth; or
``(II) in community day programs for
neglected or delinquent children and
youth; and
``(B) 40 percent of the average per-pupil
expenditure in the State, except that the amount
determined under this subparagraph shall not be less
than 32 percent, nor more than 48 percent, of the
average per-pupil expenditure in the United States.
``(2) Special rule.--The number of neglected or delinquent
children and youth determined under paragraph (1) shall--
``(A) be determined by the State agency by a
deadline set by the Secretary, except that no State
agency shall be required to determine the number of such
children and youth on a specific date set by the
Secretary; and
``(B) be adjusted, as the Secretary determines is
appropriate, to reflect the relative length of such
agency's annual programs.
``(b) Subgrants to State Agencies in Puerto Rico.--
``(1) In general.--For each fiscal year, the amount of the
subgrant which a State agency in the Commonwealth of Puerto Rico
shall be eligible to receive under this subpart shall be the
amount determined by multiplying the number of children counted
under subsection (a)(1)(A) for the Commonwealth of Puerto Rico
by the product of--
``(A) the percentage which the average per-pupil
expenditure in the Commonwealth of Puerto Rico is of the
lowest average per-pupil expenditure of any of the 50
States; and
``(B) 32 percent of the average per-pupil
expenditure in the United States.
``(2) Minimum percentage.--The percentage in paragraph
(1)(A) shall not be less than--
[[Page 115 STAT. 1582]]
``(A) for fiscal year 2002, 77.5 percent;
``(B) for fiscal year 2003, 80.0 percent;
``(C) for fiscal year 2004, 82.5 percent; and
``(D) for fiscal year 2005 and succeeding fiscal
years, 85.0 percent.
``(3) Limitation.--If the application of paragraph (2) would
result in any of the 50 States or the District of Columbia
receiving less under this subpart than it received under this
subpart for the preceding fiscal year, then the percentage
described in paragraph (1)(A) that is used for the Commonwealth
of Puerto Rico for the fiscal year for which the determination
is made shall be the greater of--
``(A) the percentage in paragraph (1)(A) for such
fiscal year; or
``(B) the percentage used for the preceding fiscal
year.
``(c) Ratable Reductions in Case of Insufficient Appropriations.--If
the amount appropriated for any fiscal year for subgrants under
subsections (a) and (b) is insufficient to pay the full amount for which
all State agencies are eligible under such subsections, the Secretary
shall ratably reduce each such amount.
``SEC. <<NOTE: 20 USC 6433.>> 1413. STATE REALLOCATION OF FUNDS.
``If a State educational agency determines that a State agency does
not need the full amount of the subgrant for which such State agency is
eligible under this subpart for any fiscal year, the State educational
agency may reallocate the amount that will not be needed to other
eligible State agencies that need additional funds to carry out the
purpose of this part, in such amounts as the State educational agency
shall determine.
``SEC. <<NOTE: 20 USC 6434.>> 1414. STATE PLAN AND STATE AGENCY
APPLICATIONS.
``(a) State Plan.--
``(1) In general.--Each State educational agency that
desires to receive a grant under this subpart shall submit, for
approval by the Secretary, a plan--
``(A) for meeting the educational needs of
neglected, delinquent, and at-risk children and youth;
``(B) for assisting in the transition of children
and youth from correctional facilities to locally
operated programs; and
``(C) that is integrated with other programs under
this Act or other Acts, as appropriate.
``(2) Contents.--Each such State plan shall--
``(A) describe the program goals, objectives, and
performance measures established by the State that will
be used to assess the effectiveness of the program in
improving the academic, vocational, and technical skills
of children in the program;
``(B) provide that, to the extent feasible, such
children will have the same opportunities to achieve as
such children would have if such children were in the
schools of local educational agencies in the State; and
``(C) contain an assurance that the State
educational agency will--
``(i) ensure that programs assisted under this
subpart will be carried out in accordance with the
State plan described in this subsection;
[[Page 115 STAT. 1583]]
``(ii) carry out the evaluation requirements
of section 1431;
``(iii) ensure that the State agencies
receiving subgrants under this subpart comply with
all applicable statutory and regulatory
requirements; and
``(iv) provide such other information as the
Secretary may reasonably require.
``(3) Duration of the plan.--Each such State plan shall--
``(A) remain in effect for the duration of the
State's participation under this part; and
``(B) be periodically reviewed and revised by the
State, as necessary, to reflect changes in the State's
strategies and programs under this part.
``(b) Secretarial Approval and Peer Review.--
``(1) Secretarial approval.--The Secretary shall approve
each State plan that meets the requirements of this subpart.
``(2) Peer review.--The Secretary may review any State plan
with the assistance and advice of individuals with relevant
expertise.
``(c) State Agency Applications.--Any State agency that desires to
receive funds to carry out a program under this subpart shall submit an
application to the State educational agency that--
``(1) describes the procedures to be used, consistent with
the State plan under section 1111, to assess the educational
needs of the children to be served under this subpart;
``(2) provide an assurance that in making services available
to children and youth in adult correctional institutions,
priority will be given to such children and youth who are likely
to complete incarceration within a 2-year period;
``(3) describes the program, including a budget for the
first year of the program, with annual updates to be provided to
the State educational agency;
``(4) describes how the program will meet the goals and
objectives of the State plan;
``(5) describes how the State agency will consult with
experts and provide the necessary training for appropriate
staff, to ensure that the planning and operation of institution-
wide projects under section 1416 are of high quality;
``(6) describes how the State agency will carry out the
evaluation requirements of section 9601 and how the results of
the most recent evaluation will be used to plan and improve the
program;
``(7) includes data showing that the State agency has
maintained the fiscal effort required of a local educational
agency, in accordance with section 9521;
``(8) describes how the programs will be coordinated with
other appropriate State and Federal programs, such as programs
under title I of Public Law 105-220, vocational and technical
education programs, State and local dropout prevention programs,
and special education programs;
``(9) describes how the State agency will encourage
correctional facilities receiving funds under this subpart to
coordinate with local educational agencies or alternative
education programs attended by incarcerated children and youth
prior to their incarceration to ensure that student assessments
and appropriate academic records are shared jointly between the
[[Page 115 STAT. 1584]]
correctional facility and the local educational agency or
alternative education program;
``(10) describes how appropriate professional development
will be provided to teachers and other staff;
``(11) designates an individual in each affected
correctional facility or institution for neglected or delinquent
children and youth to be responsible for issues relating to the
transition of children and youth from such facility or
institution to locally operated programs;
``(12) describes how the State agency will endeavor to
coordinate with businesses for training and mentoring for
participating children and youth;
``(13) provides an assurance that the State agency will
assist in locating alternative programs through which students
can continue their education if the students are not returning
to school after leaving the correctional facility or institution
for neglected or delinquent children and youth;
``(14) provides assurances that the State agency will work
with parents to secure parents' assistance in improving the
educational achievement of their children and youth, and
preventing their children's and youth's further involvement in
delinquent activities;
``(15) provides an assurance that the State agency will work
with children and youth with disabilities in order to meet an
existing individualized education program and an assurance that
the agency will notify the child's or youth's local school if
the child or youth--
``(A) is identified as in need of special education
services while the child or youth is in the correctional
facility or institution for neglected or delinquent
children and youth; and
``(B) intends to return to the local school;
``(16) provides an assurance that the State agency will work
with children and youth who dropped out of school before
entering the correctional facility or institution for neglected
or delinquent children and youth to encourage the children and
youth to reenter school once the term of the incarceration is
completed or provide the child or youth with the skills
necessary to gain employment, continue the education of the
child or youth, or achieve a secondary school diploma or its
recognized equivalent if the child or youth does not intend to
return to school;
``(17) provides an assurance that teachers and other
qualified staff are trained to work with children and youth with
disabilities and other students with special needs taking into
consideration the unique needs of such students;
``(18) describes any additional services to be provided to
children and youth, such as career counseling, distance
learning, and assistance in securing student loans and grants;
and
``(19) provides an assurance that the program under this
subpart will be coordinated with any programs operated under the
Juvenile Justice and Delinquency Prevention Act of 1974 (42
U.S.C. 5601 et seq.) or other comparable programs, if
applicable.
[[Page 115 STAT. 1585]]
``SEC. <<NOTE: 20 USC 6435.>> 1415. USE OF FUNDS.
``(a) Uses.--
``(1) In general.--A State agency shall use funds received
under this subpart only for programs and projects that--
``(A) are consistent with the State plan under
section 1414(a); and
``(B) concentrate on providing participants with the
knowledge andskills needed to make a successful
transition to secondary school completion, vocational or
technical training, further education, or employment.
``(2) Programs and projects.--Such programs and projects--
``(A) may include the acquisition of equipment;
``(B) shall be designed to support educational
services that--
``(i) except for institution-wide projects
under section 1416, are provided to children and
youth identified by the State agency as failing,
or most at-risk of failing, to meet the State's
challenging academic content standards and student
academic achievement standards;
``(ii) supplement and improve the quality of
the educational services provided to such children
and youth by the State agency; and
``(iii) afford such children and youth an
opportunity to meet challenging State academic
achievement standards;
``(C) shall be carried out in a manner consistent
with section 1120A and part I (as applied to programs
and projects under this part); and
``(D) may include the costs of meeting the
evaluation requirements of section 9601.
``(b) Supplement, Not Supplant.--A program under this subpart that
supplements the number of hours of instruction students receive from
State and local sources shall be considered to comply with the
supplement, not supplant requirement of section 1120A (as applied to
this part) without regard to the subject areas in which instruction is
given during those hours.
``SEC. <<NOTE: 20 USC 6436.>> 1416. INSTITUTION-WIDE PROJECTS.
``A State agency that provides free public education for children
and youth in an institution for neglected or delinquent children and
youth (other than an adult correctional institution) or attending a
community-day program for such children and youth may use funds received
under this subpart to serve all children in, and upgrade the entire
educational effort of, that institution or program if the State agency
has developed, and the State educational agency has approved, a
comprehensive plan for that institution or program that--
``(1) provides for a comprehensive assessment of the
educational needs of all children and youth in the institution
or program serving juveniles;
``(2) provides for a comprehensive assessment of the
educational needs of youth aged 20 and younger in adult
facilities who are expected to complete incarceration within a
2-year period;
``(3) describes the steps the State agency has taken, or
will take, to provide all children and youth under age 21
[[Page 115 STAT. 1586]]
with the opportunity to meet challenging State academic content
standards and student academic achievement standards in order to
improve the likelihood that the children and youth will complete
secondary school, attain a secondary diploma or its recognized
equivalent, or find employment after leaving the institution;
``(4) describes the instructional program, pupil services,
and procedures that will be used to meet the needs described in
paragraph (1), including, to the extent feasible, the provision
of mentors for the children and youth described in paragraph
(1);
``(5) specifically describes how such funds will be used;
``(6) describes the measures and procedures that will be
used to assess student progress;
``(7) describes how the agency has planned, and will
implement and evaluate, the institution-wide or program-wide
project in consultation with personnel providing direct
instructional services and support services in institutions or
community-day programs for neglected or delinquent children and
youth, and with personnel from the State educational agency; and
``(8) includes an assurance that the State agency has
provided for appropriate training for teachers and other
instructional and administrative personnel to enable such
teachers and personnel to carry out the project effectively.
``SEC. <<NOTE: 20 USC 6437.>> 1417. THREE-YEAR PROGRAMS OR PROJECTS.
``If a State agency operates a program or project under this subpart
in which individual children or youth are likely to participate for more
than 1 year, the State educational agency may approve the State agency's
application for a subgrant under this subpart for a period of not more
than 3 years.
``SEC. <<NOTE: 20 USC 6438.>> 1418. TRANSITION SERVICES.
``(a) Transition Services.--Each State agency shall reserve not less
than 15 percent and not more than 30 percent of the amount such agency
receives under this subpart for any fiscal year to support--
``(1) projects that facilitate the transition of children
and youth from State-operated institutions to schools served by
local educational agencies; or
``(2) the successful reentry of youth offenders, who are age
20 or younger and have received a secondary school diploma or
its recognized equivalent, into postsecondary education, or
vocational and technical training programs, through strategies
designed to expose the youth to, and prepare the youth for,
postsecondary education, or vocational and technical training
programs, such as--
``(A) preplacement programs that allow adjudicated
or incarcerated youth to audit or attend courses on
college, university, or community college campuses, or
through programs provided in institutional settings;
``(B) worksite schools, in which institutions of
higher education and private or public employers partner
to create programs to help students make a successful
transition to postsecondary education and employment;
and
``(C) essential support services to ensure the
success of the youth, such as--
[[Page 115 STAT. 1587]]
``(i) personal, vocational and technical, and
academic, counseling;
``(ii) placement services designed to place
the youth in a university, college, or junior
college program;
``(iii) information concerning, and assistance
in obtaining, available student financial aid;
``(iv) counseling services; and
``(v) job placement services.
``(b) Conduct of Projects.--A project supported under this section
may be conducted directly by the State agency, or through a contract or
other arrangement with one or more local educational agencies, other
public agencies, or private nonprofit organizations.
``(c) Rule of Construction.--Nothing in this section shall be
construed to prohibit a school that receives funds under subsection (a)
from serving neglected and delinquent children and youth simultaneously
with students with similar educational needs, in the same educational
settings where appropriate.
``SEC. <<NOTE: 20 USC 6439.>> 1419. EVALUATION; TECHNICAL ASSISTANCE;
ANNUAL MODEL PROGRAM.
``The Secretary may reserve not more than 2.5 percent of the amount
made available to carry out this subpart for a fiscal year--
``(1) to develop a uniform model to evaluate the
effectiveness of programs assisted under this subpart; and
``(2) to provide technical assistance to and support the
capacity building of State agency programs assisted under this
subpart.
``Subpart 2--Local Agency Programs
``SEC. <<NOTE: 20 USC 6451.>> 1421. PURPOSE.
``The purpose of this subpart is to support the operation of local
educational agency programs that involve collaboration with locally
operated correctional facilities--
``(1) to carry out high quality education programs to
prepare children and youth for secondary school completion,
training, employment, or further education;
``(2) to provide activities to facilitate the transition of
such children and youth from the correctional program to further
education or employment; and
``(3) to operate programs in local schools for children and
youth returning from correctional facilities, and programs which
may serve at-risk children and youth.
``SEC. <<NOTE: 20 USC 6452.>> 1422. PROGRAMS OPERATED BY LOCAL
EDUCATIONAL AGENCIES.
``(a) Local Subgrants.--With funds made available under section
1402(b), the State educational agency shall award subgrants to local
educational agencies with high numbers or percentages of children and
youth residing in locally operated (including county operated)
correctional facilities for children and youth (including facilities
involved in community day programs).
``(b) Special Rule.--A local educational agency that serves a school
operated by a correctional facility is not required to operate a program
of support for children and youth returning from such school to a school
that is not operated by a correctional agency but served by such local
educational agency, if more than 30 percent of the children and youth
attending the school operated by the
[[Page 115 STAT. 1588]]
correctional facility will reside outside the boundaries served by the
local educational agency after leaving such facility.
``(c) Notification.--A State educational agency shall notify local
educational agencies within the State of the eligibility of such
agencies to receive a subgrant under this subpart.
``(d) Transitional and Academic Services.--Transitional and
supportive programs operated in local educational agencies under this
subpart shall be designed primarily to meet the transitional and
academic needs of students returning to local educational agencies or
alternative education programs from correctional facilities. Services to
students at-risk of dropping out of school shall not have a negative
impact on meeting the transitional and academic needs of the students
returning from correctional facilities.
``SEC. <<NOTE: 20 USC 6453.>> 1423. LOCAL EDUCATIONAL AGENCY
APPLICATIONS.
``Each local educational agency desiring assistance under this
subpart shall submit an application to the State educational agency that
contains such information as the State educational agency may require.
Each such application shall include--
``(1) a description of the program to be assisted;
``(2) a description of formal agreements, regarding the
program to be assisted, between--
``(A) the local educational agency; and
``(B) correctional facilities and alternative school
programs serving children and youth involved with the
juvenile justice system;
``(3) as appropriate, a description of how participating
schools will coordinate with facilities working with delinquent
children and youth to ensure that such children and youth are
participating in an education program comparable to one
operating in the local school such youth would attend;
``(4) a description of the program operated by participating
schools for children and youth returning from correctional
facilities and, as appropriate, the types of services that such
schools will provide such children and youth and other at-risk
children and youth;
``(5) a description of the characteristics (including
learning difficulties, substance abuse problems, and other
special needs) of the children and youth who will be returning
from correctional facilities and, as appropriate, other at-risk
children and youth expected to be served by the program, and a
description of how the school will coordinate existing
educational programs to meet the unique educational needs of
such children and youth;
``(6) as appropriate, a description of how schools will
coordinate with existing social, health, and other services to
meet the needs of students returning from correctional
facilities, at-risk children or youth, and other participating
children or youth, including prenatal health care and nutrition
services related to the health of the parent and the child or
youth, parenting and child development classes, child care,
targeted reentry and outreach programs, referrals to community
resources, and scheduling flexibility;
``(7) as appropriate, a description of any partnerships with
local businesses to develop training, curriculum-based youth
entrepreneurship education, and mentoring services for
participating students;
[[Page 115 STAT. 1589]]
``(8) as appropriate, a description of how the program will
involve parents in efforts to improve the educational
achievement of their children, assist in dropout prevention
activities, and prevent the involvement of their children in
delinquent activities;
``(9) a description of how the program under this subpart
will be coordinated with other Federal, State, and local
programs, such as programs under title I of Public Law 105-220
and vocational and technical education programs serving at-risk
children and youth;
``(10) a description of how the program will be coordinated
with programs operated under the Juvenile Justice and
Delinquency Prevention Act of 1974 and other comparable
programs, if applicable;
``(11) as appropriate, a description of how schools will
work with probation officers to assist in meeting the needs of
children and youth returning from correctional facilities;
``(12) a description of the efforts participating schools
will make to ensure correctional facilities working with
children and youth are aware of a child's or youth's existing
individualized education program; and
``(13) as appropriate, a description of the steps
participating schools will take to find alternative placements
for children and youth interested in continuing their education
but unable to participate in a regular public school program.
``SEC. <<NOTE: 20 USC 6454.>> 1424. USES OF FUNDS.
``Funds provided to local educational agencies under this subpart
may be used, as appropriate, for--
``(1) programs that serve children and youth returning to
local schools from correctional facilities, to assist in the
transition of such children and youth to the school environment
and help them remain in school in order to complete their
education;
``(2) dropout prevention programs which serve at-risk
children and youth, including pregnant and parenting teens,
children and youth who have come in contact with the juvenile
justice system, children and youth at least 1 year behind their
expected grade level, migrant youth, immigrant youth, students
with limited English proficiency, and gang members;
``(3) the coordination of health and social services for
such individuals if there is a likelihood that the provision of
such services, including day care, drug and alcohol counseling,
and mental health services, will improve the likelihood such
individuals will complete their education;
``(4) special programs to meet the unique academic needs of
participating children and youth, including vocational and
technical education, special education, career counseling,
curriculum-based youth entrepreneurship education, and
assistance in securing student loans or grants for postsecondary
education; and
``(5) programs providing mentoring and peer mediation.
``SEC. <<NOTE: 20 USC 6455.>> 1425. PROGRAM REQUIREMENTS FOR
CORRECTIONAL FACILITIES RECEIVING FUNDS UNDER THIS SECTION.
``Each correctional facility entering into an agreement with a local
educational agency under section 1423(2) to provide services to children
and youth under this subpart shall--
[[Page 115 STAT. 1590]]
``(1) where feasible, ensure that educational programs in
the correctional facility are coordinated with the student's
home school, particularly with respect to a student with an
individualized education program under part B of the Individuals
with Disabilities Education Act;
``(2) if the child or youth is identified as in need of
special education services while in the correctional facility,
notify the local school of the child or youth of such need;
``(3) where feasible, provide transition assistance to help
the child or youth stay in school, including coordination of
services for the family, counseling, assistance in accessing
drug and alcohol abuse prevention programs, tutoring, and family
counseling;
``(4) provide support programs that encourage children and
youth who have dropped out of school to reenter school once
their term at the correctional facility has been completed, or
provide such children and youth with the skills necessary to
gain employment or seek a secondary school diploma or its
recognized equivalent;
``(5) work to ensure that the correctional facility is
staffed with teachers and other qualified staff who are trained
to work with children and youth with disabilities taking into
consideration the unique needs of such children and youth;
``(6) ensure that educational programs in the correctional
facility are related to assisting students to meet high academic
achievement standards;
``(7) to the extent possible, use technology to assist in
coordinating educational programs between the correctional
facility and the community school;
``(8) where feasible, involve parents in efforts to improve
the educational achievement of their children and prevent the
further involvement of such children in delinquent activities;
``(9) coordinate funds received under this subpart with
other local, State, and Federal funds available to provide
services to participating children and youth, such as funds made
available under title I of Public Law 105-220, and vocational
and technical education funds;
``(10) coordinate programs operated under this subpart with
activities funded under the Juvenile Justice and Delinquency
Prevention Act of 1974 and other comparable programs, if
applicable; and
``(11) if appropriate, work with local businesses to develop
training, curriculum-based youth entrepreneurship education, and
mentoring programs for children and youth.
``SEC. <<NOTE: 20 USC 6456.>> 1426. ACCOUNTABILITY.
``The State educational agency may--
``(1) reduce or terminate funding for projects under this
subpart if a local educational agency does not show progress in
reducing dropout rates for male students and for female students
over a 3-year period; and
``(2) require correctional facilities or institutions for
neglected or delinquent children and youth to demonstrate, after
receiving assistance under this subpart for 3 years, that there
has been an increase in the number of children and youth
returning to school, obtaining a secondary school diploma
[[Page 115 STAT. 1591]]
or its recognized equivalent, or obtaining employment after such
children and youth are released.
``Subpart 3--General Provisions
``SEC. <<NOTE: 20 USC 6471.>> 1431. PROGRAM EVALUATIONS.
``(a) Scope of Evaluation.--Each State agency or local educational
agency that conducts a program under subpart 1 or 2 shall evaluate the
program, disaggregating data on participation by gender, race,
ethnicity, and age, not less than once every 3 years, to determine the
program's impact on the ability of participants--
``(1) to maintain and improve educational achievement;
``(2) to accrue school credits that meet State requirements
for grade promotion and secondary school graduation;
``(3) to make the transition to a regular program or other
education program operated by a local educational agency;
``(4) to complete secondary school (or secondary school
equivalency requirements) and obtain employment after leaving
the correctional facility or institution for neglected or
delinquent children and youth; and
``(5) as appropriate, to participate in postsecondary
education and job training programs.
``(b) Exception.--The disaggregation required under subsection (a)
shall not be required in a case in which the number of students in a
category is insufficient to yield statistically reliable information or
the results would reveal personally identifiable information about an
individual student.
``(c) Evaluation Measures.--In conducting each evaluation under
subsection (a), a State agency or local educational agency shall use
multiple and appropriate measures of student progress.
``(d) Evaluation Results.--Each State agency and local educational
agency shall--
``(1) submit evaluation results to the State educational
agency and the Secretary; and
``(2) use the results of evaluations under this section to
plan and improve subsequent programs for participating children
and youth.
``SEC. <<NOTE: 20 USC 6472.>> 1432. DEFINITIONS.
``In this part:
``(1) Adult correctional institution.--The term `adult
correctional institution' means a facility in which persons
(including persons under 21 years of age) are confined as a
result of a conviction for a criminal offense.
``(2) At-risk.--The term `at-risk', when used with respect
to a child, youth, or student, means a school aged individual
who is at-risk of academic failure, has a drug or alcohol
problem, is pregnant or is a parent, has come into contact with
the juvenile justice system in the past, is at least 1 year
behind the expected grade level for the age of the individual,
has limited English proficiency, is a gang member, has dropped
out of school in the past, or has a high absenteeism rate at
school.
``(3) Community day program.--The term `community day
program' means a regular program of instruction provided by
[[Page 115 STAT. 1592]]
a State agency at a community day school operated specifically
for neglected or delinquent children and youth.
``(4) Institution for neglected or delinquent children and
youth.--The term `institution for neglected or delinquent
children and youth' means--
``(A) a public or private residential facility,
other than a foster home, that is operated for the care
of children who have been committed to the institution
or voluntarily placed in the institution under
applicable State law, due to abandonment, neglect, or
death of their parents or guardians; or
``(B) a public or private residential facility for
the care of children who have been adjudicated to be
delinquent or in need of supervision.
``PART E--NATIONAL ASSESSMENT OF TITLE I
``SEC. <<NOTE: 20 USC 6491.>> 1501. EVALUATIONS.
``(a) National Assessment of Title I.--
``(1) In general.--The Secretary shall conduct a national
assessment of the programs assisted under this title and the
impact of this title on States, local educational agencies,
schools, and students.
``(2) Issues to be examined.--In conducting the assessment
under this subsection, the Secretary shall examine, at a
minimum, the following:
``(A) The implementation of programs assisted under
this title and the impact of such implementation on
increasing student academic achievement (particularly in
schools with high concentrations of children living in
poverty), relative to the goal of all students reaching
the proficient level of achievement based on State
academic assessments, challenging State academic content
standards, and challenging State student academic
achievement standards under section 1111.
``(B) The types of programs and services that have
demonstrated the greatest likelihood of helping students
reach the proficient and advanced levels of achievement
based on State student academic achievement standards
and State academic content standards.
``(C) The implementation of State academic
standards, assessments, and accountability systems
developed under this title, including--
``(i) the time and cost required for the
development of academic assessments for students
in grades 3 through 8;
``(ii) how well such State assessments meet
the requirements for assessments described in this
title; and
``(iii) the impact of such standards,
assessments, and accountability systems on
educational programs and instruction at the local
level.
``(D) Each State's definition of adequate yearly
progress, including--
``(i) the impact of applying this definition
to schools, local educational agencies, and the
State;
[[Page 115 STAT. 1593]]
``(ii) the number of schools and local
educational agencies not meeting this definition;
and
``(iii) the changes in the identification of
schools in need of improvement as a result of such
definition.
``(E) How schools, local educational agencies, and
States have--
``(i) publicized and disseminated the local
educational agency report cards required under
section 1111(h)(2) to teachers, school staff,
students, parents, and the community;
``(ii) used funds made available under this
title to provide preschool and family literacy
services and the impact of these services on
students' school readiness;
``(iii) implemented the provisions of section
1118 and afforded parents meaningful opportunities
to be involved in the education of their children;
``(iv) used Federal, State, and local
educational agency funds and resources to support
schools and provide technical assistance to
improve the achievement of students in low-
performing schools, including the impact of the
technical assistance on such achievement; and
``(v) <<NOTE: Deadline.>> used State
educational agency and local educational agency
funds and resources to help schools in which 50
percent or more of the students are from families
with incomes below the poverty line meet the
requirement described in section 1119 of having
all teachers highly qualified not later than the
end of the 2005-2006 school year.
``(F) The implementation of schoolwide programs and
targeted assistance programs under this title and the
impact of such programs on improving student academic
achievement, including the extent to which schools meet
the requirements of such programs.
``(G) The extent to which varying models of
comprehensive school reform are funded and implemented
under this title, and the effect of the implementation
of such models on improving achievement of disadvantaged
students.
``(H) The costs as compared to the benefits of the
activities assisted under this title.
``(I) The extent to which actions authorized under
section 1116 are implemented by State educational
agencies and local educational agencies to improve the
academic achievement of students in low-performing
schools, and the effectiveness of the implementation of
such actions, including the following:
``(i) The number of schools identified for
school improvement and how many years the schools
remain in this status.
``(ii) The types of support provided by the
State educational agencies and local educational
agencies to schools and local educational agencies
respectively identified as in need of improvement,
and the impact of such support on student
achievement.
``(iii) The number of parents who take
advantage of the public school choice provisions
of this title, the
[[Page 115 STAT. 1594]]
costs (including transportation costs) associated
with implementing these provisions, the
implementation of these provisions, and the impact
of these provisions (including the impact of
attending another school) on student achievement.
``(iv) The number of parents who choose to
take advantage of the supplemental educational
services option, the criteria used by the States
to determine the quality of providers, the kinds
of services that are available and utilized, the
costs associated with implementing this option,
and the impact of receiving supplemental
educational services on student achievement.
``(v) The implementation and impact of actions
that are taken with regard to schools and local
educational agencies identified for corrective
action and restructuring.
``(J) The extent to which State and local fiscal
accounting requirements under this title affect the
flexibility of schoolwide programs.
``(K) The implementation and impact of the
professional development activities assisted under this
title and title II on instruction, student academic
achievement, and teacher qualifications.
``(L) The extent to which the assistance made
available under this title, including funds under
section 1002, is targeted to disadvantaged students,
schools, and local educational agencies with the
greatest need.
``(M) The effectiveness of Federal administration
assistance made available under this title, including
monitoring and technical assistance.
``(N) The academic achievement of the groups of
students described in section 1111(b)(2)(C)(v)(II).
``(O) Such other issues as the Secretary considers
appropriate.
``(3) Sources of information.--In conducting the assessment
under this subsection, the Secretary shall use information from
a variety of sources, including the National Assessment of
Educational Progress (carried out under section 411 of the
National Education Statistics Act of 1994), State evaluations,
and other research studies.
``(4) Coordination.--In carrying out this subsection, the
Secretary shall--
``(A) coordinate the national assessment under this
subsection with the longitudinal study described in
subsection (c); and
``(B) ensure that the independent review panel
described in subsection (d) participates in conducting
the national assessment under this subsection, including
planning for and reviewing the assessment.
``(5) Developmentally appropriate measures.--In conducting
the national assessment under this subsection, the Secretary
shall use developmentally appropriate measures to assess student
academic achievement.
``(6) Reports.--
``(A) <<NOTE: Deadline.>> Interim report.--Not later
than 3 years after the date of enactment of the No Child
Left Behind Act
[[Page 115 STAT. 1595]]
of 2001, the Secretary shall transmit to the President,
the Committee on Education and the Workforce of the
House of Representatives, and the Committee on Health,
Education, Labor, and Pensions of the Senate an interim
report on the national assessment conducted under this
subsection.
``(B) <<NOTE: Deadline.>> Final report.--Not later
than 5 years after the date of enactment of the No Child
Left Behind Act of 2001, the Secretary shall transmit to
the President, the Committee on Education and the
Workforce of the House of Representatives, and the
Committee on Health, Education, Labor, and Pensions of
the Senate a final report on the national assessment
conducted under this subsection.
``(b) Studies and Data Collection.--
``(1) In general.--In addition to other activities described
in this section, the Secretary may, directly or through awarding
grants to or entering into contracts with appropriate entities--
``(A) assess the implementation and effectiveness of
programs under this title;
``(B) collect the data necessary to comply with the
Government Performance and Results Act of 1993; and
``(C) provide guidance and technical assistance to
State educational agencies and local educational
agencies in developing and maintaining management
information systems through which such agencies may
develop program performance indicators to improve
services and performance.
``(2) Minimum information.--In carrying out this subsection,
the Secretary shall collect, at a minimum, trend information on
the effect of each program authorized under this title, which
shall complement the data collected and reported under
subsections (a) and (c).
``(c) National Longitudinal Study.--
``(1) In general.--The Secretary shall conduct a
longitudinal study of schools receiving assistance under part A.
``(2) Issues to be examined.--In carrying out this
subsection, the Secretary shall ensure that the study referred
to in paragraph (1) provides Congress and educators with each of
the following:
``(A) An accurate description and analysis of the
short- and long-term effect of the assistance made
available under this title on academic achievement.
``(B) Information that can be used to improve the
effectiveness of the assistance made available under
this title in enabling students to meet challenging
academic achievement standards.
``(C) An analysis of educational practices or model
programs that are effective in improving the achievement
of disadvantaged children.
``(D) An analysis of the costs as compared to the
benefits of the assistance made available under this
title in improving the achievement of disadvantaged
children.
``(E) An analysis of the effects of the availability
of school choice options under section 1116 on the
academic achievement of disadvantaged students, on
schools in school
[[Page 115 STAT. 1596]]
improvement, and on schools from which students have
transferred under such options.
``(F) Such other information as the Secretary
considers appropriate.
``(3) Scope.--In conducting the study referred to in
paragraph (1), the Secretary shall ensure that the study--
``(A) bases its analysis on a nationally
representative sample of schools participating in
programs under this title;
``(B) to the extent practicable, includes in its
analysis students who transfer to different schools
during the course of the study; and
``(C) analyzes varying models or strategies for
delivering school services, including--
``(i) schoolwide and targeted services; and
``(ii) comprehensive school reform models.
``(d) <<NOTE: Establishment.>> Independent Review Panel.--
``(1) In general.--The Secretary shall establish an
independent review panel (in this subsection referred to as the
`Review Panel') to advise the Secretary on methodological and
other issues that arise in carrying out subsections (a) and (c).
``(2) Appointment of members.--
``(A) In general.--Subject to subparagraph (B), the
Secretary shall appoint members of the Review Panel from
among qualified individuals who are--
``(i) specialists in statistics, evaluation,
research, and assessment;
``(ii) education practitioners, including
teachers, principals, and local and State
superintendents;
``(iii) parents and members of local school
boards or other organizations involved with the
implementation and operation of programs under
this title; and
``(iv) other individuals with technical
expertise who will contribute to the overall rigor
and quality of the program evaluation.
``(B) Limitations.--In appointing members of the
Review Panel, the Secretary shall ensure that--
``(i) in order to ensure diversity, the Review
Panel includes individuals appointed under
subparagraph (A)(i) who represent disciplines or
programs outside the field of education; and
``(ii) the total number of the individuals
appointed under subparagraph (A)(ii) or (A)(iv)
does not exceed one-fourth of the total number of
the individuals appointed under this paragraph.
``(3) Functions.--The Review Panel shall consult with and
advise the Secretary--
``(A) to ensure that the assessment conducted under
subsection (a) and the study conducted under subsection
(c)--
``(i) adhere to the highest possible standards
of quality with respect to research design,
statistical analysis, and the dissemination of
findings; and
``(ii) use valid and reliable measures to
document program implementation and impacts; and
``(B) to ensure--
[[Page 115 STAT. 1597]]
``(i) that the final report described in
subsection (a)(6)(B) is reviewed not later than
120 days after its completion by not less than two
independent experts in program evaluation (who may
be from among the members of the Review Panel
appointed under paragraph (2));
``(ii) that such experts evaluate and comment
on the degree to which the report complies with
subsection (a); and
``(iii) that the comments of such experts are
transmitted with the report under subsection
(a)(6)(B).
``SEC. <<NOTE: 20 USC 6492.>> 1502. DEMONSTRATIONS OF INNOVATIVE
PRACTICES.
``(a) In General.--From the funds appropriated for any fiscal year
under section 1002(e)(1), the Secretary may award grants to State
educational agencies, local educational agencies, other public agencies,
nonprofit organizations, public or private partnerships involving
business and industry organizations, and consortia of such entities to
carry out demonstration projects that show the most promise of enabling
children served under this title to meet challenging State academic
content standards and challenging State student academic achievement
standards.
``(b) Evaluation.--The Secretary shall evaluate the demonstration
projects supported under this title, using rigorous methodological
designs and techniques, including control groups and random assignment,
to the extent feasible, to produce reliable evidence of effectiveness.
``(c) Partnerships.--From funds appropriated under section
1002(e)(1) for any fiscal year, the Secretary may, directly or through
grants or contracts, work in partnership with State educational
agencies, local educational agencies, other public agencies, and
nonprofit organizations to disseminate and use the highest quality
research and knowledge about effective practices to improve the quality
of teaching and learning in schools assisted under this title.
``SEC. <<NOTE: 20 USC 6493.>> 1503. ASSESSMENT EVALUATION.
``(a) In General.--The Secretary shall conduct an independent study
of assessments used for State accountability purposes and for making
decisions about the promotion and graduation of students. Such research
shall be conducted over a period not to exceed 5 years and shall address
the components described in subsection (d).
``(b) Contract Authorized.--The Secretary is authorized to award a
contract, through a peer review process, to an organization or entity
capable of conducting rigorous, independent research. The Assistant
Secretary of Educational Research and Improvement shall appoint peer
reviewers to evaluate the applications for this contract.
``(c) Study.--The study shall--
``(1) synthesize and analyze existing research that meets
standards of quality and scientific rigor; and
``(2) evaluate academic assessment and accountability
systems in State educational agencies, local educational
agencies, and schools; and
``(3) make recommendations to the Department and to the
Committee on Education and the Workforce of the United States
House of Representatives and the Committee on Health,
[[Page 115 STAT. 1598]]
Education, Labor, and Pensions of the United States Senate,
based on the findings of the study.
``(d) Components of the Research Program.--The study described in
subsection (a) shall examine--
``(1) the effect of the assessment and accountability
systems described in section (c) on students, teachers, parents,
families, schools, school districts, and States, including
correlations between such systems and--
``(A) student academic achievement, progress to the
State-defined level of proficiency, and progress toward
closing achievement gaps, based on independent measures;
``(B) changes in course offerings, teaching
practices, course content, and instructional material;
``(C) changes in turnover rates among teachers,
principals, and pupil-services personnel;
``(D) changes in dropout, grade-retention, and
graduation rates for students; and
``(E) such other effects as may be appropriate;
``(2) the effect of the academic assessments on students
with disabilities;
``(3) the effect of the academic assessments on low, middle,
and high socioeconomic status students, limited and nonlimited
English proficient students, racial and ethnic minority
students, and nonracial or nonethnic minority students;
``(4) guidelines for assessing the validity, reliability,
and consistency of those systems using nationally recognized
professional and technical standards;
``(5) the relationship between accountability systems and
the inclusion or exclusion of students from the assessment
system; and
``(6) such other factors as the Secretary finds appropriate.
``(e) <<NOTE: Deadline. Public information.>> Reporting.--Not later
than 3 years after the contract described in subsection (b) is awarded,
the organization or entity conducting the study shall submit an interim
report to the Committee on Education and the Workforce of the United
States House of Representatives and the Committee on Health, Education,
Labor and Pensions of the United States Senate, and to the President and
the States, and shall make the report widely available to the public.
The organization or entity shall submit a final report to the same
recipients as soon as possible after the completion of the study.
Additional reports may be periodically prepared and released as
necessary.
``(f) Reservation of Funds.--The Secretary may reserve up to 15
percent of the funds authorized to be appropriated for this part to
carry out the study, except such reservation of funds shall not exceed
$1,500,000.
``SEC. <<NOTE: 20 USC 6494.>> 1504. CLOSE UP FELLOWSHIP PROGRAM.
``(a) Program for Middle School and Secondary School Students.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close
Up Foundation of Washington, District of Columbia, a
nonpartisan, nonprofit foundation, for the purpose of
assisting the Close Up Foundation in carrying out its
programs of increasing civic responsibility and
understanding of the
[[Page 115 STAT. 1599]]
Federal Government among middle school and secondary
school students.
``(B) Use of funds.--Grants under this subsection
shall be used only to provide financial assistance to
economically disadvantaged students who participate in
the programs described in subparagraph (A).
``(C) Name of fellowships.--Financial assistance
received by students pursuant to this subsection shall
be known as Close Up fellowships.
``(2) Applications.--
``(A) Application required.--No grant under this
subsection may be made except upon an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(B) Contents of application.--Each application
submitted under this paragraph shall contain assurances
that--
``(i) Close Up fellowships provided under this
subsection shall be made to economically
disadvantaged middle school and secondary school
students;
``(ii) every effort shall be made to ensure
the participation of students from rural, small
town, and urban areas;
``(iii) in awarding the fellowships to
economically disadvantaged students, special
consideration shall be given to the participation
of those students with special educational needs,
including students with disabilities, ethnic
minority students, and students with migrant
parents; and
``(iv) the funds received under this
subsection shall be properly disbursed.
``(b) Program for Middle School and Secondary School Teachers.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close
Up Foundation of Washington, District of Columbia, a
nonpartisan, nonprofit foundation, for the purpose of
assisting the Close Up Foundation in carrying out its
programs of professional development for middle school
and secondary school teachers and its programs to
increase civic responsibility and understanding of the
Federal Government among the teachers' students.
``(B) Use of funds.--Grants under this subsection
shall be used only to provide financial assistance to
teachers who participate in the programs described in
subparagraph (A).
``(C) Name of fellowships.--Financial assistance
received by teachers pursuant to this subsection shall
be known as Close Up fellowships.
``(2) Applications.--
``(A) Application required.--No grant under this
subsection may be made except upon an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
[[Page 115 STAT. 1600]]
``(B) Contents of application.--Each application
submitted under this paragraph shall contain assurances
that--
``(i) Close Up fellowships provided under this
subsection shall be made only to a teacher who has
worked with at least one student from such
teacher's school who participates in a program
described in subsection (a)(1)(A);
``(ii) no teacher shall receive more than one
such fellowship in any fiscal year; and
``(iii) the funds received under this
subsection shall be properly disbursed.
``(c) Programs for New Americans.--
``(1) Establishment.--
``(A) General authority.--In accordance with this
subsection, the Secretary may make grants to the Close
Up Foundation of Washington, District of Columbia, a
nonpartisan, nonprofit foundation, for the purpose of
assisting the Close Up Foundation in carrying out its
programs of increasing civic responsibility and
understanding of the Federal Government among
economically disadvantaged middle school and secondary
school recent immigrant students.
``(B) Definition.--In this subsection, the term
`recent immigrant student' means a student who is a
member of a family that immigrated to the United States
within 5 years of the student's participation in such a
program.
``(C) Use of funds.--Grants under this subsection
shall be used only to provide financial assistance to
economically disadvantaged recent immigrant students and
their teachers who participate in the programs described
in subparagraph (A).
``(D) Name of fellowships.--Financial assistance
received by students and teachers pursuant to this
subsection shall be known as Close Up Fellowships for
New Americans.
``(2) Applications.--
``(A) Application required.--No grant under this
subsection may be made except upon an application at
such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(B) Contents of application.--Each application
submitted under this paragraph shall contain assurances
that--
``(i) Close Up Fellowships for New Americans
shall be made to economically disadvantaged middle
school and secondary school recent immigrant
students;
``(ii) every effort shall be made to ensure
the participation of recent immigrant students
from rural, small town, and urban areas;
``(iii) in awarding the fellowships to
economically disadvantaged recent immigrant
students, special consideration shall be given to
the participation of those students with special
educational needs, including students with
disabilities, students with migrant parents, and
ethnic minority students;
[[Page 115 STAT. 1601]]
``(iv) fully describe the activities to be
carried out with the proceeds of the grant made
under paragraph (1); and
``(v) the funds received under this subsection
shall be properly disbursed.
``(d) General Provisions.--
``(1) Administrative provisions.--
``(A) Accountability.--In consultation with the
Secretary, the Close Up Foundation shall devise and
implement procedures to measure the efficacy of the
programs authorized in subsections (a), (b), and (c) in
attaining objectives that include the following:
``(i) Providing young people with an increased
understanding of the Federal Government.
``(ii) Heightening a sense of civic
responsibility among young people.
``(iii) Enhancing the skills of educators in
teaching young people about civic responsibility,
the Federal Government, and attaining citizenship
competencies.
``(B) General rule.--Payments under this section may
be made in installments, in advance, or by way of
reimbursement, with necessary adjustments on account of
underpayments or overpayments.
``(C) Audit rule.--The Comptroller General of the
United States or any of the Comptroller General's duly
authorized representatives shall have access for the
purpose of audit and examination to any books,
documents, papers, and records that are pertinent to any
grant under this section.
``(2) Continuation of awards.--Notwithstanding any other
provision of this Act, any person or entity that was awarded a
grant under part G of title X before the date of enactment of
the No Child Left Behind Act of 2001 shall continue to receive
funds in accordance with the terms of such award until the date
on which the award period terminates under such terms.
``PART F--COMPREHENSIVE SCHOOL REFORM
``SEC. <<NOTE: 20 USC 6511.>> 1601. PURPOSE.
``The purpose of this part is to provide financial incentives for
schools to develop comprehensive school reforms, based upon
scientifically based research and effective practices that include an
emphasis on basic academics and parental involvement so that all
children can meet challenging State academic content and academic
achievement standards.
``SEC. <<NOTE: 20 USC 6512.>> 1602. PROGRAM AUTHORIZATION.
``(a) Program Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to State educational agencies, from allotments under
paragraph (2), to enable the State educational agencies to award
subgrants to local educational agencies to carry out the purpose
described in section 1601.
``(2) Allotments.--
``(A) Reservations.--Of the amount appropriated
under section 1002(f), the Secretary may reserve--
[[Page 115 STAT. 1602]]
``(i) not more than 1 percent for each fiscal
year to provide assistance to schools supported by
the Bureau of Indian Affairs and in the United
States Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands
according to their respective needs for assistance
under this part;
``(ii) not more than 1 percent for each fiscal
year to conduct national evaluation activities
described in section 1607; and
``(iii) not more than 3 percent of the amount
appropriated in fiscal year 2002 to carry out this
part, for quality initiatives described in section
1608.
``(B) In general.--Of the amount appropriated under
section 1002(f) that remains after making the
reservation under subparagraph (A) for a fiscal year,
the Secretary shall allot to each State for the fiscal
year an amount that bears the same ratio to the
remainder for that fiscal year as the amount made
available under section 1124 to the State for the
preceding fiscal year bears to the total amount made
available under section 1124 to all States for that
year.
``(C) Reallotment.--If a State does not apply for
funds under this section, the Secretary shall reallot
such funds to other States that do apply in proportion
to the amount allotted to such other States under
subparagraph (B).
``SEC. <<NOTE: 20 USC 6513.>> 1603. STATE APPLICATIONS.
``(a) In General.--Each State educational agency that desires to
receive a grant under this part shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may reasonably require.
``(b) Contents.--Each such application shall describe--
``(1) the process and selection criteria by which the State
educational agency, using expert review, will select local
educational agencies to receive subgrants under this part;
``(2) how the State educational agency will ensure that
funds under this part are limited to comprehensive school reform
programs that--
``(A) include each of the components described in
section 1606(a);
``(B) have the capacity to improve the academic
achievement of all students in core academic subjects
within participating schools; and
``(C) are supported by technical assistance
providers that have a successful track record, financial
stability, and the capacity to deliver high quality
materials, professional development for school
personnel, and on-site support during the full
implementation period of the reforms;
``(3) how the State educational agency will disseminate
materials and information on comprehensive school reforms that
are based on scientifically based research and effective
practices;
``(4) how the State educational agency will evaluate
annually the implementation of such reforms and measure the
extent to which the reforms have resulted in increased student
academic achievement; and
[[Page 115 STAT. 1603]]
``(5) how the State educational agency will provide
technical assistance to the local educational agency or
consortia of local educational agencies, and to participating
schools, in evaluating, developing, and implementing
comprehensive school reform.
``SEC. <<NOTE: 20 USC 6514.>> 1604. STATE USE OF FUNDS.
``(a) In General.--Except as provided in subsection (e), a State
educational agency that receives a grant under this part shall use the
grant funds to award subgrants, on a competitive basis, to local
educational agencies or consortia of local educational agencies in the
State that receive funds under part A, to support comprehensive school
reforms in schools that are eligible for funds under part A.
``(b) Subgrant Requirements.--A subgrant to a local educational
agency or consortium shall be--
``(1) of sufficient size and scope to support the initial
costs of comprehensive school reforms selected or designed by
each school identified in the application of the local
educational agency or consortium;
``(2) in an amount not less than $50,000--
``(A) for each participating school; or
``(B) for each participating consortium of small
schools (which for purposes of this subparagraph means a
consortium of small schools serving a total of not more
than 500 students); and
``(3) renewable for two additional 1-year subgrant periods
after the initial 1-year subgrant is made if the school is or
the schools are making substantial progress in the
implementation of reforms.
``(c) Priority.--A State educational agency, in awarding subgrants
under this part, shall give priority to local educational agencies or
consortia that--
``(1) plan to use the funds in schools identified as being
in need of improvement or corrective action under section
1116(c); and
``(2) demonstrate a commitment to assist schools with budget
allocation, professional development, and other strategies
necessary to ensure the comprehensive school reforms are
properly implemented and are sustained in the future.
``(d) Grant Consideration.--In awarding subgrants under this part,
the State educational agency shall take into consideration the equitable
distribution of subgrants to different geographic regions within the
State, including urban and rural areas, and to schools serving
elementary and secondary students.
``(e) Administrative Costs.--A State educational agency that
receives a grant under this part may reserve not more than 5 percent of
the grant funds for administrative, evaluation, and technical assistance
expenses.
``(f) Supplement.--Funds made available under this part shall be
used to supplement, and not supplant, any other Federal, State, or local
funds that would otherwise be available to carry out the activities
assisted under this part.
``(g) Reporting.--Each State educational agency that receives a
grant under this part shall provide to the Secretary such information as
the Secretary may require, including the names of local educational
agencies and schools receiving assistance under this
[[Page 115 STAT. 1604]]
part, the amount of the assistance, a description of the comprehensive
school reforms selected and used, and a copy of the State's annual
evaluation of the implementation of comprehensive school reforms
supported under this part and the student achievement results.
``SEC. <<NOTE: 20 USC 6515.>> 1605. LOCAL APPLICATIONS.
``(a) In General.--Each local educational agency or consortium of
local educational agencies desiring a subgrant under this part shall
submit an application to the State educational agency at such time, in
such manner, and containing such information as the State educational
agency may reasonably require.
``(b) Contents.--Each such application shall--
``(1) identify the schools that are eligible for assistance
under part A and plan to implement a comprehensive school reform
program, including the projected costs of such a program;
``(2) describe the comprehensive school reforms based on
scientifically based research and effective practices that such
schools will implement;
``(3) describe how the local educational agency or
consortium will provide technical assistance and support for the
effective implementation of the comprehensive school reforms
based on scientifically based research and effective practices
selected by such schools; and
``(4) describe how the local educational agency or
consortium will evaluate the implementation of such
comprehensive school reforms and measure the results achieved in
improving student academic achievement.
``SEC. <<NOTE: 20 USC 6516.>> 1606. LOCAL USE OF FUNDS.
``(a) Uses of Funds.--A local educational agency or consortium that
receives a subgrant under this part shall provide the subgrant funds to
schools that are eligible for assistance under part A and served by the
agency, to enable the schools to implement a comprehensive school reform
program that--
``(1) employs proven strategies and proven methods for
student learning, teaching, and school management that are based
on scientifically based research and effective practices and
have been replicated successfully in schools;
``(2) integrates a comprehensive design for effective school
functioning, including instruction, assessment, classroom
management, professional development, parental involvement, and
school management, that aligns the school's curriculum,
technology, and professional development into a comprehensive
school reform plan for schoolwide change designed to enable all
students to meet challenging State content and student academic
achievement standards and addresses needs identified through a
school needs assessment;
``(3) provides high quality and continuous teacher and staff
professional development;
``(4) includes measurable goals for student academic
achievement and benchmarks for meeting such goals;
``(5) is supported by teachers, principals, administrators,
school personnel staff, and other professional staff;
``(6) provides support for teachers, principals,
administrators, and other school staff;
[[Page 115 STAT. 1605]]
``(7) provides for the meaningful involvement of parents and
the local community in planning, implementing, and evaluating
school improvement activities consistent with section 1118;
``(8) uses high quality external technical support and
assistance from an entity that has experience and expertise in
schoolwide reform and improvement, which may include an
institution of higher education;
``(9) includes a plan for the annual evaluation of the
implementation of school reforms and the student results
achieved;
``(10) identifies other resources, including Federal, State,
local, and private resources, that shall be used to coordinate
services that will support and sustain the comprehensive school
reform effort; and
``(11)(A) has been found, through scientifically based
research to significantly improve the academic achievement of
students participating in such program as compared to students
in schools who have not participated in such program; or
``(B) has been found to have strong evidence that such
program will significantly improve the academic achievement of
participating children.
``(b) Special Rule.--A school that receives funds to develop a
comprehensive school reform program shall not be limited to using
nationally available approaches, but may develop the school's own
comprehensive school reform program for schoolwide change as described
in subsection (a).
``SEC. <<NOTE: 20 USC 6517.>> 1607. EVALUATION AND REPORTS.
``(a) In General.--The Secretary shall develop a plan for a national
evaluation of the programs assisted under this part.
``(b) Evaluation.--The national evaluation shall--
``(1) evaluate the implementation and results achieved by
schools after 3 years of implementing comprehensive school
reforms; and
``(2) assess the effectiveness of comprehensive school
reforms in schools with diverse characteristics.
``(c) Reports.--The Secretary shall submit a report describing the
results of the evaluation under subsection (b) for the Comprehensive
School Reform Program to the Committee on Education and the Workforce,
and the Committee on Appropriations of the House of Representatives, and
the Committee on Health, Education, Labor, and Pensions, and the
Committee on Appropriations of the Senate.
``SEC. <<NOTE: 20 USC 6518.>> 1608. QUALITY INITIATIVES.
``The Secretary, through grants or contracts, shall provide funds
for--
``(1) a public-private effort, in which funds are matched by
private organizations, to assist States, local educational
agencies, and schools, in making informed decisions regarding
approving or selecting providers of comprehensive school reform,
consistent with the requirements described in section 1606(a);
and
``(2) activities to foster the development of comprehensive
school reform models and to provide effective capacity building
[[Page 115 STAT. 1606]]
for comprehensive school reform providers to expand their work
in more schools, assure quality, and promote financial
stability.
``PART <<NOTE: Access to High Standards Act.>> G--ADVANCED PLACEMENT
PROGRAMS
``SEC. <<NOTE: 20 USC 6531.>> 1701. SHORT TITLE.
``This part may be cited as the `Access to High Standards Act'.
``SEC. <<NOTE: 20 USC 6532.>> 1702. PURPOSES.
The purposes of this part are--
``(1) to support State and local efforts to raise academic
standards through advanced placement programs, and thus further
increase the number of students who participate and succeed in
advanced placement programs;
``(2) to encourage more of the 600,000 students who take
advanced placement courses each year but do not take advanced
placement exams each year, to demonstrate their achievements
through taking the exams;
``(3) to build on the many benefits of advanced placement
programs for students, which benefits may include the
acquisition of skills that are important to many employers,
Scholastic Aptitude Test (SAT) scores that are 100 points above
the national averages, and the achievement of better grades in
secondary school and in college than the grades of students who
have not participated in the programs;
``(4) to increase the availability and broaden the range of
schools, including middle schools, that have advanced placement
and pre-advanced placement programs;
``(5) to demonstrate that larger and more diverse groups of
students can participate and succeed in advanced placement
programs;
``(6) to provide greater access to advanced placement and
pre-advanced placement courses and highly trained teachers for
low-income and other disadvantaged students;
``(7) to provide access to advanced placement courses for
secondary school students at schools that do not offer advanced
placement programs, increase the rate at which secondary school
students participate in advanced placement courses, and increase
the numbers of students who receive advanced placement test
scores for which college academic credit is awarded;
``(8) to increase the participation of low-income
individuals in taking advanced placement tests through the
payment or partial payment of the costs of the advanced
placement test fees; and
``(9) to increase the number of individuals that achieve a
baccalaureate or advanced degree, and to decrease the amount of
time such individuals require to attain such degrees.
``SEC. <<NOTE: 20 USC 6533.>> 1703. FUNDING DISTRIBUTION RULE.
``From amounts appropriated under section 1002(g) for a fiscal year,
the Secretary shall give priority to funding activities under section
1704 and shall distribute any remaining funds under section 1705.
``SEC. <<NOTE: 20 USC 6534.>> 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.
``(a) Grants Authorized.--From amounts made available under section
1703 for a fiscal year, the Secretary shall award
[[Page 115 STAT. 1607]]
grants to State educational agencies having applications approved under
this section to enable the State educational agencies to reimburse low-
income individuals to cover part or all of the costs of advanced
placement test fees, if the low-income individuals--
``(1) are enrolled in an advanced placement course; and
``(2) plan to take an advanced placement test.
``(b) Award Basis.--In determining the amount of the grant awarded
to a State educational agency under this section for a fiscal year, the
Secretary shall consider the number of children eligible to be counted
under section 1124(c) in the State in relation to the number of such
children so counted in all the States.
``(c) Information Dissemination.--A State educational agency awarded
a grant under this section shall disseminate information regarding the
availability of advanced placement test fee payments under this section
to eligible individuals through secondary school teachers and guidance
counselors.
``(d) Applications.--Each State educational agency desiring to
receive a grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require. At a minimum, each State
educational agency application shall--
``(1) describe the advanced placement test fees the State
educational agency will pay on behalf of low-income individuals
in the State from grant funds awarded under this section;
``(2) provide an assurance that any grant funds awarded
under this section shall be used only to pay for advanced
placement test fees; and
``(3) contain such information as the Secretary may require
to demonstrate that the State educational agency will ensure
that a student is eligible for payments authorized under this
section, including documentation required under chapter 1 of
subpart 2 of part A of title IV of the Higher Education Act of
1965.
``(e) Regulations.--The Secretary shall prescribe such regulations
as are necessary to carry out this section.
``(f) Report.--
``(1) In general.--Each State educational agency awarded a
grant under this section shall, with respect to each advanced
placement subject, annually report to the Secretary on--
``(A) the number of students in the State who are
taking an advanced placement course in that subject;
``(B) the number of advanced placement tests taken
by students in the State who have taken an advanced
placement course in that subject;
``(C) the number of students in the State scoring at
different levels on advanced placement tests in that
subject; and
``(D) demographic information regarding individuals
in the State taking advanced placement courses and tests
in that subject disaggregated by race, ethnicity, sex,
English proficiency status, and socioeconomic status.
``(2) <<NOTE: Records.>> Report to congress.--The Secretary
shall annually compile the information received from each State
educational agency under paragraph (1) and report to the
appropriate committees of Congress regarding the information.
``(g) BIA as SEA.--For purposes of this section the Bureau of Indian
Affairs shall be treated as a State educational agency.
[[Page 115 STAT. 1608]]
``SEC. <<NOTE: 20 USC 6535.>> 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM
GRANTS.
``(a) Grants Authorized.--
``(1) In general.--From amounts made available under section
1703 for a fiscal year, the Secretary shall award grants, on a
competitive basis, to eligible entities to enable those entities
to carry out the authorized activities described in subsection
(d).
``(2) Duration and payments.--
``(A) Duration.--The Secretary shall award a grant
under this section for a period of not more than 3
years.
``(B) Payments.--The Secretary shall make grant
payments under this section on an annual basis.
``(3) Definition of eligible entity.--In this section, the
term `eligible entity' means a State educational agency, local
educational agency, or national nonprofit educational entity
with expertise in advanced placement services.
``(b) Application.--Each eligible entity desiring a grant under this
section shall submit an application to the Secretary at such time, in
such manner, and accompanied by such information as the Secretary may
require.
``(c) Priority.--In awarding grants under this section, the
Secretary shall give priority to an eligible entity that submits an
application under subsection (b) that--
``(1) demonstrates a pervasive need for access to advanced
placement incentive programs;
``(2) provides for the involvement of business and community
organizations in the activities to be assisted;
``(3) assures the availability of matching funds from State,
local, or other sources to pay for the cost of activities to be
assisted;
``(4) demonstrates a focus on developing or expanding
advanced placement programs and participation in the core
academic areas of English, mathematics, and science;
``(5) demonstrates an intent to carry out activities that
target--
``(A) local educational agencies serving schools
with a high concentration of low-income students; or
``(B) schools with a high concentration of low-
income students; and
``(6) in the case of a local educational agency, assures
that the local educational agency serves schools with a high
concentration of low-income students; or
``(7) demonstrates an intent to carry out activities to
increase the availability of, and participation in, on-line
advanced placement courses.
``(d) Authorized Activities.--
``(1) In general.--Subject to paragraph (2), an eligible
entity shall use grant funds made available under this section
to expand access for low-income individuals to advanced
placement incentive programs that involve--
``(A) teacher training;
``(B) pre-advanced placement course development;
``(C) coordination and articulation between grade
levels to prepare students for academic achievement in
advanced placement courses;
``(D) books and supplies; or
[[Page 115 STAT. 1609]]
``(E) activities to increase the availability of,
and participation in, on-line advanced placement
courses; or
``(F) any other activity directly related to
expanding access to and participation in advanced
placement incentive programs, particularly for low-
income individuals.
``(2) State educational agency.--In the case of an eligible
entity that is a State educational agency, the entity may use
grant funds made available under this section to award subgrants
to local educational agencies to enable the local educational
agencies to carry out the activities under paragraph (1).
``(e) Contracts.--An eligible entity awarded a grant to provide
online advanced placement courses under this part may enter into a
contract with a nonprofit or for profit organization to provide the
online advanced placement courses, including contracting for necessary
support services.
``(f) Data Collection and Reporting.--
``(1) Data collection.--Each eligible entity awarded a grant
under this section shall, with respect to each advanced
placement subject, annually report to the Secretary on--
``(A) the number of students served by the eligible
entity who are taking an advanced placement course in
that subject;
``(B) the number of advanced placement tests taken
by students served by the eligible entity in that
subject;
``(C) the number of students served by the eligible
entity scoring at different levels on advanced placement
tests in that subject; and
``(D) demographic information regarding individuals
served by such agency who taking advanced placement
courses and tests in that subject disaggregated by race,
ethnicity, sex, English proficiency status, and
socioeconomic status.
``(2) <<NOTE: Records.>> Report.--The Secretary shall
annually compile the information received from each eligible
entity under paragraph (1) and report to the appropriate
committees of Congress regarding the information.
``SEC. <<NOTE: 20 USC 6536.>> 1706. SUPPLEMENT, NOT SUPPLANT.
Grant funds provided under this part shall supplement, and not
supplant, other non-Federal funds that are available to assist low-
income individuals to pay for the cost of advanced placement test fees
or to expand access to advanced placement and pre-advanced placement
courses.
``SEC. <<NOTE: 20 USC 6537.>> 1707. DEFINITIONS.
``In this part:
``(1) Advanced placement test.--The term `advanced placement
test' means an advanced placement test administered by the
College Board or approved by the Secretary.
``(2) High concentration of low-income students.--The term
`high concentration of low-income students', used with respect
to a school, means a school that serves a student population 40
percent or more of whom are low-income individuals.
``(3) Low-income individual.--The term `low-income
individual' means an individual who is determined by a State
educational agency or local educational agency to be a child,
[[Page 115 STAT. 1610]]
ages 5 through 17, from a low-income family, on the basis of
data used by the Secretary to determine allocations under
section 1124 of this Act, data on children eligible for free or
reduced-price lunches under the National School Lunch Act, data
on children in families receiving assistance under part A of
title IV of the Social Security Act, or data on children
eligible to receive medical assistance under the medicaid
program under title XIX of the Social Security Act, or through
an alternate method that combines or extrapolates from those
data.
``PART <<NOTE: Dropout Prevention Act.>> H--SCHOOL DROPOUT PREVENTION
``SEC. <<NOTE: 20 USC 6551.>> 1801. SHORT TITLE.
``This part may be cited as the `Dropout Prevention Act'.
``SEC. <<NOTE: 20 USC 6552.>> 1802. PURPOSE.
``The purpose of this part is to provide for school dropout
prevention and reentry and to raise academic achievement levels by
providing grants that--
``(1) challenge all children to attain their highest
academic potential; and
``(2) ensure that all students have substantial and ongoing
opportunities to attain their highest academic potential through
schoolwide programs proven effective in school dropout
prevention and reentry.
``SEC. <<NOTE: 20 USC 6553.>> 1803. AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this part, there are authorized to
be appropriated $125,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 5 succeeding fiscal years, of which--
``(1) 10 percent shall be available to carry out subpart 1
for each fiscal year; and
``(2) 90 percent shall be available to carry out subpart 2
for each fiscal year.
``Subpart 1--Coordinated National Strategy
``SEC. 1811. <<NOTE: 20 USC 6555.>> NATIONAL ACTIVITIES.
``(a) In General.--The Secretary is authorized--
``(1) to collect systematic data on the effectiveness of the
programs assisted under this part in reducing school dropout
rates and increasing school reentry and secondary school
graduation rates;
``(2) to establish a national clearinghouse of information
on effective school dropout prevention and reentry programs that
shall disseminate to State educational agencies, local
educational agencies, and schools--
``(A) the results of research on school dropout
prevention and reentry; and
``(B) information on effective programs, best
practices, and Federal resources to--
``(i) reduce annual school dropout rates;
``(ii) increase school reentry; and
``(iii) increase secondary school graduation
rates;
[[Page 115 STAT. 1611]]
``(3) to provide technical assistance to State educational
agencies, local educational agencies, and schools in designing
and implementing programs and securing resources to implement
effective school dropout prevention and reentry programs;
``(4) to establish and consult with an interagency working
group that shall--
``(A) address inter- and intra-agency program
coordination issues at the Federal level with respect to
school dropout prevention and reentry, and assess the
targeting of existing Federal services to students who
are most at risk of dropping out of school, and the
cost-effectiveness of various programs and approaches
used to address school dropout prevention and reentry;
``(B) describe the ways in which State educational
agencies and local educational agencies can implement
effective school dropout prevention and reentry programs
using funds from a variety of Federal programs,
including the programs under this part; and
``(C) examine Federal programs that may have a
positive impact on secondary school graduation or school
reentry;
``(5) to carry out a national recognition program in
accordance with subsection (b) that recognizes schools that have
made extraordinary progress in lowering school dropout rates;
and
``(6) to use funds made available for this subpart to carry
out the evaluation required under section 1830(c).
``(b) Recognition Program.--
``(1) Establishment.--The Secretary shall--
``(A) establish a national recognition program; and
``(B) develop uniform national guidelines for the
recognition program that shall be used to recognize
eligible schools from nominations submitted by State
educational agencies.
``(2) Recognition.--The Secretary shall recognize, under the
recognition program established under paragraph (1), eligible
schools.
``(3) Support.--The Secretary may make monetary awards to an
eligible school recognized under this subsection in amounts
determined appropriate by the Secretary that shall be used for
dissemination activities within the eligible school district or
nationally.
``(4) Definition of eligible school.--In this subsection,
the term `eligible school' means a public middle school or
secondary school, including a charter school, that has
implemented comprehensive reforms that have been effective in
lowering school dropout rates for all students--
``(A) in that secondary school or charter school; or
``(B) in the case of a middle school, in the
secondary school that the middle school feeds students
into.
``(c) Capacity Building.--
``(1) In general.--The Secretary, through a contract with
one or more non-Federal entities, may conduct a capacity
building and design initiative in order to increase the types of
proven strategies for school dropout prevention and reentry that
address the needs of an entire school population rather than a
subset of students.
``(2) Number and duration.--
[[Page 115 STAT. 1612]]
``(A) Number.--The Secretary may award not more than
five contracts under this subsection.
``(B) Duration.--The Secretary may award a contract
under this subsection for a period of not more than 5
years.
``(d) Support for Existing Reform Networks.--
``(1) In general.--The Secretary may provide appropriate
support to eligible entities to enable the eligible entities to
provide training, materials, development, and staff assistance
to schools assisted under this part.
``(2) Definition of eligible entity.--In this subsection,
the term `eligible entity' means an entity that, prior to the
date of enactment of the Dropout Prevention Act--
``(A) provided training, technical assistance, and
materials related to school dropout prevention or
reentry to 100 or more elementary schools or secondary
schools; and
``(B) developed and published a specific educational
program or design related to school dropout prevention
or reentry for use by the schools.
``Subpart 2--School Dropout Prevention Initiative
``SEC. <<NOTE: 20 USC 6561.>> 1821. DEFINITIONS.
``In this subpart:
``(1) Low-income student.--The term `low-income student'
means a student who is determined by a local educational agency
to be from a low-income family using the measures described in
section 1113(c).
``(2) State.--The term `State' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, and the Bureau of Indian Affairs for purposes of
serving schools funded by the Bureau.
``SEC. <<NOTE: 20 USC 6561a.>> 1822. PROGRAM AUTHORIZED.
``(a) Grants to State Educational Agencies and Local Educational
Agencies.--
``(1) Amount less than $75,000,000.--
``(A) In general.--If the amount appropriated under
section 1803 for a fiscal year equals or is less than
$75,000,000, then the Secretary shall use such amount to
award grants, on a competitive basis, to--
``(i) State educational agencies to support
activities--
``(I) in schools that--
``(aa) serve students in
grades 6 through 12; and
``(bb) have annual school
dropout rates that are above the
State average annual school
dropout rate; or
``(II) in the middle schools that
feed students into the schools described
in subclause (I); or
``(ii) local educational agencies that
operate--
``(I) schools that--
``(aa) serve students in
grades 6 through 12; and
[[Page 115 STAT. 1613]]
``(bb) have annual school
dropout rates that are above the
State average annual school
dropout rate; or
``(II) middle schools that feed
students into the schools described in
subclause (I).
``(B) Use of grant funds.--Grant funds awarded under
this paragraph shall be used to fund effective,
sustainable, and coordinated school dropout prevention
and reentry programs that may include the activities
described in subsection (b)(2), in--
``(i) schools serving students in grades 6
through 12 that have annual school dropout rates
that are above the State average annual school
dropout rate; or
``(ii) the middle schools that feed students
into the schools described in clause (i).
``(2) Amount less than $250,000,000 but more than
$75,000,000.--If the amount appropriated under section 1803 for
a fiscal year is less than $250,000,000 but more than
$75,000,000, then the Secretary shall use such amount to award
grants, on a competitive basis, to State educational agencies to
enable the State educational agencies to award subgrants under
subsection (b).
``(3) Amount equal to or exceeds $250,000,000.--If the
amount appropriated under section 1803 for a fiscal year equals
or exceeds $250,000,000, then the Secretary shall use such
amount to award a grant to each State educational agency in an
amount that bears the same relation to such appropriated amount
as the amount the State educational agency received under part A
for the preceding fiscal year bears to the amount received by
all State educational agencies under such part for the preceding
fiscal year, to enable the State educational agency to award
subgrants under subsection (b).
``(b) Subgrants to Local Educational Agencies.--
``(1) In general.--From amounts made available to a State
educational agency under paragraph (2) or (3) of subsection (a),
the State educational agency shall award subgrants, on a
competitive basis, to local educational agencies that operate
public schools that serve students in grades 6 through 12 and
that have annual school dropout rates that are above the State
average annual school dropout rate, to enable those schools, or
the middle schools that feed students into those schools, to
implement effective, sustainable, and coordinated school dropout
prevention and reentry programs that involve activities such
as--
``(A) professional development;
``(B) obtaining curricular materials;
``(C) release time for professional staff to obtain
professional development;
``(D) planning and research;
``(E) remedial education;
``(F) reduction in pupil-to-teacher ratios;
``(G) efforts to meet State student academic
achievement standards;
``(H) counseling and mentoring for at-risk students;
``(I) implementing comprehensive school reform
models, such as creating smaller learning communities;
and
[[Page 115 STAT. 1614]]
``(J) school reentry activities.
``(2) Amount.--Subject to paragraph (3), a subgrant under
this subpart shall be awarded--
``(A) in the first year that a local educational
agency receives a subgrant payment under this subpart,
in an amount that is based on factors such as--
``(i) the size of schools operated by the
local educational agency;
``(ii) costs of the model or set of prevention
and reentry strategies being implemented; and
``(iii) local cost factors such as poverty
rates;
``(B) in the second year, in an amount that is not
less than 75 percent of the amount the local educational
agency received under this subpart in the first such
year;
``(C) in the third year, in an amount that is not
less than 50 percent of the amount the local educational
agency received under this subpart in the first such
year; and
``(D) in each succeeding year, in an amount that is
not less than 30 percent of the amount the local
educational agency received under this subpart in the
first year.
``(3) Duration.--A subgrant under this subpart shall be
awarded for a period of 3 years, and may be continued for a
period of 2 additional years if the State educational agency
determines, based on the annual reports described in section
1830(a), that significant progress has been made in lowering the
annual school dropout rate for secondary schools participating
in the program assisted under this subpart.
``SEC. <<NOTE: 20 USC 6561b.>> 1823. APPLICATIONS.
``(a) In General.--To receive--
``(1) a grant under this subpart, a State educational agency
or local educational agency shall submit an application and plan
to the Secretary at such time, in such manner, and accompanied
by such information as the Secretary may reasonably require; and
``(2) a subgrant under this subpart, a local educational
agency shall submit an application and plan to the State
educational agency at such time, in such manner, and accompanied
by such information as the State educational agency may
reasonably require.
``(b) Contents.--
``(1) State educational agency and local educational
agency.--Each application and plan submitted under subsection
(a) shall--
``(A) include an outline--
``(i) of the State educational agency's or
local educational agency's strategy for reducing
the State educational agency or local educational
agency's annual school dropout rate;
``(ii) for targeting secondary schools, and
the middle schools that feed students into those
secondary schools, that have the highest annual
school dropout rates; and
``(iii) for assessing the effectiveness of the
efforts described in the plan;
``(B) contain an identification of the schools in
the State or operated by the local educational agency
that
[[Page 115 STAT. 1615]]
have annual school dropout rates that are greater than
the average annual school dropout rate for the State;
``(C) describe the instructional strategies to be
implemented, how the strategies will serve all students,
and the effectiveness of the strategies;
``(D) describe a budget and timeline for
implementing the strategies;
``(E) contain evidence of coordination with existing
resources;
``(F) provide an assurance that funds provided under
this subpart will supplement, and not supplant, other
State and local funds available for school dropout
prevention and reentry programs; and
``(G) describe how the activities to be assisted
conform with research knowledge about school dropout
prevention and reentry.
``(2) Local educational agency.--Each application and plan
submitted under subsection (a) by a local educational agency
shall contain, in addition to the requirements of paragraph
(1)--
``(A) an assurance that the local educational agency
is committed to providing ongoing operational support
for such schools to address the problem of school
dropouts for a period of 5 years; and
``(B) an assurance that the local educational agency
will support the plan, including--
``(i) provision of release time for teacher
training;
``(ii) efforts to coordinate activities for
secondary schools and the middle schools that feed
students into those secondary schools; and
``(iii) encouraging other schools served by
the local educational agency to participate in the
plan.
``SEC. <<NOTE: 20 USC 6561c.>> 1824. STATE RESERVATION.
``A State educational agency that receives a grant under paragraph
(2) or (3) of section 1822(a) may reserve not more than 5 percent of the
grant funds for administrative costs and State activities related to
school dropout prevention and reentry activities, of which not more than
2 percent of the grant funds may be used for administrative costs.
``SEC. <<NOTE: 20 USC 6561d.>> 1825. STRATEGIES AND CAPACITY BUILDING.
``Each local educational agency receiving a grant or subgrant under
this subpart and each State educational agency receiving a grant under
this subpart shall implement scientifically based, sustainable, and
widely replicated strategies for school dropout prevention and reentry.
The strategies may include--
``(1) specific strategies for targeted purposes, such as--
``(A) effective early intervention programs designed
to identify at-risk students;
``(B) effective programs serving at-risk students,
including racial and ethnic minorities and pregnant and
parenting teenagers, designed to prevent such students
from dropping out of school; and
``(C) effective programs to identify and encourage
youth who have already dropped out of school to reenter
school and complete their secondary education; and
[[Page 115 STAT. 1616]]
``(2) approaches such as breaking larger schools down into
smaller learning communities and other comprehensive reform
approaches, creating alternative school programs, and developing
clear linkages to career skills and employment.
``SEC. <<NOTE: 20 USC 6561e.>> 1826. SELECTION OF LOCAL EDUCATIONAL
AGENCIES FOR SUBGRANTS.
``(a) State Educational Agency Review and Award.--The State
educational agency shall review applications submitted under section
1823(a)(2) and award subgrants to local educational agencies with the
assistance and advice of a panel of experts on school dropout prevention
and reentry.
``(b) Eligibility.--A local educational agency is eligible to
receive a subgrant under this subpart if the local educational agency
operates a public school (including a public alternative school)--
``(1) that is eligible to receive assistance under part A;
and
``(2)(A) that serves students 50 percent or more of whom are
low-income students; or
``(B) in which a majority of the students come from feeder
schools that serve students 50 percent or more of whom are low-
income students.
``SEC. <<NOTE: 20 USC 6561f.>> 1827. COMMUNITY BASED ORGANIZATIONS.
``A local educational agency that receives a grant or subgrant under
this subpart and a State educational agency that receives a grant under
this subpart may use the funds to secure necessary services from a
community-based organization or other government agency if the funds are
used to provide school dropout prevention and reentry activities related
to schoolwide efforts.
``SEC. <<NOTE: 20 USC 6561g.>> 1828. TECHNICAL ASSISTANCE.
``Notwithstanding any other provision of law, each local educational
agency that receives funds under this subpart shall use the funds to
provide technical assistance to secondary schools served by the agency
that have not made progress toward lowering annual school dropout rates
after receiving assistance under this subpart for 2 fiscal years.
``SEC. <<NOTE: 20 USC 6561h.>> 1829. SCHOOL DROPOUT RATE CALCULATION.
``For purposes of calculating an annual school dropout rate under
this subpart, a school shall use the annual event school dropout rate
for students leaving a school in a single year determined in accordance
with the National Center for Education Statistics' Common Core of Data.
``SEC. <<NOTE: 20 USC 6561i.>> 1830. REPORTING AND ACCOUNTABILITY.
``(a) Local Educational Agency Reports.--
``(1) In general.--To receive funds under this subpart for a
fiscal year after the first fiscal year that a local educational
agency receives funds under this subpart, the local educational
agency shall provide, on an annual basis, a report regarding the
status of the implementation of activities funded under this
subpart, and the dropout data for students at schools assisted
under this subpart, disaggregated by race and ethnicity, to
the--
``(A) Secretary, if the local educational agency
receives a grant under section 1822(a)(1); or
[[Page 115 STAT. 1617]]
``(B) State educational agency, if the local
educational agency receives a subgrant under paragraph
(2) or (3) of section 1822(a).
``(2) Dropout data.--The dropout data under paragraph (1)
shall include annual school dropout rates for each fiscal year,
starting with the 2 fiscal years before the local educational
agency received funds under this subpart.
``(b) State Report on Program Activities.--Each State educational
agency receiving funds under this subpart shall provide to the
Secretary, at such time and in such format as the Secretary may require,
information on the status of the implementation of activities funded
under this subpart and outcome data for students in schools assisted
under this subpart.
``(c) Accountability.--The Secretary shall evaluate the effect of
the activities assisted under this subpart on school dropout prevention
compared, if feasible, to a control group using control procedures. The
Secretary may use funds appropriated for subpart 1 to carry out this
evaluation.
``PART I--GENERAL PROVISIONS
``SEC. <<NOTE: 20 USC 6571.>> 1901. FEDERAL REGULATIONS.
``(a) In General.--The Secretary may issue such regulations as are
necessary to reasonably ensure that there is compliance with this title.
``(b) Negotiated Rulemaking Process.--
``(1) <<NOTE: Federal Register, publication.>> In general.--
Before publishing in the Federal Register proposed regulations
to carry out this title, the Secretary shall obtain the advice
and recommendations of representatives of Federal, State, and
local administrators, parents, teachers, paraprofessionals, and
members of local school boards and other organizations involved
with the implementation and operation of programs under this
title.
``(2) Meetings and electronic exchange.--Such advice and
recommendations may be obtained through such mechanisms as
regional meetings and electronic exchanges of information.
``(3) Proposed regulations.--After obtaining such advice and
recommendations, and before publishing proposed regulations, the
Secretary shall--
``(A) establish a negotiated rulemaking process on,
at a minimum, standards and assessments;
``(B) select individuals to participate in such
process from among individuals or groups that provided
advice and recommendations, including representation
from all geographic regions of the United States, in
such numbers as will provide an equitable balance
between representatives of parents and students and
representatives of educators and education officials;
and
``(C) <<NOTE: Deadline.>> prepare a draft of
proposed policy options that shall be provided to the
individuals selected by the Secretary under subparagraph
(B) not less than 15 days before the first meeting under
such process.
``(4) Process.--Such process--
``(A) <<NOTE: Deadline.>> shall be conducted in a
timely manner to ensure that final regulations are
issued by the Secretary not later
[[Page 115 STAT. 1618]]
than 1 year after the date of enactment of the No Child
Left Behind Act of 2001; and
``(B) shall not be subject to the Federal Advisory
Committee Act, but shall otherwise follow the provisions
of the Negotiated Rulemaking Act of 1990 (5 U.S.C. 561
et seq.).
``(5) Emergency situation.--In an emergency situation in
which regulations to carry out this title must be issued within
a very limited time to assist State educational agencies and
local educational agencies with the operation of a program under
this title, the Secretary may issue proposed regulations without
following such process but shall, immediately thereafter and
before issuing final regulations, conduct regional meetings to
review such proposed regulations.
``(c) Limitation.--Regulations to carry out this part may not
require local programs to follow a particular instructional model, such
as the provision of services outside the regular classroom or school
program.
``SEC. <<NOTE: 20 USC 6572.>> 1902. AGREEMENTS AND RECORDS.
``(a) Agreements.--All published proposed regulations shall conform
to agreements that result from negotiated rulemaking described in
section 1901 unless the Secretary reopens the negotiated rulemaking
process or provides a written explanation to the participants involved
in the process explaining why the Secretary decided to depart from, and
not adhere to, such agreements.
``(b) Records.--The Secretary shall ensure that an accurate and
reliable record of agreements reached during the negotiations process is
maintained.
``SEC. <<NOTE: 20 USC 6573.>> 1903. STATE ADMINISTRATION.
``(a) Rulemaking.--
``(1) In general.--Each State that receives funds under this
title shall--
``(A) ensure that any State rules, regulations, and
policies relating to this title conform to the purposes
of this title and provide any such proposed rules,
regulations, and policies to the committee of
practitioners created under subsection (b) for review
and comment;
``(B) minimize such rules, regulations, and policies
to which the State's local educational agencies and
schools are subject;
``(C) eliminate or modify State and local fiscal
accounting requirements in order to facilitate the
ability of schools to consolidate funds under schoolwide
programs; and
``(D) identify any such rule, regulation, or policy
as a State-imposed requirement.
``(2) Support and facilitation.--State rules, regulations,
and policies under this title shall support and facilitate local
educational agency and school-level systemic reform designed to
enable all children to meet the challenging State student
academic achievement standards.
``(b) Committee of Practitioners.--
``(1) In general.--Each State educational agency that
receives funds under this title shall create a State committee
of practitioners to advise the State in carrying out its
responsibilities under this title.
[[Page 115 STAT. 1619]]
``(2) Membership.--Each such committee shall include--
``(A) as a majority of its members, representatives
from local educational agencies;
``(B) administrators, including the administrators
of programs described in other parts of this title;
``(C) teachers, including vocational educators;
``(D) parents;
``(E) members of local school boards;
``(F) representatives of private school children;
and
``(G) pupil services personnel.
``(3) Duties.--The duties of such committee shall include a
review, before publication, of any proposed or final State rule
or regulation pursuant to this title. In an emergency situation
where such rule or regulation must be issued within a very
limited time to assist local educational agencies with the
operation of the program under this title, the State educational
agency may issue a regulation without prior consultation, but
shall immediately thereafter convene the State committee of
practitioners to review the emergency regulation before issuance
in final form.
``SEC. <<NOTE: 20 USC 6574.>> 1904. LOCAL EDUCATIONAL AGENCY SPENDING
AUDITS.
``(a) Audits.--The Comptroller General of the United States shall
conduct audits of not less than 6 local educational agencies that
receive funds under part A in each fiscal year to determine more clearly
and specifically how local educational agencies are expending such
funds. Such audits--
``(1) shall be conducted in 6 local educational agencies
that represent the size, ethnic, economic, and geographic
diversity of local educational agencies; and
``(2) shall examine the extent to which funds have been
expended for academic instruction in the core curriculum and
activities unrelated to academic instruction in the core
curriculum, such as the payment of janitorial, utility, and
other maintenance services, the purchase and lease of vehicles,
and the payment for travel and attendance costs at conferences.
``(b) <<NOTE: Deadline.>> Report.--Not later than 3 months after the
completion of the audits under subsection (a) each year, the Comptroller
General of the United States shall submit a report on each audit to the
Committee on Education and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor and Pensions of the
Senate.
``SEC. <<NOTE: 20 USC 6575.>> 1905. PROHIBITION AGAINST FEDERAL
MANDATES, DIRECTION, OR CONTROL.
``Nothing in this title shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or control a
State, local educational agency, or school's specific instructional
content, academic achievement standards and assessments, curriculum, or
program of instruction.
``SEC. <<NOTE: 20 USC 6576.>> 1906. RULE OF CONSTRUCTION ON EQUALIZED
SPENDING.
``Nothing in this title shall be construed to mandate equalized
spending per pupil for a State, local educational agency, or school.
``SEC. <<NOTE: 20 USC 6577.>> 1907. STATE REPORT ON DROPOUT DATA.
``Not <<NOTE: Deadline.>> later than 1 year after a State
educational agency receives funds under this title, the agency shall
report to the Secretary
[[Page 115 STAT. 1620]]
and statewide, all school district data regarding annual school dropout
rates in the State disaggregated by race and ethnicity according to
procedures that conform with the National Center for Education
Statistics' Common Core of Data.
``SEC. <<NOTE: 20 USC 6578.>> 1908. REGULATIONS FOR SECTIONS 1111 AND
1116.
``The <<NOTE: Deadline.>> Secretary shall issue regulations for
sections 1111 and 1116 not later than 6 months after the date of
enactment of the No Child Left Behind Act of 2001.''.
TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND
PRINCIPALS
SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.
Title II (20 U.S.C. 6601 et seq.) is amended to read as follows:
``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS
AND PRINCIPALS
``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND
``SEC. <<NOTE: 20 USC 6601.>> 2101. PURPOSE.
``The purpose of this part is to provide grants to State educational
agencies, local educational agencies, State agencies for higher
education, and eligible partnerships in order to--
``(1) increase student academic achievement through
strategies such as improving teacher and principal quality and
increasing the number of highly qualified teachers in the
classroom and highly qualified principals and assistant
principals in schools; and
``(2) hold local educational agencies and schools
accountable for improvements in student academic achievement.
``SEC. <<NOTE: 20 USC 6602.>> 2102. DEFINITIONS.
``In this part:
``(1) Arts and sciences.--The term `arts and sciences'
means--
``(A) when referring to an organizational unit of an
institution of higher education, any academic unit that
offers one or more academic majors in disciplines or
content areas corresponding to the academic subjects in
which teachers teach; and
``(B) when referring to a specific academic subject,
the disciplines or content areas in which an academic
major is offered by an organizational unit described in
subparagraph (A).
``(2) Charter school.--The term `charter school' has the
meaning given the term in section 5210.
[[Page 115 STAT. 1621]]
``(3) High-need local educational agency.--The term `high-
need local educational agency' means a local educational
agency--
``(A)(i) that serves not fewer than 10,000 children
from families with incomes below the poverty line; or
``(ii) for which not less than 20 percent of the
children served by the agency are from families with
incomes below the poverty line; and
``(B)(i) for which there is a high percentage of
teachers not teaching in the academic subjects or grade
levels that the teachers were trained to teach; or
``(ii) for which there is a high percentage of
teachers with emergency, provisional, or temporary
certification or licensing.
``(4) Highly qualified paraprofessional.--The term `highly
qualified paraprofessional' means a paraprofessional who has not
less than 2 years of--
``(A) experience in a classroom; and
``(B) postsecondary education or demonstrated
competence in a field or academic subject for which
there is a significant shortage of qualified teachers.
``(5) Out-of-field teacher.--The term `out-of-field teacher'
means a teacher who is teaching an academic subject or a grade
level for which the teacher is not highly qualified.
``(6) Principal.--The term `principal' includes an assistant
principal.
``SEC. <<NOTE: 20 USC 6603.>> 2103. AUTHORIZATIONS OF APPROPRIATIONS.
``(a) Grants to States, Local Educational Agencies, and Eligible
Partnerships.--There are authorized to be appropriated to carry out this
part (other than subpart 5) $3,175,000,000 for fiscal year 2002 and such
sums as may be necessary for each of the 5 succeeding fiscal years.
``(b) National Programs.--There are authorized to be appropriated to
carry out subpart 5 such sums as may be necessary for fiscal year 2002
and each of the 5 succeeding fiscal years.
``Subpart 1--Grants to States
``SEC. <<NOTE: 20 USC 6611.>> 2111. ALLOTMENTS TO STATES.
``(a) In General.--The Secretary shall make grants to States with
applications approved under section 2112 to pay for the Federal share of
the cost of carrying out the activities specified in section 2113. Each
grant shall consist of the allotment determined for a State under
subsection (b).
``(b) Determination of Allotments.--
``(1) Reservation of funds.--
``(A) In general.--From the total amount
appropriated under section 2103(a) for a fiscal year,
the Secretary shall reserve--
``(i) one-half of 1 percent for allotments for
the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern
Mariana Islands, to be distributed among those
outlying areas on the basis of their relative
need, as determined by the Secretary, in
accordance with the purpose of this part; and
[[Page 115 STAT. 1622]]
``(ii) one-half of 1 percent for the Secretary
of the Interior for programs under this part in
schools operated or funded by the Bureau of Indian
Affairs.
``(2) State allotments.--
``(A) Hold harmless.--
``(i) In general.--Subject to subparagraph
(B), from the funds appropriated under section
2103(a) for any fiscal year and not reserved under
paragraph (1), the Secretary shall allot to each
of the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico an amount equal to
the total amount that such State received for
fiscal year 2001 under--
``(I) section 2202(b) of this Act
(as in effect on the day before the date
of enactment of the No Child Left Behind
Act of 2001); and
``(II) section 306 of the Department
of Education Appropriations Act, 2001
(as enacted into law by section 1(a)(1)
of Public Law 106-554).
``(ii) Ratable reduction.--If the funds
described in clause (i) are insufficient to pay
the full amounts that all States are eligible to
receive under clause (i) for any fiscal year, the
Secretary shall ratably reduce those amounts for
the fiscal year.
``(B) Allotment of additional funds.--
``(i) In general.--Subject to clause (ii), for
any fiscal year for which the funds appropriated
under section 2103(a) and not reserved under
paragraph (1) exceed the total amount required to
make allotments under subparagraph (A), the
Secretary shall allot to each of the States
described in subparagraph (A) the sum of--
``(I) an amount that bears the same
relationship to 35 percent of the excess
amount as the number of individuals age
5 through 17 in the State, as determined
by the Secretary on the basis of the
most recent satisfactory data, bears to
the number of those individuals in all
such States, as so determined; and
``(II) an amount that bears the same
relationship to 65 percent of the excess
amount as the number of individuals age
5 through 17 from families with incomes
below the poverty line, in the State, as
determined by the Secretary on the basis
of the most recent satisfactory data,
bears to the number of those individuals
in all such States, as so determined.
``(ii) Exception.--No State receiving an
allotment under clause (i) may receive less than
one-half of 1 percent of the total excess amount
allotted under such clause for a fiscal year.
``(3) Reallotment.--If any State does not apply for an
allotment under this subsection for any fiscal year, the
Secretary shall reallot the amount of the allotment to the
remaining States in accordance with this subsection.
[[Page 115 STAT. 1623]]
``SEC. <<NOTE: 20 USC 6612.>> 2112. STATE APPLICATIONS.
``(a) In General.--For a State to be eligible to receive a grant
under this part, the State educational agency shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(b) Contents.--Each application submitted under this section shall
include the following:
``(1) A description of how the activities to be carried out
by the State educational agency under this subpart will be based
on a review of scientifically based research and an explanation
of why the activities are expected to improve student academic
achievement.
``(2) A description of how the State educational agency will
ensure that a local educational agency receiving a subgrant to
carry out subpart 2 will comply with the requirements of such
subpart.
``(3) A description of how the State educational agency will
ensure that activities assisted under this subpart are aligned
with challenging State academic content and student academic
achievement standards, State assessments, and State and local
curricula.
``(4) A description of how the State educational agency will
use funds under this part to improve the quality of the State's
teachers and principals.
``(5)(A) A description of how the State educational agency
will coordinate professional development activities authorized
under this part with professional development activities
provided under other Federal, State, and local programs.
``(B) A description of the comprehensive strategy that the
State educational agency will use, as part of such coordination
effort, to ensure that teachers are trained in the use of
technology so that technology and applications of technology are
effectively used in the classroom to improve teaching and
learning in all curricula and academic subjects, as appropriate.
``(6) A description of how the State educational agency will
encourage the development of proven, innovative strategies to
deliver intensive professional development programs that are
both cost-effective and easily accessible, such as strategies
that involve delivery through the use of technology, peer
networks, and distance learning.
``(7)(A) A description of how the State educational agency
will ensure compliance with the requirements for professional
development activities described in section 9101 and how the
activities to be carried out under the grant will be developed
collaboratively and based on the input of teachers, principals,
parents, administrators, paraprofessionals, and other school
personnel.
``(B) In the case of a State in which the State educational
agency is not the entity responsible for teacher professional
standards, certification, and licensing, an assurance that the
State activities carried out under this subpart are carried out
in conjunction with the entity responsible for such standards,
certification, and licensing under State law.
``(8) A description of how the State educational agency will
ensure that the professional development (including teacher
[[Page 115 STAT. 1624]]
mentoring) needs of teachers will be met using funds under this
subpart and subpart 2.
``(9) A description of the State educational agency's annual
measurable objectives under section 1119(a)(2).
``(10) A description of how the State educational agency
will use funds under this part to meet the teacher and
paraprofessional requirements of section 1119 and how the State
educational agency will hold local educational agencies
accountable for meeting the annual measurable objectives
described in section 1119(a)(2).
``(11) In the case of a State that has a charter school law
that exempts teachers from State certification and licensing
requirements, the specific portion of the State law that
provides for the exemption.
``(12) An assurance that the State educational agency will
comply with section 9501 (regarding participation by private
school children and teachers).
``(c) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this subpart.
``(d) Disapproval.--The Secretary shall not finally disapprove the
application, except after giving the State educational agency notice and
an opportunity for a hearing.
``(e) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this subpart, the Secretary
shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance and, in such notification, shall--
``(A) cite the specific provisions in the
application that are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(f) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (e)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (c).
``(g) Failure To Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (e)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
[[Page 115 STAT. 1625]]
``SEC. 2113. STATE USE OF FUNDS. <<NOTE: 20 USC 6613.>>
``(a) In General.--A State that receives a grant under section 2111
shall--
``(1) reserve 95 percent of the funds made available through
the grant to make subgrants to local educational agencies as
described in subpart 2;
``(2) reserve 2.5 percent (or, for a fiscal year described
in subsection (b), the percentage determined under subsection
(b)) of the funds to make subgrants to local partnerships as
described in subpart 3; and
``(3) use the remainder of the funds for State activities
described in subsection (c).
``(b) Special Rule.--For any fiscal year for which the total amount
that would be reserved by all States under subsection (a)(2), if the
States applied a 2.5 percentage rate, exceeds $125,000,000, the
Secretary shall determine an alternative percentage that the States
shall apply for that fiscal year under subsection (a)(2) so that the
total amount reserved by all States under subsection (a)(2) equals
$125,000,000.
``(c) State Activities.--The State educational agency for a State
that receives a grant under section 2111 shall use the funds described
in subsection (a)(3) to carry out one or more of the following
activities, which may be carried out through a grant or contract with a
for-profit or nonprofit entity:
``(1) Reforming teacher and principal certification
(including recertification) or licensing requirements to ensure
that--
``(A)(i) teachers have the necessary subject matter
knowledge and teaching skills in the academic subjects
that the teachers teach; and
``(ii) principals have the instructional leadership
skills to help teachers teach and students learn;
``(B) teacher certification (including
recertification) or licensing requirements are aligned
with challenging State academic content standards; and
``(C) teachers have the subject matter knowledge and
teaching skills, including technology literacy, and
principals have the instructional leadership skills,
necessary to help students meet challenging State
student academic achievement standards.
``(2) Carrying out programs that provide support to teachers
or principals, including support for teachers and principals new
to their profession, such as programs that--
``(A) provide teacher mentoring, team teaching,
reduced class schedules, and intensive professional
development; and
``(B) use standards or assessments for guiding
beginning teachers that are consistent with challenging
State student academic achievement standards and with
the requirements for professional development activities
described in section 9101.
``(3) Carrying out programs that establish, expand, or
improve alternative routes for State certification of teachers
and principals, especially in the areas of mathematics and
science, for highly qualified individuals with a baccalaureate
or master's degree, including mid-career professionals from
other occupations, paraprofessionals, former military personnel,
[[Page 115 STAT. 1626]]
and recent college or university graduates with records of
academic distinction who demonstrate the potential to become
highly effective teachers or principals.
``(4) Developing and implementing mechanisms to assist local
educational agencies and schools in effectively recruiting and
retaining highly qualified teachers, including specialists in
core academic subjects, principals, and pupil services
personnel, except that funds made available under this paragraph
may be used for pupil services personnel only--
``(A) if the State educational agency is making
progress toward meeting the annual measurable objectives
described in section 1119(a)(2); and
``(B) in a manner consistent with mechanisms to
assist local educational agencies and schools in
effectively recruiting and retaining highly qualified
teachers and principals.
``(5) Reforming tenure systems, implementing teacher testing
for subject matter knowledge, and implementing teacher testing
for State certification or licensing, consistent with title II
of the Higher Education Act of 1965.
``(6) Providing professional development for teachers and
principals and, in cases in which a State educational agency
determines support to be appropriate, supporting the
participation of pupil services personnel in the same type of
professional development activities as are made available to
teachers and principals.
``(7) Developing systems to measure the effectiveness of
specific professional development programs and strategies to
document gains in student academic achievement or increases in
teacher mastery of the academic subjects the teachers teach.
``(8) Fulfilling the State educational agency's
responsibilities concerning proper and efficient administration
of the programs carried out under this part, including provision
of technical assistance to local educational agencies.
``(9) Funding projects to promote reciprocity of teacher and
principal certification or licensing between or among States,
except that no reciprocity agreement developed under this
paragraph or developed using funds provided under this part may
lead to the weakening of any State teaching certification or
licensing requirement.
``(10) Developing or assisting local educational agencies in
the development and use of proven, innovative strategies to
deliver intensive professional development programs that are
both cost-effective and easily accessible, such as strategies
that involve delivery through the use of technology, peer
networks, and distance learning.
``(11) Encouraging and supporting the training of teachers
and administrators to effectively integrate technology into
curricula and instruction, including training to improve the
ability to collect, manage, and analyze data to improve
teaching, decisionmaking, school improvement efforts, and
accountability.
``(12) Developing, or assisting local educational agencies
in developing, merit-based performance systems, and strategies
that provide differential and bonus pay for teachers in high-
need academic subjects such as reading, mathematics, and science
and teachers in high-poverty schools and districts.
[[Page 115 STAT. 1627]]
``(13) Providing assistance to local educational agencies
for the development and implementation of professional
development programs for principals that enable the principals
to be effective school leaders and prepare all students to meet
challenging State academic content and student academic
achievement standards, and the development and support of school
leadership academies to help exceptionally talented aspiring or
current principals and superintendents become outstanding
managers and educational leaders.
``(14) Developing, or assisting local educational agencies
in developing, teacher advancement initiatives that promote
professional growth and emphasize multiple career paths (such as
paths to becoming a career teacher, mentor teacher, or exemplary
teacher) and pay differentiation.
``(15) Providing assistance to teachers to enable them to
meet certification, licensing, or other requirements needed to
become highly qualified by the end of the fourth year for which
the State receives funds under this part (as amended by the No
Child Left Behind Act of 2001).
``(16) Supporting activities that ensure that teachers are
able to use challenging State academic content standards and
student academic achievement standards, and State assessments,
to improve instructional practices and improve student academic
achievement.
``(17) Funding projects and carrying out programs to
encourage men to become elementary school teachers.
``(18) Establishing and operating a center that--
``(A) serves as a statewide clearinghouse for the
recruitment and placement of kindergarten, elementary
school, and secondary school teachers; and
``(B) establishes and carries out programs to
improve teacher recruitment and retention within the
State.
``(d) Administrative Costs.--A State educational agency or State
agency for higher education receiving a grant under this part may use
not more than 1 percent of the grant funds for planning and
administration related to carrying out activities under subsection (c)
and subpart 3.
``(e) Coordination.--A State that receives a grant to carry out this
subpart and a grant under section 202 of the Higher Education Act of
1965 shall coordinate the activities carried out under this subpart and
the activities carried out under that section.
``(f) Supplement, Not Supplant.--Funds received under this subpart
shall be used to supplement, and not supplant, non-Federal funds that
would otherwise be used for activities authorized under this subpart.
``Subpart 2--Subgrants to Local Educational Agencies
``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES. <<NOTE: 20 USC
6621.>>
``(a) Subgrants to Local Educational Agencies.--
``(1) In general.--The Secretary may make a grant to a State
under subpart 1 only if the State educational agency agrees to
distribute the funds described in this subsection as subgrants
to local educational agencies under this subpart.
``(2) Hold harmless.--
[[Page 115 STAT. 1628]]
``(A) In general.--From the funds reserved by a
State under section 2113(a)(1), the State educational
agency shall allocate to each local educational agency
in the State an amount equal to the total amount that
such agency received for fiscal year 2001 under--
``(i) section 2203(1)(B) of this Act (as in
effect on the day before the date of enactment of
the No Child Left Behind Act of 2001); and
``(ii) section 306 of the Department of
Education Appropriations Act, 2001 (as enacted
into law by section 1(a)(1) of Public Law 106-
554).
``(B) Nonparticipating agencies.--In the case of a
local educational agency that did not receive any funds
for fiscal year 2001 under one or both of the provisions
referred to in clauses (i) and (ii) of subparagraph (A),
the amount allocated to the agency under such
subparagraph shall be the total amount that the agency
would have received for fiscal year 2001 if the agency
had elected to participate in all of the programs for
which the agency was eligible under each of the
provisions referred to in those clauses.
``(C) Ratable reduction.--If the funds described in
subparagraph (A) are insufficient to pay the full
amounts that all local educational agencies in the State
are eligible to receive under subparagraph (A) for any
fiscal year, the State educational agency shall ratably
reduce such amounts for the fiscal year.
``(3) Allocation of additional funds.--For any fiscal year
for which the funds reserved by a State under section 2113(a)(1)
exceed the total amount required to make allocations under
paragraph (2), the State educational agency shall allocate to
each of the eligible local educational agencies in the State the
sum of--
``(A) an amount that bears the same relationship to
20 percent of the excess amount as the number of
individuals age 5 through 17 in the geographic area
served by the agency, as determined by the Secretary on
the basis of the most recent satisfactory data, bears to
the number of those individuals in the geographic areas
served by all the local educational agencies in the
State, as so determined; and
``(B) an amount that bears the same relationship to
80 percent of the excess amount as the number of
individuals age 5 through 17 from families with incomes
below the poverty line in the geographic area served by
the agency, as determined by the Secretary on the basis
of the most recent satisfactory data, bears to the
number of those individuals in the geographic areas
served by all the local educational agencies in the
State, as so determined.
``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT. <<NOTE: 20 USC
6622.>>
``(a) In General.--To be eligible to receive a subgrant under this
subpart, a local educational agency shall submit an application to the
State educational agency at such time, in such manner, and containing
such information as the State educational agency may reasonably require.
[[Page 115 STAT. 1629]]
``(b) Contents.--Each application submitted under this section shall
be based on the needs assessment required in subsection (c) and shall
include the following:
``(1)(A) A description of the activities to be carried out
by the local educational agency under this subpart and how these
activities will be aligned with--
``(i) challenging State academic content standards
and student academic achievement standards, and State
assessments; and
``(ii) the curricula and programs tied to the
standards described in clause (i).
``(B) A description of how the activities will be based on a
review of scientifically based research and an explanation of
why the activities are expected to improve student academic
achievement.
``(2) A description of how the activities will have a
substantial, measurable, and positive impact on student academic
achievement and how the activities will be used as part of a
broader strategy to eliminate the achievement gap that separates
low-income and minority students from other students.
``(3) An assurance that the local educational agency will
target funds to schools within the jurisdiction of the local
educational agency that--
``(A) have the lowest proportion of highly qualified
teachers;
``(B) have the largest average class size; or
``(C) are identified for school improvement under
section 1116(b).
``(4) A description of how the local educational agency will
coordinate professional development activities authorized under
this subpart with professional development activities provided
through other Federal, State, and local programs.
``(5) A description of the professional development
activities that will be made available to teachers and
principals under this subpart and how the local educational
agency will ensure that the professional development (which may
include teacher mentoring) needs of teachers and principals will
be met using funds under this subpart.
``(6) A description of how the local educational agency will
integrate funds under this subpart with funds received under
part D that are used for professional development to train
teachers to integrate technology into curricula and instruction
to improve teaching, learning, and technology literacy.
``(7) A description of how the local educational agency,
teachers, paraprofessionals, principals, other relevant school
personnel, and parents have collaborated in the planning of
activities to be carried out under this subpart and in the
preparation of the application.
``(8) A description of the results of the needs assessment
described in subsection (c).
``(9) A description of how the local educational agency will
provide training to enable teachers to--
``(A) teach and address the needs of students with
different learning styles, particularly students with
disabilities, students with special learning needs
(including students who are gifted and talented), and
students with limited English proficiency;
[[Page 115 STAT. 1630]]
``(B) improve student behavior in the classroom and
identify early and appropriate interventions to help
students described in subparagraph (A) learn;
``(C) involve parents in their child's education;
and
``(D) understand and use data and assessments to
improve classroom practice and student learning.
``(10) A description of how the local educational agency
will use funds under this subpart to meet the requirements of
section 1119.
``(11) An assurance that the local educational agency will
comply with section 9501 (regarding participation by private
school children and teachers).
``(c) Needs Assessment.--
``(1) In general.--To be eligible to receive a subgrant
under this subpart, a local educational agency shall conduct an
assessment of local needs for professional development and
hiring, as identified by the local educational agency and school
staff.
``(2) Requirements.--Such needs assessment shall be
conducted with the involvement of teachers, including teachers
participating in programs under part A of title I, and shall
take into account the activities that need to be conducted in
order to give teachers the means, including subject matter
knowledge and teaching skills, and to give principals the
instructional leadership skills to help teachers, to provide
students with the opportunity to meet challenging State and
local student academic achievement standards.
``SEC. 2123. LOCAL USE OF FUNDS. <<NOTE: 20 USC 6623.>>
``(a) In General.--A local educational agency that receives a
subgrant under section 2121 shall use the funds made available through
the subgrant to carry out one or more of the following activities,
including carrying out the activities through a grant or contract with a
for-profit or nonprofit entity:
``(1) Developing and implementing mechanisms to assist
schools in effectively recruiting and retaining highly qualified
teachers, including specialists in core academic subjects,
principals, and pupil services personnel, except that funds made
available under this paragraph may be used for pupil services
personnel only--
``(A) if the local educational agency is making
progress toward meeting the annual measurable objectives
described in section 1119(a)(2); and
``(B) in a manner consistent with mechanisms to
assist schools in effectively recruiting and retaining
highly qualified teachers and principals.
``(2) Developing and implementing initiatives to assist in
recruiting highly qualified teachers (particularly initiatives
that have proven effective in retaining highly qualified
teachers), and hiring highly qualified teachers, who will be
assigned teaching positions within their fields, including--
``(A) providing scholarships, signing bonuses, or
other financial incentives, such as differential pay,
for teachers to teach--
``(i) in academic subjects in which there
exists a shortage of highly qualified teachers
within a school or within the local educational
agency; and
[[Page 115 STAT. 1631]]
``(ii) in schools in which there exists a
shortage of highly qualified teachers;
``(B) recruiting and hiring highly qualified
teachers to reduce class size, particularly in the early
grades; and
``(C) establishing programs that--
``(i) train and hire regular and special
education teachers (which may include hiring
special education teachers to team-teach in
classrooms that contain both children with
disabilities and nondisabled children);
``(ii) train and hire highly qualified
teachers of special needs children, as well as
teaching specialists in core academic subjects who
will provide increased individualized instruction
to students;
``(iii) recruit qualified professionals from
other fields, including highly qualified
paraprofessionals, and provide such professionals
with alternative routes to teacher certification,
including developing and implementing hiring
policies that ensure comprehensive recruitment
efforts as a way to expand the applicant pool,
such as through identifying teachers certified
through alternative routes, and using a system of
intensive screening designed to hire the most
qualified applicants; and
``(iv) provide increased opportunities for
minorities, individuals with disabilities, and
other individuals underrepresented in the teaching
profession.
``(3) Providing professional development activities--
``(A) that improve the knowledge of teachers and
principals and, in appropriate cases, paraprofessionals,
concerning--
``(i) one or more of the core academic
subjects that the teachers teach; and
``(ii) effective instructional strategies,
methods, and skills, and use of challenging State
academic content standards and student academic
achievement standards, and State assessments, to
improve teaching practices and student academic
achievement; and
``(B) that improve the knowledge of teachers and
principals and, in appropriate cases, paraprofessionals,
concerning effective instructional practices and that--
``(i) involve collaborative groups of teachers
and administrators;
``(ii) provide training in how to teach and
address the needs of students with different
learning styles, particularly students with
disabilities, students with special learning needs
(including students who are gifted and talented),
and students with limited English proficiency;
``(iii) provide training in methods of--
``(I) improving student behavior in
the classroom; and
``(II) identifying early and
appropriate interventions to help
students described in clause (ii) learn;
``(iv) provide training to enable teachers and
principals to involve parents in their child's
education,
[[Page 115 STAT. 1632]]
especially parents of limited English proficient
and immigrant children; and
``(v) provide training on how to understand
and use data and assessments to improve classroom
practice and student learning.
``(4) Developing and implementing initiatives to promote
retention of highly qualified teachers and principals,
particularly within elementary schools and secondary schools
with a high percentage of low-achieving students, including
programs that provide--
``(A) teacher mentoring from exemplary teachers,
principals, or superintendents;
``(B) induction and support for teachers and
principals during their first 3 years of employment as
teachers or principals, respectively;
``(C) incentives, including financial incentives, to
retain teachers who have a record of success in helping
low-achieving students improve their academic
achievement; or
``(D) incentives, including financial incentives, to
principals who have a record of improving the academic
achievement of all students, but particularly students
from economically disadvantaged families, students from
racial and ethnic minority groups, and students with
disabilities.
``(5) Carrying out programs and activities that are designed
to improve the quality of the teacher force, such as--
``(A) innovative professional development programs
(which may be provided through partnerships including
institutions of higher education), including programs
that train teachers and principals to integrate
technology into curricula and instruction to improve
teaching, learning, and technology literacy, are
consistent with the requirements of section 9101, and
are coordinated with activities carried out under part
D;
``(B) development and use of proven, cost-effective
strategies for the implementation of professional
development activities, such as through the use of
technology and distance learning;
``(C) tenure reform;
``(D) merit pay programs; and
``(E) testing of elementary school and secondary
school teachers in the academic subjects that the
teachers teach.
``(6) Carrying out professional development activities
designed to improve the quality of principals and
superintendents, including the development and support of
academies to help talented aspiring or current principals and
superintendents become outstanding managers and educational
leaders.
``(7) Hiring highly qualified teachers, including teachers
who become highly qualified through State and local alternative
routes to certification, and special education teachers, in
order to reduce class size, particularly in the early grades.
``(8) Carrying out teacher advancement initiatives that
promote professional growth and emphasize multiple career paths
(such as paths to becoming a career teacher, mentor teacher, or
exemplary teacher) and pay differentiation.
``(10) Carrying out programs and activities related to
exemplary teachers.
[[Page 115 STAT. 1633]]
``(b) Supplement, Not Supplant.--Funds received under this subpart
shall be used to supplement, and not supplant, non-Federal funds that
would otherwise be used for activities authorized under this subpart.
``Subpart 3--Subgrants to Eligible Partnerships
``SEC. 2131. DEFINITIONS. <<NOTE: 20 USC 6631.>>
``In this subpart:
``(1) Eligible partnership.--The term `eligible partnership'
means an entity that--
``(A) shall include--
``(i) a private or State institution of higher
education and the division of the institution that
prepares teachers and principals;
``(ii) a school of arts and sciences; and
``(iii) a high-need local educational agency;
and
``(B) may include another local educational agency,
a public charter school, an elementary school or
secondary school, an educational service agency, a
nonprofit educational organization, another institution
of higher education, a school of arts and sciences
within such an institution, the division of such an
institution that prepares teachers and principals, a
nonprofit cultural organization, an entity carrying out
a prekindergarten program, a teacher organization, a
principal organization, or a business.
``(2) Low-performing school.--The term `low-performing
school' means an elementary school or secondary school that is
identified under section 1116.
``SEC. 2132. SUBGRANTS. <<NOTE: 20 USC 6632.>>
``(a) In General.--The State agency for higher education for a State
that receives a grant under section 2111, working in conjunction with
the State educational agency (if such agencies are separate), shall use
the funds reserved under section 2113(a)(2) to make subgrants, on a
competitive basis, to eligible partnerships to enable such partnerships
to carry out the activities described in section 2134.
``(b) Distribution.--The State agency for higher education shall
ensure that--
``(1) such subgrants are equitably distributed by geographic
area within a State; or
``(2) eligible partnerships in all geographic areas within
the State are served through the subgrants.
``(c) Special Rule.--No single participant in an eligible
partnership may use more than 50 percent of the funds made available to
the partnership under this section.
``SEC. 2133. APPLICATIONS. <<NOTE: 20 USC 6633.>>
``To be eligible to receive a subgrant under this subpart, an
eligible partnership shall submit an application to the State agency for
higher education at such time, in such manner, and containing such
information as the agency may require.
``SEC. 2134. USE OF FUNDS. <<NOTE: 20 USC 6634.>>
``(a) In General.--An eligible partnership that receives a subgrant
under section 2132 shall use the subgrant funds for--
[[Page 115 STAT. 1634]]
``(1) professional development activities in core academic
subjects to ensure that--
``(A) teachers and highly qualified
paraprofessionals, and, if appropriate, principals have
subject matter knowledge in the academic subjects that
the teachers teach, including the use of computer
related technology to enhance student learning; and
``(B) principals have the instructional leadership
skills that will help such principals work most
effectively with teachers to help students master core
academic subjects; and
``(2) developing and providing assistance to local
educational agencies and individuals who are teachers, highly
qualified paraprofessionals, or principals of schools served by
such agencies, for sustained, high-quality professional
development activities that--
``(A) ensure that the individuals are able to use
challenging State academic content standards and student
academic achievement standards, and State assessments,
to improve instructional practices and improve student
academic achievement;
``(B) may include intensive programs designed to
prepare such individuals who will return to a school to
provide instruction related to the professional
development described in subparagraph (A) to other such
individuals within such school; and
``(C) may include activities of partnerships between
one or more local educational agencies, one or more
schools served by such local educational agencies, and
one or more institutions of higher education for the
purpose of improving teaching and learning at low-
performing schools.
``(b) Coordination.--An eligible partnership that receives a
subgrant to carry out this subpart and a grant under section 203 of the
Higher Education Act of 1965 shall coordinate the activities carried out
under this subpart and the activities carried out under that section
203.
``Subpart 4--Accountability
``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY. <<NOTE: 20 USC
6641.>>
``(a) Improvement Plan.--After the second year of the plan described
in section 1119(a)(2), if a State educational agency determines, based
on the reports described in section 1119(b)(1), that a local educational
agency in the State has failed to make progress toward meeting the
annual measurable objectives described in section 1119(a)(2), for 2
consecutive years, such local educational agency shall develop an
improvement plan that will enable the agency to meet such annual
measurable objectives and that specifically addresses issues that
prevented the agency from meeting such annual measurable objectives.
``(b) Technical Assistance.--During the development of the
improvement plan described in subsection (a) and throughout
implementation of the plan, the State educational agency shall--
``(1) provide technical assistance to the local educational
agency; and
``(2) provide technical assistance, if applicable, to
schools served by the local educational agency that need
assistance
[[Page 115 STAT. 1635]]
to enable the local educational agency to meet the annual
measurable objectives described in section 1119(a)(2).
``(c) <<NOTE: Contracts.>> Accountability.--After the third year of
the plan described in section 1119(a)(2), if the State educational
agency determines, based on the reports described in section 1119(b)(1),
that the local educational agency has failed to make progress toward
meeting the annual measurable objectives described in section
1119(a)(2), and has failed to make adequate yearly progress as described
under section 1111(b)(2)(B), for 3 consecutive years, the State
educational agency shall enter into an agreement with such local
educational agency on the use of that agency's funds under this part. As
part of this agreement, the State educational agency--
``(1) shall develop, in conjunction with the local
educational agency, teachers, and principals, professional
development strategies and activities, based on scientifically
based research, that the local educational agency will use to
meet the annual measurable objectives described in section
1119(a)(2) and require such agency to utilize such strategies
and activities; and
``(2)(A) except as provided in subparagraphs (B) and (C),
shall prohibit the use of funds received under part A of title I
to fund any paraprofessional hired after the date such
determination is made;
``(B) shall allow the use of such funds to fund a
paraprofessional hired after that date if the local educational
agency can demonstrate that the hiring is to fill a vacancy
created by the departure of another paraprofessional funded
under title I and such new paraprofessional satisfies the
requirements of section 1119(c); and
``(C) may allow the use of such funds to fund a
paraprofessional hired after that date if the local educational
agency can demonstrate--
``(i) that a significant influx of population has
substantially increased student enrollment; or
``(ii) that there is an increased need for
translators or assistance with parental involvement
activities.
``(d) Special Rule.--During the development of the strategies and
activities described in subsection (c)(1), the State educational agency
shall, in conjunction with the local educational agency, provide from
funds allocated to such local educational agency under subpart 2
directly to one or more schools served by such local educational agency,
to enable teachers at the schools to choose, with continuing
consultation with the principal involved, professional development
activities that--
``(1) meet the requirements for professional development
activities described in section 9101; and
``(2) are coordinated with other reform efforts at the
schools.
``Subpart 5--National Activities
``SEC. 2151. NATIONAL ACTIVITIES OF DEMONSTRATED
EFFECTIVENESS. <<NOTE: 20 USC 6651.>>
``(a) National Teacher Recruitment Campaign.--The Secretary is
authorized to establish and carry out a national teacher recruitment
campaign, which may include activities carried out through the National
Teacher Recruitment Clearinghouse, to assist
[[Page 115 STAT. 1636]]
high-need local educational agencies in recruiting teachers
(particularly those activities that are effective in retaining new
teachers) and training teachers and to conduct a national public service
campaign concerning the resources for, and the routes to, entering the
field of teaching. In carrying out the campaign, the Secretary may
promote and link the activities of the campaign to the information and
referral activities of the National Teacher Recruitment Clearinghouse.
The Secretary shall coordinate activities under this subsection with
State and regional recruitment activities.
``(b) School Leadership.--
``(1) In general.--The Secretary is authorized to establish
and carry out a national principal recruitment program to assist
high-need local educational agencies in recruiting and training
principals (including assistant principals) through such
activities as--
``(A) providing financial incentives to aspiring new
principals;
``(B) providing stipends to principals who mentor
new principals;
``(C) carrying out professional development programs
in instructional leadership and management; and
``(D) providing incentives that are appropriate for
teachers or individuals from other fields who want to
become principals and that are effective in retaining
new principals.
``(2) Grants.--If the Secretary uses sums made available
under section 2103(b) to carry out paragraph (1), the Secretary
shall carry out such paragraph by making grants, on a
competitive basis, to--
``(A) high-need local educational agencies;
``(B) consortia of high-need local educational
agencies; and
``(C) partnerships of high-need local educational
agencies, nonprofit organizations, and institutions of
higher education.
``(c) Advanced Certification or Advanced Credentialing.--
``(1) In general.--The Secretary is authorized to support
activities to encourage and support teachers seeking advanced
certification or advanced credentialing through high quality
professional teacher enhancement programs designed to improve
teaching and learning.
``(2) Implementation.--In carrying out paragraph (1), the
Secretary shall make grants to eligible entities to--
``(A) develop teacher standards that include
measures tied to increased student academic achievement;
and
``(B) promote outreach, teacher recruitment, teacher
subsidy, or teacher support programs, related to teacher
certification or credentialing by the National Board for
Professional Teaching Standards, the National Council on
Teacher Quality, or other nationally recognized
certification or credentialing organizations.
``(3) Eligible entities.--In this subsection, the term
`eligible entity' includes--
``(A) a State educational agency;
``(B) a local educational agency;
[[Page 115 STAT. 1637]]
``(C) the National Board for Professional Teaching
Standards, in partnership with a high-need local
educational agency or a State educational agency;
``(D) the National Council on Teacher Quality, in
partnership with a high-need local educational agency or
a State educational agency; or
``(E) another recognized entity, including another
recognized certification or credentialing organization,
in partnership with a high-need local educational agency
or a State educational agency.
``(d) Special Education Teacher Training.--The Secretary is
authorized to award a grant to the University of Northern Colorado to
enable such university to provide, to other institutions of higher
education, assistance in training special education teachers.
``(e) Early Childhood Educator Professional Development.--
``(1) Purpose.--The purpose of this subsection is to enhance
the school readiness of young children, particularly
disadvantaged young children, and to prevent young children from
encountering difficulties once the children enter school, by
improving the knowledge and skills of early childhood educators
who work in communities that have high concentrations of
children living in poverty.
``(2) Program authorized.--
``(A) Grants to partnerships.--The Secretary is
authorized to carry out the purpose of this subsection
by awarding grants, on a competitive basis, to
partnerships consisting of--
``(i)(I) one or more institutions of higher
education that provide professional development
for early childhood educators who work with
children from low-income families in high-need
communities; or
``(II) another public or private entity that
provides such professional development;
``(ii) one or more public agencies (including
local educational agencies, State educational
agencies, State human services agencies, and State
and local agencies administering programs under
the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.), Head Start
agencies, or private organizations; and
``(iii) to the extent feasible, an entity with
demonstrated experience in providing training to
educators in early childhood education programs
concerning identifying and preventing behavior
problems or working with children identified as or
suspected to be victims of abuse.
``(B) Duration and number of grants.--
``(i) Duration.--The Secretary shall award
grants under this subsection for periods of not
more than 4 years.
``(ii) Number.--No partnership may receive
more than one grant under this subsection.
``(3) Applications.--
``(A) Applications required.--Any partnership that
desires to receive a grant under this subsection shall
submit
[[Page 115 STAT. 1638]]
an application to the Secretary at such time, in such
manner, and containing such information as the Secretary
may require.
``(B) Contents.--Each such application shall
include--
``(i) a description of the high-need community
to be served by the project proposed to be carried
out through the grant, including such demographic
and socioeconomic information as the Secretary may
request;
``(ii) information on the quality of the early
childhood educator professional development
program currently conducted (as of the date of the
submission of the application) by the institution
of higher education or another provider in the
partnership;
``(iii) the results of a needs assessment that
the entities in the partnership have undertaken to
determine the most critical professional
development needs of the early childhood educators
to be served by the partnership and in the broader
community, and a description of how the proposed
project will address those needs;
``(iv) a description of how the proposed
project will be carried out, including a
description of--
``(I) how individuals will be
selected to participate;
``(II) the types of professional
development activities, based on
scientifically based research, that will
be carried out;
``(III) how research on effective
professional development and on adult
learning will be used to design and
deliver project activities;
``(IV) how the project will be
coordinated with and build on, and will
not supplant or duplicate, early
childhood education professional
development activities in the high-need
community;
``(V) how the project will train
early childhood educators to provide
developmentally appropriate school-
readiness services that are based on the
best available research on early
childhood pedagogy and child development
and learning domains;
``(VI) how the project will train
early childhood educators to meet the
diverse educational needs of children in
the community, including children who
have limited English proficiency,
children with disabilities, or children
with other special needs; and
``(VII) how the project will train
early childhood educators in identifying
and preventing behavioral problems in
children or working with children
identified as or suspected to be victims
of abuse;
``(v) a description of--
``(I) the specific objectives that
the partnership will seek to attain
through the project, and the methods
that the partnership will use to measure
progress toward attainment of those
objectives; and
[[Page 115 STAT. 1639]]
``(II) how the objectives and the
measurement methods align with the
achievement indicators established by
the Secretary under paragraph (6)(A);
``(vi) a description of the partnership's plan
for continuing the activities carried out under
the project after Federal funding ceases;
``(vii) an assurance that, where applicable,
the project will provide appropriate professional
development to volunteers working directly with
young children, as well as to paid staff; and
``(viii) an assurance that, in developing the
application and in carrying out the project, the
partnership has consulted with, and will consult
with, relevant agencies, early childhood educator
organizations, and early childhood providers that
are not members of the partnership.
``(4) Selection of grant recipients.--
``(A) Criteria.--The Secretary shall select
partnerships to receive grants under this subsection on
the basis of the degree to which the communities
proposed to be served require assistance and the quality
of the applications submitted under paragraph (3).
``(B) Geographic distribution.--In selecting
partnerships to receive grants under this subsection,
the Secretary shall seek to ensure that communities in
different regions of the Nation, as well as both urban
and rural communities, are served.
``(5) Uses of funds.--
``(A) In general.--Each partnership receiving a
grant under this subsection shall use the grant funds to
carry out activities that will improve the knowledge and
skills of early childhood educators who are working in
early childhood programs that are located in high-need
communities and serve concentrations of children from
low-income families.
``(B) Allowable activities.--Such activities may
include--
``(i) professional development for early
childhood educators, particularly to familiarize
those educators with the application of recent
research on child, language, and literacy
development and on early childhood pedagogy;
``(ii) professional development for early
childhood educators in working with parents, so
that the educators and parents can work together
to provide and support developmentally appropriate
school-readiness services that are based on
scientifically based research on early childhood
pedagogy and child development and learning
domains;
``(iii) professional development for early
childhood educators to work with children who have
limited English proficiency, children with
disabilities, and children with other special
needs;
[[Page 115 STAT. 1640]]
``(iv) professional development to train early
childhood educators in identifying and preventing
behavioral problems in children or working with
children identified as or suspected to be victims
of abuse;
``(v) activities that assist and support early
childhood educators during their first 3 years in
the field;
``(vi) development and implementation of early
childhood educator professional development
programs that make use of distance learning and
other technologies;
``(vii) professional development activities
related to the selection and use of screening and
diagnostic assessments to improve teaching and
learning; and
``(viii) data collection, evaluation, and
reporting needed to meet the requirements of
paragraph (6) relating to accountability.
``(6) Accountability.--
``(A) Achievement indicators.--On the date on which
the Secretary first issues a notice soliciting
applications for grants under this subsection, the
Secretary shall announce achievement indicators for this
subsection, which shall be designed--
``(i) to measure the quality and accessibility
of the professional development provided;
``(ii) to measure the impact of that
professional development on the early childhood
education provided by the individuals who receive
the professional development; and
``(iii) to provide such other measures of
program impact as the Secretary determines to be
appropriate.
``(B) Annual reports; termination.--
``(i) Annual reports.--Each partnership
receiving a grant under this subsection shall
report annually to the Secretary on the
partnership's progress toward attaining the
achievement indicators.
``(ii) Termination.--The Secretary may
terminate a grant under this subsection at any
time if the Secretary determines that the
partnership receiving the grant is not making
satisfactory progress toward attaining the
achievement indicators.
``(7) Cost-sharing.--
``(A) In general.--Each partnership carrying out a
project through a grant awarded under this subsection
shall provide, from sources other than the program
carried out under this subsection, which may include
Federal sources--
``(i) at least 50 percent of the total cost of
the project for the grant period; and
``(ii) at least 20 percent of the project cost
for each year.
``(B) Acceptable contributions.--A partnership may
meet the requirements of subparagraph (A) by providing
contributions in cash or in kind, fairly evaluated,
including plant, equipment, and services.
``(C) Waivers.--The Secretary may waive or modify
the requirements of subparagraph (A) for partnerships in
cases of demonstrated financial hardship.
[[Page 115 STAT. 1641]]
``(8) Federal coordination.--The Secretary and the Secretary
of Health and Human Services shall coordinate activities carried
out through programs under this subsection with activities
carried out through other early childhood programs administered
by the Secretary or the Secretary of Health and Human Services.
``(9) Definitions.--In this subsection:
``(A) Early childhood educator.--The term `early
childhood educator' means a person providing, or
employed by a provider of, nonresidential child care
services (including center-based, family-based, and in-
home child care services) that is legally operating
under State law, and that complies with applicable State
and local requirements for the provision of child care
services to children at any age from birth through the
age at which a child may start kindergarten in that
State.
``(B) High-need community.--
``(i) In general.--The term `high-need
community' means--
``(I) a political subdivision of a
State, or a portion of a political
subdivision of a State, in which at
least 50 percent of the children are
from low-income families; or
``(II) a political subdivision of a
State that is among the 10 percent of
political subdivisions of the State
having the greatest numbers of such
children.
``(ii) Determination.--In determining which
communities are described in clause (i), the
Secretary shall use such data as the Secretary
determines are most accurate and appropriate.
``(C) Low-income family.--The term `low-income
family' means a family with an income below the poverty
line for the most recent fiscal year for which
satisfactory data are available.
``(f) Teacher Mobility.--
``(1) Establishment.--The Secretary is authorized to
establish a panel to be known as the National Panel on Teacher
Mobility (referred to in this subsection as the `panel').
``(2) Membership.--The panel shall be composed of 12 members
appointed by the Secretary. The Secretary shall appoint the
members from among practitioners and experts with experience
relating to teacher mobility, such as teachers, members of
teacher certification or licensing bodies, faculty of
institutions of higher education that prepare teachers, and
State policymakers with such experience.
``(3) Period of appointment; vacancies.--Members shall be
appointed for the life of the panel. Any vacancy in the panel
shall not affect the powers of the panel, but shall be filled in
the same manner as the original appointment.
``(4) Duties.--
``(A) Study.--
``(i) In general.--The panel shall study
strategies for increasing mobility and employment
opportunities for highly qualified teachers,
especially for States with teacher shortages and
States with school districts or schools that are
difficult to staff.
[[Page 115 STAT. 1642]]
``(ii) Data and analysis.--As part of the
study, the panel shall evaluate the desirability
and feasibility of State initiatives that support
teacher mobility by collecting data and conducting
effective analysis concerning--
``(I) teacher supply and demand;
``(II) the development of
recruitment and hiring strategies that
support teachers; and
``(III) increasing reciprocity of
certification and licensing across
States.
``(B) <<NOTE: Deadline.>> report.--Not later than 1
year after the date on which all members of the panel
have been appointed, the panel shall submit to the
Secretary and to the appropriate committees of Congress
a report containing the results of the study.
``(5) Powers.--
``(A) Hearings.--The panel may hold such hearings,
sit and act at such times and places, take such
testimony, and receive such evidence as the panel
considers advisable to carry out the objectives of this
subsection.
``(B) Information from federal agencies.--The panel
may secure directly from any Federal department or
agency such information as the panel considers necessary
to carry out the provisions of this subsection. Upon
request of a majority of the members of the panel, the
head of such department or agency shall furnish such
information to the panel.
``(C) Postal services.--The panel may use the United
States mails in the same manner and under the same
conditions as other departments and agencies of the
Federal Government.
``(6) Personnel.--
``(A) Travel expenses.--The members of the panel
shall not receive compensation for the performance of
services for the panel, but shall be allowed travel
expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the panel.
Notwithstanding section 1342 of title 31, United States
Code, the Secretary may accept the voluntary and
uncompensated services of members of the panel.
``(B) Detail of government employees.--Any Federal
Government employee may be detailed to the panel without
reimbursement, and such detail shall be without
interruption or loss of civil service status or
privilege.
``(7) Permanent committee.--Section 14 of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
panel.
``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS
``SEC. 2201. PURPOSE; DEFINITIONS. <<NOTE: 20 USC 6661.>>
``(a) Purpose.--The purpose of this part is to improve the academic
achievement of students in the areas of mathematics
[[Page 115 STAT. 1643]]
and science by encouraging State educational agencies, institutions of
higher education, local educational agencies, elementary schools, and
secondary schools to participate in programs that--
``(1) improve and upgrade the status and stature of
mathematics and science teaching by encouraging institutions of
higher education to assume greater responsibility for improving
mathematics and science teacher education through the
establishment of a comprehensive, integrated system of
recruiting, training, and advising mathematics and science
teachers;
``(2) focus on the education of mathematics and science
teachers as a career-long process that continuously stimulates
teachers' intellectual growth and upgrades teachers' knowledge
and skills;
``(3) bring mathematics and science teachers in elementary
schools and secondary schools together with scientists,
mathematicians, and engineers to increase the subject matter
knowledge of mathematics and science teachers and improve such
teachers' teaching skills through the use of sophisticated
laboratory equipment and work space, computing facilities,
libraries, and other resources that institutions of higher
education are better able to provide than the elementary schools
and secondary schools;
``(4) develop more rigorous mathematics and science
curricula that are aligned with challenging State and local
academic content standards and with the standards expected for
postsecondary study in engineering, mathematics, and science;
and
``(5) improve and expand training of mathematics and science
teachers, including training such teachers in the effective
integration of technology into curricula and instruction.
``(b) Definitions.--In this part:
``(1) Eligible partnership.--The term `eligible partnership'
means a partnership that--
``(A) shall include--
``(i) if grants are awarded under section
2202(a)(1), a State educational agency;
``(ii) an engineering, mathematics, or science
department of an institution of higher education;
and
``(iii) a high-need local educational agency;
and
``(B) may include--
``(i) another engineering, mathematics,
science, or teacher training department of an
institution of higher education;
``(ii) additional local educational agencies,
public charter schools, public or private
elementary schools or secondary schools, or a
consortium of such schools;
``(iii) a business; or
``(iv) a nonprofit or for-profit organization
of demonstrated effectiveness in improving the
quality of mathematics and science teachers.
``(2) Summer workshop or institute.--The term `summer
workshop or institute' means a workshop or institute, conducted
during the summer, that--
``(A) is conducted for a period of not less than 2
weeks;
``(B) includes, as a component, a program that
provides direct interaction between students and
faculty; and
[[Page 115 STAT. 1644]]
``(C) provides for followup training during the
academic year that is conducted in the classroom for a
period of not less than three consecutive or
nonconsecutive days, except that--
``(i) if the workshop or institute is
conducted during a 2-week period, the followup
training shall be conducted for a period of not
less than 4 days; and
``(ii) if the followup training is for
teachers in rural school districts, the followup
training may be conducted through distance
learning.
``SEC. 2202. GRANTS FOR MATHEMATICS AND SCIENCE PARTNERSHIPS. <<NOTE: 20
USC 6662.>>
``(a) Grants Authorized.--
``(1) Grants to partnerships.--For any fiscal year for which
the funds appropriated under section 2203 are less than
$100,000,000, the Secretary is authorized to award grants, on a
competitive basis, to eligible partnerships to carry out the
authorized activities described in subsection (c).
``(2) Grants to state educational agencies.--
``(A) In general.--For any fiscal year for which the
funds appropriated under section 2203 equal or exceed
$100,000,000--
``(i) if an eligible partnership in the State
was previously awarded a grant under paragraph
(1), and the grant period has not ended, the
Secretary shall reserve funds in a sufficient
amount to make payments to the partnership in
accordance with the terms of the grant; and
``(ii) the Secretary is authorized to award
grants to State educational agencies to enable
such agencies to award subgrants, on a competitive
basis, to eligible partnerships to carry out the
authorized activities described in subsection (c).
``(B) Allotment.--The Secretary shall allot the
amount made available under this part for a fiscal year
and not reserved under subparagraph (A)(i) among the
State educational agencies in proportion to the number
of children, aged 5 to 17, who are from families with
incomes below the poverty line and reside in a State for
the most recent fiscal year for which satisfactory data
are available, as compared to the number of such
children who reside in all such States for such year.
``(C) Minimum allotment.--The amount of any State
educational agency's allotment under subparagraph (B)
for any fiscal year may not be less than one-half of 1
percent of the amount made available under this part for
such year.
``(3) Duration.--The Secretary shall award grants under this
part for a period of 3 years.
``(4) Supplement, not supplant.--Funds received under this
part shall be used to supplement, and not supplant, funds that
would otherwise be used for activities authorized under this
part.
``(b) Application Requirements.--
``(1) In general.--Each eligible partnership desiring a
grant or subgrant under this part shall submit an application--
[[Page 115 STAT. 1645]]
``(A) in the case of grants awarded pursuant to
subsection (a)(1), to the Secretary, at such time, in
such manner, and accompanied by such information as the
Secretary may require; or
``(B) in the case of subgrants awarded pursuant to
subsection (a)(2), to the State educational agency, at
such time, in such manner, and accompanied by such
information as the State educational agency may require.
``(2) Contents.--Each application submitted pursuant to
paragraph (1) shall include--
``(A) the results of a comprehensive assessment of
the teacher quality and professional development needs
of any schools, local educational agencies, and State
educational agencies that comprise the eligible
partnership with respect to the teaching and learning of
mathematics and science;
``(B) a description of how the activities to be
carried out by the eligible partnership will be aligned
with challenging State academic content and student
academic achievement standards in mathematics and
science and with other educational reform activities
that promote student academic achievement in mathematics
and science;
``(C) a description of how the activities to be
carried out by the eligible partnership will be based on
a review of scientifically based research, and an
explanation of how the activities are expected to
improve student academic achievement and strengthen the
quality of mathematics and science instruction;
``(D) a description of--
``(i) how the eligible partnership will carry
out the authorized activities described in
subsection (c); and
``(ii) the eligible partnership's evaluation
and accountability plan described in subsection
(e); and
``(E) a description of how the eligible partnership
will continue the activities funded under this part
after the original grant or subgrant period has expired.
``(c) Authorized Activities.--An eligible partnership shall use
funds provided under this part for one or more of the following
activities related to elementary schools or secondary schools:
``(1) Creating opportunities for enhanced and ongoing
professional development of mathematics and science teachers
that improves the subject matter knowledge of such teachers.
``(2) Promoting strong teaching skills for mathematics and
science teachers and teacher educators, including integrating
reliable scientifically based research teaching methods and
technology-based teaching methods into the curriculum.
``(3) Establishing and operating mathematics and science
summer workshops or institutes, including followup training, for
elementary school and secondary school mathematics and science
teachers that--
``(A) shall--
``(i) directly relate to the curriculum and
academic areas in which the teacher provides
instruction, and focus only secondarily on
pedagogy;
``(ii) enhance the ability of the teacher to
understand and use the challenging State academic
content
[[Page 115 STAT. 1646]]
standards for mathematics and science and to
select appropriate curricula; and
``(iii) train teachers to use curricula that
are--
``(I) based on scientific research;
``(II) aligned with challenging
State academic content standards; and
``(III) object-centered, experiment-
oriented, and concept- and content-
based; and
``(B) may include--
``(i) programs that provide teachers and
prospective teachers with opportunities to work
under the guidance of experienced teachers and
college faculty;
``(ii) instruction in the use of data and
assessments to inform and instruct classroom
practice; and
``(iii) professional development activities,
including supplemental and followup activities,
such as curriculum alignment, distance learning,
and activities that train teachers to utilize
technology in the classroom.
``(4) Recruiting mathematics, engineering, and science
majors to teaching through the use of--
``(A) signing and performance incentives that are
linked to activities proven effective in retaining
teachers, for individuals with demonstrated professional
experience in mathematics, engineering, or science;
``(B) stipends provided to mathematics and science
teachers for certification through alternative routes;
``(C) scholarships for teachers to pursue advanced
course work in mathematics, engineering, or science; and
``(D) other programs that the State educational
agency determines to be effective in recruiting and
retaining individuals with strong mathematics,
engineering, or science backgrounds.
``(5) Developing or redesigning more rigorous mathematics
and science curricula that are aligned with challenging State
and local academic content standards and with the standards
expected for postsecondary study in mathematics and science.
``(6) Establishing distance learning programs for
mathematics and science teachers using curricula that are
innovative, content-based, and based on scientifically based
research that is current as of the date of the program involved.
``(7) Designing programs to prepare a mathematics or science
teacher at a school to provide professional development to other
mathematics or science teachers at the school and to assist
beginning and other teachers at the school, including (if
applicable) a mechanism to integrate the teacher's experiences
from a summer workshop or institute into the provision of
professional development and assistance.
``(8) Establishing and operating programs to bring
mathematics and science teachers into contact with working
scientists, mathematicians, and engineers, to expand such
teachers' subject matter knowledge of and research in science
and mathematics.
``(9) Designing programs to identify and develop exemplary
mathematics and science teachers in the kindergarten through
grade 8 classrooms.
[[Page 115 STAT. 1647]]
``(10) Training mathematics and science teachers and
developing programs to encourage young women and other
underrepresented individuals in mathematics and science careers
(including engineering and technology) to pursue postsecondary
degrees in majors leading to such careers.
``(d) Coordination and Consultation.--
``(1) Partnership grants.--An eligible partnership receiving
a grant under section 203 of the Higher Education Act of 1965
shall coordinate the use of such funds with any related
activities carried out by such partnership with funds made
available under this part.
``(2) National science foundation.--In carrying out the
activities authorized by this part, the Secretary shall consult
and coordinate with the Director of the National Science
Foundation, particularly with respect to the appropriate roles
for the Department and the Foundation in the conduct of summer
workshops, institutes, or partnerships to improve mathematics
and science teaching in elementary schools and secondary
schools.
``(e) Evaluation and Accountability Plan.--
``(1) In general.--Each eligible partnership receiving a
grant or subgrant under this part shall develop an evaluation
and accountability plan for activities assisted under this part
that includes rigorous objectives that measure the impact of
activities funded under this part.
``(2) Contents.--The plan developed pursuant to paragraph
(1)--
``(A) shall include measurable objectives to
increase the number of mathematics and science teachers
who participate in content-based professional
development activities;
``(B) shall include measurable objectives for
improved student academic achievement on State
mathematics and science assessments or, where
applicable, an International Mathematics and Science
Study assessment; and
``(C) may include objectives and measures for--
``(i) increased participation by students in
advanced courses in mathematics and science;
``(ii) increased percentages of elementary
school teachers with academic majors or minors, or
group majors or minors, in mathematics,
engineering, or the sciences; and
``(iii) increased percentages of secondary
school classes in mathematics and science taught
by teachers with academic majors in mathematics,
engineering, and science.
``(f) Report.--Each eligible partnership receiving a grant or
subgrant under this part shall report annually to the Secretary
regarding the eligible partnership's progress in meeting the objectives
described in the accountability plan of the partnership under subsection
(e).
``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6663.>>
``There are authorized to be appropriated to carry out this part
$450,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 5 succeeding fiscal years.
[[Page 115 STAT. 1648]]
``PART C--INNOVATION FOR TEACHER QUALITY
``Subpart 1--Transitions to Teaching
``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM
``SEC. 2301. DEFINITIONS. <<NOTE: 20 USC 6671.>>
``In this chapter:
``(1) Armed forces.--The term `Armed Forces' means the Army,
Navy, Air Force, Marine Corps, and Coast Guard.
``(2) Member of the armed forces.--The term `member of the
Armed Forces' includes a former member of the Armed Forces.
``(3) Program.--The term `Program' means the Troops-to-
Teachers Program authorized by this chapter.
``(4) Reserve component.--The term `reserve component'
means--
``(A) the Army National Guard of the United States;
``(B) the Army Reserve;
``(C) the Naval Reserve;
``(D) the Marine Corps Reserve;
``(E) the Air National Guard of the United States;
``(F) the Air Force Reserve; and
``(G) the Coast Guard Reserve.
``(5) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of the Army, with respect to
matters concerning a reserve component of the Army;
``(B) the Secretary of the Navy, with respect to
matters concerning reserve components named in
subparagraphs (C) and (D) of paragraph (4);
``(C) the Secretary of the Air Force, with respect
to matters concerning a reserve component of the Air
Force; and
``(D) the Secretary of Transportation, with respect
to matters concerning the Coast Guard Reserve.
``SEC. 2302. AUTHORIZATION OF TROOPS-TO-TEACHERS PROGRAM. <<NOTE: 20 USC
6672.>>
``(a) Purpose.--The purpose of this section is to authorize a
mechanism for the funding and administration of the Troops-to-Teachers
Program, which was originally established by the Troops-to-Teachers
Program Act of 1999 (title XVII of the National Defense Authorization
Act for Fiscal Year 2000) (20 U.S.C. 9301 et seq.).
``(b) Program Authorized.--The Secretary may carry out a program (to
be known as the `Troops-to-Teachers Program')--
``(1) to assist eligible members of the Armed Forces
described in section 2303 to obtain certification or licensing
as elementary school teachers, secondary school teachers, or
vocational or technical teachers, and to become highly qualified
teachers; and
``(2) to facilitate the employment of such members--
``(A) by local educational agencies or public
charter schools that the Secretary identifies as--
``(i) receiving grants under part A of title I
as a result of having within their jurisdictions
concentrations of children from low-income
families; or
[[Page 115 STAT. 1649]]
``(ii) experiencing a shortage of highly
qualified teachers, in particular a shortage of
science, mathematics, special education, or
vocational or technical teachers; and
``(B) in elementary schools or secondary schools, or
as vocational or technical teachers.
``(c) <<NOTE: Memorandum.>> Administration of Program.--The
Secretary shall enter into a memorandum of agreement with the Secretary
of Defense under which the Secretary of Defense, acting through the
Defense Activity for Non-Traditional Education Support of the Department
of Defense, will perform the actual administration of the Program, other
than section 2306. Using funds appropriated to the Secretary to carry
out this chapter, the Secretary shall transfer to the Secretary of
Defense such amounts as may be necessary to administer the Program
pursuant to the memorandum of agreement.
``(d) Information Regarding Program.--The Secretary shall provide to
the Secretary of Defense information regarding the Program and
applications to participate in the Program, for distribution as part of
preseparation counseling provided under section 1142 of title 10, United
States Code, to members of the Armed Forces described in section 2303.
``(e) Placement Assistance and Referral Services.--The Secretary
may, with the agreement of the Secretary of Defense, provide placement
assistance and referral services to members of the Armed Forces who meet
the criteria described in section 2303, including meeting education
qualification requirements under subsection 2303(c)(2). Such members
shall not be eligible for financial assistance under subsections (c) and
(d) of section 2304.
``SEC. 2303. <<NOTE: 20 USC 6673.>> RECRUITMENT AND SELECTION OF PROGRAM
PARTICIPANTS.
``(a) Eligible Members.--The following members of the Armed Forces
are eligible for selection to participate in the Program:
``(1) Any member who--
``(A) on or after October 1, 1999, becomes entitled
to retired or retainer pay in the manner provided in
title 10 or title 14, United States Code;
``(B) has an approved date of retirement that is
within 1 year after the date on which the member submits
an application to participate in the Program; or
``(C) has been transferred to the Retired Reserve.
``(2) Any member who, on or after the date of enactment of
the No Child Left Behind Act of 2001--
``(A)(i) is separated or released from active duty
after 6 or more years of continuous active duty
immediately before the separation or release; or
``(ii) has completed a total of at least 10 years of
active duty service, 10 years of service computed under
section 12732 of title 10, United States Code, or 10
years of any combination of such service; and
``(B) executes a reserve commitment agreement for a
period of not less than 3 years under subsection (e)(2).
``(3) Any member who, on or after the date of enactment of
the No Child Left Behind Act of 2001, is retired or separated
for physical disability under chapter 61 of title 10, United
States Code.
``(4) Any member who--
[[Page 115 STAT. 1650]]
``(A) during the period beginning on October 1,
1990, and ending on September 30, 1999, was
involuntarily discharged or released from active duty
for purposes of a reduction of force after 6 or more
years of continuous active duty immediately before the
discharge or release; or
``(B) applied for the teacher placement program
administered under section 1151 of title 10, United
States Code, before the repeal of that section, and
satisfied the eligibility criteria specified in
subsection (c) of such section 1151.
``(b) Submission of Applications.--
``(1) Form and submission.--Selection of eligible members of
the Armed Forces to participate in the Program shall be made on
the basis of applications submitted to the Secretary within the
time periods specified in paragraph (2). An application shall be
in such form and contain such information as the Secretary may
require.
``(2) Time for submission.--An application shall be
considered to be submitted on a timely basis under paragraph (1)
if--
``(A) in the case of a member described in paragraph
(1)(A), (2), or (3) of subsection (a), the application
is submitted not later than 4 years after the date on
which the member is retired or separated or released
from active duty, whichever applies to the member; or
``(B) in the case of a member described in
subsection (a)(4), the application is submitted not
later than September 30, 2003.
``(c) Selection Criteria.--
``(1) Establishment.--Subject to paragraphs (2) and (3), the
Secretary shall prescribe the criteria to be used to select
eligible members of the Armed Forces to participate in the
Program.
``(2) Educational background.--
``(A) Elementary or secondary school teacher.--If a
member of the Armed Forces described in paragraph (1),
(2), or (3) of subsection (a) is applying for assistance
for placement as an elementary school or secondary
school teacher, the Secretary shall require the member
to have received a baccalaureate or advanced degree from
an accredited institution of higher education.
``(B) Vocational or technical teacher.--If a member
of the Armed Forces described in paragraph (1), (2), or
(3) of subsection (a) is applying for assistance for
placement as a vocational or technical teacher, the
Secretary shall require the member--
ave received the equivalent of 1 year of
college from an accredited institution of higher
education and have 6 or more years of military
experience in a vocational or technical field; or
``(ii) to otherwise meet the certification or
licensing requirements for a vocational or
technical teacher in the State in which the member
seeks assistance for placement under the Program.
``(3) Honorable service.--A member of the Armed Forces is
eligible to participate in the Program only if the member's
[[Page 115 STAT. 1651]]
last period of service in the Armed Forces was honorable, as
characterized by the Secretary concerned (as defined in section
101(a)(9) of title 10, United States Code). A member selected to
participate in the Program before the retirement of the member
or the separation or release of the member from active duty may
continue to participate in the Program after the retirement,
separation, or release only if the member's last period of
service is characterized as honorable by the Secretary concerned
(as so defined).
``(d) Selection Priorities.--In selecting eligible members of the
Armed Forces to receive assistance under the Program, the Secretary
shall give priority to members who have educational or military
experience in science, mathematics, special education, or vocational or
technical subjects and agree to seek employment as science, mathematics,
or special education teachers in elementary schools or secondary schools
or in other schools under the jurisdiction of a local educational
agency.
``(e) Other Conditions on Selection.--
``(1) Selection subject to funding.--The Secretary may not
select an eligible member of the Armed Forces to participate in
the Program under this section and receive financial assistance
under section 2304 unless the Secretary has sufficient
appropriations for the Program available at the time of the
selection to satisfy the obligations to be incurred by the
United States under section 2304 with respect to the member.
``(2) Reserve commitment agreement.--The Secretary may not
select an eligible member of the Armed Forces described in
subsection (a)(2)(A) to participate in the Program under this
section and receive financial assistance under section 2304
unless--
``(A) the Secretary notifies the Secretary concerned
and the member that the Secretary has reserved a full
stipend or bonus under section 2304 for the member; and
``(B) the member executes a written agreement with
the Secretary concerned to serve as a member of the
Selected Reserve of a reserve component of the Armed
Forces for a period of not less than 3 years (in
addition to any other reserve commitment the member may
have).
``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL
ASSISTANCE. <<NOTE: 20 USC 6674.>>
``(a) Participation Agreement.--
``(1) In general.--An eligible member of the Armed Forces
selected to participate in the Program under section 2303 and
receive financial assistance under this section shall be
required to enter into an agreement with the Secretary in which
the member agrees--
``(A) within such time as the Secretary may require,
to obtain certification or licensing as an elementary
school teacher, secondary school teacher, or vocational
or technical teacher, and to become a highly qualified
teacher; and
``(B) to accept an offer of full-time employment as
an elementary school teacher, secondary school teacher,
or vocational or technical teacher for not less than 3
school years with a high-need local educational agency
or public charter school, as such terms are defined in
section 2101, to begin the school year after obtaining
that certification or licensing.
[[Page 115 STAT. 1652]]
``(2) Waiver.--The Secretary may waive the 3-year commitment
described in paragraph (1)(B) for a participant if the Secretary
determines such waiver to be appropriate. If the Secretary
provides the waiver, the participant shall not be considered to
be in violation of the agreement and shall not be required to
provide reimbursement under subsection (f), for failure to meet
the 3-year commitment.
``(b) Violation of Participation Agreement; Exceptions.--A
participant in the Program shall not be considered to be in violation of
the participation agreement entered into under subsection (a) during any
period in which the participant--
``(1) is pursuing a full-time course of study related to the
field of teaching at an institution of higher education;
``(2) is serving on active duty as a member of the Armed
Forces;
``(3) is temporarily totally disabled for a period of time
not to exceed 3 years as established by sworn affidavit of a
qualified physician;
``(4) is unable to secure employment for a period not to
exceed 12 months by reason of the care required by a spouse who
is disabled;
``(5) is a highly qualified teacher who is seeking and
unable to find full-time employment as a teacher in an
elementary school or secondary school or as a vocational or
technical teacher for a single period not to exceed 27 months;
or
``(6) satisfies the provisions of additional reimbursement
exceptions that may be prescribed by the Secretary.
``(c) Stipend for Participants.--
``(1) Stipend authorized.--Subject to paragraph (2), the
Secretary may pay to a participant in the Program selected under
section 2303 a stipend in an amount of not more than $5,000.
``(2) Limitation.--The total number of stipends that may be
paid under paragraph (1) in any fiscal year may not exceed
5,000.
``(d) Bonus for Participants.--
``(1) Bonus authorized.--Subject to paragraph (2), the
Secretary may, in lieu of paying a stipend under subsection (c),
pay a bonus of $10,000 to a participant in the Program selected
under section 2303 who agrees in the participation agreement
under subsection (a) to become a highly qualified teacher and to
accept full-time employment as an elementary school teacher,
secondary school teacher, or vocational or technical teacher for
not less than 3 school years in a high-need school.
``(2) Limitation.--The total number of bonuses that may be
paid under paragraph (1) in any fiscal year may not exceed
3,000.
``(3) High-need school defined.--In this subsection, the
term `high-need school' means a public elementary school, public
secondary school, or public charter school that meets one or
more of the following criteria:
``(A) Low-income children.--At least 50 percent of
the students enrolled in the school were from low-income
families (as described in section 2302(b)(2)(A)(i)).
``(B) Children with disabilities.--The school has a
large percentage of students who qualify for assistance
[[Page 115 STAT. 1653]]
under part B of the Individuals with Disabilities
Education Act.
``(e) Treatment of Stipend and Bonus.--A stipend or bonus paid under
this section to a participant in the Program shall be taken into account
in determining the eligibility of the participant for Federal student
financial assistance provided under title IV of the Higher Education Act
of 1965.
``(f) Reimbursement Under Certain Circumstances.--
``(1) Reimbursement required.--A participant in the Program
who is paid a stipend or bonus under this section shall be
required to repay the stipend or bonus under the following
circumstances:
``(A) Failure to obtain qualifications or
employment.--The participant fails to obtain teacher
certification or licensing, to become a highly qualified
teacher, or to obtain employment as an elementary school
teacher, secondary school teacher, or vocational or
technical teacher as required by the participation
agreement under subsection (a).
``(B) Termination of employment.--The participant
voluntarily leaves, or is terminated for cause from,
employment as an elementary school teacher, secondary
school teacher, or vocational or technical teacher
during the 3 years of required service in violation of
the participation agreement.
``(C) Failure to complete service under reserve
commitment agreement.--The participant executed a
written agreement with the Secretary concerned under
section 2303(e)(2) to serve as a member of a reserve
component of the Armed Forces for a period of 3 years
and fails to complete the required term of service.
``(2) Amount of reimbursement.--A participant required to
reimburse the Secretary for a stipend or bonus paid to the
participant under this section shall pay an amount that bears
the same ratio to the amount of the stipend or bonus as the
unserved portion of required service bears to the 3 years of
required service. Any amount owed by the participant shall bear
interest at the rate equal to the highest rate being paid by the
United States on the day on which the reimbursement is
determined to be due for securities having maturities of 90 days
or less and shall accrue from the day on which the participant
is first notified of the amount due.
``(3) Treatment of obligation.--The obligation to reimburse
the Secretary under this subsection is, for all purposes, a debt
owing the United States. A discharge in bankruptcy under title
11, United States Code, shall not release a participant from the
obligation to reimburse the Secretary under this subsection.
``(4) Exceptions to reimbursement requirement.--A
participant shall be excused from reimbursement under this
subsection if the participant becomes permanently totally
disabled as established by sworn affidavit of a qualified
physician. The Secretary may also waive the reimbursement in
cases of extreme hardship to the participant, as determined by
the Secretary.
``(g) Relationship to Educational Assistance Under Montgomery GI
Bill.--The receipt by a participant in the Program
[[Page 115 STAT. 1654]]
of a stipend or bonus under this section shall not reduce or otherwise
affect the entitlement of the participant to any benefits under chapter
30 of title 38, United States Code, or chapter 1606 of title 10, United
States Code.
``SEC. 2305. PARTICIPATION BY STATES. <<NOTE: 20 USC 6675.>>
``(a) Discharge of State Activities Through Consortia of States.--
The Secretary may permit States participating in the Program to carry
out activities authorized for such States under the Program through one
or more consortia of such States.
``(b) Assistance to States.--
``(1) Grants authorized.--Subject to paragraph (2), the
Secretary may make grants to States participating in the
Program, or to consortia of such States, in order to permit such
States or consortia of States to operate offices for purposes of
recruiting eligible members of the Armed Forces for
participation in the Program and facilitating the employment of
participants in the Program as elementary school teachers,
secondary school teachers, and vocational or technical teachers.
``(2) Limitation.--The total amount of grants made under
paragraph (1) in any fiscal year may not exceed $5,000,000.
``SEC. 2306. <<NOTE: 20 USC 6676.>> SUPPORT OF INNOVATIVE PRERETIREMENT
TEACHER CERTIFICATION PROGRAMS.
``(a) Purpose.--The purpose of this section is to provide funding to
develop, implement, and demonstrate teacher certification programs.
``(b) Development, Implementation and Demonstration.--The Secretary
may enter into a memorandum of agreement with a State educational
agency, an institution of higher education, or a consortia of State
educational agencies or institutions of higher education, to develop,
implement, and demonstrate teacher certification programs for members of
the Armed Forces described in section 2303(a)(1)(B) for the purpose of
assisting such members to consider and prepare for a career as a highly
qualified elementary school teacher, secondary school teacher, or
vocational or technical teacher upon retirement from the Armed Forces.
``(c) Program Elements.--A teacher certification program under
subsection (b) shall--
``(1) provide recognition of military experience and
training as related to certification or licensing requirements;
``(2) provide courses of instruction that may be conducted
on or near a military installation;
``(3) incorporate alternative approaches to achieve teacher
certification, such as innovative methods to gaining field-based
teaching experiences, and assessment of background and
experience as related to skills, knowledge, and abilities
required of elementary school teachers, secondary school
teachers, or vocational or technical teachers;
``(4) provide for courses to be delivered via distance
education methods; and
``(5) address any additional requirements or specifications
established by the Secretary.
``(d) Application Procedures.--
``(1) In general.--A State educational agency or institution
of higher education (or a consortium of State educational
agencies or institutions of higher education) that desires to
enter into a memorandum under subsection (b) shall prepare and
[[Page 115 STAT. 1655]]
submit to the Secretary a proposal, at such time, in such
manner, and containing such information as the Secretary may
require, including an assurance that the State educational
agency, institution, or consortium is operating a program
leading to State approved teacher certification.
``(2) Preference.--The Secretary shall give preference to
State educational agencies, institutions, and consortia that
submit proposals that provide for cost sharing with respect to
the program involved.
``(e) Continuation of Programs.--Upon successful completion of the
demonstration phase of teacher certification programs funded under this
section, the continued operation of the teacher certification programs
shall not be the responsibility of the Secretary. A State educational
agency, institution, or consortium that desires to continue a program
that is funded under this section after such funding is terminated shall
use amounts derived from tuition charges to continue such program.
``(f) Funding Limitation.--The total amount obligated by the
Secretary under this section for any fiscal year may not exceed
$10,000,000.
``SEC. 2307. REPORTING REQUIREMENTS. <<NOTE: 20 USC 6677.>>
``(a) <<NOTE: Deadline.>> Report Required.--Not later than March
31, 2006, the Secretary (in consultation with the Secretary of Defense
and the Secretary of Transportation) and the Comptroller General of the
United States shall submit to Congress a report on the effectiveness of
the Program in the recruitment and retention of qualified personnel by
local educational agencies and public charter schools.
``(b) Elements of Report.--The report submitted under subsection (a)
shall include information on the following:
``(1) The number of participants in the Program.
``(2) The schools in which the participants are employed.
``(3) The grade levels at which the participants teach.
``(4) The academic subjects taught by the participants.
``(5) The rates of retention of the participants by the
local educational agencies and public charter schools employing
the participants.
``(6) Such other matters as the Secretary or the Comptroller
General of the United States, as the case may be, considers to
be appropriate.
``CHAPTER B--TRANSITION TO TEACHING PROGRAM
``SEC. 2311. PURPOSES. <<NOTE: 20 USC 6681.>>
``The purposes of this chapter are--
``(1) to establish a program to recruit and retain highly
qualified mid-career professionals (including highly qualified
paraprofessionals), and recent graduates of an institution of
higher education, as teachers in high-need schools, including
recruiting teachers through alternative routes to certification;
and
``(2) to encourage the development and expansion of
alternative routes to certification under State-approved
programs that enable individuals to be eligible for teacher
certification within a reduced period of time, relying on the
experience, expertise, and academic qualifications of an
individual, or other
[[Page 115 STAT. 1656]]
factors in lieu of traditional course work in the field of
education.
``SEC. 2312. DEFINITIONS. <<NOTE: 20 USC 6682.>>
``In this chapter:
``(1) Eligible participant.--The term `eligible participant'
means--
``(A) an individual with substantial, demonstrable
career experience, including a highly qualified
paraprofessional; or
``(B) an individual who is a graduate of an
institution of higher education who--
``(i) has graduated not more than 3 years
before applying to an eligible entity to teach
under this chapter; and
``(ii) in the case of an individual wishing to
teach in a secondary school, has completed an
academic major (or courses totaling an equivalent
number of credit hours) in the academic subject
that the individual will teach.
``(2) High-need local educational agency.--The term `high-
need local educational agency' has the meaning given the term in
section 2102.
``(3) High-need school.--The term `high-need school' means a
school that--
``(A) is located in an area in which the percentage
of students from families with incomes below the poverty
line is 30 percent or more; or
``(B)(i) is located in an area with a high
percentage of out-of-field teachers, as defined in
section 2102;
``(ii) is within the top quartile of elementary
schools and secondary schools statewide, as ranked by
the number of unfilled, available teacher positions at
the schools;
``(iii) is located in an area in which there is a
high teacher turnover rate; or
``(iv) is located in an area in which there is a
high percentage of teachers who are not certified or
licensed.
``SEC. 2313. GRANT PROGRAM. <<NOTE: 20 USC 6683.>>
``(a) In General.--The Secretary may establish a program to make
grants on a competitive basis to eligible entities to develop State and
local teacher corps or other programs to establish, expand, or enhance
teacher recruitment and retention efforts.
``(b) Eligible Entity.--To be eligible to receive a grant under this
section, an entity shall be--
``(1) a State educational agency;
``(2) a high-need local educational agency;
``(3) a for-profit or nonprofit organization that has a
proven record of effectively recruiting and retaining highly
qualified teachers, in a partnership with a high-need local
educational agency or with a State educational agency;
``(4) an institution of higher education, in a partnership
with a high-need local educational agency or with a State
educational agency;
``(5) a regional consortium of State educational agencies;
or
``(6) a consortium of high-need local educational agencies.
[[Page 115 STAT. 1657]]
``(c) Priority.--In making such a grant, the Secretary shall give
priority to a partnership or consortium that includes a high-need State
educational agency or local educational agency.
``(d) Application.--
``(1) In general.--To be eligible to receive a grant under
this section, an entity described in subsection (b) shall submit
an application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
``(2) Contents.--The application shall describe--
``(A) one or more target recruitment groups on which
the applicant will focus its recruitment efforts;
``(B) the characteristics of each such target group
that--
``(i) show the knowledge and experience of the
group's members; and
``(ii) demonstrate that the members are
eligible to achieve the objectives of this
section;
``(C) describe how the applicant will use funds
received under this section to develop a teacher corps
or other program to recruit and retain highly qualified
midcareer professionals (which may include highly
qualified paraprofessionals), recent college graduates,
and recent graduate school graduates, as highly
qualified teachers in high-need schools operated by
high-need local educational agencies;
``(D) explain how the program carried out under the
grant will meet the relevant State laws (including
regulations) related to teacher certification or
licensing and facilitate the certification or licensing
of such teachers;
``(E) describe how the grant will increase the
number of highly qualified teachers, in high-need
schools operated by high-need local educational agencies
(in urban or rural school districts), and in high-need
academic subjects, in the jurisdiction served by the
applicant; and
``(F) describe how the applicant will collaborate,
as needed, with other institutions, agencies, or
organizations to recruit (particularly through
activities that have proven effective in retaining
highly qualified teachers), train, place, support, and
provide teacher induction programs to program
participants under this chapter, including providing
evidence of the commitment of the institutions,
agencies, or organizations to the applicant's programs.
``(e) Duration of Grants.--The Secretary may make grants under this
section for periods of 5 years. At the end of the 5-year period for such
a grant, the grant recipient may apply for an additional grant under
this section.
``(f) Equitable Distribution.--To the extent practicable, the
Secretary shall ensure an equitable geographic distribution of grants
under this section among the regions of the United States.
``(g) Uses of Funds.--
``(1) In general.--An entity that receives a grant under
this section shall use the funds made available through the
grant to develop a teacher corps or other program in order to
establish, expand, or enhance a teacher recruitment and
retention program for highly qualified mid-career professionals
(including highly qualified paraprofessionals), and recent
graduates of an institution of higher education, who are
eligible
[[Page 115 STAT. 1658]]
participants, including activities that provide alternative
routes to teacher certification.
``(2) Authorized activities.--The entity shall use the funds
to carry out a program that includes two or more of the
following activities:
``(A) Providing scholarships, stipends, bonuses, and
other financial incentives, that are linked to
participation in activities that have proven effective
in retaining teachers in high-need schools operated by
high-need local educational agencies, to all eligible
participants, in an amount not to exceed $5,000 per
participant.
``(B) Carrying out pre- and post-placement induction
or support activities that have proven effective in
recruiting and retaining teachers, such as--
``(i) teacher mentoring;
``(ii) providing internships;
``(iii) providing high-quality, preservice
coursework; and
``(iv) providing high-quality, sustained
inservice professional development.
``(C) Carrying out placement and ongoing activities
to ensure that teachers are placed in fields in which
the teachers are highly qualified to teach and are
placed in high-need schools.
``(D) Making payments to pay for costs associated
with accepting teachers recruited under this section
from among eligible participants or provide financial
incentives to prospective teachers who are eligible
participants.
``(E) Collaborating with institutions of higher
education in developing and implementing programs to
facilitate teacher recruitment (including teacher
credentialing) and teacher retention programs.
``(F) Carrying out other programs, projects, and
activities that are designed and have proven to be
effective in recruiting and retaining teachers, and that
the Secretary determines to be appropriate.
``(G) Developing long-term recruitment and retention
strategies including developing--
``(i) a statewide or regionwide clearinghouse
for the recruitment and placement of teachers;
``(ii) administrative structures to develop
and implement programs to provide alternative
routes to certification;
``(iii) reciprocity agreements between or
among States for the certification or licensing of
teachers; or
``(iv) other long-term teacher recruitment and
retention strategies.
``(3) Effective programs.--The entity shall use the funds
only for programs that have proven to be effective in both
recruiting and retaining teachers.
``(h) Requirements.--
``(1) Targeting.--An entity that receives a grant under this
section to carry out a program shall ensure that participants in
the program recruited with funds made available under this
section are placed in high-need schools operated
[[Page 115 STAT. 1659]]
by high-need local educational agencies. In placing the
participants in the schools, the entity shall give priority to
the schools that are located in areas with the highest
percentages of students from families with incomes below the
poverty line.
``(2) Supplement, not supplant.--Funds made available under
this section shall be used to supplement, and not supplant,
State and local public funds expended for teacher recruitment
and retention programs, including programs to recruit the
teachers through alternative routes to certification.
``(3) Partnerships and consortia of local educational
agencies.--In the case of a partnership established by a local
educational agency to carry out a program under this chapter, or
a consortium of such agencies established to carry out a program
under this chapter, the local educational agency or consortium
shall not be eligible to receive funds through a State program
under this chapter.
``(i) Period of Service.--A program participant in a program under
this chapter who receives training through the program shall serve a
high-need school operated by a high-need local educational agency for at
least 3 years.
``(j) <<NOTE: Requirements.>> Repayment.--The Secretary shall
establish such requirements as the Secretary determines to be
appropriate to ensure that program participants who receive a stipend or
other financial incentive under subsection (g)(2)(A), but fail to
complete their service obligation under subsection (i), repay all or a
portion of such stipend or other incentive.
``(k) Administrative Funds.--No entity that receives a grant under
this section shall use more than 5 percent of the funds made available
through the grant for the administration of a program under this chapter
carried out under the grant.
``SEC. 2314. <<NOTE: 20 USC 6684.>> EVALUATION AND ACCOUNTABILITY FOR
RECRUITING AND RETAINING TEACHERS.
``(a) Evaluation.--Each entity that receives a grant under this
chapter shall conduct--
``(1) an interim evaluation of the program funded under the
grant at the end of the third year of the grant period; and
``(2) a final evaluation of the program at the end of the
fifth year of the grant period.
``(b) Contents.--In conducting the evaluation, the entity shall
describe the extent to which local educational agencies that received
funds through the grant have met the goals relating to teacher
recruitment and retention described in the application.
``(c) Reports.--The entity shall prepare and submit to the Secretary
and to Congress interim and final reports containing the results of the
interim and final evaluations, respectively.
``(d) Revocation.--If the Secretary determines that the recipient of
a grant under this chapter has not made substantial progress in meeting
such goals and the objectives of the grant by the end of the third year
of the grant period, the Secretary--
``(1) shall revoke the payment made for the fourth year of
the grant period; and
``(2) shall not make a payment for the fifth year of the
grant period.
[[Page 115 STAT. 1660]]
``CHAPTER C--GENERAL PROVISIONS
``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6691.>>
``(a) In General.--There are authorized to be appropriated to carry
out this subpart $150,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 5 succeeding fiscal years.
``(b) Reservation.--From the funds appropriated to carry out this
subpart for fiscal year 2002, the Secretary shall reserve not more than
$30,000,000 to carry out chapter A.
``Subpart 2--National Writing Project
``SEC. 2331. PURPOSES. <<NOTE: 20 USC 6701.>>
``The purposes of this subpart are--
``(1) to support and promote the expansion of the National
Writing Project network of sites so that teachers in every
region of the United States will have access to a National
Writing Project program;
``(2) to ensure the consistent high quality of the sites
through ongoing review, evaluation, and technical assistance;
``(3) to support and promote the establishment of programs
to disseminate effective practices and research findings about
the teaching of writing; and
``(4) to coordinate activities assisted under this subpart
with activities assisted under this Act.
``SEC. 2332. NATIONAL WRITING PROJECT. <<NOTE: 20 USC 6702.>>
``(a) Authorization.--The Secretary is authorized to award a grant
to the National Writing Project, a nonprofit educational organization
that has as its primary purpose the improvement of the quality of
student writing and learning (hereafter in this section referred to as
the `grantee') to improve the teaching of writing and the use of writing
as a part of the learning process in our Nation's classrooms.
``(b) Requirements of Grant.--The grant shall provide that--
``(1) the grantee will enter into contracts with
institutions of higher education or other nonprofit educational
providers (hereafter in this section referred to as
`contractors') under which the contractors will agree to
establish, operate, and provide the non-Federal share of the
cost of teacher training programs in effective approaches and
processes for the teaching of writing;
``(2) funds made available by the Secretary to the grantee
pursuant to any contract entered into under this section will be
used to pay the Federal share of the cost of establishing and
operating teacher training programs as provided in paragraph
(1); and
``(3) the grantee will meet such other conditions and
standards as the Secretary determines to be necessary to assure
compliance with the provisions of this section and will provide
such technical assistance as may be necessary to carry out the
provisions of this section.
``(c) Teacher Training Programs.--The teacher training programs
authorized in subsection (a) shall--
``(1) be conducted during the school year and during the
summer months;
[[Page 115 STAT. 1661]]
``(2) train teachers who teach grades kindergarten through
college;
``(3) select teachers to become members of a National
Writing Project teacher network whose members will conduct
writing workshops for other teachers in the area served by each
National Writing Project site; and
``(4) encourage teachers from all disciplines to participate
in such teacher training programs.
``(d) Federal Share.--
``(1) In general.--Except as provided in paragraph (2) or
(3) and for purposes of subsection (a), the term `Federal share'
means, with respect to the costs of teacher training programs
authorized in subsection (a), 50 percent of such costs to the
contractor.
``(2) Waiver.--The Secretary may waive the provisions of
paragraph (1) on a case-by-case basis if the National Advisory
Board described in subsection (e) determines, on the basis of
financial need, that such waiver is necessary.
``(3) Maximum.--The Federal share of the costs of teacher
training programs conducted pursuant to subsection (a) may not
exceed $100,000 for any one contractor, or $200,000 for a
statewide program administered by any one contractor in at least
five sites throughout the State.
``(e) National Advisory Board.--
``(1) Establishment.--The National Writing Project shall
establish and operate a National Advisory Board.
``(2) Composition.--The National Advisory Board established
pursuant to paragraph (1) shall consist of--
``(A) national educational leaders;
``(B) leaders in the field of writing; and
``(C) such other individuals as the National Writing
Project determines necessary.
``(3) Duties.--The National Advisory Board established
pursuant to paragraph (1) shall--
``(A) advise the National Writing Project on
national issues related to student writing and the
teaching of writing;
``(B) review the activities and programs of the
National Writing Project; and
``(C) support the continued development of the
National Writing Project.
``(f) Evaluation.--
``(1) In general.--The Secretary shall conduct an
independent evaluation by grant or contract of the teacher
training programs administered pursuant to this subpart. Such
evaluation shall specify the amount of funds expended by the
National Writing Project and each contractor receiving
assistance under this section for administrative costs. The
results of such evaluation shall be made available to the
appropriate committees of Congress.
``(2) Funding limitation.--The Secretary shall reserve not
more than $150,000 from the total amount appropriated pursuant
to the authority of subsection (h) for fiscal year 2002 and each
of the 5 succeeding fiscal years to conduct the evaluation
described in paragraph (1).
``(g) Application Review.--
[[Page 115 STAT. 1662]]
``(1) Review board.--The National Writing Project shall
establish and operate a National Review Board that shall consist
of--
``(A) leaders in the field of research in writing;
and
``(B) such other individuals as the National Writing
Project deems necessary.
``(2) Duties.--The National Review Board shall--
``(A) review all applications for assistance under
this subsection; and
``(B) recommend applications for assistance under
this subsection for funding by the National Writing
Project.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this subpart $15,000,000 as may be necessary
for fiscal year 2002 and each of the 5 succeeding fiscal years.
``Subpart 3--Civic Education <<NOTE: Education for Democracy Act.>>
``SEC. 2341. SHORT TITLE. <<NOTE: 20 USC 6711.>>
``This subpart may be cited as the `Education for Democracy Act'.
``SEC. 2342. PURPOSE. <<NOTE: 20 USC 6712.>>
``It is the purpose of this subpart--
``(1) to improve the quality of civics and government
education by educating students about the history and principles
of the Constitution of the United States, including the Bill of
Rights;
``(2) to foster civic competence and responsibility; and
``(3) to improve the quality of civic education and economic
education through cooperative civic education and economic
education exchange programs with emerging democracies.
``SEC. 2343. GENERAL AUTHORITY. <<NOTE: 20 USC 6713.>>
``(a) Authority.--The Secretary is authorized to award grants to, or
enter into contracts with--
``(1) the Center for Civic Education, to carry out civic
education activities under sections 2344 and 2345;
``(2) the National Council on Economic Education, to carry
out economic education activities under section 2345; and
``(3) organizations experienced in the development of
curricula and programs in civics and government education and
economic education for students in elementary schools and
secondary schools in countries other than the United States, to
carry out civic education activities under section 2345.
``(b) Distribution for Cooperative Civic Education and Economic
Education Exchange Programs.--
``(1) Limitation.--Not more than 40 percent of the amount
appropriated under section 2346 for a fiscal year shall be used
to carry out section 2345.
``(2) Distribution.--Of the amount used to carry out section
2345 for a fiscal year (consistent with paragraph (1)), the
Secretary shall use--
``(A) 37.5 percent for a grant or contract for the
Center for Civic Education;
``(B) 37.5 percent for a grant or contract for the
National Council on Economic Education; and
[[Page 115 STAT. 1663]]
``(C) 25 percent for not less than 1, but not more
than 3, grants or contracts for organizations described
in subsection (a)(3).
``SEC. 2344. WE THE PEOPLE PROGRAM. <<NOTE: 20 USC 6714.>>
``(a) The Citizen and the Constitution.--
``(1) Educational activities.--The Center for Civic
Education--
``(A) shall use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to continue and expand the educational
activities of the program entitled the `We the
People . . . The Citizen and the Constitution'
program administered by such center;
``(ii) to carry out activities to enhance
student attainment of challenging academic content
standards in civics and government;
``(iii) to provide a course of instruction on
the basic principles of the Nation's
constitutional democracy and the history of the
Constitution of the United States, including the
Bill of Rights;
``(iv) to provide, at the request of a
participating school, school and community
simulated congressional hearings following the
course of instruction described in clause (iii);
and
``(v) to provide an annual national
competition of simulated congressional hearings
for secondary school students who wish to
participate in such a program; and
``(B) may use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to provide advanced, sustained, and
ongoing training of teachers about the
Constitution of the United States and the
political system of the United States;
``(ii) to provide materials and methods of
instruction, including teacher training, that
utilize the latest advancements in educational
technology; and
``(iii) to provide civic education materials
and services to address specific problems such as
the prevention of school violence and the abuse of
drugs and alcohol.
``(2) Availability of program.--The education program
authorized under this subsection shall be made available to
public and private elementary schools and secondary schools,
including Bureau funded schools, in the 435 congressional
districts, and in the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, American
Samoa, and the Commonwealth of the Northern Mariana Islands.
``(b) Project Citizen.--
``(1) Educational activities.--The Center for Civic
Education--
``(A) shall use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to continue and expand the educational
activities of the program entitled the `We the
People . . . Project Citizen' program administered
by the Center;
[[Page 115 STAT. 1664]]
``(ii) to carry out activities to enhance
student attainment of challenging academic content
standards in civics and government;
``(iii) to provide a course of instruction at
the middle school level on the roles of State and
local governments in the Federal system
established by the Constitution of the United
States; and
``(iv) to provide an annual national showcase
or competition; and
``(B) may use funds made available under grants or
contracts under section 2343(a)(1)--
``(i) to provide optional school and community
simulated State legislative hearings;
``(ii) to provide advanced, sustained, and
ongoing training of teachers on the roles of State
and local governments in the Federal system
established by the Constitution of the United
States;
``(iii) to provide materials and methods of
instruction, including teacher training, that
utilize the latest advancements in educational
technology; and
``(iv) to provide civic education materials
and services to address specific problems such as
the prevention of school violence and the abuse of
drugs and alcohol.
``(2) Availability of program.--The education program
authorized under this subsection shall be made available to
public and private middle schools, including Bureau funded
schools, in the 50 States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States
Virgin Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(c) Bureau-Funded School Defined.--In this section, the term
`Bureau-funded school' has the meaning given such term in section 1146
of the Education Amendments of 1978 (25 U.S.C. 2026).
``SEC. 2345. <<NOTE: 20 USC 6715.>> COOPERATIVE CIVIC EDUCATION AND
ECONOMIC EDUCATION EXCHANGE PROGRAMS.
``(a) Cooperative Education Exchange Programs.--The Center for Civic
Education, the National Council on Economic Education, and organizations
described in section 2343(a)(3) shall use funds made available under
grants or contracts under section 2343 to carry out cooperative
education exchange programs in accordance with this section.
``(b) Purpose.--The purpose of the cooperative education exchange
programs carried out under this section shall be--
``(1) to make available to educators from eligible countries
exemplary curriculum and teacher training programs in civics and
government education, and economics education, developed in the
United States;
``(2) to assist eligible countries in the adaptation,
implementation, and institutionalization of such programs;
``(3) to create and implement civics and government
education, and economic education, programs for students that
draw upon the experiences of the participating eligible
countries;
``(4) to provide a means for the exchange of ideas and
experiences in civics and government education, and economic
[[Page 115 STAT. 1665]]
education, among political, educational, governmental, and
private sector leaders of participating eligible countries; and
``(5) to provide support for--
``(A) independent research and evaluation to
determine the effects of educational programs on
students' development of the knowledge, skills, and
traits of character essential for the preservation and
improvement of constitutional democracy; and
``(B) effective participation in, and the
preservation and improvement of, an efficient market
economy.
``(c) Activities.--In carrying out the cooperative education
exchange programs assisted under this section, the Center for Civic
Education, the National Council on Economic Education, and organizations
described in section 2343(a)(3) shall--
``(1) provide to the participants from eligible countries--
``(A) seminars on the basic principles of United
States constitutional democracy and economic system,
including seminars on the major governmental and
economic institutions and systems in the United States,
and visits to such institutions;
``(B) visits to school systems, institutions of
higher education, and nonprofit organizations conducting
exemplary programs in civics and government education,
and economic education, in the United States;
``(C) translations and adaptations with respect to
United States civics and government education, and
economic education, curricular programs for students and
teachers, and in the case of training programs for
teachers, translations and adaptations into forms useful
in schools in eligible countries, and joint research
projects in such areas; and
``(D) independent research and evaluation
assistance--
``(i) to determine the effects of the
cooperative education exchange programs on
students' development of the knowledge, skills,
and traits of character essential for the
preservation and improvement of constitutional
democracy; and
``(ii) to identify effective participation in,
and the preservation and improvement of, an
efficient market economy;
``(2) provide to the participants from the United States--
``(A) seminars on the histories, economies, and
systems of government of eligible countries;
``(B) visits to school systems, institutions of
higher education, and organizations conducting exemplary
programs in civics and government education, and
economic education, located in eligible countries;
``(C) assistance from educators and scholars in
eligible countries in the development of curricular
materials on the history, government, and economy of
such countries that are useful in United States
classrooms;
``(D) opportunities to provide onsite demonstrations
of United States curricula and pedagogy for educational
leaders in eligible countries; and
``(E) independent research and evaluation assistance
to determine--
[[Page 115 STAT. 1666]]
``(i) the effects of the cooperative education
exchange programs assisted under this section on
students' development of the knowledge, skills,
and traits of character essential for the
preservation and improvement of constitutional
democracy; and
``(ii) effective participation in, and
improvement of, an efficient market economy; and
``(3) assist participants from eligible countries and the
United States to participate in international conferences on
civics and government education, and economic education, for
educational leaders, teacher trainers, scholars in related
disciplines, and educational policymakers.
``(d) Participants.--The primary participants in the cooperative
education exchange programs assisted under this section shall be
educational leaders in the areas of civics and government education, and
economic education, including teachers, curriculum and teacher training
specialists, scholars in relevant disciplines, and educational
policymakers, and government and private sector leaders from the United
States and eligible countries.
``(e) Consultation.--The Secretary may award a grant to, or enter
into a contract with, the entities described in section 2343 to carry
out programs assisted under this section only if the Secretary of State
concurs with the Secretary that such grant, or contract, respectively,
is consistent with the foreign policy of the United States.
``(f) Avoidance of Duplication.--With the concurrence of the
Secretary of State, the Secretary shall ensure that--
``(1) the activities carried out under the programs assisted
under this section are not duplicative of other activities
conducted in eligible countries; and
``(2) any institutions in eligible countries, with which the
Center for Civic Education, the National Council on Economic
Education, or organizations described in section 2343(a)(3) may
work in conducting such activities, are creditable.
``(g) Eligible Country Defined.--In this section, the term `eligible
country' means a Central European country, an Eastern European country,
Lithuania, Latvia, Estonia, the independent states of the former Soviet
Union as defined in section 3 of the FREEDOM Support Act (22 U.S.C.
5801), the Republic of Ireland, the province of Northern Ireland in the
United Kingdom, and any developing country (as such term is defined in
section 209(d) of the Education for the Deaf Act) if the Secretary, with
the concurrence of the Secretary of State, determines that such
developing country has a democratic form of government.
``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6716.>>
``There are authorized to be appropriated to carry out this subpart
$30,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 5 succeeding fiscal years.
``Subpart 4--Teaching of Traditional American History
``SEC. 2351. ESTABLISHMENT OF PROGRAM. <<NOTE: 20 USC 6721.>>
``(a) In General.--The Secretary may establish and implement a
program to be known as the `Teaching American History Grant
[[Page 115 STAT. 1667]]
Program', under which the Secretary shall award grants on a competitive
basis to local educational agencies--
``(1) to carry out activities to promote the teaching of
traditional American history in elementary schools and secondary
schools as a separate academic subject (not as a component of
social studies); and
``(2) for the development, implementation, and strengthening
of programs to teach traditional American history as a separate
academic subject (not as a component of social studies) within
elementary school and secondary school curricula, including the
implementation of activities--
``(A) to improve the quality of instruction; and
``(B) to provide professional development and
teacher education activities with respect to American
history.
``(b) Required Partnership.--A local educational agency that
receives a grant under subsection (a) shall carry out activities under
the grant in partnership with one or more of the following:
``(1) An institution of higher education.
``(2) A nonprofit history or humanities organization.
``(3) A library or museum.
``(c) Application.--To be eligible to receive an grant under this
section, a local educational agency shall submit an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may require.
``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6722.>>
``There are authorized to be appropriated to carry out this subpart
such sums as may be necessary for fiscal year 2002 and each of the 5
succeeding fiscal years.
``Subpart 5--Teacher Liability Protection <<NOTE: Paul D. Coverdell
Teacher Protection Act of 2001.>>
``SEC. 2361. SHORT TITLE. <<NOTE: 20 USC 6731.>>
``This subpart may be cited as the `Paul D. Coverdell Teacher
Protection Act of 2001'.
``SEC. 2362. PURPOSE. <<NOTE: 20 USC 6732.>>
``The purpose of this subpart is to provide teachers, principals,
and other school professionals the tools they need to undertake
reasonable actions to maintain order, discipline, and an appropriate
educational environment.
``SEC. 2363. DEFINITIONS. <<NOTE: 20 USC 6733.>>
``For purposes of this subpart:
``(1) Economic loss.--The term `economic loss' means any
pecuniary loss resulting from harm (including the loss of
earnings or other benefits related to employment, medical
expense loss, replacement services loss, loss due to death,
burial costs, and loss of business or employment opportunities)
to the extent recovery for such loss is allowed under applicable
State law.
``(2) Harm.--The term `harm' includes physical, nonphysical,
economic, and noneconomic losses.
``(3) Noneconomic loss.--The term `noneconomic loss' means
loss for physical or emotional pain, suffering, inconvenience,
physical impairment, mental anguish, disfigurement, loss of
enjoyment of life, loss of society or companionship, loss of
consortium (other than loss of domestic service), hedonic
[[Page 115 STAT. 1668]]
damages, injury to reputation, or any other nonpecuniary loss of
any kind or nature.
``(4) School.--The term `school' means a public or private
kindergarten, a public or private elementary school or secondary
school, or a home school.
``(5) State.--The term `State' means each of the several
States of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, the Commonwealth of the Northern Mariana
Islands, any other territory or possession of the United States,
or any political subdivision of any such State, territory, or
possession.
``(6) Teacher.--The term `teacher' means--
``(A) a teacher, instructor, principal, or
administrator;
``(B) another educational professional who works in
a school;
``(C) a professional or nonprofessional employee
who--
``(i) works in a school; and
``(ii)(I) in the employee's job, maintains
discipline or ensures safety; or
``(II) in an emergency, is called on to
maintain discipline or ensure safety; or
``(D) an individual member of a school board (as
distinct from the board).
``SEC. 2364. APPLICABILITY. <<NOTE: 20 USC 6734.>>
``This subpart shall only apply to States that receive funds under
this Act, and shall apply to such a State as a condition of receiving
such funds.
``SEC. 2365. <<NOTE: 20 USC 6735.>> PREEMPTION AND ELECTION OF STATE
NONAPPLICABILITY.
``(a) Preemption.--This subpart preempts the laws of any State to
the extent that such laws are inconsistent with this subpart, except
that this subpart shall not preempt any State law that provides
additional protection from liability relating to teachers.
``(b) Election of State Regarding Nonapplicability.--This subpart
shall not apply to any civil action in a State court against a teacher
with respect to claims arising within that State if such State enacts a
statute in accordance with State requirements for enacting legislation--
``(1) citing the authority of this subsection;
``(2) declaring the election of such State that this subpart
shall not apply, as of a date certain, to such civil action in
the State; and
``(3) containing no other provisions.
``SEC. 2366. LIMITATION ON LIABILITY FOR TEACHERS. <<NOTE: 20 USC
6736.>>
``(a) Liability Protection for Teachers.--Except as provided in
subsection (b), no teacher in a school shall be liable for harm caused
by an act or omission of the teacher on behalf of the school if--
``(1) the teacher was acting within the scope of the
teacher's employment or responsibilities to a school or
governmental entity;
``(2) the actions of the teacher were carried out in
conformity with Federal, State, and local laws (including rules
and regulations) in furtherance of efforts to control,
discipline,
[[Page 115 STAT. 1669]]
expel, or suspend a student or maintain order or control in the
classroom or school;
``(3) if appropriate or required, the teacher was properly
licensed, certified, or authorized by the appropriate
authorities for the activities or practice involved in the State
in which the harm occurred, where the activities were or
practice was undertaken within the scope of the teacher's
responsibilities;
``(4) the harm was not caused by willful or criminal
misconduct, gross negligence, reckless misconduct, or a
conscious, flagrant indifference to the rights or safety of the
individual harmed by the teacher; and
``(5) the harm was not caused by the teacher operating a
motor vehicle, vessel, aircraft, or other vehicle for which the
State requires the operator or the owner of the vehicle, craft,
or vessel to--
``(A) possess an operator's license; or
``(B) maintain insurance.
``(b) Exceptions to Teacher Liability Protection.--If the laws of a
State limit teacher liability subject to one or more of the following
conditions, such conditions shall not be construed as inconsistent with
this section:
``(1) A State law that requires a school or governmental
entity to adhere to risk management procedures, including
mandatory training of teachers.
``(2) A State law that makes the school or governmental
entity liable for the acts or omissions of its teachers to the
same extent as an employer is liable for the acts or omissions
of its employees.
ate law that makes a limitation of liability inapplicable if
the civil action was brought by an officer of a State or local
government pursuant to State or local law.
``(c) Limitation on Punitive Damages Based on the Actions of
Teachers.--
``(1) General rule.--Punitive damages may not be awarded
against a teacher in an action brought for harm based on the act
or omission of a teacher acting within the scope of the
teacher's employment or responsibilities to a school or
governmental entityunless the claimant establishes by clear and
convincing evidence that the harm was proximately caused by an
act or omission of such teacher that constitutes willful or
criminal misconduct, or a conscious, flagrant indifference to
the rights or safety of the individual harmed.
``(2) Construction.--Paragraph (1) does not create a cause
of action for punitive damages and does not preempt or supersede
any Federal or State law to the extent that such law would
further limit the award of punitive damages.
``(d) Exceptions to Limitations on Liability.--
``(1) In general.--The limitations on the liability of a
teacher under this subpart shall not apply to any misconduct
that--
``(A) constitutes a crime of violence (as that term
is defined in section 16 of title 18, United States
Code) or act of international terrorism (as that term is
defined in section 2331 of title 18, United States Code)
for which the defendant has been convicted in any court;
[[Page 115 STAT. 1670]]
``(B) involves a sexual offense, as defined by
applicable State law, for which the defendant has been
convicted in any court;
``(C) involves misconduct for which the defendant
has been found to have violated a Federal or State civil
rights law; or
``(D) where the defendant was under the influence
(as determined pursuant to applicable State law) of
intoxicating alcohol or any drug at the time of the
misconduct.
``(2) Hiring.--The limitations on the liability of a teacher
under this subpart shall not apply to misconduct during
background investigations, or during other actions, involved in
the hiring of a teacher.
``(e) Rules of Construction.--
``(1) Concerning responsibility of teachers to schools and
governmental entities.--Nothing in this section shall be
construed to affect any civil action brought by any school or
any governmental entity against any teacher of such school.
``(2) Concerning corporal punishment.--Nothing in this
subpart shall be construed to affect any State or local law
(including a rule or regulation) or policy pertaining to the use
of corporal punishment.
``SEC. 2367. <<NOTE: 20 USC 6737.>> ALLOCATION OF RESPONSIBILITY FOR
NONECONOMIC LOSS.
``(a) General Rule.--In any civil action against a teacher, based on
an act or omission of a teacher acting within the scope of the teacher's
employment or responsibilities to a school or governmental entity, the
liability of the teacher for noneconomic loss shall be determined in
accordance with subsection (b).
``(b) Amount of Liability.--
``(1) In general.--
``(A) Liability.--Each defendant who is a teacher
shall be liable only for the amount of noneconomic loss
allocated to that defendant in direct proportion to the
percentage of responsibility of that defendant
(determined in accordance with paragraph (2)) for the
harm to the claimant with respect to which that
defendant is liable.
``(B) Separate judgment.--The court shall render a
separate judgment against each defendant in an amount
determined pursuant to subparagraph (A).
``(2) Percentage of responsibility.--For purposes of
determining the amount of noneconomic loss allocated to a
defendant who is a teacher under this section, the trier of fact
shall determine the percentage of responsibility of each person
responsible for the claimant's harm, whether or not such person
is a party to the action.
``(c) Rule of Construction.--Nothing in this section shall be
construed to preempt or supersede any Federal or State law that further
limits the application of joint liability in a civil action described in
subsection (a), beyond the limitations established in this section.
``SEC. 2368. EFFECTIVE DATE. <<NOTE: 20 USC 6738.>>
``(a) In General.--This subpart shall take effect 90 days after the
date of enactment of the No Child Left Behind Act of 2001.
``(b) Application.--This subpart applies to any claim for harm
caused by an act or omission of a teacher if that claim is filed
[[Page 115 STAT. 1671]]
on or after the effective date of the No Child Left Behind Act of 2001
without regard to whether the harm that is the subject of the claim or
the conduct that caused the harm occurred before such effective date.
``PART <<NOTE: Enhancing Education Through Technology Act of 2001.>>
D--ENHANCING EDUCATION THROUGH TECHNOLOGY
``SEC. 2401. SHORT TITLE.
``This part may be cited as the `Enhancing Education Through
Technology Act of 2001'.
``SEC. 2402. PURPOSES AND GOALS.
``(a) Purposes.--The purposes of this part are the following:
``(1) To provide assistance to States and localities for the
implementation and support of a comprehensive system that
effectively uses technology in elementary schools and secondary
schools to improve student academic achievement.
``(2) To encourage the establishment or expansion of
initiatives, including initiatives involving public-private
partnerships, designed to increase access to technology,
particularly in schools served by high-need local educational
agencies.
``(3) To assist States and localities in the acquisition,
development, interconnection, implementation, improvement, and
maintenance of an effective educational technology
infrastructure in a manner that expands access to technology for
students (particularly for disadvantaged students) and teachers.
``(4) To promote initiatives that provide school teachers,
principals, and administrators with the capacity to integrate
technology effectively into curricula and instruction that are
aligned with challenging State academic content and student
academic achievement standards, through such means as high-
quality professional development programs.
``(5) To enhance the ongoing professional development of
teachers, principals, and administrators by providing constant
access to training and updated research in teaching and learning
through electronic means.
``(6) To support the development and utilization of
electronic networks and other innovative methods, such as
distance learning, of delivering specialized or rigorous
academic courses and curricula for students in areas that would
not otherwise have access to such courses and curricula,
particularly in geographically isolated regions.
``(7) To support the rigorous evaluation of programs funded
under this part, particularly regarding the impact of such
programs on student academic achievement, and ensure that timely
information on the results of such evaluations is widely
accessible through electronic means.
``(8) To support local efforts using technology to promote
parent and family involvement in education and communication
among students, parents, teachers, principals, and
administrators.
``(b) Goals.--
``(1) Primary goal.--The primary goal of this part is to
improve student academic achievement through the use of
technology in elementary schools and secondary schools.
[[Page 115 STAT. 1672]]
``(2) Additional goals.--The additional goals of this part
are the following:
``(A) To assist every student in crossing the
digital divide by ensuring that every student is
technologically literate by the time the student
finishes the eighth grade, regardless of the student's
race, ethnicity, gender, family income, geographic
location, or disability.
``(B) To encourage the effective integration of
technology resources and systems with teacher training
and curriculum development to establish research-based
instructional methods that can be widely implemented as
best practices by State educational agencies and local
educational agencies.
``SEC. 2403. DEFINITIONS. <<NOTE: 20 USC 6753.>>
``In this part:
``(1) Eligible local entity.--The term `eligible local
entity' means--
``(A) a high-need local educational agency; or
``(B) an eligible local partnership.
``(2) Eligible local partnership.--The term `eligible local
partnership' means a partnership that--
``(A) shall include at least one high-need local
educational agency and at least one--
``(i) local educational agency that can
demonstrate that teachers in schools served by the
agency are effectively integrating technology and
proven teaching practices into instruction, based
on a review of relevant research, and that the
integration results in improvement in--
``(I) classroom instruction in the
core academic subjects; and
``(II) the preparation of students
to meet challenging State academic
content and student academic achievement
standards;
``(ii) institution of higher education that is
in full compliance with the reporting requirements
of section 207(f) of the Higher Education Act of
1965 and that has not been identified by its State
as low-performing under section 208 of such Act;
``(iii) for-profit business or organization
that develops, designs, manufactures, or produces
technology products or services, or has
substantial expertise in the application of
technology in instruction; or
``(iv) public or private nonprofit
organization with demonstrated experience in the
application of educational technology to
instruction; and
``(B) may include other local educational agencies,
educational service agencies, libraries, or other
educational entities appropriate to provide local
programs.
``(3) High-need local educational agency.--The term `high-
need local educational agency' means a local educational agency
that--
``(A) is among the local educational agencies in a
State with the highest numbers or percentages of
children from families with incomes below the poverty
line; and
[[Page 115 STAT. 1673]]
``(B)(i) operates one or more schools identified
under section 1116; or
``(ii) has a substantial need for assistance in
acquiring and using technology.
``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 6754.>>
``(a) In General.--There are authorized to be appropriated to carry
out subparts 1 and 2, $1,000,000,000 for fiscal year 2002, and such sums
as may be necessary for each of the 5 succeeding fiscal years.
``(b) Allocation of Funds Between State and Local and National
Initiatives.--The amount of funds made available under subsection (a)
for a fiscal year shall be allocated so that--
``(1) not less than 98 percent is made available to carry
out subpart 1; and
``(2) not more than 2 percent is made available to carry out
subpart 2.
``(c) Allocation of Funds for Study.--Of the total amount of funds
allocated under subsection (b)(2) for fiscal years 2002 through 2007,
not more than $15,000,000 may be used to carry out section 2421(a).
``(d) Limitation.--Of the amount of funds made available to a
recipient of funds under this part for a fiscal year, not more than 5
percent may be used by the recipient for administrative costs or
technical assistance, of which not more than 60 percent may be used by
the recipient for administrative costs.
``Subpart 1--State and Local Technology Grants
``SEC. 2411. ALLOTMENT AND REALLOTMENT. <<NOTE: 20 USC 6761.>>
``(a) Reservations and Allotment.--From the amount made available to
carry out this subpart under section 2404(b)(1) for a fiscal year--
``(1) the Secretary shall reserve--
``(A) three-fourths of 1 percent for the Secretary
of the Interior for programs under this subpart for
schools operated or funded by the Bureau of Indian
Affairs;
``(B) one-half of 1 percent to provide assistance
under this subpart to the outlying areas; and
``(C) such sums as may be necessary for continuation
awards on grants awarded under section 3136 prior to the
date of enactment of the No Child Left Behind Act of
2001; and
``(2) from the remainder of such amount and subject to
subsection (b), the Secretary shall make grants by allotting to
each eligible State educational agency under this subpart an
amount that bears the same relationship to such remainder for
such year as the amount received under part A of title I for
such year by such State educational agency bears to the amount
received under such part for such year by all State educational
agencies.
``(b) Minimum Allotment.--The amount of any State educational
agency's allotment under subsection (a)(2) for any fiscal year may not
be less than one-half of 1 percent of the amount made available for
allotments to States under this part for such year.
[[Page 115 STAT. 1674]]
``(c) Reallotment of Unused Funds.--If any State educational agency
does not apply for an allotment under this subpart for a fiscal year, or
does not use its entire allotment under this subpart for that fiscal
year, the Secretary shall reallot the amount of the State educational
agency's allotment, or the unused portion of the allotment, to the
remaining State educational agencies that use their entire allotments
under this subpart in accordance with this section.
``(d) State Educational Agency Defined.--In this section, the term
`State educational agency' does not include an agency of an outlying
area or the Bureau of Indian Affairs.
``SEC. 2412. USE OF ALLOTMENT BY STATE. <<NOTE: 20 USC 6762.>>
``(a) In General.--Of the amount provided to a State educational
agency (from the agency's allotment under section 2411(a)(2)) for a
fiscal year--
``(1) the State educational agency may use not more than 5
percent to carry out activities under section 2415; and
``(2) the State educational agency shall distribute the
remainder as follows:
``(A) From 50 percent of the remainder, the State
educational agency shall award subgrants by allocating
to each eligible local educational agency that has
submitted an application to the State educational agency
under section 2414, for the activities described in
section 2416, an amount that bears the same relationship
to 50 percent of the remainder for such year as the
amount received under part A of title I for such year by
such local educational agency bears to the amount
received under such part for such year by all local
educational agencies within the State.
``(B) From 50 percent of the remainder and subject
to subsection (b), the State educational agency shall
award subgrants, through a State-determined competitive
process, to eligible local entities that have submitted
applications to the State educational agency under
section 2414, for the activities described in section
2416.
``(b) Sufficient Amounts.--
``(1) Special rule.--In awarding a subgrant under subsection
(a)(2)(B), the State educational agency shall--
``(A) determine the local educational agencies
that--
``(i) received allocations under subsection
(a)(2)(A) that are not of sufficient size to be
effective, consistent with the purposes of this
part; and
``(ii) are eligible local entities;
``(B) give priority to applications submitted by
eligible local educational agencies described in
subparagraph (A); and
``(C) determine the minimum amount for awards under
subsection (a)(2)(B) to ensure that subgrants awarded
under that subsection are of sufficient size to be
effective.
``(2) Sufficiency.--In awarding subgrants under subsection
(a)(2)(B), each State educational agency shall ensure that each
subgrant is of sufficient size and duration, and that the
program funded by the subgrant is of sufficient scope and
quality, to carry out the purposes of this part effectively.
[[Page 115 STAT. 1675]]
``(3) Distribution.--In awarding subgrants under subsection
(a)(2)(B), each State educational agency shall ensure an
equitable distribution of assistance under this subpart among
urban and rural areas of the State, according to the
demonstrated need of those local educational agencies serving
the areas.
``(c) Fiscal Agent.--If an eligible local partnership receives a
subgrant under subsection (a)(2)(B), a local educational agency in the
partnership shall serve as the fiscal agent for the partnership.
``(d) Technical Assistance.--Each State educational agency receiving
a grant under section 2411(a) shall--
``(1) identify the local educational agencies served by the
State educational agency that--
``(A) have the highest numbers or percentages of
children from families with incomes below the poverty
line; and
``(B) demonstrate to such State educational agency
the greatest need for technical assistance in developing
an application under section 2414; and
``(2) offer the technical assistance described in paragraph
(1)(B) to those local educational agencies.
``SEC. 2413. STATE APPLICATIONS. <<NOTE: 20 USC 6763.>>
``(a) In General.--To be eligible to receive a grant under this
subpart, a State educational agency shall submit to the Secretary, at
such time and in such manner as the Secretary may specify, an
application containing a new or updated statewide long-range strategic
educational technology plan (which shall address the educational
technology needs of local educational agencies) and such other
information as the Secretary may reasonably require.
``(b) Contents.--Each State application submitted under subsection
(a) shall include each of the following:
``(1) An outline of the State educational agency's long-term
strategies for improving student academic achievement, including
technology literacy, through the effective use of technology in
classrooms throughout the State, including through improving the
capacity of teachers to integrate technology effectively into
curricula and instruction.
``(2) A description of the State educational agency's goals
for using advanced technology to improve student academic
achievement, and how those goals are aligned with challenging
State academic content and student academic achievement
standards.
``(3) A description of how the State educational agency will
take steps to ensure that all students and teachers in the
State, particularly students and teachers in districts served by
high-need local educational agencies, have increased access to
technology.
``(4) A description of the process and accountability
measures that the State educational agency will use to evaluate
the extent to which activities funded under this subpart are
effective in integrating technology into curricula and
instruction.
``(5) A description of how the State educational agency will
encourage the development and utilization of innovative
strategies for the delivery of specialized or rigorous academic
courses and curricula through the use of technology, including
[[Page 115 STAT. 1676]]
distance learning technologies, particularly for those areas of
the State that would not otherwise have access to such courses
and curricula due to geographical isolation or insufficient
resources.
``(6) An assurance that financial assistance provided under
this subpart will supplement, and not supplant, State and local
funds.
``(7) A description of how the plan incorporates teacher
education, professional development, and curriculum development,
and how the State educational agency will work to ensure that
teachers and principals in a State receiving funds under this
part are technologically literate.
``(8) A description of--
``(A) how the State educational agency will provide
technical assistance to applicants under section 2414,
especially to those applicants serving the highest
numbers or percentages of children in poverty or with
the greatest need for technical assistance; and
``(B) the capacity of the State educational agency
to provide such assistance.
``(9) A description of technology resources and systems that
the State will provide for the purpose of establishing best
practices that can be widely replicated by State educational
agencies and local educational agencies in the State and in
other States.
``(10) A description of the State's long-term strategies for
financing technology to ensure that all students, teachers, and
classrooms have access to technology.
``(11) A description of the State's strategies for using
technology to increase parental involvement.
``(12) A description of how the State educational agency
will ensure that each subgrant awarded under section
2412(a)(2)(B) is of sufficient size and duration, and that the
program funded by the subgrant is of sufficient scope and
quality, to carry out the purposes of this part effectively.
``(13) A description of how the State educational agency
will ensure ongoing integration of technology into school
curricula and instructional strategies in all schools in the
State, so that technology will be fully integrated into the
curricula and instruction of the schools by December 31, 2006.
``(14) A description of how the local educational agencies
in the State will provide incentives to teachers who are
technologically literate and teaching in rural or urban areas,
to encourage such teachers to remain in those areas.
``(15) A description of how public and private entities will
participate in the implementation and support of the plan.
``(c) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this part.
``(d) <<NOTE: Notice.>> Disapproval.--The Secretary shall not
finally disapprove the application, except after giving the State
educational agency notice and an opportunity for a hearing.
[[Page 115 STAT. 1677]]
``(e) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this part, the Secretary
shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance and, in such notification, shall--
``(A) cite the specific provisions in the
application that are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(f) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (e)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (c).
``(g) Failure to Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (e)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
``SEC. 2414. LOCAL APPLICATIONS. <<NOTE: 20 USC 6764.>>
``(a) In General.--To be eligible to receive a subgrant from a State
educational agency under this subpart, a local educational agency or
eligible local entity shall submit to the State educational agency an
application containing a new or updated local long-range strategic
educational technology plan that is consistent with the objectives of
the statewide educational technology plan described in section 2413(a),
and such other information as the State educational agency may
reasonably require, at such time and in such manner as the State
educational agency may require.
``(b) Contents.--The application shall include each of the
following:
``(1) A description of how the applicant will use Federal
funds under this subpart to improve the student academic
achievement, including technology literacy, of all students
attending schools served by the local educational agency and to
improve the capacity of all teachers teaching in schools served
by the local educational agency to integrate technology
effectively into curricula and instruction.
``(2) A description of the applicant's specific goals for
using advanced technology to improve student academic
achievement, aligned with challenging State academic content and
student academic achievement standards.
``(3) A description of the steps the applicant will take to
ensure that all students and teachers in schools served by the
local educational agency involved have increased access to
educational technology, including how the agency would use
[[Page 115 STAT. 1678]]
funds under this subpart (such as combining the funds with funds
from other sources), to help ensure that--
``(A) students in high-poverty and high-needs schools,
or schools identified under section 1116, have access to
technology; and
``(B) teachers are prepared to integrate technology
effectively into curricula and instruction.
``(4) A description of how the applicant will--
``(A) identify and promote curricula and teaching
strategies that integrate technology effectively into
curricula and instruction, based on a review of relevant
research, leading to improvements in student academic
achievement, as measured by challenging State academic
content and student academic achievement standards; and
``(B) provide ongoing, sustained professional
development for teachers, principals, administrators,
and school library media personnel serving the local
educational agency, to further the effective use of
technology in the classroom or library media center,
including, if applicable, a list of the entities that
will be partners with the local educational agency
involved in providing the ongoing, sustained
professional development.
``(5) A description of the type and costs of technologies to
be acquired under this subpart, including services, software,
and digital curricula, and including specific provisions for
interoperability among components of such technologies.
``(6) A description of how the applicant will coordinate
activities carried out with funds provided under this subpart
with technology-related activities carried out with funds
available from other Federal, State, and local sources.
``(7) A description of how the applicant will integrate
technology (including software and other electronically
delivered learning materials) into curricula and instruction,
and a timeline for such integration.
``(8) A description of how the applicant will encourage the
development and utilization of innovative strategies for the
delivery of specialized or rigorous academic courses and
curricula through the use of technology, including distance
learning technologies, particularly for those areas that would
not otherwise have access to such courses and curricula due to
geographical isolation or insufficient resources.
``(9) A description of how the applicant will ensure the
effective use of technology to promote parental involvement and
increase communication with parents, including a description of
how parents will be informed of the technology being applied in
their child's education so that the parents are able to
reinforce at home the instruction their child receives at
school.
``(10) A description of how programs will be developed,
where applicable, in collaboration with adult literacy service
providers, to maximize the use of technology.
``(11) A description of the process and accountability
measures that the applicant will use to evaluate the extent to
which activities funded under this subpart are effective in
integrating technology into curricula and instruction,
increasing the ability of teachers to teach, and enabling
students to meet
[[Page 115 STAT. 1679]]
challenging State academic content and student academic
achievement standards.
``(12) A description of the supporting resources (such as
services, software, other electronically delivered learning
materials, and print resources) that will be acquired to ensure
successful and effective uses of technology.
``(c) Combined Applications.--A local educational agency that is an
eligible local entity and submits an application to the State
educational agency under this section for funds awarded under section
2412(a)(2)(A) may combine the agency's application for funds awarded
under that section with an application for funds awarded under section
2412(a)(2)(B).
``(d) Special Rule.--
``(1) Consortium applications.--
``(A) In general.--For any fiscal year, a local
educational agency applying for financial assistance
described in section 2412(a)(2)(A) may apply as part of
a consortium that includes other local educational
agencies, institutions of higher education, educational
service agencies, libraries, or other educational
entities appropriate to provide local programs.
``(B) Fiscal agent.--If a local educational agency
applies for and receives financial assistance described
in section 2412(a)(2)(A) as part of a consortium, the
local educational agency shall serve as the fiscal agent
for the consortium.
``(2) State educational agency assistance.--At the request
of a local educational agency, a State educational agency may
assist the local educational agency in the formation of a
consortium described in paragraph (1) to provide services for
the teachers and students served by the local educational
agency.
``SEC. 2415. STATE ACTIVITIES. <<NOTE: 20 USC 6765.>>
``From funds made available under section 2412(a)(1), a State
educational agency shall carry out activities and assist local efforts
to carry out the purposes of this part, which may include the following
activities:
``(1) Developing, or assisting applicants or recipients of
funds under this subpart in the development and utilization of,
innovative strategies for the delivery of specialized or
rigorous academic courses and curricula through the use of
technology, including distance learning technologies, and
providing other technical assistance to such applicants or
recipients throughout the State, with priority given to high-
need local educational agencies.
``(2) Establishing or supporting public-private initiatives
(such as interest-free or reduced-cost loans) for the
acquisition of educational technology for high-need local
educational agencies and students attending schools served by
such agencies.
``(3) Assisting recipients of funds under this subpart in
providing sustained and intensive, high-quality professional
development based on a review of relevant research in the
integration of advanced technologies, including emerging
technologies, into curricula and instruction and in using those
technologies to create new learning environments, including
training in the use of technology to--
[[Page 115 STAT. 1680]]
``(A) access data and resources to develop curricula
and instructional materials;
``(B) enable teachers--
``(i) to use the Internet and other technology
to communicate with parents, other teachers,
principals, and administrators; and
``(ii) to retrieve Internet-based learning
resources; and
``(C) lead to improvements in classroom instruction
in the core academic subjects, that effectively prepare
students to meet challenging State academic content
standards and student academic achievement standards.
``(4) Assisting recipients of funds under this subpart in
providing all students (including students with disabilities and
students with limited English proficiency) and teachers with
access to educational technology.
``(5) Developing performance measurement systems to
determine the effectiveness of educational technology programs
funded under this subpart, particularly in determining the
extent to which activities funded under this subpart are
effective in integrating technology into curricula and
instruction, increasing the ability of teachers to teach, and
enabling students to meet challenging State academic content and
student academic achievement standards.
``(6) Collaborating with other State educational agencies on
distance learning, including making specialized or rigorous
academic courses and curricula available to students in areas
that would not otherwise have access to such courses and
curricula.
``SEC. 2416. LOCAL ACTIVITIES. <<NOTE: 20 USC 6766.>>
``(a) Professional Development.--
``(1) In general.--A recipient of funds made available under
section 2412(a)(2) shall use not less than 25 percent of such
funds to provide ongoing, sustained, and intensive, high-quality
professional development. The recipient shall provide
professional development in the integration of advanced
technologies, including emerging technologies, into curricula
and instruction and in using those technologies to create new
learning environments, such as professional development in the
use of technology--
``(A) to access data and resources to develop
curricula and instructional materials;
``(B) to enable teachers--
``(i) to use the Internet and other technology
to communicate with parents, other teachers,
principals, and administrators; and
``(ii) to retrieve Internet-based learning
resources; and
``(C) to lead to improvements in classroom
instruction in the core academic subjects, that
effectively prepare students to meet challenging State
academic content standards, including increasing student
technology literacy, and student academic achievement
standards.
``(2) Waivers.--Paragraph (1) shall not apply to a recipient
of funds made available under section 2412(a)(2) that
demonstrates, to the satisfaction of the State educational
agency
[[Page 115 STAT. 1681]]
involved, that the recipient already provides ongoing,
sustained, and intensive, high-quality professional development
that is based on a review of relevant research, to all teachers
in core academic subjects in the integration of advanced
technologies, including emerging technologies, into curricula
and instruction.
``(b) Other Activities.--In addition to the activities described in
subsection (a), a recipient of funds made available by a State
educational agency under section 2412(a)(2) shall use such funds to
carry out other activities consistent with this subpart, which may
include the following:
``(1) Establishing or expanding initiatives, particularly
initiatives involving public-private partnerships, designed to
increase access to technology for students and teachers, with
special emphasis on the access of high-need schools to
technology.
``(2) Adapting or expanding existing and new applications of
technology to enable teachers to increase student academic
achievement, including technology literacy--
``(A) through the use of teaching practices that are
based on a review of relevant research and are designed
to prepare students to meet challenging State academic
content and student academic achievement standards; and
``(B) by the development and utilization of
innovative distance learning strategies to deliver
specialized or rigorous academic courses and curricula
to areas that would not otherwise have access to such
courses and curricula.
``(3) Acquiring proven and effective courses and curricula
that include integrated technology and are designed to help
students meet challenging State academic content and student
academic achievement standards.
``(4) Utilizing technology to develop or expand efforts to
connect schools and teachers with parents and students to
promote meaningful parental involvement, to foster increased
communication about curricula, assignments, and assessments
between students, parents, and teachers, and to assist parents
to understand the technology being applied in their child's
education, so that parents are able to reinforce at home the
instruction their child receives at school.
``(5) Preparing one or more teachers in elementary schools
and secondary schools as technology leaders who are provided
with the means to serve as experts and train other teachers in
the effective use of technology, and providing bonus payments to
the technology leaders.
``(6) Acquiring, adapting, expanding, implementing,
repairing, and maintaining existing and new applications of
technology, to support the school reform effort and to improve
student academic achievement, including technology literacy.
``(7) Acquiring connectivity linkages, resources, and
services (including the acquisition of hardware and software and
other electronically delivered learning materials) for use by
teachers, students, academic counselors, and school library
media personnel in the classroom, in academic and college
counseling centers, or in school library media centers, in order
to improve student academic achievement.
``(8) Using technology to collect, manage, and analyze data
to inform and enhance teaching and school improvement efforts.
[[Page 115 STAT. 1682]]
``(9) Implementing performance measurement systems to
determine the effectiveness of education technology programs
funded under this subpart, particularly in determining the
extent to which activities funded under this subpart are
effective in integrating technology into curricula and
instruction, increasing the ability of teachers to teach, and
enabling students to meet challenging State academic content and
student academic achievement standards.
``(10) Developing, enhancing, or implementing information
technology courses.
``Subpart 2--National Technology Activities
``SEC. 2421. NATIONAL ACTIVITIES. <<NOTE: 20 USC 6771.>>
``(a) Study.--Using funds made available under section 2404(b)(2),
the Secretary--
``(1) shall conduct an independent, long-term study,
utilizing scientifically based research methods and control
groups or control conditions--
``(A) on the conditions and practices under which
educational technology is effective in increasing
student academic achievement; and
``(B) on the conditions and practices that increase
the ability of teachers to integrate technology
effectively into curricula and instruction, that enhance
the learning environment and opportunities, and that
increase student academic achievement, including
technology literacy;
``(2) <<NOTE: Establishment.>> shall establish an
independent review panel to advise the Secretary on
methodological and other issues that arise in conducting the
long-term study;
``(3) shall consult with other interested Federal
departments or agencies, State and local educational
practitioners and policymakers (including teachers, principals,
and superintendents), and experts in technology, regarding the
study; and
``(4) <<NOTE: Reports. Deadline.>> shall submit to Congress
interim reports, when appropriate, and a final report, to be
submitted not later than April 1, 2006, on the findings of the
study.
``(b) <<NOTE: Internet.>> Dissemination.--Using funds made
available under section 2404(b)(2), the Secretary shall make widely
available, including through dissemination on the Internet and to all
State educational agencies and other recipients of funds under this
part, findings identified through activities carried out under this
section regarding the conditions and practices under which educational
technology is effective in increasing student academic achievement.
``(c) Technical Assistance.--Using funds made available under
section 2404(b)(2), the Secretary may provide technical assistance
(directly or through the competitive award of grants or contracts) to
State educational agencies, local educational agencies, and other
recipients of funds, particularly in rural areas, under this part, in
order to assist such State educational agencies, local educational
agencies, and other recipients to achieve the purposes of this part.
``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN. <<NOTE: 20 USC 6772.>>
``(a) <<NOTE: Publication. Public information.>> In General.--Based
on the Nation's progress and an assessment by the Secretary of the
continuing and future needs
[[Page 115 STAT. 1683]]
of the Nation's schools in effectively using technology to provide all
students the opportunity to meet challenging State academic content and
student academic achievement standards, the Secretary shall update and
publish, in a form readily accessible to the public, a national long-
range technology plan, by not later than 12 months after the date of
enactment of the No Child Left Behind Act of 2001.
``(b) Contents.--The plan referred to in subsection (a) shall
include each of the following:
``(1) A description of the manner in which the Secretary
will promote--
``(A) higher student academic achievement through
the integration of advanced technologies, including
emerging technologies, into curricula and instruction;
``(B) increased access to technology for teaching
and learning for schools with a high number or
percentage of children from families with incomes below
the poverty line; and
``(C) the use of technology to assist in the
implementation of State systemic reform strategies.
``(2) A description of joint activities of the Department of
Education and other Federal departments or agencies that will
promote the use of technology in education.
``Subpart 3--Ready-to-Learn Television
``SEC. 2431. READY-TO-LEARN TELEVISION. <<NOTE: 20 USC 6775.>>
``(a) Program Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to, or enter into contracts or cooperative agreements
with, eligible entities described in paragraph (3) to enable
such entities--
``(A) to develop, produce, and distribute
educational and instructional video programming for
preschool and elementary school children and their
parents in order to facilitate student academic
achievement;
``(B) to facilitate the development, directly or
through contracts with producers of children and family
educational television programming, of educational
programming for preschool and elementary school
children, and the accompanying support materials and
services that promote the effective use of such
programming;
``(C) to facilitate the development of programming
and digital content containing Ready-to-Learn-based
children's programming and resources for parents and
caregivers that is specially designed for nationwide
distribution over public television stations' digital
broadcasting channels and the Internet;
``(D) to contract with entities (such as public
telecommunications entities) so that programs developed
under this section are disseminated and distributed to
the widest possible audience appropriate to be served by
the programming, and through the use of the most
appropriate distribution technologies; and
``(E) to develop and disseminate education and
training materials, including interactive programs and
programs
[[Page 115 STAT. 1684]]
adaptable to distance learning technologies, that are
designed--
``(i) to promote school readiness; and
``(ii) to promote the effective use of
materials developed under subparagraphs (B) and
(C) among parents, teachers, Head Start providers,
Even Start providers, providers of family literacy
services, child care providers, early childhood
development personnel, elementary school teachers,
public libraries, and after-school program
personnel caring for preschool and elementary
school children.
``(2) Availability.--In awarding grants, contracts, or
cooperative agreements under this section, the Secretary shall
ensure that eligible entities make programming widely available,
with support materials as appropriate, to young children,
parents, child care workers, Head Start providers, Even Start
providers, and providers of family literacy services to increase
the effective use of such programming.
``(3) Eligible entities.--To be eligible to receive a grant,
contract, or cooperative agreements under this section, an
entity shall be a public telecommunications entity that is able
to demonstrate each of the following:
``(A) A capacity for the development and national
distribution of educational and instructional television
programming of high quality that is accessible by a
large majority of disadvantaged preschool and elementary
school children.
``(B) A capacity to contract with the producers of
children's television programming for the purpose of
developing educational television programming of high
quality.
``(C) A capacity, consistent with the entity's
mission and nonprofit nature, to negotiate such
contracts in a manner that returns to the entity an
appropriate share of any ancillary income from sales of
any program-related products.
``(D) A capacity to localize programming and
materials to meet specific State and local needs and to
provide educational outreach at the local level.
``(4) Coordination of activities.--An entity receiving a
grant, contract, or cooperative agreement under this section
shall consult with the Secretary and the Secretary of Health and
Human Services--
``(A) to maximize the utilization of quality
educational programming by preschool and elementary
school children, and make such programming widely
available to federally funded programs serving such
populations; and
``(B) to coordinate activities with Federal programs
that have major training components for early childhood
development, including programs under the Head Start Act
(42 U.S.C. 9831 et seq.) and Even Start, and State
training activities funded under the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9858 et
seq.), regarding the availability and utilization of
materials developed under paragraph (1)(E) to enhance
parent and child care provider skills in early childhood
development and education.
[[Page 115 STAT. 1685]]
``(b) Applications.--To be eligible to receive a grant, contract, or
cooperative agreement under subsection (a), an entity shall submit to
the Secretary an application at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(c) Reports and Evaluations.--
``(1) Annual report to the secretary.--An entity receiving a
grant, contract, or cooperative agreement under this section
shall prepare and submit to the Secretary an annual report that
contains such information as the Secretary may require. At a
minimum, the report shall describe the program activities
undertaken with funds received under the grant, contract, or
cooperative agreement, including each of the following:
``(A) The programming that has been developed,
directly or indirectly, by the eligible entity, and the
target population of the programs developed.
``(B) The support and training materials that have
been developed to accompany the programming, and the
method by which the materials are distributed to
consumers and users of the programming.
``(C) The means by which programming developed under
this section has been distributed, including the
distance learning technologies that have been utilized
to make programming available, and the geographic
distribution achieved through such technologies.
``(D) The initiatives undertaken by the entity to
develop public-private partnerships to secure non-
Federal support for the development, distribution, and
broadcast of educational and instructional programming.
``(2) Report to congress.--The Secretary shall prepare and
submit to the relevant committees of Congress a biannual report
that includes the following:
``(A) A summary of the activities assisted under
subsection (a).
``(B) A description of the education and training
materials made available under subsection (a)(1)(E), the
manner in which outreach has been conducted to inform
parents and child care providers of the availability of
such materials, and the manner in which such materials
have been distributed in accordance with such
subsection.
``(d) Administrative Costs.--An entity that receives a grant,
contract, or cooperative agreement under this section may use up to 5
percent of the amount received under the grant, contract, or agreement
for the normal and customary expenses of administering the grant,
contract, or agreement.
``(e) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section such sums as may be necessary for
fiscal year 2002, and for each of the 5 succeeding fiscal years.
``(2) Funding rule.--Not less than 60 percent of the amount
appropriated under paragraph (1) for each fiscal year shall be
used to carry out activities under subparagraphs (B) through (D)
of subsection (a)(1).
[[Page 115 STAT. 1686]]
``Subpart 4--Limitation on Availability of Certain Funds for Schools
``SEC. 2441. INTERNET SAFETY. <<NOTE: 20 USC 6777.>>
``(a) In General.--No funds made available under this part to a
local educational agency for an elementary school or secondary school
that does not receive services at discount rates under section 254(h)(5)
of the Communications Act of 1934 (47 U.S.C. 254(h)(5)) may be used to
purchase computers used to access the Internet, or to pay for direct
costs associated with accessing the Internet, for such school unless the
school, school board, local educational agency, or other authority with
responsibility for administration of such school both--
``(1)(A) has in place a policy of Internet safety for minors
that includes the operation of a technology protection measure
with respect to any of its computers with Internet access that
protects against access through such computers to visual
depictions that are--
``(i) obscene;
``(ii) child pornography; or
``(iii) harmful to minors; and
``(B) is enforcing the operation of such technology
protection measure during any use of such computers by minors;
and
``(2)(A) has in place a policy of Internet safety that
includes the operation of a technology protection measure with
respect to any of its computers with Internet access that
protects against access through such computers to visual
depictions that are--
``(i) obscene; or
``(ii) child pornography; and
``(B) is enforcing the operation of such technology
protection measure during any use of such computers.
``(b) Timing and Applicability of Implementation.--
``(1) <<NOTE: Certification.>> In general.--The local
educational agency with responsibility for a school covered by
subsection (a) shall certify the compliance of such school with
the requirements of subsection (a) as part of the application
process for the next program funding year under this Act
following December 21, 2000, and for each subsequent program
funding year thereafter.
``(2) Process.--
``(A) Schools with internet safety policies and
technology protection measures in place.--A local
educational agency with responsibility for a school
covered by subsection (a) that has in place an Internet
safety policy meeting the requirements of subsection (a)
shall certify its compliance with subsection (a) during
each annual program application cycle under this Act.
``(B) Schools without internet safety policies and
technology protection measures in place.--
``(i) Certification.--A local educational
agency with responsibility for a school covered by
subsection (a) that does not have in place an
Internet safety policy meeting the requirements of
subsection (a)--
``(I) for the first program year
after December 21, 2000, in which the
local educational agency is applying for
funds for such school under this
[[Page 115 STAT. 1687]]
Act, shall certify that it is
undertaking such actions, including any
necessary procurement procedures, to put
in place an Internet safety policy that
meets such requirements; and
``(II) for the second program year
after December 21, 2000, in which the
local educational agency is applying for
funds for such school under this Act,
shall certify that such school is in
compliance with such requirements.
``(ii) Ineligibility.--Any school covered by
subsection (a) for which the local educational
agency concerned is unable to certify compliance
with such requirements in such second program year
shall be ineligible for all funding under this
part for such second program year and all
subsequent program years until such time as such
school comes into compliance with such
requirements.
``(C) Waivers.--Any school subject to a
certification under subparagraph (B)(i)(II) for which
the local educational agency concerned cannot make the
certification otherwise required by that subparagraph
may seek a waiver of that subparagraph if State or local
procurement rules or regulations or competitive bidding
requirements prevent the making of the certification
otherwise required by that
subparagraph. <<NOTE: Notification.>> The local
educational agency concerned shall notify the Secretary
of the applicability of that subparagraph to the school.
Such notice shall certify that the school will be
brought into compliance with the requirements in
subsection (a) before the start of the third program
year after December 21, 2000, in which the school is
applying for funds under this part.
``(c) Disabling During Certain Use.--An administrator, supervisor,
or person authorized by the responsible authority under subsection (a)
may disable the technology protection measure concerned to enable access
for bona fide research or other lawful purposes.
``(d) Noncompliance.--
``(1) Use of general education provisions act remedies.--
Whenever the Secretary has reason to believe that any recipient
of funds under this part is failing to comply substantially with
the requirements of this section, the Secretary may--
``(A) withhold further payments to the recipient
under this part;
``(B) issue a complaint to compel compliance of the
recipient through a cease and desist order; or
``(C) enter into a compliance agreement with a
recipient to bring it into compliance with such
requirements,
in same manner as the Secretary is authorized to take such
actions under sections 455, 456, and 457, respectively, of the
General Education Provisions Act.
``(2) Recovery of funds prohibited.--The actions authorized
by paragraph (1) are the exclusive remedies available with
respect to the failure of a school to comply substantially with
a provision of this section, and the Secretary shall not seek a
recovery of funds from the recipient for such failure.
``(3) Recommencement of payments.--Whenever the Secretary
determines (whether by certification or other appropriate
[[Page 115 STAT. 1688]]
evidence) that a recipient of funds who is subject to the
withholding of payments under paragraph (1)(A) has cured the
failure providing the basis for the withholding of payments, the
Secretary shall cease the withholding of payments to the
recipient under that paragraph.
``(e) Definitions.--In this subpart:
``(1) Computer.--The term `computer' includes any hardware,
software, or other technology attached or connected to,
installed in, or otherwise used in connection with a computer.
``(2) Access to internet.--A computer shall be considered to
have access to the Internet if such computer is equipped with a
modem or is connected to a computer network that has access to
the Internet.
``(3) Acquisition or operation.--An elementary school or
secondary school shall be considered to have received funds
under this part for the acquisition or operation of any computer
if such funds are used in any manner, directly or indirectly--
``(A) to purchase, lease, or otherwise acquire or
obtain the use of such computer; or
``(B) to obtain services, supplies, software, or
other actions or materials to support, or in connection
with, the operation of such computer.
``(4) Minor.--The term `minor' means an individual who has
not attained the age of 17.
``(5) Child pornography.--The term `child pornography' has
the meaning given that term in section 2256 of title 18, United
States Code.
``(6) Harmful to minors.--The term `harmful to minors' means
any picture, image, graphic image file, or other visual
depiction that--
``(A) taken as a whole and with respect to minors,
appeals to a prurient interest in nudity, sex, or
excretion;
``(B) depicts, describes, or represents, in a
patently offensive way with respect to what is suitable
for minors, an actual or simulated sexual act or sexual
contact, actual or simulated normal or perverted sexual
acts, or a lewd exhibition of the genitals; and
``(C) taken as a whole, lacks serious literary,
artistic, political, or scientific value as to minors.
``(7) Obscene.--The term `obscene' has the meaning
applicable to that term under section 1460 of title 18, United
States Code.
``(8) Sexual act and sexual contact.--The terms `sexual act'
and `sexual contact' have the meanings given those terms in
section 2246 of title 18, United States Code.
``(f) Severability.--If any provision of this section is held
invalid, the remainder of this section shall not be affected thereby.''.
SEC. 202. CONTINUATION OF AWARDS. <<NOTE: 20 USC 6301 note.>>
Notwithstanding any other provision of this Act or the Elementary
and Secondary Education Act of 1965, in the case of--
(1) a person or entity that, prior to the date of enactment
of this Act, was awarded funds appropriated under the Department
of Education Appropriations Act, 2001 for new teacher
recruitment initiatives; or
[[Page 115 STAT. 1689]]
(2) a person or agency that, prior to the date of enactment
of this Act, was awarded a grant or contract under part K of
title X of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 8331 et seq.),
the Secretary of Education shall continue to provide funds in accordance
with the terms of such award until the date on which the award period
terminates.
TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
SEC. 301. LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT CHILDREN
AND IMMIGRANT CHILDREN AND YOUTH.
Title III (20 U.S.C. 6801 et seq.) is amended to read as follows:
``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND
IMMIGRANT STUDENTS
``SEC. 3001. <<NOTE: 20 USC 6801.>> AUTHORIZATIONS OF APPROPRIATIONS;
CONDITION ON EFFECTIVENESS OF PARTS.
``(a) Authorizations of Appropriations.--
``(1) In general.--Subject to subsection (b), there are
authorized to be appropriated to carry out this title, except
for subpart 4 of part B, $750,000,000 for fiscal year 2002 and
such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(2) Emergency immigrant education program.--There are
authorized to be appropriated to carry out subpart 4 of part B
(when such part is in effect) such sums as may be necessary for
fiscal year 2002 and each of the 5 succeeding fiscal years.
``(b) Conditions on Effectiveness of Parts A and B.--
``(1) Part a.--Part A shall be in effect for any fiscal year
for which the amount appropriated under paragraphs (1) and (2)
of subsection (a) equals or exceeds $650,000,000.
``(2) Part b.--Part B shall be in effect only for a fiscal
year for which part A is not in effect.
``(c) References.--In any fiscal year for which part A is in effect,
references in Federal law (other than this title) to part B shall be
considered to be references to part A. In any fiscal year for which part
B is in effect, references in Federal law (other than this title) to
part A shall be considered to be references to part B.
[[Page 115 STAT. 1690]]
``PART <<NOTE: English Language Acquisition, Language Enhancement, and
Academic Achievement Act. Children, youth and families. Grants. 20 USC
6811.>> A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND
ACADEMIC ACHIEVEMENT ACT
``SEC. 3101. SHORT TITLE.
``This part may be cited as the `English Language Acquisition,
Language Enhancement, and Academic Achievement Act'.
``SEC. 3102. PURPOSES. <<NOTE: 20 USC 6812.>>
``The purposes of this part are--
``(1) to help ensure that children who are limited English
proficient, including immigrant children and youth, attain
English proficiency, develop high levels of academic attainment
in English, and meet the same challenging State academic content
and student academic achievement standards as all children are
expected to meet;
``(2) to assist all limited English proficient children,
including immigrant children and youth, to achieve at high
levels in the core academic subjects so that those children can
meet the same challenging State academic content and student
academic achievement standards as all children are expected to
meet, consistent with section 1111(b)(1);
``(3) to develop high-quality language instruction
educational programs designed to assist State educational
agencies, local educational agencies, and schools in teaching
limited English proficient children and serving immigrant
children and youth;
``(4) to assist State educational agencies and local
educational agencies to develop and enhance their capacity to
provide high-quality instructional programs designed to prepare
limited English proficient children, including immigrant
children and youth, to enter all-English instruction settings;
``(5) to assist State educational agencies, local
educational agencies, and schools to build their capacity to
establish, implement, and sustain language instruction
educational programs and programs of English language
development for limited English proficient children;
``(6) to promote parental and community participation in
language instruction educational programs for the parents and
communities of limited English proficient children;
``(7) to streamline language instruction educational
programs into a program carried out through formula grants to
State educational agencies and local educational agencies to
help limited English proficient children, including immigrant
children and youth, develop proficiency in English, while
meeting challenging State academic content and student academic
achievement standards;
``(8) to hold State educational agencies, local educational
agencies, and schools accountable for increases in English
proficiency and core academic content knowledge of limited
English proficient children by requiring--
``(A) demonstrated improvements in the English
proficiency of limited English proficient children each
fiscal year; and
[[Page 115 STAT. 1691]]
``(B) adequate yearly progress for limited English
proficient children, including immigrant children and
youth, as described in section 1111(b)(2)(B); and
``(9) to provide State educational agencies and local
educational agencies with the flexibility to implement language
instruction educational programs, based on scientifically based
research on teaching limited English proficient children, that
the agencies believe to be the most effective for teaching
English.
``Subpart 1--Grants and Subgrants for English Language Acquisition and
Language Enhancement
``SEC. 3111. FORMULA GRANTS TO STATES. <<NOTE: 20 USC 6821.>>
``(a) In General.--In the case of each State educational agency
having a plan approved by the Secretary for a fiscal year under section
3113, the Secretary shall make a grant for the year to the agency for
the purposes specified in subsection (b). The grant shall consist of the
allotment determined for the State educational agency under subsection
(c).
``(b) Use of Funds.--
``(1) Subgrants to eligible entities.--The Secretary may
make a grant under subsection (a) only if the State educational
agency involved agrees to expend at least 95 percent of the
State educational agency's allotment under subsection (c) for a
fiscal year--
``(A) to award subgrants, from allocations under
section 3114, to eligible entities to carry out the
activities described in section 3115 (other than
subsection (e)); and
``(B) to award subgrants under section 3114(d)(1) to
eligible entities that are described in that section to
carry out the activities described in section 3115(e).
``(2) State activities.--Subject to paragraph (3), each
State educational agency receiving a grant under subsection (a)
may reserve not more than 5 percent of the agency's allotment
under subsection (c) to carry out one or more of the following
activities:
``(A) Professional development activities, and other
activities, that assist personnel in meeting State and
local certification and licensing requirements for
teaching limited English proficient children.
``(B) Planning, evaluation, administration, and
interagency coordination related to the subgrants
referred to in paragraph (1).
``(C) Providing technical assistance and other forms
of assistance to eligible entities that are receiving
subgrants from a State educational agency under this
subpart, including assistance in--
``(i) identifying and implementing language
instruction educational programs and curricula
that are based on scientifically based research on
teaching limited English proficient children;
``(ii) helping limited English proficient
children meet the same challenging State academic
content and
[[Page 115 STAT. 1692]]
student academic achievement standards as all
children are expected to meet;
``(iii) identifying or developing, and
implementing, measures of English proficiency; and
``(iv) promoting parental and community
participation in programs that serve limited
English proficient children.
``(D) Providing recognition, which may include
providing financial awards, to subgrantees that have
exceeded their annual measurable achievement objectives
pursuant to section 3122.
``(3) Administrative expenses.--From the amount reserved
under paragraph (2), a State educational agency may use not more
than 60 percent of such amount or $175,000, whichever is
greater, for the planning and administrative costs of carrying
out paragraphs (1) and (2).
``(c) Reservations and Allotments.--
``(1) Reservations.--From the amount appropriated under
section 3001(a) for each fiscal year, the Secretary shall
reserve--
``(A) 0.5 percent or $5,000,000 of such amount,
whichever is greater, for payments to eligible entities
that are defined under section 3112(a) for activities,
approved by the Secretary, consistent with this subpart;
``(B) 0.5 percent of such amount for payments to
outlying areas, to be allotted in accordance with their
respective needs for assistance under this subpart, as
determined by the Secretary, for activities, approved by
the Secretary, consistent with this subpart;
``(C) 6.5 percent of such amount for national
activities under sections 3131 and 3303, except that not
more than 0.5 percent of such amount shall be reserved
for evaluation activities conducted by the Secretary and
not more than $2,000,000 of such amount may be reserved
for the National Clearinghouse for English Language
Acquisition and Language Instruction Educational
Programs described in section 3303; and
``(D) such sums as may be necessary to make
continuation awards under paragraph (2).
``(2) Continuation awards.--
``(A) In general.--Before making allotments to State
educational agencies under paragraph (3) for any fiscal
year, the Secretary shall use the sums reserved under
paragraph (1)(D) to make continuation awards to
recipients who received grants or fellowships for the
fiscal year preceding any fiscal year described in
section 3001(b)(1)(A) under--
``(i) subparts 1 and 3 of part A of title VII
(as in effect on the day before the date of
enactment of the No Child Left Behind Act of
2001); or
``(ii) subparts 1 and 3 of part B of this
title.
``(B) Use of funds.--The Secretary shall make the
awards in order to allow such recipients to receive
awards for the complete period of their grants or
fellowships under the appropriate subparts.
``(3) State allotments.--
[[Page 115 STAT. 1693]]
``(A) In general.--Except as provided in
subparagraph (B), from the amount appropriated under
section 3001(a) for each fiscal year that remains after
making the reservations under paragraph (1), the
Secretary shall allot to each State educational agency
having a plan approved under section 3113(c)--
``(i) an amount that bears the same
relationship to 80 percent of the remainder as the
number of limited English proficient children in
the State bears to the number of such children in
all States; and
``(ii) an amount that bears the same
relationship to 20 percent of the remainder as the
number of immigrant children and youth in the
State bears to the number of such children and
youth in all States.
``(B) Minimum allotments.--No State educational
agency shall receive an allotment under this paragraph
that is less than $500,000.
``(C) Reallotment.--If any State educational agency
described in subparagraph (A) does not submit a plan to
the Secretary for a fiscal year, or submits a plan (or
any amendment to a plan) that the Secretary, after
reasonable notice and opportunity for a hearing,
determines does not satisfy the requirements of this
subpart, the Secretary--
``(i) shall endeavor to make the State's
allotment available on a competitive basis to
specially qualified agencies within the State to
satisfy the requirements of section 3115 (and any
additional requirements that the Secretary may
impose), consistent with the purposes of such
section, and to carry out required and authorized
activities under such section; and
``(ii) shall reallot any portion of such
allotment remaining after the application of
clause (i) to the remaining State educational
agencies in accordance with subparagraph (A).
``(D) Special rule for puerto rico.--The total
amount allotted to Puerto Rico for any fiscal year under
subparagraph (A) shall not exceed 0.5 percent of the
total amount allotted to all States for that fiscal
year.
``(4) Use of data for determinations.--
``(A) In general.--In making State allotments under
paragraph (3), for the purpose of determining the number
of limited English proficient children in a State and in
all States, and the number of immigrant children and
youth in a State and in all States, for each fiscal
year, the Secretary shall use data that will yield the
most accurate, up-to-date numbers of such children and
youth.
``(B) Special rule.--
``(i) First 2 years.--In making determinations
under subparagraph (A) for the 2 fiscal years
following the date of enactment of the No Child
Left Behind Act of 2001, the Secretary shall
determine the number of limited English proficient
children in a State and in all States, and the
number of immigrant children and youth in a State
and in all States, using data available from the
Bureau of Census or submitted by the States to the
Secretary.
[[Page 115 STAT. 1694]]
``(ii) Subsequent years.--For subsequent
fiscal years, the Secretary shall determine the
number of limited English proficient children in a
State and in all States, and the number of
immigrant children and youth in a State and in all
States, using the more accurate of--
``(I) the data available from the
American Community Survey available from
the Department of Commerce; or
``(II) the number of children being
assessed for English proficiency in a
State as required under section
1111(b)(7).
``SEC. 3112. <<NOTE: 20 USC 6822.>> NATIVE AMERICAN AND ALASKA NATIVE
CHILDREN IN SCHOOL.
``(a) Eligible Entities.--For the purpose of carrying out programs
under this part for individuals served by elementary schools, secondary
schools, and postsecondary schools operated predominately for Native
American children (including Alaska Native children), the following
shall be considered to be an eligible entity:
``(1) An Indian tribe.
``(2) A tribally sanctioned educational authority.
``(3) A Native Hawaiian or Native American Pacific Islander
native language educational organization.
``(4) An elementary school or secondary school that is
operated or funded by the Bureau of Indian Affairs, or a
consortium of such schools.
``(5) An elementary school or secondary school operated
under a contract with or grant from the Bureau of Indian
Affairs, in consortium with another such school or a tribal or
community organization.
``(6) An elementary school or secondary school operated by
the Bureau of Indian Affairs and an institution of higher
education, in consortium with an elementary school or secondary
school operated under a contract with or grant from the Bureau
of Indian Affairs or a tribal or community organization.
``(b) Submission of Applications for Assistance.--Notwithstanding
any other provision of this part, an entity that is considered to be an
eligible entity under subsection (a), and that desires to receive
Federal financial assistance under this subpart, shall submit an
application to the Secretary.
``(c) Special Rule.--An eligible entity described in subsection (a)
that receives Federal financial assistance pursuant to this section
shall not be eligible to receive a subgrant under section 3114.
``SEC. 3113. STATE AND SPECIALLY QUALIFIED AGENCY PLANS. <<NOTE: 20 USC
6823.>>
``(a) Plan Required.--Each State educational agency and specially
qualified agency desiring a grant under this subpart shall submit a plan
to the Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(b) Contents.--Each plan submitted under subsection (a) shall--
``(1) describe the process that the agency will use in
making subgrants to eligible entities under section 3114(d)(1);
``(2) describe how the agency will establish standards and
objectives for raising the level of English proficiency that are
derived from the four recognized domains of speaking, listening,
[[Page 115 STAT. 1695]]
reading, and writing, and that are aligned with achievement of
the challenging State academic content and student academic
achievement standards described in section 1111(b)(1);
``(3) contain an assurance that--
``(A) in the case of a State educational agency, the
agency consulted with local educational agencies,
education-related community groups and nonprofit
organizations, parents, teachers, school administrators,
and researchers, in developing the annual measurable
achievement objectives described in section 3122;
``(B) in the case of a specially qualified agency,
the agency consulted with education-related community
groups and nonprofit organizations, parents, teachers,
and researchers, in developing the annual measurable
achievement objectives described in section 3122;
``(C) the agency will ensure that eligible entities
receiving a subgrant under this subpart comply with the
requirement in section 1111(b)(7) to annually assess in
English children who have been in the United States for
3 or more consecutive years;
``(D) the agency will ensure that eligible entities
receiving a subgrant under this subpart annually assess
the English proficiency of all limited English
proficient children participating in a program funded
under this subpart, consistent with section 1111(b)(7);
``(E) in awarding subgrants under section 3114, the
agency will address the needs of school systems of all
sizes and in all geographic areas, including school
systems with rural and urban schools;
``(F) subgrants to eligible entities under section
3114(d)(1) will be of sufficient size and scope to allow
such entities to carry out high-quality language
instruction educational programs for limited English
proficient children; and
``(G) the agency will require an eligible entity
receiving a subgrant under this subpart to use the
subgrant in ways that will build such recipient's
capacity to continue to offer high-quality language
instruction educational programs that assist limited
English proficient children in meeting challenging State
academic content and student academic achievement
standards once assistance under this subpart is no
longer available;
``(4) describe how the agency will coordinate its programs
and activities under this subpart with its other programs and
activities under this Act and other Acts, as appropriate;
``(5) describe how the agency will hold local educational
agencies, eligible entities, elementary schools, and secondary
schools accountable for--
``(A) meeting all annual measurable achievement
objectives described in section 3122;
``(B) making adequate yearly progress for limited
English proficient children, as described in section
1111(b)(2)(B); and
``(C) achieving the purposes of this part; and
``(6) describe how eligible entities in the State will be
given the flexibility to teach limited English proficient
children--
[[Page 115 STAT. 1696]]
``(A) using a language instruction curriculum that
is tied to scientifically based research on teaching
limited English proficient children and that has been
demonstrated to be effective; and
``(B) in the manner the eligible entities determine
to be the most effective.
``(c) Approval.--The Secretary, after using a peer review process,
shall approve a plan submitted under subsection (a) if the plan meets
the requirements of this section.
``(d) Duration of Plan.--
``(1) In general.--Each plan submitted by a State
educational agency or specially qualified agency and approved
under subsection (c) shall--
``(A) remain in effect for the duration of the
agency's participation under this part; and
``(B) be periodically reviewed and revised by the
agency, as necessary, to reflect changes to the agency's
strategies and programs carried out under this part.
``(2) Additional information.--
``(A) Amendments.--If the State educational agency
or specially qualified agency amends the plan, the
agency shall submit such amendment to the Secretary.
``(B) Approval.--The Secretary shall approve such
amendment to an approved plan, unless the Secretary
determines that the amendment will result in the agency
not meeting the requirements, or fulfilling the
purposes, of this part.
``(e) Consolidated Plan.--A plan submitted under subsection (a) may
be submitted as part of a consolidated plan under section 9302.
``(f) Secretary Assistance.--The Secretary shall provide technical
assistance, if requested, in the development of English proficiency
standards, objectives, and assessments.
``SEC. 3114. WITHIN-STATE ALLOCATIONS. <<NOTE: 20 USC 6824.>>
``(a) In General.--After making the reservation required under
subsection (d)(1), each State educational agency receiving a grant under
section 3111(c)(3) shall award subgrants for a fiscal year by allocating
to each eligible entity in the State having a plan approved under
section 3116 an amount that bears the same relationship to the amount
received under the grant and remaining after making such reservation as
the population of limited English proficient children in schools served
by the eligible entity bears to the population of limited English
proficient children in schools served by all eligible entities in the
State.
``(b) Limitation.--A State educational agency shall not award a
subgrant from an allocation made under subsection (a) if the amount of
such subgrant would be less than $10,000.
``(c) Reallocation.--Whenever a State educational agency determines
that an amount from an allocation made to an eligible entity under
subsection (a) for a fiscal year will not be used by the entity for the
purpose for which the allocation was made, the agency shall, in
accordance with such rules as it determines to be appropriate,
reallocate such amount, consistent with such subsection, to other
eligible entities in the State that the agency determines will use the
amount to carry out that purpose.
[[Page 115 STAT. 1697]]
``(d) Required Reservation.--A State educational agency receiving a
grant under this subpart for a fiscal year--
``(1) shall reserve not more than 15 percent of the agency's
allotment under section 3111(c)(3) to award subgrants to
eligible entities in the State that have experienced a
significant increase, as compared to the average of the 2
preceding fiscal years, in the percentage or number of immigrant
children and youth, who have enrolled, during the fiscal year
preceding the fiscal year for which the subgrant is made, in
public and nonpublic elementary schools and secondary schools in
the geographic areas under the jurisdiction of, or served by,
such entities; and
``(2) in awarding subgrants under paragraph (1)--
``(A) shall equally consider eligible entities that
satisfy the requirement of such paragraph but have
limited or no experience in serving immigrant children
and youth; and
``(B) shall consider the quality of each local plan
under section 3116 and ensure that each subgrant is of
sufficient size and scope to meet the purposes of this
part.
``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES. <<NOTE: 20 USC 6825.>>
``(a) Purposes of Subgrants.--A State educational agency may make a
subgrant to an eligible entity from funds received by the agency under
this subpart only if the entity agrees to expend the funds to improve
the education of limited English proficient children, by assisting the
children to learn English and meet challenging State academic content
and student academic achievement standards. In carrying out activities
with such funds, the entity shall use approaches and methodologies based
on scientifically based research on teaching limited English proficient
children and immigrant children and youth for the following purposes:
``(1) Developing and implementing new language instruction
educational programs and academic content instruction programs
for such children, and such children and youth, including
programs of early childhood education, elementary school
programs, and secondary school programs.
``(2) Carrying out highly focused, innovative, locally
designed activities to expand or enhance existing language
instruction educational programs and academic content
instruction programs for such children, and such children and
youth.
``(3) Implementing, within an individual school, schoolwide
programs for restructuring, reforming, and upgrading all
relevant programs, activities, and operations relating to
language instruction educational programs and academic content
instruction for such children, and such children and youth.
``(4) Implementing, within the entire jurisdiction of a
local educational agency, agencywide programs for restructuring,
reforming, and upgrading all relevant programs, activities, and
operations relating to language instruction educational programs
and academic content instruction for such children, and such
children and youth.
``(b) Administrative Expenses.--Each eligible entity receiving funds
under section 3114(a) for a fiscal year may use not more than 2 percent
of such funds for the cost of administering this subpart.
[[Page 115 STAT. 1698]]
``(c) Required Subgrantee Activities.--An eligible entity receiving
funds under section 3114(a) shall use the funds--
``(1) to increase the English proficiency of limited English
proficient children by providing high-quality language
instruction educational programs that are based on
scientifically based research demonstrating the effectiveness of
the programs in increasing--
``(A) English proficiency; and
``(B) student academic achievement in the core
academic subjects; and
``(2) to provide high-quality professional development to
classroom teachers (including teachers in classroom settings
that are not the settings of language instruction educational
programs), principals, administrators, and other school or
community-based organizational personnel, that is--
``(A) designed to improve the instruction and
assessment of limited English proficient children;
``(B) designed to enhance the ability of such
teachers to understand and use curricula, assessment
measures, and instruction strategies for limited English
proficient children;
``(C) based on scientifically based research
demonstrating the effectiveness of the professional
development in increasing children's English proficiency
or substantially increasing the subject matter
knowledge, teaching knowledge, and teaching skills of
such teachers; and
``(D) of sufficient intensity and duration (which
shall not include activities such as one-day or short-
term workshops and conferences) to have a positive and
lasting impact on the teachers' performance in the
classroom, except that this subparagraph shall not apply
to an activity that is one component of a long-term,
comprehensive professional development plan established
by a teacher and the teacher's supervisor based on an
assessment of the needs of the teacher, the supervisor,
the students of the teacher, and any local educational
agency employing the teacher.
``(d) Authorized Subgrantee Activities.--Subject to subsection (c),
an eligible entity receiving funds under section 3114(a) may use the
funds to achieve one of the purposes described in subsection (a) by
undertaking one or more of the following activities:
``(1) Upgrading program objectives and effective instruction
strategies.
``(2) Improving the instruction program for limited English
proficient children by identifying, acquiring, and upgrading
curricula, instruction materials, educational software, and
assessment procedures.
``(3) Providing--
``(A) tutorials and academic or vocational education
for limited English proficient children; and
``(B) intensified instruction.
``(4) Developing and implementing elementary school or
secondary school language instruction educational programs that
are coordinated with other relevant programs and services.
``(5) Improving the English proficiency and academic
achievement of limited English proficient children.
[[Page 115 STAT. 1699]]
``(6) Providing community participation programs, family
literacy services, and parent outreach and training activities
to limited English proficient children and their families--
``(A) to improve the English language skills of
limited English proficient children; and
``(B) to assist parents in helping their children to
improve their academic achievement and becoming active
participants in the education of their children.
``(7) Improving the instruction of limited English
proficient children by providing for--
``(A) the acquisition or development of educational
technology or instructional materials;
``(B) access to, and participation in, electronic
networks for materials, training, and communication; and
``(C) incorporation of the resources described in
subparagraphs (A) and (B) into curricula and programs,
such as those funded under this subpart.
``(8) Carrying out other activities that are consistent with
the purposes of this section.
``(e) Activities by Agencies Experiencing Substantial Increases in
Immigrant Children and Youth.--
``(1) In general.--An eligible entity receiving funds under
section 3114(d)(1) shall use the funds to pay for activities
that provide enhanced instructional opportunities for immigrant
children and youth, which may include--
``(A) family literacy, parent outreach, and training
activities designed to assist parents to become active
participants in the education of their children;
``(B) support for personnel, including teacher aides
who have been specifically trained, or are being
trained, to provide services to immigrant children and
youth;
``(C) provision of tutorials, mentoring, and
academic or career counseling for immigrant children and
youth;
``(D) identification and acquisition of curricular
materials, educational software, and technologies to be
used in the program carried out with funds;
``(E) basic instruction services that are directly
attributable to the presence in the school district
involved of immigrant children and youth, including the
payment of costs of providing additional classroom
supplies, costs of transportation, or such other costs
as are directly attributable to such additional basic
instruction services;
``(F) other instruction services that are designed
to assist immigrant children and youth to achieve in
elementary schools and secondary schools in the United
States, such as programs of introduction to the
educational system and civics education; and
``(G) activities, coordinated with community-based
organizations, institutions of higher education, private
sector entities, or other entities with expertise in
working with immigrants, to assist parents of immigrant
children and youth by offering comprehensive community
services.
``(2) Duration of subgrants.--The duration of a subgrant
made by a State educational agency under section 3114(d)(1)
shall be determined by the agency in its discretion.
``(f) Selection of Method of Instruction.--
[[Page 115 STAT. 1700]]
``(1) In general.--To receive a subgrant from a State
educational agency under this subpart, an eligible entity shall
select one or more methods or forms of instruction to be used in
the programs and activities undertaken by the entity to assist
limited English proficient children to attain English
proficiency and meet challenging State academic content and
student academic achievement standards.
``(2) Consistency.--Such selection shall be consistent with
sections 3125 through 3127.
``(g) Supplement, Not Supplant.--Federal funds made available under
this subpart shall be used so as to supplement the level of Federal,
State, and local public funds that, in the absence of such availability,
would have been expended for programs for limited English proficient
children and immigrant children and youth and in no case to supplant
such Federal, State, and local public funds.
``SEC. 3116. LOCAL PLANS. <<NOTE: 20 USC 6826.>>
``(a) Plan Required.--Each eligible entity desiring a subgrant from
the State educational agency under section 3114 shall submit a plan to
the State educational agency at such time, in such manner, and
containing such information as the State educational agency may require.
``(b) Contents.--Each plan submitted under subsection (a) shall--
``(1) describe the programs and activities proposed to be
developed, implemented, and administered under the subgrant;
``(2) describe how the eligible entity will use the subgrant
funds to meet all annual measurable achievement objectives
described in section 3122;
``(3) describe how the eligible entity will hold elementary
schools and secondary schools receiving funds under this subpart
accountable for--
``(A) meeting the annual measurable achievement
objectives described in section 3122;
``(B) making adequate yearly progress for limited
English proficient children, as described in section
1111(b)(2)(B); and
``(C) annually measuring the English proficiency of
limited English proficient children, so that such
children served by the programs carried out under this
part develop proficiency in English while meeting State
academic content and student academic achievement
standards as required by section 1111(b)(1);
``(4) describe how the eligible entity will promote parental
and community participation in programs for limited English
proficient children;
``(5) contain an assurance that the eligible entity
consulted with teachers, researchers, school administrators, and
parents, and, if appropriate, with education-related community
groups and nonprofit organizations, and institutions of higher
education, in developing such plan; and
``(6) describe how language instruction educational programs
carried out under the subgrant will ensure that limited English
proficient children being served by the programs develop English
proficiency.
[[Page 115 STAT. 1701]]
``(c) Teacher English Fluency.--Each eligible entity receiving a
subgrant under section 3114 shall include in its plan a certification
that all teachers in any language instruction educational program for
limited English proficient children that is, or will be, funded under
this part are fluent in English and any other language used for
instruction, including having written and oral communications skills.
``(d) Other Requirements for Approval.--Each local plan shall also
contain assurances that--
``(1) each local educational agency that is included in the
eligible entity is complying with section 3302 prior to, and
throughout, each school year;
``(2) the eligible entity annually will assess the English
proficiency of all children with limited English proficiency
participating in programs funded under this part;
``(3) the eligible entity has based its proposed plan on
scientifically based research on teaching limited English
proficient children;
``(4) the eligible entity will ensure that the programs will
enable children to speak, read, write, and comprehend the
English language and meet challenging State academic content and
student academic achievement standards; and
``(5) the eligible entity is not in violation of any State
law, including State constitutional law, regarding the education
of limited English proficient children, consistent with sections
3126 and 3127.
``Subpart 2--Accountability and Administration
``SEC. 3121. EVALUATIONS. <<NOTE: 20 USC 6841.>>
``(a) In General.--Each eligible entity that receives a subgrant
from a State educational agency under subpart 1 shall provide such
agency, at the conclusion of every second fiscal year during which the
subgrant is received, with an evaluation, in a form prescribed by the
agency, that includes--
``(1) a description of the programs and activities conducted
by the entity with funds received under subpart 1 during the two
immediately preceding fiscal years;
``(2) a description of the progress made by children in
learning the English language and meeting challenging State
academic content and student academic achievement standards;
``(3) the number and percentage of children in the programs
and activities attaining English proficiency by the end of each
school year, as determined by a valid and reliable assessment of
English proficiency; and
``(4) a description of the progress made by children in
meeting challenging State academic content and student academic
achievement standards for each of the 2 years after such
children are no longer receiving services under this part.
``(b) Use of Evaluation.--An evaluation provided by an eligible
entity under subsection (a) shall be used by the entity and the State
educational agency--
``(1) for improvement of programs and activities;
``(2) to determine the effectiveness of programs and
activities in assisting children who are limited English
proficient
[[Page 115 STAT. 1702]]
to attain English proficiency (as measured consistent with
subsection (d)) and meet challenging State academic content and
student academic achievement standards; and
``(3) in determining whether or not to continue funding for
specific programs or activities.
``(c) Evaluation Components.--An evaluation provided by an eligible
entity under subsection (a) shall--
``(1) provide an evaluation of children enrolled in a
program or activity conducted by the entity using funds under
subpart 1 (including the percentage of children) who--
``(A) are making progress in attaining English
proficiency, including the percentage of children who
have achieved English proficiency;
``(B) have transitioned into classrooms not tailored
to limited English proficient children, and have a
sufficient level of English proficiency to permit them
to achieve in English and transition into classrooms not
tailored to limited English proficient children;
``(C) are meeting the same challenging State
academic content and student academic achievement
standards as all children are expected to meet; and
``(D) are not receiving waivers for the reading or
language arts assessments under section 1111(b)(3)(C);
and
``(2) include such other information as the State
educational agency may require.
``(d) Evaluation Measures.--A State shall approve evaluation
measures for use under subsection (c) that are designed to assess--
``(1) the progress of children in attaining English
proficiency, including a child's level of comprehension,
speaking, listening, reading, and writing skills in English;
``(2) student attainment of challenging State student
academic achievement standards on assessments described in
section 1111(b)(3); and
``(3) progress in meeting the annual measurable achievement
objectives described in section 3122.
``(e) Special Rule for Specially Qualified Agencies.--Each specially
qualified agency receiving a grant under this part shall provide the
evaluations described in subsection (a) to the Secretary subject to the
same requirements as apply to eligible entities providing such
evaluations to State educational agencies under such subsection.
``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY. <<NOTE: 20 USC
6842.>>
``(a) Achievement Objectives.--
``(1) In general.--Each State educational agency or
specially qualified agency receiving a grant under subpart 1
shall develop annual measurable achievement objectives for
limited English proficient children served under this part that
relate to such children's development and attainment of English
proficiency while meeting challenging State academic content and
student academic achievement standards as required by section
1111(b)(1).
``(2) Development of objectives.--Such annual measurable
achievement objectives shall be developed in a manner that--
[[Page 115 STAT. 1703]]
``(A) reflects the amount of time an individual
child has been enrolled in a language instruction
educational program; and
``(B) uses consistent methods and measurements to
reflect the increases described in subparagraphs (A)(i),
(A)(ii), and (B) of paragraph (3).
``(3) Contents.--Such annual measurable achievement
objectives--
``(A) shall include--
``(i) at a minimum, annual increases in the
number or percentage of children making progress
in learning English;
``(ii) at a minimum, annual increases in the
number or percentage of children attaining English
proficiency by the end of each school year, as
determined by a valid and reliable assessment of
English proficiency consistent with section
1111(b)(7); and
``(iii) making adequate yearly progress for
limited English proficient children as described
in section 1111(b)(2)(B); and
``(B) at the discretion of the agency, may include
the number or percentage of children not receiving
waivers for reading or language arts assessments under
section 1111(b)(3)(C), but this achievement objective
shall not be applied to an eligible entity that, in a
given school year--
``(i) has experienced a large increase in
limited English proficient children or immigrant
children and youth;
``(ii) enrolls a statistically significant
number of immigrant children and youth from
countries where such children and youth had little
or no access to formal education; or
``(iii) has a statistically significant number
of immigrant children and youth who have fled from
war or natural disaster.
``(b) Accountability.--
``(1) For states.--Each State educational agency receiving a
grant under subpart 1 shall hold eligible entities receiving a
subgrant under such subpart accountable for meeting the annual
measurable achievement objectives under subsection (a),
including making adequate yearly progress for limited English
proficient children.
``(2) Improvement plan.--If a State educational agency
determines, based on the annual measurable achievement
objectives described in subsection (a), that an eligible entity
has failed to make progress toward meeting such objectives for 2
consecutive years, the agency shall require the entity to
develop an improvement plan that will ensure that the entity
meets such objectives. The improvement plan shall specifically
address the factors that prevented the entity from achieving
such objectives.
``(3) Technical assistance.--During the development of the
improvement plan described in paragraph (2), and throughout its
implementation, the State educational agency shall--
``(A) provide technical assistance to the eligible
entity;
``(B) provide technical assistance, if applicable,
to schools served by such entity under subpart 1 that
need
[[Page 115 STAT. 1704]]
assistance to enable the schools to meet the annual
measurable achievement objectives described in
subsection (a);
``(C) develop, in consultation with the entity,
professional development strategies and activities,
based on scientifically based research, that the agency
will use to meet such objectives;
``(D) require such entity to utilize such strategies
and activities; and
``(E) develop, in consultation with the entity, a
plan to incorporate strategies and methodologies, based
on scientifically based research, to improve the
specific program or method of instruction provided to
limited English proficient children.
``(4) Accountability.--If a State educational agency
determines that an eligible entity has failed to meet the annual
measurable achievement objectives described in subsection (a)
for 4 consecutive years, the agency shall--
``(A) require such entity to modify the entity's
curriculum, program, and method of instruction; or
``(B)(i) make a determination whether the entity
shall continue to receive funds related to the entity's
failure to meet such objectives; and
``(ii) require such entity to replace educational
personnel relevant to the entity's failure to meet such
objectives.
``(c) Special Rule for Specially Qualified Agencies.--The Secretary
shall hold specially qualified agencies receiving a grant under this
subpart accountable for meeting the annual measurable achievement
objectives described in subsection (a) in the same manner as State
educational agencies hold eligible entities accountable under subsection
(b).
``SEC. 3123. REPORTING REQUIREMENTS. <<NOTE: 20 USC 6843.>>
``(a) <<NOTE: Deadline.>> States.--Based upon the evaluations
provided to a State educational agency under section 3121, each such
agency that receives a grant under this part shall prepare and submit
every second year to the Secretary a report on programs and activities
carried out by the State educational agency under this part and the
effectiveness of such programs and activities in improving the education
provided to children who are limited English proficient.
``(b) Secretary.--Every second year, the Secretary shall prepare and
submit to the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a report--
``(1) on programs and activities carried out to serve
limited English proficient children under this part, and the
effectiveness of such programs and activities in improving the
academic achievement and English proficiency of children who are
limited English proficient;
``(2) on the types of language instruction educational
programs used by local educational agencies or eligible entities
receiving funding under this part to teach limited English
proficient children;
``(3) containing a critical synthesis of data reported by
eligible entities to States under section 3121(a);
[[Page 115 STAT. 1705]]
``(4) containing a description of technical assistance and
other assistance provided by State educational agencies under
section 3111(b)(2)(C);
``(5) containing an estimate of the number of certified or
licensed teachers working in language instruction educational
programs and educating limited English proficient children, and
an estimate of the number of such teachers that will be needed
for the succeeding 5 fiscal years;
``(6) containing the major findings of scientifically based
research carried out under this part;
``(7) containing the number of programs or activities, if
any, that were terminated because the entities carrying out the
programs or activities were not able to reach program goals;
``(8) containing the number of limited English proficient
children served by eligible entities receiving funding under
this part who were transitioned out of language instruction
educational programs funded under this part into classrooms
where instruction is not tailored for limited English proficient
children; and
``(9) containing other information gathered from the
evaluations from specially qualified agencies and other reports
submitted to the Secretary under this title when applicable.
``SEC. 3124. COORDINATION WITH RELATED PROGRAMS. <<NOTE: 20 USC 6844.>>
``In order to maximize Federal efforts aimed at serving the
educational needs of children of limited English proficiency, the
Secretary shall coordinate and ensure close cooperation with other
entities carrying out programs serving language-minority and limited
English proficient children that are administered by the Department and
other agencies.
``SEC. 3125. RULES OF CONSTRUCTION. <<NOTE: 20 USC 6845.>>
``Nothing in this part shall be construed--
``(1) to prohibit a local educational agency from serving
limited English proficient children simultaneously with children
with similar educational needs, in the same educational settings
where appropriate;
``(2) to require a State or a local educational agency to
establish, continue, or eliminate any particular type of
instructional program for limited English proficient children;
or
``(3) to limit the preservation or use of Native American
languages.
``SEC. 3126. LEGAL AUTHORITY UNDER STATE LAW. <<NOTE: 20 USC 6846.>>
``Nothing in this part shall be construed to negate or supersede
State law, or the legal authority under State law of any State agency,
State entity, or State public official, over programs that are under the
jurisdiction of the State agency, entity, or official.
``SEC. 3127. CIVIL RIGHTS. <<NOTE: 20 USC 6847.>>
``Nothing in this part shall be construed in a manner inconsistent
with any Federal law guaranteeing a civil right.
``SEC. 3128. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO. <<NOTE: 20
USC 6848.>>
``Notwithstanding any other provision of this part, programs
authorized under this part that serve Native American (including Native
American Pacific Islander) children and children in the
[[Page 115 STAT. 1706]]
Commonwealth of Puerto Rico may include programs of instruction, teacher
training, curriculum development, evaluation, and assessment designed
for Native American children learning and studying Native American
languages and children of limited Spanish proficiency, except that an
outcome of programs serving such children shall be increased English
proficiency among such children.
``SEC. 3129. PROHIBITION. <<NOTE: 20 USC 6849.>>
``In carrying out this part, the Secretary shall neither mandate nor
preclude the use of a particular curricular or pedagogical approach to
educating limited English proficient children.
``Subpart 3--National Activities
``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT. <<NOTE: 20 USC
6861.>>
``The Secretary shall use funds made available under section
3111(c)(1)(C) to award grants on a competitive basis, for a period of
not more than 5 years, to institutions of higher education (in consortia
with State educational agencies or local educational agencies) to
provide for professional development activities that will improve
classroom instruction for limited English proficient children and assist
educational personnel working with such children to meet high
professional standards, including standards for certification and
licensure as teachers who work in language instruction educational
programs or serve limited English proficient children. Grants awarded
under this subsection may be used--
``(1) for preservice professional development programs that
will assist local schools and institutions of higher education
to upgrade the qualifications and skills of educational
personnel who are not certified or licensed, especially
educational paraprofessionals;
``(2) for the development of curricula appropriate to the
needs of the consortia participants involved; and
``(3) in conjunction with other Federal need-based student
financial assistance programs, for financial assistance, and
costs related to tuition, fees, and books for enrolling in
courses required to complete the degree involved, to meet
certification or licensing requirements for teachers who work in
language instruction educational programs or serve limited
English proficient children.
``Subpart 4--Definitions
``SEC. 3141. ELIGIBLE ENTITY. <<NOTE: 20 USC 6871.>>
``In this part, the term `eligible entity' means--
``(1) one or more local educational agencies; or
``(2) one or more local educational agencies, in
collaboration with an institution of higher education,
community-based organization, or State educational agency.
``PART <<NOTE: Improving Language Instruction Educational Programs For
Academic Achievement Act. Children, youth and families. Native
Americans. Grants 20 USC 6891.>> B--IMPROVING LANGUAGE INSTRUCTION
EDUCATIONAL PROGRAMS
``SEC. 3201. SHORT TITLE.
``This part may be cited as the `Improving Language Instruction
Educational Programs For Academic Achievement Act'.
[[Page 115 STAT. 1707]]
``SEC. 3202. PURPOSE. <<NOTE: 20 USC 6892.>>
``The purpose of this part is to help ensure that limited English
proficient children master English and meet the same rigorous standards
for academic achievement as all children are expected to meet, including
meeting challenging State academic content and student academic
achievement standards by--
``(1) promoting systemic improvement and reform of, and
developing accountability systems for, educational programs
serving limited English proficient children;
``(2) developing language skills and multicultural
understanding;
``(3) developing the English proficiency of limited English
proficient children and, to the extent possible, the native
language skills of such children;
``(4) providing similar assistance to Native Americans with
certain modifications relative to the unique status of Native
American languages under Federal law;
``(5) developing data collection and dissemination,
research, materials, and technical assistance that are focused
on school improvement for limited English proficient children;
and
``(6) developing programs that strengthen and improve the
professional training of educational personnel who work with
limited English proficient children.
``SEC. 3203. NATIVE AMERICAN CHILDREN IN SCHOOL. <<NOTE: 20 USC 6893.>>
``(a) Eligible Entities.--For the purpose of carrying out programs
under this part for individuals served by elementary schools, secondary
schools, and postsecondary schools operated predominately for Native
American (including Alaska Native) children and youth, an Indian tribe,
a tribally sanctioned educational authority, a Native Hawaiian or Native
American Pacific Islander native language education organization, or an
elementary school or secondary school that is operated or funded by the
Bureau of Indian Affairs shall be considered to be a local educational
agency.
``(b) Application.--Notwithstanding any other provision of this
part, each tribe, authority, organization, or school described in
subsection (a) shall submit any application for assistance under this
part directly to the Secretary along with timely comments on the need
for the program proposed in the application.
``SEC. 3204. <<NOTE: 20 USC 6894.>> RESIDENTS OF THE TERRITORIES AND
FREELY ASSOCIATED STATES.
``For the purpose of carrying out programs under this part in the
outlying areas, the term `local educational agency' includes public
institutions or agencies whose mission is the preservation and
maintenance of native languages.
``Subpart 1--Program Development and Enhancement
``SEC. 3211. <<NOTE: 20 USC 6911.>> FINANCIAL ASSISTANCE FOR LANGUAGE
INSTRUCTION EDUCATIONAL PROGRAMS.
``The purpose of this subpart is to assist local educational
agencies, institutions of higher education, and community-based
organizations, through the grants authorized under sections 3212 and
3213--
[[Page 115 STAT. 1708]]
``(1) to develop and enhance their capacity to provide high-
quality instruction through language instruction educational
programs or special alternative instruction programs to limited
English proficient children; and
``(2) to help such children--
``(A) develop English proficiency and, to the extent
possible, proficiency in their native language; and
``(B) meet the same challenging State academic
content and student academic achievement standards as
all children are expected to meet under section
1111(b)(1).
``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES. <<NOTE: 20 USC 6912.>>
``(a) Program Authorized.--
``(1) Authority.--
``(A) In general.--The Secretary is authorized to
award grants to eligible entities having applications
approved under section 3214 to enable such entities to
provide innovative, locally designed, high-quality
instruction to limited English proficient children, by
expanding, developing, or strengthening language
instruction educational programs or special alternative
instruction programs.
``(B) Period.--Each grant awarded under this section
shall be awarded for a period of 3 years.
``(2) Authorized activities.--
``(A) Mandatory activities.--Grants awarded under
this section shall be used for--
``(i) developing, implementing, expanding, or
enhancing comprehensive preschool, elementary, or
secondary education programs for limited English
proficient children, that are--
``(I) aligned with State and local
academic content and student academic
achievement standards, and local school
reform efforts; and
``(II) coordinated with related
academic services for children;
``(ii) providing high-quality professional
development to classroom teachers, administrators,
and other school or community-based organization
personnel to improve the instruction and
assessment of limited English proficient children;
and
``(iii) annually assessing the English
proficiency of all limited English proficient
children served by activities carried out under
this section.
``(B) Permissible activities.--Grants awarded under
this section may be used for--
``(i) implementing programs to upgrade the
reading and other academic skills of limited
English proficient children;
``(ii) developing accountability systems to
monitor the academic progress of limited English
proficient and formerly limited English proficient
children;
``(iii) implementing family education programs
and parent outreach and training activities
designed to assist parents to become active
participants in the education of their children;
[[Page 115 STAT. 1709]]
``(iv) improving the instruction programs for
limited English proficient children by
identifying, acquiring, and applying effective
curricula, instruction materials (including
materials provided through technology), and
assessments that are all aligned with State and
local standards;
``(v) providing intensified instruction,
including tutorials and academic, or vocational
and technical, training, for limited English
proficient children;
``(vi) adapting best practice models for
meeting the needs of limited English proficient
children;
``(vii) assisting limited English proficient
children with disabilities;
``(viii) implementing applied learning
activities such as service learning to enhance and
support comprehensive elementary and secondary
language instruction educational programs;
``(ix) acquiring or developing education
technology or instruction materials for limited
English proficient children, including materials
in languages other than English;
``(x) participating in electronic networks for
materials, training, and communication, and
incorporating information derived from such
participation in curricula and programs; and
``(xi) carrying out such other activities
related to the purpose of this part as the
Secretary may approve.
``(b) Priority.--In awarding grants under this section, the
Secretary may give priority to an entity that--
``(1) serves a school district--
``(A) that has a total district enrollment that is
less than 10,000 students; or
``(B) with a large percentage or number of limited
English proficient children; and
``(2) has limited or no experience in serving limited
English proficient children.
``(c) Eligible Entity.--In this section, the term `eligible entity'
means--
``(1) one or more local educational agencies;
``(2) one or more local educational agencies in
collaboration with an institution of higher education,
community-based organization, or State educational agency; or
``(3) a community-based organization or an institution of
higher education that has an application approved by the local
educational agency to participate in programs carried out under
this subpart by enhancing early childhood education or family
education programs or conducting instruction programs that
supplement the educational services provided by a local
educational agency.
``SEC. 3213. <<NOTE: 20 USC 6913.>> COMPREHENSIVE SCHOOL AND SYSTEMWIDE
IMPROVEMENT ACTIVITIES.
``(a) Program Authorized.--
``(1) Authority.--The Secretary is authorized to award
grants to eligible entities having applications approved under
section 3214 to enable such entities to develop and implement
language instruction educational programs, and improve,
[[Page 115 STAT. 1710]]
reform, or upgrade programs or operations that serve significant
percentages or numbers of limited English proficient children.
``(2) Mandatory activities.--Grants awarded under this
section shall be used for--
``(A) improving instruction programs for limited
English proficient children by acquiring and upgrading
curricula and related instruction materials;
``(B) aligning the activities carried out under this
section with State and local school reform efforts;
``(C) providing training, aligned with State and
local standards, to school personnel and participating
community-based organization personnel to improve the
instruction and assessment of limited English proficient
children;
``(D) developing and implementing plans, coordinated
with plans for programs carried out under title II of
the Higher Education Act of 1965 (where applicable), and
title II of this Act (where applicable), to recruit
teachers trained to serve limited English proficient
children;
``(E) implementing culturally and linguistically
appropriate family education programs, or parent
outreach and training activities, that are designed to
assist parents of limited English proficient children to
become active participants in the education of their
children;
``(F) coordinating the activities carried out under
this section with other programs, such as programs
carried out under this title;
``(G) providing services to meet the full range of
the educational needs of limited English proficient
children;
``(H) annually assessing the English proficiency of
all limited English proficient children served by the
activities carried out under this section; and
``(I) developing or improving accountability systems
to monitor the academic progress of limited English
proficient children.
``(3) Permissible activities.--Grants awarded under this
section may be used for--
``(A) implementing programs to upgrade reading and
other academic skills of limited English proficient
children;
``(B) developing and using educational technology to
improve learning, assessments, and accountability to
meet the needs of limited English proficient children;
``(C) implementing scientifically based research
programs to meet the needs of limited English proficient
children;
``(D) providing tutorials and academic, or
vocational and technical, training for limited English
proficient children;
``(E) developing and implementing State and local
academic content and student academic achievement
standards for learning English as a second language, as
well as for learning other languages;
``(F) developing and implementing programs for
limited English proficient children to meet the needs of
changing populations of such children;
``(G) implementing policies to ensure that limited
English proficient children have access to other
education
[[Page 115 STAT. 1711]]
programs (other than programs designed to address
limited English proficiency);
``(H) assisting limited English proficient children
with disabilities;
``(I) developing and implementing programs to help
children become proficient in English and other
languages;
``(J) acquiring or developing education technology
or instruction materials for limited English proficient
children, including materials in languages other than
English;
``(K) participating in electronic networks for
materials, training, and communication and incorporating
information derived from such participation in curricula
and programs; and
``(L) carrying out such other activities related to
the purpose of this part as the Secretary may approve.
``(4) Special rule.--
``(A) Planning.--A recipient of a grant under this
section, before carrying out activities under this
section, shall plan, train personnel, develop curricula,
and acquire or develop materials, but shall not use
funds made available under this section for planning
purposes for more than 45 days.
``(B) Commencement of activities.--The recipient
shall commence carrying out activities under this
section not later than the later of--
``(i) the beginning of the first school year
that begins after the grant is received; or
``(ii) 30 days after the date of receipt of
the grant.
``(b) Availability of Appropriations.--
``(1) Reservation of funds for continued payments.--
``(A) Covered grant.--In this paragraph, the term
`covered grant' means a grant--
``(i) that was awarded under section 7112,
7113, 7114, or 7115 (as such sections were in
effect on the day before the date of enactment of
the No Child Left Behind Act of 2001); and
``(ii) for which the grant period has not
ended.
``(B) Reservation.--For any fiscal year that is part
of the grant period of a covered grant, the Secretary
shall reserve funds for the payments described in
subparagraph (C) from the amount appropriated for the
fiscal year under section 3001(a) and made available for
carrying out this section.
``(C) Payments.--The Secretary shall continue to
make grant payments to each entity that received a
covered grant, in accordance with the terms of that
grant, for the duration of the grant period of the
grant, to carry out activities in accordance with the
appropriate section described in subparagraph (A)(i).
``(2) Availability.--Of the amount appropriated for a fiscal
year under section 3001(a) that is made available to carry out
this section, and that remains after the Secretary reserves
funds for payments under paragraph (1)--
``(A) not less than one-third of the remainder shall
be used to award grants to eligible entities for
activities carried out within an entire school district;
and
[[Page 115 STAT. 1712]]
``(B) not less than two-thirds of the remainder
shall be used to award grants to eligible entities for
activities carried out within individual schools.
``(c) Priority.--In awarding grants under this section, the
Secretary shall give priority to an applicant that--
``(1) experiences a significant increase in the number or
percentage of limited English proficient children enrolled in
the applicant's programs and has limited or no experience in
serving limited English proficient children;
``(2) is a local educational agency that serves a school
district that has a total district enrollment that is less than
10,000 students;
``(3) demonstrates that the applicant has a proven track
record of success in helping limited English proficient children
learn English and meet high academic standards; or
``(4) serves a school district with a large number or
percentage of limited English proficient children.
``(d) Eligible Entities.--In this section, the term `eligible
entity' means--
``(1) one or more local educational agencies; or
``(2) one or more local educational agencies, in
collaboration with an institution of higher education,
community-based organization, or State educational agency.
``SEC. 3214. APPLICATIONS. <<NOTE: 20 USC 6914.>>
``(a) In General.--
``(1) Secretary.--To receive a grant under this subpart, an
eligible entity described in section 3212 or 3213 shall submit
an application to the Secretary at such time, in such form, and
containing such information as the Secretary may require.
``(2) <<NOTE: Records.>> State educational agency.--The
eligible entity, with the exception of schools funded by the
Bureau of Indian Affairs, shall submit a copy of the application
submitted by the entity under this section to the State
educational agency.
``(b) State Review and Comments.--
``(1) Deadline.--The State educational agency, not later
than 45 days after receipt of an application under this section,
shall review the application and submit the written comments of
the agency regarding the application to the Secretary.
``(2) Comments.--
``(A) Submission of comments.--Regarding
applications submitted under this subpart, the State
educational agency shall--
``(i) submit to the Secretary written comments
regarding all such applications; and
``(ii) submit to each eligible entity the
comments that pertain to such entity.
``(B) Subject.--For purposes of this subpart, such
comments shall address--
``(i) how the activities to be carried out
under the grant will further the academic
achievement and English proficiency of limited
English proficient children served under the
grant; and
``(ii) how the grant application is consistent
with the State plan required under section 1111.
[[Page 115 STAT. 1713]]
``(c) Eligible Entity Comments.--An eligible entity may submit to
the Secretary comments that address the comments submitted by the State
educational agency.
``(d) Comment Consideration.--In making grants under this subpart,
the Secretary shall take into consideration comments made by State
educational agencies.
``(e) Waiver.--Notwithstanding subsection (b), the Secretary is
authorized to waive the review requirement specified in subsection (b)
if a State educational agency can demonstrate that such review
requirement may impede such agency's ability to fulfill the requirements
of participation in the program authorized in section 3224, particularly
such agency's ability to carry out data collection efforts and such
agency's ability to provide technical assistance to local educational
agencies not receiving funds under this subpart.
``(f) Required Documentation.--Such application shall include
documentation that--
``(1) the applicant has the qualified personnel required to
develop, administer, and implement the program proposed in the
application; and
``(2) the leadership personnel of each school participating
in the program have been involved in the development and
planning of the program in the school.
``(g) Contents.--
``(1) In general.--An application for a grant under this
subpart shall contain the following:
``(A) A description of the need for the proposed
program, including--
``(i) data on the number of limited English
proficient children in the school or school
district to be served;
``(ii) information on the characteristics of
the children, including--
``(I) the native languages of the
children;
``(II) the proficiency of the
children in English and their native
language;
``(III) achievement data (current as
of the date of submission of the
application) for the limited English
proficient children in--
``(aa) reading or language
arts (in English and in the
native language, if applicable);
and
``(bb) mathematics;
``(IV) a comparison of that data for
the children with that data for the
English proficient peers of the
children; and
``(V) the previous schooling
experiences of the children;
``(iii) the professional development needs of
the instruction personnel who will provide
services for the limited English proficient
children under the proposed program; and
``(iv) how the services provided through the
grant will supplement the basic services provided
to limited English proficient children.
``(B) A description of the program to be implemented
and how such program's design--
[[Page 115 STAT. 1714]]
``(i) relates to the linguistic and academic
needs of the limited English proficient children
to be served;
``(ii) will ensure that the services provided
through the program will supplement the basic
services the applicant provides to limited English
proficient children;
``(iii) will ensure that the program is
coordinated with other programs under this Act and
other Acts;
``(iv) involves the parents of the limited
English proficient children to be served;
``(v) ensures accountability in achieving high
academic standards; and
``(vi) promotes coordination of services for
the limited English proficient children to be
served and their families.
``(C) A description, if appropriate, of the
applicant's collaborative activities with institutions
of higher education, community-based organizations,
local educational agencies or State educational
agencies, private schools, nonprofit organizations, or
businesses in carrying out the proposed program.
``(D) An assurance that the applicant will not
reduce the level of State and local funds that the
applicant expends for language instruction educational
programs or special alternative instruction programs if
the applicant receives an award under this subpart.
``(E) An assurance that the applicant will employ
teachers in the proposed program who, individually or in
combination, are proficient in--
``(i) English, with respect to written, as
well as oral, communication skills; and
``(ii) the native language of the majority of
the children who the teachers teach, if
instruction in the program is in the native
language as well as English.
``(F) A budget for the grant funds.
``(2) Additional information.--Each application for a grant
under section 3213 shall--
``(A) describe--
``(i) current services (as of the date of
submission of the application) the applicant
provides to limited English proficient children;
``(ii) what services limited English
proficient children will receive under the grant
that such children will not otherwise receive;
``(iii) how funds received under this subpart
will be integrated with all other Federal, State,
local, and private resources that may be used to
serve limited English proficient children;
``(iv) specific achievement and school
retention goals for the children to be served by
the proposed program and how progress toward
achieving such goals will be measured; and
``(v) the current family education programs
(as of the date of submission of the application)
of the eligible entity, if applicable; and
``(B) provide assurances that--
[[Page 115 STAT. 1715]]
``(i) the program funded with the grant will
be integrated with the overall educational program
of the children served through the proposed
program; and
``(ii) the application has been developed in
consultation with parents and other
representatives of the children to be served in
such program.
``(h) Approval of Applications.--An application for a grant under
this subpart may be approved only if the Secretary determines that--
``(1) the program proposed in the application will use
qualified personnel, including personnel who are proficient in
the language or languages used for instruction;
``(2) in designing the program, the eligible entity has,
after consultation with appropriate private school officials--
``(A) taken into account the needs of children in
nonprofit private elementary schools and secondary
schools; and
``(B) in a manner consistent with the number of such
children enrolled in such schools in the area to be
served, whose educational needs are of the type and
whose language, and grade levels are of a similar type
to the needs, language, and grade levels that the
program is intended to address, provided for the
participation of such children on a basis comparable to
the basis on which public school children participate;
``(3)(A) student evaluation and assessment procedures in the
program are valid and reliable for limited English proficient
children; and
``(B) limited English proficient children with disabilities
will be identified and served through the program in accordance
with the requirements of the Individuals with Disabilities
Education Act;
``(4) Federal funds made available for the program will be
used to supplement the State and local funds that, in the
absence of such Federal funds, would be expended for special
programs for children of limited English proficient individuals,
and in no case to supplant such State and local funds, except
that nothing in this paragraph shall be construed to preclude a
local educational agency from using funds made available under
this subpart--
``(A) for activities carried out under an order of a
Federal or State court respecting services to be
provided to such children; or
``(B) to carry out a plan approved by the Secretary
as adequate under title VI of the Civil Rights Act of
1964 with respect to services to be provided to such
children;
``(5)(A) the assistance provided through the grant will
contribute toward building the capacity of the eligible entity
to provide a program on a regular basis, similar to the proposed
program, that will be of sufficient size, scope, and quality to
promise significant improvement in the education of limited
English proficient children; and
``(B) the eligible entity will have the resources and
commitment to continue the program of sufficient size, scope,
and quality when assistance under this subpart is reduced or no
longer available; and
[[Page 115 STAT. 1716]]
``(6) the eligible entity will use State and national
dissemination sources for program design and dissemination of
results and products.
``(i) Consideration.--In determining whether to approve an
application under this subpart, the Secretary shall give consideration
to--
``(1) the degree to which the program for which assistance
is sought involves the collaborative efforts of institutions of
higher education, community-based organizations, the appropriate
local educational agency and State educational agency, or
businesses; and
``(2) whether the application provides for training for
personnel participating in, or preparing to participate in, a
program that will assist such personnel in meeting State and
local certification requirements.
``SEC. 3215. CAPACITY BUILDING. <<NOTE: 20 USC 6915.>>
``Each recipient of a grant under this subpart shall use the grant
in ways that will build such recipient's capacity to continue to offer
high-quality language instruction educational programs and special
alternative instruction programs to limited English proficient children
after Federal assistance is reduced or eliminated.
``SEC. 3216. <<NOTE: 20 USC 6916.>> PROGRAMS FOR NATIVE AMERICANS AND
PUERTO RICO.
``Notwithstanding any other provision of this part, programs
authorized under this subpart that serve Native American (including
Native American Pacific Islander) children and children in the
Commonwealth of Puerto Rico may include programs of instruction, teacher
training, curriculum development, evaluation, and assessment designed
for Native American children learning and studying Native American
languages and children of limited Spanish proficiency, except that an
outcome of programs serving such children shall be increased English
proficiency among such children.
``SEC. 3217. EVALUATIONS. <<NOTE: 20 USC 6917.>>
``(a) <<NOTE: Reports.>> Evaluation.--Each recipient of funds under
this subpart for a program shall annually conduct an evaluation of the
program and submit to the Secretary a report concerning the evaluation,
in the form prescribed by the Secretary.
``(b) Use of Evaluation.--Such evaluation shall be used by the grant
recipient--
``(1) for program improvement;
``(2) to further define the program's goals and objectives;
and
``(3) to determine program effectiveness.
``(c) Evaluation Report Components.--In preparing the evaluation
reports, the recipient shall--
``(1) use the data provided in the application submitted by
the recipient under section 3214 as baseline data against which
to report academic achievement and gains in English proficiency
for children in the program;
``(2) disaggregate the results of the evaluation by gender,
native languages spoken by children, socioeconomic status, and
whether the children have disabilities;
``(3) include data on the progress of the recipient in
achieving the objectives of the program, including data
demonstrating the extent to which children served by the program
[[Page 115 STAT. 1717]]
are meeting the challenging State academic content and student
academic achievement standards, and including data comparing
limited English proficient children with English proficient
children with regard to school retention and academic
achievement concerning--
``(A) reading and language arts;
``(B) English proficiency;
``(C) mathematics; and
``(D) the native language of the children, if the
program develops native language proficiency;
``(4) include information on the extent that professional
development activities carried out through the program have
resulted in improved classroom practices and improved student
academic achievement;
lude a description of how the activities carried out through
the program are coordinated and integrated with the other
Federal, State, or local programs serving limited English
proficient children; and
``(6) include such other information as the Secretary may
require.
``SEC. 3218. CONSTRUCTION. <<NOTE: 20 USC 6918.>>
``Nothing in this subpart shall be construed to prohibit a local
educational agency from serving limited English proficient children
simultaneously with children with similar educational needs, in the same
educational settings where appropriate.
``Subpart 2--Research, Evaluation, and Dissemination
``SEC. 3221. AUTHORITY. <<NOTE: 20 USC 6931.>>
``(a) In General.--The Secretary is authorized to conduct data
collection, dissemination, research, and ongoing program evaluation
activities in accordance with the provisions of this subpart for the
purpose of improving language instruction educational programs and
special alternative instruction programs for limited English proficient
children.
``(b) Competitive Awards.--Research and program evaluation
activities carried out under this subpart shall be supported through
competitive grants, contracts, and cooperative agreements awarded to
institutions of higher education, nonprofit organizations, State
educational agencies, and local educational agencies.
``(c) Administration.--The Secretary shall conduct data collection,
dissemination, and ongoing program evaluation activities authorized by
this subpart through the Office of English Language Acquisition,
Language Enhancement, and Academic Achievement for Limited English
Proficient Students.
``SEC. 3222. RESEARCH. <<NOTE: 20 USC 6932.>>
``(a) Administration.--The Secretary shall conduct research
activities authorized by this subpart through the Office of Educational
Research and Improvement in coordination and collaboration with the
Office of English Language Acquisition, Language Enhancement, and
Academic Achievement for Limited English Proficient Students.
``(b) Requirements.--Such research activities--
[[Page 115 STAT. 1718]]
``(1) shall have a practical application to teachers,
counselors, paraprofessionals, school administrators, parents,
and others involved in improving the education of limited
English proficient children and their families;
``(2) may include research on effective instruction
practices for multilingual classes, and on effective instruction
strategies to be used by a teacher or other staff member who
does not know the native language of a limited English
proficient child in the teacher's or staff member's classroom;
``(3) may include establishing (through the National Center
for Education Statistics in consultation with experts in second
language acquisition and scientifically based research on
teaching limited English proficient children) a common
definition of `limited English proficient child' for purposes of
national data collection; and
``(4) shall be administered by individuals with expertise in
second language acquisition, scientifically based research on
teaching limited English proficient children, and the needs of
limited English proficient children and their families.
``(c) Field-Initiated Research.--
``(1) In general.--The Secretary shall reserve not less than
5 percent of the funds made available to carry out this section
for field-initiated research conducted by recipients of grants
under subpart 1 or this subpart who have received such grants
within the previous 5 years. Such research may provide for
longitudinal studies of limited English proficient children or
teachers who serve such children, monitoring the education of
such children from entry into language instruction educational
programs through secondary school completion.
``(2) Applications.--An applicant for assistance under this
subsection may submit an application for such assistance to the
Secretary at the same time as the applicant submits another
application under subpart 1 or this subpart. The Secretary shall
complete a review of such applications on a timely basis to
allow the activities carried out under research and program
grants to be coordinated when recipients are awarded two or more
of such grants.
``(d) Consultation.--The Secretary shall consult with agencies,
organizations, and individuals that are engaged in research and practice
on the education of limited English proficient children, language
instruction educational programs, or related research, to identify areas
of study and activities to be funded under this section.
``(e) Data Collection.--The Secretary shall provide for the
collection of data on limited English proficient children as part of the
data systems operated by the Department.
``SEC. 3223. ACADEMIC EXCELLENCE AWARDS. <<NOTE: 20 USC 6933.>>
``(a) Authority.--The Secretary may make grants to State educational
agencies to assist the agencies in recognizing local educational
agencies and other public and nonprofit entities whose programs have--
``(1) demonstrated significant progress in assisting limited
English proficient children to learn English according to age
appropriate and developmentally appropriate standards; and
``(2) demonstrated significant progress in assisting limited
English proficient children to meet, according to age
appropriate
[[Page 115 STAT. 1719]]
and developmentally appropriate standards, the same challenging
State academic content and student academic achievement
standards as all children are expected to meet.
``(b) Applications.--A State educational agency desiring a grant
under this section shall include an application for such grant in the
application submitted by the agency under section 3224(e).
``SEC. 3224. STATE GRANT PROGRAM. <<NOTE: 20 USC 6934.>>
``(a) State Grant Program.--The Secretary is authorized to make an
award to a State educational agency that demonstrates, to the
satisfaction of the Secretary, that such agency, through such agency's
programs and other Federal education programs, effectively provides for
the education of limited English proficient children within the State.
``(b) Payments.--The amount paid to a State educational agency under
subsection (a) shall not exceed 5 percent of the total amount awarded to
local educational agencies and entities within the State under subpart 1
for the previous fiscal year, except that in no case shall the amount
paid by the Secretary to any State educational agency under this
subsection for any fiscal year be less than $100,000.
``(c) Use of Funds.--
``(1) In general.--A State educational agency shall use
funds awarded under this section--
``(A) to assist local educational agencies in the
State with activities that--
``(i) consist of program design, capacity
building, assessment of student academic
achievement, program evaluation, and development
of data collection and accountability systems for
limited English proficient children; and
``(ii) are aligned with State reform efforts;
and
``(B) to collect data on the State's limited English
proficient populations and document the services
available to all such populations.
``(2) Training.--The State educational agency may also use
funds provided under this section for the training of State
educational agency personnel in educational issues affecting
limited English proficient children.
``(3) Special rule.--Recipients of funds under this section
shall not restrict the provision of services under this section
to federally funded programs.
``(d) State Consultation.--A State educational agency receiving
funds under this section shall consult with recipients of grants under
this subpart and other individuals or organizations involved in the
development or operation of programs serving limited English proficient
children to ensure that such funds are used in a manner consistent with
the requirements of this subpart.
``(e) Applications.--A State educational agency desiring to receive
funds under this section shall submit an application to the Secretary at
such time, in such form, and containing such information and assurances
as the Secretary may require.
``(f) Supplement, Not Supplant.--Federal funds made available under
this section for any fiscal year shall be used by the State educational
agency to supplement and, to the extent practical, to increase the State
funds that, in the absence of such Federal
[[Page 115 STAT. 1720]]
funds, would be made available for the purposes described in this
section, and in no case to supplant such State funds.
``(g) Report to the Secretary.--A State educational agency receiving
an award under this section shall provide for the annual submission of a
summary report to the Secretary describing such State's use of the funds
made available through the award.
``SEC. 3225. INSTRUCTION MATERIALS DEVELOPMENT. <<NOTE: 20 USC 6935.>>
``(a) In General.--The Secretary may make grants for the
development, publication, and dissemination of high-quality instruction
materials--
``(1) in Native American languages (including Native
Hawaiian languages and the language of Native American Pacific
Islanders), and the language of natives of the outlying areas,
for which instruction materials are not readily available; and
``(2) in other low-incidence languages in the United States
for which instruction materials are not readily available.
``(b) Priority.--In making the grants, the Secretary shall give
priority to applicants for the grants who propose--
``(1) to develop instruction materials in languages
indigenous to the United States or the outlying areas; and
``(2) to develop and evaluate materials, in collaboration
with entities carrying out activities assisted under subpart 1
and this subpart, that are consistent with challenging State
academic content and student academic achievement standards.
``Subpart 3--Professional Development
``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS. <<NOTE: 20 USC 6951.>>
``(a) Purpose.--The purpose of this section is to provide assistance
to prepare educators to improve educational services for limited English
proficient children by--
``(1) supporting professional development programs and
activities to prepare teachers, pupil service personnel,
administrators, and other educational personnel working in
language instruction educational programs to provide effective
services to limited English proficient children;
``(2) incorporating curricula and resources concerning
appropriate and effective instruction and assessment
methodologies specific to limited English proficient children
into preservice and inservice professional development programs;
``(3) upgrading the qualifications and skills of non-
certified educational personnel, including paraprofessionals, to
enable such personnel to meet high professional standards for
educating limited English proficient children;
``(4) improving the quality of professional development
programs in schools or departments of education at institutions
of higher education, for educational personnel serving, or
preparing to serve, limited English proficient children; and
``(5) supporting the recruitment and training of prospective
educational personnel to serve limited English proficient
children by providing fellowships for undergraduate, graduate,
doctoral, and post-doctoral study related to the instruction of
such children.
``(b) Authorization.--
[[Page 115 STAT. 1721]]
``(1) In general.--The Secretary is authorized to award
grants under this section to--
``(A) State educational agencies;
``(B) local educational agencies;
``(C) institutions of higher education; or
``(D) consortia of one or more local educational
agencies, State educational agencies, institutions of
higher education, for-profit organizations, or nonprofit
organizations.
``(2) Duration.--Each grant awarded under this section shall
be awarded for a period of not more than 4 years.
``(c) Authorized Activities.--Grants awarded under this section
shall be used to conduct high-quality professional development programs
and effective activities to improve the quality of instruction and
services provided to limited English proficient children, including--
``(1) implementing preservice and inservice professional
development programs for teachers who serve limited English
proficient children, administrators, and other educational
personnel who are preparing to provide educational services for
limited English proficient children, including professional
development programs that assist limited English proficient
children to attain English proficiency;
``(2) implementing school-based collaborative efforts among
teachers to improve instruction in core academic subjects,
especially reading, for limited English proficient children;
``(3) developing and implementing programs to assist
beginning teachers who serve limited English proficient children
with transitioning to the teaching profession, including
programs that provide mentoring and team teaching with trained
and experienced teachers;
``(4) implementing programs that support effective teacher
use of education technologies to improve instruction and
assessment;
``(5) developing curricular materials and assessments for
teachers that are appropriate to the needs of limited English
proficient children, and that are aligned with challenging State
academic content and student academic achievement standards,
including materials and assessments that ensure limited English
proficient children attain English proficiency;
``(6) integrating and coordinating activities with entities
carrying out other programs consistent with the purpose of this
section and supported under this Act, or other Acts as
appropriate;
``(7) developing and implementing career ladder programs to
upgrade the qualifications and skills of non-certified
educational personnel working in, or preparing to work in,
language instruction educational programs to enable such
personnel to meet high professional standards, including
standards for certification and licensure as teachers;
``(8) developing and implementing activities to help recruit
and train secondary school students as teachers who serve
limited English proficient children;
``(9) providing fellowships and assistance for costs related
to enrollment in a course of study at an institution of higher
education that addresses the instruction of limited English
proficient children in such areas as teacher training, program
[[Page 115 STAT. 1722]]
administration, research, evaluation, and curriculum
development, and for the support of dissertation research
related to such study, except that any person receiving such a
fellowship or assistance shall agree to--
``(A) work in an activity related to improving the
educational services for limited English proficient
children authorized under this subpart, including work
as a teacher that serves limited English proficient
children, for a period of time equivalent to the period
of time during which such person receives assistance
under this paragraph; or
``(B) repay such assistance; and
``(10) carrying out such other activities as are consistent
with the purpose of this section.
``(d) Application.--
``(1) In general.--Each eligible entity desiring a grant
under this section shall submit an application to the Secretary
at such time, in such form, and containing such information as
the Secretary may require.
``(2) Contents.--Each application shall--
``(A) describe the programs and activities proposed
to be developed, implemented, and administered under the
award;
``(B) describe how the applicant has consulted with,
and assessed the needs of, public and private schools
serving limited English proficient children to determine
such schools' need for, and the design of, the program
for which funds are sought; and
``(C) describe how the programs and activities to be
carried out under the award will be used to ensure that
limited English proficient children meet challenging
State academic content and student academic achievement
standards and attain English proficiency.
``(3) Special rule.--An eligible entity that proposes to
conduct a master's-level or doctoral-level program with funds
received under this section shall include in the entity's
application an assurance that such program will include a
training practicum in a local elementary school or secondary
school program serving limited English proficient children.
``(4) Outreach and technical assistance.--The Secretary
shall provide for outreach and technical assistance to
institutions of higher education eligible for assistance under
title III of the Higher Education Act of 1965, and institutions
of higher education that are operated or funded by the Bureau of
Indian Affairs, to facilitate the participation of such
institutions in programs and activities under this section.
``(5) Distribution rule.--In making awards under this
section, the Secretary shall ensure adequate representation of
Hispanic-serving institutions that demonstrate competence and
experience in carrying out the programs and activities
authorized under this section and that are otherwise qualified.
``(e) Priorities in Awarding Grants.--
``(1) Grants to agencies.--In awarding grants to State
educational agencies and local educational agencies under this
section, the Secretary shall give priority to agencies that
propose programs and activities designed to implement
professional development programs for teachers and educational
personnel who are providing or preparing to provide educational
[[Page 115 STAT. 1723]]
services for limited English proficient children, including
services provided through language instruction educational
programs, that ensure such children attain English proficiency
and meet challenging State academic content and student academic
achievement standards.
``(2) Grants to institutions of higher education.--In
awarding grants to institutions of higher education under this
section, the Secretary shall give priority to institutions that
propose programs and activities to recruit and upgrade the
qualifications and skills of certified and non-certified
educational personnel by offering degree programs that prepare
beginning teachers to serve limited English proficient children.
``(f) Program Evaluations.--Each recipient of an award under this
section for a program or activity shall annually conduct an independent
evaluation of the program or activity and submit to the Secretary a
report containing such evaluation. Such report shall include information
on--
``(1) the program or activity conducted by the recipient to
provide high-quality professional development to participants in
such program or activity;
``(2) the number of participants served through the program
or activity, the number of participants who completed the
requirements of the program or activity, and the number of
participants who took positions in an instruction setting with
limited English proficient children;
``(3) the effectiveness of the program or activity in
imparting the professional skills necessary for participants to
achieve the objectives of the program or activity; and
``(4) the teaching effectiveness of graduates of the program
or activity or other participants who have completed the program
or activity.
``Subpart 4--Emergency Immigrant Education Program
``SEC. 3241. PURPOSE. <<NOTE: 20 USC 6961.>>
``The purpose of this subpart is to assist eligible local
educational agencies that experience unexpectedly large increases in
their student population due to immigration--
``(1) to provide high-quality instruction to immigrant
children and youth; and
``(2) to help such children and youth--
``(A) with their transition into American society;
and
``(B) meet the same challenging State academic
content and student academic achievement standards as
all children are expected to meet.
``SEC. 3242. STATE ADMINISTRATIVE COSTS. <<NOTE: 20 USC 6962.>>
``For any fiscal year, a State educational agency may reserve not
more than 1.5 percent (2 percent if the State educational agency
distributes funds received under this subpart to local educational
agencies on a competitive basis) of the amount allotted to such agency
under section 3244 to pay the costs of performing such agency's
administrative functions under this subpart.
[[Page 115 STAT. 1724]]
``SEC. 3243. WITHHOLDING. <<NOTE: 20 USC 6963.>>
``Whenever the <<NOTE: Notification.>> Secretary, after providing
reasonable notice and opportunity for a hearing to any State educational
agency, finds that there is a failure to comply with a requirement of
any provision of this subpart, the Secretary shall notify that agency
that further payments will not be made to the agency under this subpart
or, in the discretion of the Secretary, that the State educational
agency shall not make further payments under this subpart to specified
local educational agencies whose actions cause or are involved in such
failure until the Secretary is satisfied that there is no longer any
such failure to comply. Until the Secretary is so satisfied, no further
payments shall be made to the State educational agency under this
subpart, or payments by the State educational agency under this subpart
shall be limited to local educational agencies whose actions did not
cause or were not involved in the failure, as the case may be.
``SEC. 3244. STATE ALLOTMENTS. <<NOTE: 20 USC 6964.>>
``(a) Payments.--The Secretary shall, in accordance with the
provisions of this section, make payments to State educational agencies
for each of the fiscal years 2002 through 2008 for the purpose set forth
in section 3241.
``(b) Allotments.--
``(1) In general.--Except as provided in subsections (c) and
(d), of the amount appropriated for each fiscal year for this
subpart, each State participating in the program assisted under
this subpart shall receive an allotment equal to the proportion
of the number of immigrant children and youth who are enrolled
in public elementary schools or secondary schools under the
jurisdiction of each local educational agency described in
paragraph (2), and in nonpublic elementary schools or secondary
schools within the district served by each such local
educational agency within such State, relative to the total
number of immigrant children and youth so enrolled in all the
States participating in the program assisted under this subpart.
``(2) Eligible local educational agencies.--A local
educational agency referred to in paragraph (1) is a local
educational agency for which the sum of the number of immigrant
children and youth who are enrolled in public elementary schools
or secondary schools under the jurisdiction of such agency, and
in nonpublic elementary schools or secondary schools within the
district served by such agency, during the fiscal year for which
the payments are to be made under this subpart, is equal to at
least--
``(A) 500; or
``(B) 3 percent of the total number of children
enrolled in such public or nonpublic schools during such
fiscal year,
whichever is less.
``(c) Determinations of Number of Children and Youth.--
``(1) In general.--Determinations by the Secretary under
this section for any period with respect to the number of
immigrant children and youth shall be made on the basis of data
or estimates provided to the Secretary by each State educational
agency in accordance with criteria established by the Secretary,
unless the Secretary determines, after notice
[[Page 115 STAT. 1725]]
and opportunity for a hearing to the affected State educational
agency, that such data or estimates are clearly erroneous.
``(2) Special rule.--No such determination with respect to
the number of immigrant children and youth shall operate because
of an underestimate or overestimate to deprive any State
educational agency of the allotment under this section that such
State would otherwise have received had such determination been
made on the basis of accurate data.
``(d) Reallotment.--
``(1) In general.--Whenever the Secretary determines that
any amount of a payment made to a State under this subpart for a
fiscal year will not be used by such State for carrying out the
purpose for which the payment was made, the Secretary shall make
such amount available for carrying out such purpose to one or
more other States to the extent the Secretary determines that
such other States will be able to use such additional amount for
carrying out such purpose.
``(2) Fiscal year.--Any amount made available to a State
from any appropriation for a fiscal year in accordance with
paragraph (1) shall, for purposes of this subpart, be regarded
as part of such State's payment (as determined under subsection
(b)) for such year, but shall remain available until the end of
the succeeding fiscal year.
``(e) Reservation of Funds.--
``(1) In general.--Notwithstanding any other provision of
this subpart, if the amount appropriated to carry out this
subpart exceeds $50,000,000 for a fiscal year, a State
educational agency may reserve not more than 20 percent of such
agency's payment under this subpart for such year to award
grants, on a competitive basis, to local educational agencies
within the State as follows:
``(A) Agencies with immigrant children and youth.--
At least \1/2\ of the funds reserved under this
paragraph shall be made available to eligible local
educational agencies (as described in subsection (b)(2))
within the State with the highest numbers and
percentages of immigrant children and youth.
``(B) Agencies with a sudden influx of children and
youth.--Funds reserved under this paragraph and not made
available under subparagraph (A) may be distributed to
local educational agencies within the State that are
experiencing a sudden influx of immigrant children and
youth and that are otherwise not eligible for assistance
under this subpart.
``(2) Use of grant funds.--Each local educational agency
receiving a grant under paragraph (1) shall use such grant funds
to carry out the activities described in section 3247.
``(3) Information.--Local educational agencies receiving
funds under paragraph (1) with the highest number of immigrant
children and youth may make information available on serving
immigrant children and youth to local educational agencies in
the State with sparse numbers of such children and youth.
``SEC. 3245. <<NOTE: 20 USC 6965.>> STATE APPLICATIONS.
``(a) Submission.--No State educational agency shall receive any
payment under this subpart for any fiscal year unless such
[[Page 115 STAT. 1726]]
agency submits an application to the Secretary at such time, in such
manner, and containing or accompanied by such information, as the
Secretary may reasonably require. Each such application shall--
``(1) provide that the educational programs, services, and
activities for which payments under this subpart are made will
be administered by or under the supervision of the agency;
``(2) provide assurances that payments under this subpart
will be used for purposes set forth in sections 3241 and 3247,
including a description of how local educational agencies
receiving funds under this subpart will use such funds to meet
such purposes and will coordinate with entities carrying out
other programs and activities assisted under this Act, and other
Acts as appropriate;
``(3) provide an assurance that local educational agencies
receiving funds under this subpart will coordinate the use of
such funds with entities carrying out programs and activities
assisted under part A of title I;
``(4) provide assurances that such payments, with the
exception of payments reserved under section 3244(e), will be
distributed among local educational agencies within that State
on the basis of the number of immigrant children and youth
counted with respect to each such local educational agency under
section 3244(b)(1);
``(5) provide assurances that the State educational agency
will not finally disapprove in whole or in part any application
for funds received under this subpart without first affording
the local educational agency submitting an application for such
funds reasonable notice and opportunity for a hearing;
``(6) provide for making such reports as the Secretary may
reasonably require to perform the Secretary's functions under
this subpart;
``(7) provide assurances--
``(A) that to the extent consistent with the number
of immigrant children and youth enrolled in the
nonpublic elementary schools or secondary schools within
the district served by a local educational agency, such
agency, after consultation with appropriate officials of
such schools, shall provide for the benefit of such
children and youth secular, neutral, and nonideological
services, materials, and equipment necessary for the
education of such children and youth;
``(B) that the control of funds provided under this
subpart for any materials or equipment, or property
repaired, remodeled, or constructed with those funds
shall be in a public agency for the uses and purpose
provided in this subpart, and a public agency shall
administer such funds and property; and
``(C) that the provision of services pursuant to
this paragraph shall be provided by employees of a
public agency or through contract by such public agency
with a person, association, agency, or corporation who
or which, in the provision of such services, is
independent of such nonpublic elementary school or
secondary school and of any religious organization, and
such employment or contract shall be under the control
and supervision of such
[[Page 115 STAT. 1727]]
public agency, and the funds provided under this
paragraph shall not be commingled with State or local
funds;
``(8) provide that funds reserved under section 3244(e) be
awarded on a competitive basis based on merit and need in
accordance with such section; and
``(9) provide an assurance that the State educational agency
and local educational agencies in the State receiving funds
under this subpart will comply with the requirements of section
1120(b).
``(b) Application Review.--
``(1) In general.--The Secretary shall review all
applications submitted pursuant to this section by State
educational agencies.
``(2) Approval.--The Secretary shall approve any application
submitted by a State educational agency that meets the
requirements of this section.
``(3) Disapproval.--The Secretary shall disapprove any
application submitted by a State educational agency that does
not meet the requirements of this section, but shall not finally
disapprove an application except after providing reasonable
notice, technical assistance, and an opportunity for a hearing
to the State educational agency.
``SEC. 3246. <<NOTE: 20 USC 6966.>> ADMINISTRATIVE PROVISIONS.
``(a) <<NOTE: Deadline.>> Notification of Amount.--The Secretary,
not later than June 1 of each year, shall notify each State educational
agency that has an application approved under section 3245 of the amount
of such agency's allotment under section 3244 for the succeeding year.
``(b) Services to Immigrant Children and Youth Enrolled in Nonpublic
Schools.--If by reason of any provision of law a local educational
agency is prohibited from providing educational services for immigrant
children and youth enrolled in nonpublic elementary schools and
secondary schools, as required by section 3245(a)(7), or if the
Secretary determines that a local educational agency has substantially
failed or is unwilling to provide for the participation on an equitable
basis of such children and youth enrolled in such schools, the Secretary
may waive such requirement and shall arrange for the provision of
services, subject to the requirements of this subpart, to such children
and youth. Such waivers shall be subject to consultation, withholding,
notice, and judicial review requirements in accordance with the
provisions of title I.
``SEC. 3247. <<NOTE: 20 USC 6967.>> USES OF FUNDS.
``(a) Use of Funds.--Funds awarded under this subpart shall be used
to pay for enhanced instructional opportunities for immigrant children
and youth, which may include--
``(1) family literacy, parent outreach, and training
activities designed to assist parents to become active
participants in the education of their children;
``(2) support of personnel, including teacher aides who have
been specifically trained, or are being trained, to provide
services to immigrant children and youth;
``(3) tutorials, mentoring, and academic or career
counseling for immigrant children and youth;
``(4) identification and acquisition of curricular
materials, educational software, and technologies;
[[Page 115 STAT. 1728]]
``(5) the provision of basic instruction services that are
directly attributable to the presence in the school district of
immigrant children and youth, including payment of costs of
providing additional classroom supplies, costs of
transportation, or such other costs as are directly attributable
to such additional basic instruction services; and
``(6) such other activities, related to the purpose of this
subpart, as the Secretary may authorize.
``(b) Consortia.--A local educational agency that receives a grant
under this subpart may collaborate or form a consortium with one or more
local educational agencies, institutions of higher education, and
nonprofit organizations to carry out a program described in an
application approved under this subpart.
``(c) Subgrants.--A local educational agency that receives a grant
under this subpart may, with the approval of the Secretary, make a
subgrant to, or enter into a contract with, an institution of higher
education, a nonprofit organization, or a consortium of such
institutions or organizations to carry out a program described in an
application approved under this subpart, including a program to serve
out-of-school youth.
``(d) Construction.--Nothing in this subpart shall be construed to
prohibit a local educational agency from serving immigrant children and
youth simultaneously with children and youth with similar educational
needs, in the same educational settings where appropriate.
``SEC. 3248. <<NOTE: 20 USC 6968.>> REPORTS.
``(a) Biennial Report.--Each State educational agency receiving
funds under this subpart shall submit, once every 2 years, a report to
the Secretary concerning the expenditure of funds by local educational
agencies under this subpart. Each local educational agency receiving
funds under this subpart shall submit to the State educational agency
such information as may be necessary for such report.
``(b) Report to Congress.--The Secretary shall submit, once every 2
years, a report to the appropriate committees of Congress concerning
programs assisted under this subpart.
``Subpart 5--Administration
``SEC. 3251. <<NOTE: 20 USC 6981.>> RELEASE TIME.
``The Secretary shall allow entities carrying out professional
development programs funded under this part to use funds provided under
this part for professional release time to enable individuals to
participate in programs assisted under this part.
``SEC. 3252. <<NOTE: 20 USC 6982.>> NOTIFICATION.
``A State educational agency, and when applicable, the State board
for postsecondary education, shall be notified within 3 working days
after the date an award under this part is made to an eligible entity
within the State.
``SEC. 3253. <<NOTE: 20 USC 6983.>> COORDINATION AND REPORTING
REQUIREMENTS.
``(a) Coordination With Related Programs.--In order to maximize
Federal efforts aimed at serving the educational needs of children and
youth of limited English proficiency, the Secretary shall coordinate and
ensure close cooperation with other programs serving language-minority
and limited English proficient children
[[Page 115 STAT. 1729]]
that are administered by the Department and other agencies. The
Secretary shall consult with the Secretary of Labor, the Secretary of
Health and Human Services, the Secretary of Agriculture, the Attorney
General, and the heads of other relevant agencies to identify and
eliminate barriers to appropriate coordination of programs that affect
language-minority and limited English proficient children and their
families. The Secretary shall provide for continuing consultation and
collaboration, between the Office of English Language Acquisition,
Language Enhancement, and Academic Achievement for Limited English
Proficient Students and relevant programs operated by the Department,
including programs under this part and other programs under this Act, in
planning, contracts, providing joint technical assistance, providing
joint field monitoring activities and in other relevant activities to
ensure effective program coordination to provide high-quality
educational opportunities to all language-minority and limited English
proficient children.
``(b) Data.--The Secretary shall, to the extent feasible, ensure
that all data collected by the Department shall include the collection
and reporting of data on limited English proficient children.
``(c) Publication of Proposals.--The Secretary shall publish and
disseminate all requests for proposals for programs funded under this
part.
``(d) <<NOTE: Deadline.>> Report.--The Director shall prepare and,
not later than February 1 of every other year, shall submit to the
Secretary, the Committee on Education and the Workforce of the House of
Representatives, and the Committee on Health, Education, Labor, and
Pensions of the Senate a report--
``(1) on programs and activities carried out to serve
limited English proficient children under this part, and the
effectiveness of such programs and activities in improving the
academic achievement and English proficiency of children who are
limited English proficient;
``(2) containing a critical synthesis of data reported by
States under section 3224, when applicable;
``(3) containing an estimate of the number of certified or
licensed teachers working in language instruction educational
programs and educating limited English proficient children, and
an estimate of the number of such teachers that will be needed
for the succeeding 5 fiscal years;
``(4) containing the major findings of scientifically based
research carried out under this part; and
``(5) containing other information gathered from the reports
submitted to the Secretary under this title when applicable.
``PART C--GENERAL PROVISIONS
``SEC. 3301. <<NOTE: 20 USC 7011.>> DEFINITIONS.
``Except as otherwise provided, in this title:
``(1) Child.--The term `child' means any individual aged 3
through 21.
``(2) Community-based organization.--The term `community-
based organization' means a private nonprofit organization of
demonstrated effectiveness, Indian tribe, or tribally sanctioned
educational authority, that is representative of a community or
significant segments of a community and that provides
educational or related services to individuals in the community.
[[Page 115 STAT. 1730]]
Such term includes a Native Hawaiian or Native American Pacific
Islander native language educational organization.
``(3) Community college.--The term `community college' means
an institution of higher education as defined in section 101 of
the Higher Education Act of 1965 that provides not less than a
2-year program that is acceptable for full credit toward a
bachelor's degree, including institutions receiving assistance
under the Tribally Controlled College or University Assistance
Act of 1978.
``(4) Director.--The term `Director' means the Director of
the Office of English Language Acquisition, Language
Enhancement, and Academic Achievement for Limited English
Proficient Students established under section 209 of the
Department of Education Organization Act.
``(5) Family education program.--The term `family education
program' means a language instruction educational program or
special alternative instruction program that--
``(A) is designed--
``(i) to help limited English proficient
adults and out-of-school youths achieve English
proficiency; and
``(ii) to provide instruction on how parents
and family members can facilitate the educational
achievement of their children;
``(B) when feasible, uses instructional programs
based on models developed under the Even Start Family
Literacy Programs, which promote adult literacy and
train parents to support the educational growth of their
children, the Parents as Teachers Program, and the Home
Instruction Program for Preschool Youngsters; and
``(C) gives preference to participation by parents
and immediate family members of children attending
school.
``(6) Immigrant children and youth.--The term `immigrant
children and youth' means individuals who--
``(A) are aged 3 through 21;
``(B) were not born in any State; and
``(C) have not been attending one or more schools in
any one or more States for more than 3 full academic
years.
``(7) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Native village or Regional Corporation
or Village Corporation as defined in or established pursuant to
the Alaska Native Claims Settlement Act, that is recognized as
eligible for the special programs and services provided by the
United States to Indians because of their status as Indians.
``(8) Language instruction educational program.--The term
`language instruction educational program' means an instruction
course--
``(A) in which a limited English proficient child is
placed for the purpose of developing and attaining
English proficiency, while meeting challenging State
academic content and student academic achievement
standards, as required by section 1111(b)(1); and
``(B) that may make instructional use of both
English and a child's native language to enable the
child to develop and attain English proficiency, and may
include the participation of English proficient children
if such course is
[[Page 115 STAT. 1731]]
designed to enable all participating children to become
proficient in English and a second language.
``(9) Native american and native american language.--The
terms `Native American' and `Native American language' shall
have the meanings given such terms in section 103 of the Native
American Languages Act.
``(10) Native hawaiian or native american pacific islander
native language educational organization.--The term `Native
Hawaiian or Native American Pacific Islander native language
educational organization' means a nonprofit organization with--
``(A) a majority of its governing board and
employees consisting of fluent speakers of the
traditional Native American languages used in the
organization's educational programs; and
``(B) not less than 5 years successful experience in
providing educational services in traditional Native
American languages.
``(11) Native language.--The term `native language', when
used with reference to an individual of limited English
proficiency, means--
``(A) the language normally used by such individual;
or
``(B) in the case of a child or youth, the language
normally used by the parents of the child or youth.
``(12) Paraprofessional.--The term `paraprofessional' means
an individual who is employed in a preschool, elementary school,
or secondary school under the supervision of a certified or
licensed teacher, including individuals employed in language
instruction educational programs, special education, and migrant
education.
``(13) Specially qualified agency.--The term `specially
qualified agency' means an eligible entity, as defined in
section 3141, in a State whose State educational agency--
``(A) does not participate in a program under
subpart 1 of part A for a fiscal year; or
``(B) submits a plan (or any amendment to a plan)
that the Secretary, after reasonable notice and
opportunity for a hearing, determines does not satisfy
the requirements of such subpart.
``(14) State.--The term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico.
``(15) Tribally sanctioned educational authority.--The term
`tribally sanctioned educational authority' means--
``(A) any department or division of education
operating within the administrative structure of the
duly constituted governing body of an Indian tribe; and
``(B) any nonprofit institution or organization that
is--
``(i) chartered by the governing body of an
Indian tribe to operate a school described in
section 3112(a) or otherwise to oversee the
delivery of educational services to members of the
tribe; and
``(ii) approved by the Secretary for the
purpose of carrying out programs under subpart 1
of part A for individuals served by a school
described in section 3112(a).
[[Page 115 STAT. 1732]]
``SEC. 3302. <<NOTE: 20 USC 7012.>> PARENTAL NOTIFICATION.
``(a) <<NOTE: Deadline.>> In General.--Each eligible entity using
funds provided under this title to provide a language instruction
educational program shall, not later than 30 days after the beginning of
the school year, inform a parent or the parents of a limited English
proficient child identified for participation in, or participating in,
such program of--
``(1) the reasons for the identification of their child as
limited English proficient and in need of placement in a
language instruction educational program;
``(2) the child's level of English proficiency, how such
level was assessed, and the status of the child's academic
achievement;
``(3) the method of instruction used in the program in which
their child is, or will be, participating, and the methods of
instruction used in other available programs, including how such
programs differ in content, instruction goals, and use of
English and a native language in instruction;
``(4) how the program in which their child is, or will be
participating will meet the educational strengths and needs of
the child;
``(5) how such program will specifically help their child
learn English, and meet age appropriate academic achievement
standards for grade promotion and graduation;
``(6) the specific exit requirements for such program, the
expected rate of transition from such program into classrooms
that are not tailored for limited English proficient children,
and the expected rate of graduation from secondary school for
such program if funds under this title are used for children in
secondary schools;
``(7) in the case of a child with a disability, how such
program meets the objectives of the individualized education
program of the child; and
``(8) information pertaining to parental rights that
includes written guidance--
``(A) detailing--
``(i) the right that parents have to have
their child immediately removed from such program
upon their request; and
``(ii) the options that parents have to
decline to enroll their child in such program or
to choose another program or method of
instruction, if available; and
``(B) assisting parents in selecting among various
programs and methods of instruction, if more than one
program or method is offered by the eligible entity.
``(b) <<NOTE: Deadline.>> Separate Notification.--In addition to
providing the information required to be provided under subsection (a),
each eligible entity that is using funds provided under this title to
provide a language instruction educational program, and that has failed
to make progress on the annual measurable achievement objectives
described in section 3122 for any fiscal year for which part A is in
effect, shall separately inform a parent or the parents of a child
identified for participation in such program, or participating in such
program, of such failure not later than 30 days after such failure
occurs.
``(c) Receipt of Information.--The information required to be
provided under subsections (a) and (b) to a parent shall be
[[Page 115 STAT. 1733]]
provided in an understandable and uniform format and, to the extent
practicable, in a language that the parent can understand.
``(d) Special Rule Applicable During School Year.--For a child who
has not been identified for participation in a language instruction
educational program prior to the beginning of the school year, the
eligible entity shall carry out subsections (a) through (c) with respect
to the parents of the child within 2 weeks of the child being placed in
such a program.
``(e) Parental Participation.--
``(1) In General.--Each eligible entity using funds provided
under this title to provide a language instruction educational
program shall implement an effective means of outreach to
parents of limited English proficient children to inform such
parents of how they can--
``(A) be involved in the education of their
children; and
``(B) be active participants in assisting their
children--
``(i) to learn English;
``(ii) to achieve at high levels in core
academic subjects; and
``(iii) to meet the same challenging State
academic content and student academic achievement
standards as all children are expected to meet.
``(2) Receipt of recommendations.--The outreach described in
paragraph (1) shall include holding, and sending notice of
opportunities for, regular meetings for the purpose of
formulating and responding to recommendations from parents
described in such paragraph.
``(f) Basis for Admission or Exclusion.--A child shall not be
admitted to, or excluded from, any federally assisted education program
on the basis of a surname or language-minority status.
``SEC. 3303. <<NOTE: Establishment. 20 USC 7013.>> NATIONAL
CLEARINGHOUSE.
``The Secretary shall establish and support the operation of a
National Clearinghouse for English Language Acquisition and Language
Instruction Educational Programs, which shall collect, analyze,
synthesize, and disseminate information about language instruction
educational programs for limited English proficient children, and
related programs. The National Clearinghouse shall--
``(1) be administered as an adjunct clearinghouse of the
Educational Resources Information Center Clearinghouses system
supported by the Office of Educational Research and Improvement;
``(2) coordinate activities with Federal data and
information clearinghouses and entities operating Federal
dissemination networks and systems;
``(3) develop a system for improving the operation and
effectiveness of federally funded language instruction
educational programs;
``(4) collect and disseminate information on--
``(A) educational research and processes related to
the education of limited English proficient children;
and
``(B) accountability systems that monitor the
academic progress of limited English proficient children
in language instruction educational programs, including
information on academic content and English proficiency
assessments for language instruction educational
programs; and
[[Page 115 STAT. 1734]]
``(5) <<NOTE: Publication.>> publish, on an annual basis, a
list of grant recipients under this title.
``SEC. 3304. <<NOTE: 20 USC 7014.>> REGULATIONS.
``In developing regulations under this title, the Secretary shall
consult with State educational agencies and local educational agencies,
organizations representing limited English proficient individuals, and
organizations representing teachers and other personnel involved in the
education of limited English proficient children.''.
TITLE IV--21ST CENTURY SCHOOLS
SEC. 401. 21ST CENTURY SCHOOLS.
Title IV (20 U.S.C. 7101 et seq.) is amended to read as follows:
``TITLE IV--21ST CENTURY SCHOOLS
``PART <<NOTE: Safe and Drug-Free Schools and Communities
Act. Grants.>> A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES
``SEC. 4001. <<NOTE: 20 USC 7101.>> SHORT TITLE.
``This part may be cited as the `Safe and Drug-Free Schools and
Communities Act'.
``SEC. 4002. <<NOTE: 20 USC 7102.>> PURPOSE.
``The purpose of this part is to support programs that prevent
violence in and around schools; that prevent the illegal use of alcohol,
tobacco, and drugs; that involve parents and communities; and that are
coordinated with related Federal, State, school, and community efforts
and resources to foster a safe and drug-free learning environment that
supports student academic achievement, through the provision of Federal
assistance to--
``(1) States for grants to local educational agencies and
consortia of such agencies to establish, operate, and improve
local programs of school drug and violence prevention and early
intervention;
``(2) States for grants to, and contracts with, community-
based organizations and public and private entities for programs
of drug and violence prevention and early intervention,
including community-wide drug and violence prevention planning
and organizing activities;
``(3) States for development, training, technical
assistance, and coordination activities; and
``(4) public and private entities to provide technical
assistance; conduct training, demonstrations, and evaluation;
and to provide supplementary services and community-wide drug
and violence prevention planning and organizing activities for
the prevention of drug use and violence among students and
youth.
``SEC. 4003. <<NOTE: 20 USC 7103.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated--
``(1) $650,000,000 for fiscal year 2002, and such sums as
may be necessary for each of the 5 succeeding fiscal years, for
State grants under subpart 1; and
[[Page 115 STAT. 1735]]
``(2) such sums for fiscal year 2002, and for each of the 5
succeeding fiscal years, for national programs under subpart 2.
``Subpart 1--State Grants
``SEC. 4111. <<NOTE: 20 USC 7111.>> RESERVATIONS AND ALLOTMENTS.
``(a) Reservations.--
``(1) In general.--From the amount made available under
section 4003(1) to carry out this subpart for each fiscal year,
the Secretary--
``(A) shall reserve 1 percent or $4,750,000
(whichever is greater) of such amount for grants to
Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands, to
be allotted in accordance with the Secretary's
determination of their respective needs and to carry out
programs described in this subpart;
``(B) shall reserve 1 percent or $4,750,000
(whichever is greater) of such amount for the Secretary
of the Interior to carry out programs described in this
subpart for Indian youth; and
``(C) shall reserve 0.2 percent of such amount for
Native Hawaiians to be used under section 4117 to carry
out programs described in this subpart.
``(2) Other reservations.--From the amount made available
under section 4003(2) to carry out subpart 2 for each fiscal
year, the Secretary--
``(A) may reserve not more than $2,000,000 for the
national impact evaluation required by section 4122(a);
``(B) notwithstanding section 3 of the No Child Left
Behind Act of 2001, shall reserve an amount necessary to
make continuation grants to grantees under the Safe
Schools/Healthy Students initiative (under the same
terms and conditions as provided for in the grants
involved).
``(b) State Allotments.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary shall, for each fiscal year, allot among the States--
``(A) one-half of the remainder not reserved under
subsection (a) according to the ratio between the
school-aged population of each State and the school-aged
population of all the States; and
``(B) one-half of such remainder according to the
ratio between the amount each State received under
section 1124A for the preceding year and the sum of such
amounts received by all the States.
``(2) Minimum.--For any fiscal year, no State shall be
allotted under this subsection an amount that is less than the
greater of--
``(A) one-half of 1 percent of the total amount
allotted to all the States under this subsection; or
``(B) the amount such State received for fiscal year
2001 under section 4111 as such section was in effect
the day preceding the date of enactment of the No Child
Left Behind Act of 2001.
``(3) Reallotment.--
[[Page 115 STAT. 1736]]
``(A) Reallotment for failure to apply.--If any
State does not apply for an allotment under this subpart
for a fiscal year, the Secretary shall reallot the
amount of the State's allotment to the remaining States
in accordance with this section.
``(B) Reallotment of unused funds.--The Secretary
may reallot any amount of any allotment to a State if
the Secretary determines that the State will be unable
to use such amount within 2 years of such allotment.
Such reallotments shall be made on the same basis as
allotments are made under paragraph (1).
``(4) Definition.--In this section the term `State' means
each of the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
``(c) Limitation.--Amounts appropriated under section 4003(2) for a
fiscal year may not be increased above the amounts appropriated under
such section for the previous fiscal year unless the amounts
appropriated under section 4003(1) for the fiscal year involved are at
least 10 percent greater that the amounts appropriated under such
section 4003(1) for the previous fiscal year.
``SEC. 4112. <<NOTE: 20 USC 7112.>> RESERVATION OF STATE FUNDS FOR SAFE
AND DRUG-FREE SCHOOLS.
``(a) State Reservation for the Chief Executive Officer of a
State.--
``(1) In general.--The chief executive officer of a State
may reserve not more than 20 percent of the total amount
allocated to a State under section 4111(b) for each fiscal year
to award competitive grants and contracts to local educational
agencies, community-based organizations (including community
anti-drug coalitions) other public entities and private
organizations, and consortia thereof. Such grants and contracts
shall be used to carry out the comprehensive State plan
described in section 4113(a) through programs or activities that
complement and support activities of local educational agencies
described in section 4115(b). Such officer shall award grants
based on--
``(A) the quality of the program or activity
proposed; and
``(B) how the program or activity meets the
principles of effectiveness described in section
4115(a).
``(2) Priority.--In making such grants and contracts under
this section, a chief executive officer shall give priority to
programs and activities that prevent illegal drug use and
violence for--
``(A) children and youth who are not normally served
by State educational agencies or local educational
agencies; or
``(B) populations that need special services or
additional resources (such as youth in juvenile
detention facilities, runaway or homeless children and
youth, pregnant and parenting teenagers, and school
dropouts).
``(3) Special consideration.--In awarding funds under
paragraph (1), a chief executive officer shall give special
consideration to grantees that pursue a comprehensive approach
to
[[Page 115 STAT. 1737]]
drug and violence prevention that includes providing and
incorporating mental health services related to drug and
violence prevention in their program.
``(4) Peer review.--Grants or contracts awarded under this
section shall be subject to a peer review process.
``(5) Use of funds.--Grants and contracts under this section
shall be used to implement drug and violence prevention
activities, including--
``(A) activities that complement and support local
educational agency activities under section 4115,
including developing and implementing activities to
prevent and reduce violence associated with prejudice
and intolerance;
``(B) dissemination of information about drug and
violence prevention; and
``(C) development and implementation of community-
wide drug and violence prevention planning and
organizing.
``(6) Administrative costs.--The chief executive officer of
a State may use not more than 3 percent of the amount described
in paragraph (1) for the administrative costs incurred in
carrying out the duties of such officer under this section.
``(b) In State Distribution.--
``(1) In general.--A State educational agency shall
distribute not less than 93 percent of the amount made available
to the State under section 4111(b), less the amount reserved
under subsection (a) of this section, to its local educational
agencies.
``(2) State administration costs.--
``(A) In general.--A State educational agency may
use not more than 3 percent of the amount made available
to the State under section 4111(b) for each fiscal year
less the amount reserved under subsection (a) of this
section, for State educational agency administrative
costs, including the implementation of the uniform
management information and reporting system as provided
for under subsection (c)(3).
``(B) Additional amounts for the uniform management
information system.--In the case of fiscal year 2002, a
State educational agency may, in addition to amounts
provided for in subparagraph (A), use 1 percent of the
amount made available to the State educational agency
under section 4111(b) for each fiscal year less the
amount reserved under subsection (a) of this section,
for implementation of the uniform management information
and reporting system as provided for under subsection
(c)(3).
``(c) State Activities.--
``(1) In general.--A State educational agency may use not
more than 5 percent of the amount made available to the State
under section 4111(b) for each fiscal year less the amount
reserved under subsection (a) of this section, for activities
described in this subsection.
``(2) Activities.--A State educational agency shall use the
amounts described in paragraph (1), either directly, or through
grants and contracts, to plan, develop, and implement capacity
building, technical assistance and training, evaluation, program
[[Page 115 STAT. 1738]]
improvement services, and coordination activities for local
educational agencies, community-based organizations, and other
public and private entities. Such uses--
``(A) shall meet the principles of effectiveness
described in section 4115(a);
``(B) shall complement and support local uses of
funds under section 4115(b);
``(C) shall be in accordance with the purposes of
this part; and
``(D) may include, among others activities--
``(i) identification, development, evaluation,
and dissemination of drug and violence prevention
strategies, programs, activities, and other
information;
``(ii) training, technical assistance, and
demonstration projects to address violence that is
associated with prejudice and intolerance; and
``(iii) financial assistance to enhance drug
and violence prevention resources available in
areas that serve large numbers of low-income
children, are sparsely populated, or have other
special needs.
``(3) Uniform management information and reporting system.--
``(A) Information and statistics.--A State shall
establish a uniform management information and reporting
system.
``(B) Uses of funds.--A State may use funds
described in subparagraphs (A) and (B) of subsection
(b)(2), either directly or through grants and contracts,
to implement the uniform management information and
reporting system described in subparagraph (A), for the
collection of information on--
``(i) truancy rates;
``(ii) the frequency, seriousness, and
incidence of violence and drug-related offenses
resulting in suspensions and expulsions in
elementary schools and secondary schools in the
State;
``(iii) the types of curricula, programs, and
services provided by the chief executive officer,
the State educational agency, local educational
agencies, and other recipients of funds under this
subpart; and
``(iv) the incidence and prevalence, age of
onset, perception of health risk, and perception
of social disapproval of drug use and violence by
youth in schools and communities.
``(C) Compilation of statistics.--In compiling the
statistics required for the uniform management
information and reporting system, the offenses described
in subparagraph (B)(ii) shall be defined pursuant to the
State's criminal code, but shall not identify victims of
crimes or persons accused of crimes. The collected data
shall include incident reports by school officials,
anonymous student surveys, and anonymous teacher
surveys.
``(D) Reporting.--The information described under
subparagraph (B) shall be reported to the public and the
data referenced in clauses (i) and (ii) of such
subparagraph shall be reported to the State on a school-
by-school basis.
[[Page 115 STAT. 1739]]
``(E) Limitation.--Nothing in this subsection shall
be construed to authorize the Secretary to require
particular policies, procedures, or practices with
respect to crimes committed on school property or school
security.
``SEC. 4113. <<NOTE: 20 USC 7113.>> STATE APPLICATION.
``(a) In General.--In order to receive an allotment under section
4111(b) for any fiscal year, a State shall submit to the Secretary, at
such time as the Secretary may require, an application that--
``(1) contains a comprehensive plan for the use of funds by
the State educational agency and the chief executive officer of
the State to provide safe, orderly, and drug-free schools and
communities through programs and activities that complement and
support activities of local educational agencies under section
4115(b), that comply with the principles of effectiveness under
section 4115(a), and that otherwise are in accordance with the
purpose of this part;
``(2) describes how activities funded under this subpart
will foster a safe and drug-free learning environment that
supports academic achievement;
``(3) provides an assurance that the application was
developed in consultation and coordination with appropriate
State officials and others, including the chief executive
officer, the chief State school officer, the head of the State
alcohol and drug abuse agency, the heads of the State health and
mental health agencies, the head of the State criminal justice
planning agency, the head of the State child welfare agency, the
head of the State board of education, or their designees, and
representatives of parents, students, and community-based
organizations;
``(4) describes how the State educational agency will
coordinate such agency's activities under this subpart with the
chief executive officer's drug and violence prevention programs
under this subpart and with the prevention efforts of other
State agencies and other programs, as appropriate, in accordance
with the provisions in section 9306;
``(5) provides an assurance that funds reserved under
section 4112(a) will not duplicate the efforts of the State
educational agency and local educational agencies with regard to
the provision of school-based drug and violence prevention
activities and that those funds will be used to serve
populations not normally served by the State educational
agencies and local educational agencies and populations that
need special services, such as school dropouts, suspended and
expelled students, youth in detention centers, runaway or
homeless children and youth, and pregnant and parenting youth;
``(6) provides an assurance that the State will cooperate
with, and assist, the Secretary in conducting data collection as
required by section 4122;
``(7) provides an assurance that the local educational
agencies in the State will comply with the provisions of section
9501 pertaining to the participation of private school children
and teachers in the programs and activities under this subpart;
``(8) provides an assurance that funds under this subpart
will be used to increase the level of State, local, and other
non-Federal funds that would, in the absence of funds under
[[Page 115 STAT. 1740]]
this subpart, be made available for programs and activities
authorized under this subpart, and in no case supplant such
State, local, and other non-Federal funds;
``(9) contains the results of a needs assessment conducted
by the State for drug and violence prevention programs, which
shall be based on ongoing State evaluation activities, including
data on--
``(A) the incidence and prevalence of illegal drug
use and violence among youth in schools and communities,
including the age of onset, the perception of health
risks, and the perception of social disapproval among
such youth;
``(B) the prevalence of risk factors, including high
or increasing rates of reported cases of child abuse or
domestic violence;
``(C) the prevalence of protective factors, buffers,
or assets; and
``(D) other variables in the school and community
identified through scientifically based research;
``(10) provides a statement of the State's performance
measures for drug and violence prevention programs and
activities to be funded under this subpart that will be focused
on student behavior and attitudes, derived from the needs
assessment described in paragraph (9), and be developed in
consultation between the State and local officials, and that
consist of--
``(A) performance indicators for drug and violence
prevention programs and activities; and
``(B) levels of performance for each performance
indicator;
``(11) describes the procedures the State will use for
assessing and publicly reporting progress toward meeting the
performance measures described in paragraph (10);
``(12) provides an assurance that the State application will
be available for public review after submission of the
application;
``(13) describes the special outreach activities that will
be carried out by the State educational agency and the chief
executive officer of the State to maximize the participation of
community-based organizations of demonstrated effectiveness that
provide services such as mentoring programs in low-income
communities;
``(14) describes how funds will be used by the State
educational agency and the chief executive officer of the State
to support, develop, and implement community-wide comprehensive
drug and violence prevention planning and organizing activities;
``(15) describes how input from parents will be sought
regarding the use of funds by the State educational agency and
the chief executive officer of the State;
``(16) describes how the State educational agency will
review applications from local educational agencies, including
how the agency will receive input from parents in such review;
``(17) describes how the State educational agency will
monitor the implementation of activities under this subpart, and
provide technical assistance for local educational agencies,
community-based organizations, other public entities, and
private organizations;
[[Page 115 STAT. 1741]]
``(18) describes how the chief executive officer of the
State will award funds under section 4112(a) and implement a
plan for monitoring the performance of, and providing technical
assistance to, recipients of such funds; and
``(19) includes any other information the Secretary may
require.
``(b) Interim Application.--
``(1) Authority.--Notwithstanding any other provision of
this section, a State may submit for fiscal year 2002 a 1-year
interim application and plan for the use of funds under this
subpart that is consistent with the requirements of this section
and contains such information as the Secretary may specify in
regulations.
``(2) Purpose.--The purpose of such interim application and
plan shall be to afford the State the opportunity to fully
develop and review such State's application and comprehensive
plan otherwise required by this section.
``(3) Exception.--A State may not receive a grant under this
subpart for a fiscal year after fiscal year 2002 unless the
Secretary has approved such State's application and
comprehensive plan as described in subsection (a).
``(c) Approval Process.--
``(1) Deemed approval.--An application submitted by a State
pursuant to this section shall undergo peer review by the
Secretary and shall be deemed to be approved by the Secretary
unless the Secretary makes a written determination, prior to the
expiration of the 120-day period beginning on the date on which
the Secretary received the application, that the application is
not in compliance with this subpart.
``(2) Disapproval.--The Secretary shall not finally
disapprove the application, except after giving the State
educational agency and the chief executive officer of the State
notice and an opportunity for a hearing.
``(3) Notification.--If the Secretary finds that the
application is not in compliance, in whole or in part, with this
subpart, the Secretary shall--
``(A) give the State educational agency and the
chief executive officer of the State notice and an
opportunity for a hearing; and
``(B) notify the State educational agency and the
chief executive officer of the State of the finding of
noncompliance, and in such notification, shall--
``(i) cite the specific provisions in the
application that are not in compliance; and
``(ii) request additional information, only as
to the noncompliant provisions, needed to make the
application compliant.
``(4) Response.--If the State educational agency and the
chief executive officer of the State respond to the Secretary's
notification described in paragraph (3)(B) during the 45-day
period beginning on the date on which the agency received the
notification, and resubmit the application with the requested
information described in paragraph (3)(B)(ii), the Secretary
shall approve or disapprove such application prior to the later
of--
``(A) the expiration of the 45-day period beginning
on the date on which the application is resubmitted; or
[[Page 115 STAT. 1742]]
``(B) the expiration of the 120-day period described
in paragraph (1).
``(5) Failure to respond.--If the State educational agency
and the chief executive officer of the State do not respond to
the Secretary's notification described in paragraph (3)(B)
during the 45-day period beginning on the date on which the
agency received the notification, such application shall be
deemed to be disapproved.
``SEC. 4114. <<NOTE: 20 USC 7114.>> LOCAL EDUCATIONAL AGENCY PROGRAM.
``(a) In General.--
``(1) Funds to local educational agencies.--A State shall
provide the amount made available to the State under this
subpart, less the amounts reserved under section 4112 to local
educational agencies for drug and violence prevention and
education programs and activities as follows:
``(A) 60 percent of such amount based on the
relative amount such agencies received under part A of
title I for the preceding fiscal year.
``(B) 40 percent of such amount based on the
relative enrollments in public and private nonprofit
elementary schools and secondary schools within the
boundaries of such agencies.
``(2) Administrative costs.--Of the amount received under
paragraph (1), a local educational agency may use not more than
2 percent for the administrative costs of carrying out its
responsibilities under this subpart.
``(3) Return of funds to state; reallocation.--
``(A) Return.--Except as provided in subparagraph
(B), upon the expiration of the 1-year period beginning
on the date on which a local educational agency receives
its allocation under this subpart--
``(i) such agency shall return to the State
educational agency any funds from such allocation
that remain unobligated; and
``(ii) the State educational agency shall
reallocate any such amount to local educational
agencies that have submitted plans for using such
amount for programs or activities on a timely
basis.
``(B) Carryover.--In any fiscal year, a local
educational agency, may retain for obligation in the
succeeding fiscal year--
``(i) an amount equal to not more than 25
percent of the allocation it received under this
subpart for such fiscal year; or
``(ii) upon a demonstration of good cause by
such agency and approval by the State educational
agency, an amount that exceeds 25 percent of such
allocation.
``(C) Reallocation.--If a local educational agency
chooses not to apply to receive the amount allocated to
such agency under this subsection, or if such agency's
application under subsection (d) is disapproved by the
State educational agency, the State educational agency
shall reallocate such amount to one or more of its other
local educational agencies.
``(b) Eligibility.--To be eligible to receive a subgrant under this
subpart, a local educational agency desiring a subgrant shall
[[Page 115 STAT. 1743]]
submit an application to the State educational agency in accordance with
subsection (d). Such an application shall be amended, as necessary, to
reflect changesin the activities and programs of the local educational
agency.
``(c) Development.--
``(1) Consultation.--
``(A) In general.--A local educational agency shall
develop its application through timely and meaningful
consultation with State and local government
representatives, representatives of schools to be served
(including private schools), teachers and other staff,
parents, students, community-based organizations, and
others with relevant and demonstrated expertise in drug
and violence prevention activities (such as medical,
mental health, and law enforcement professionals).
``(B) Continued consultation.--On an ongoing basis,
the local educational agency shall consult with such
representatives and organizations in order to seek
advice regarding how best to coordinate such agency's
activities under this subpart with other related
strategies, programs, and activities being conducted in
the community.
``(2) Design and development.--To ensure timely and
meaningful consultation under paragraph (1), a local educational
agency at the initial stages of design and development of a
program or activity shall consult, in accordance with this
subsection, with appropriate entities and persons on issues
regarding the design and development of the program or activity,
including efforts to meet the principles of effectiveness
described in section 4115(a).
``(d) Contents of Applications.--An application submitted by a local
educational agency under this section shall contain--
``(1) an assurance that the activities or programs to be
funded comply with the principles of effectiveness described in
section 4115(a) and foster a safe and drug-free learning
environment that supports academic achievement;
``(2) a detailed explanation of the local educational
agency's comprehensive plan for drug and violence prevention,
including a description of--
``(A) how the plan will be coordinated with programs
under this Act, and other Federal, State, and local
programs for drug and violence prevention, in accordance
with section 9306;
``(B) the local educational agency's performance
measures for drug and violence prevention programs and
activities, that shall consist of--
``(i) performance indicators for drug and
violence prevention programs and activities;
including--
``(I) specific reductions in the
prevalence of identified risk factors;
and
``(II) specific increases in the
prevalence of protective factors,
buffers, or assets if any have been
identified; and
``(ii) levels of performance for each
performance indicator;
``(C) how such agency will assess and publicly
report progress toward attaining its performance
measures;
[[Page 115 STAT. 1744]]
``(D) the drug and violence prevention activity or
program to be funded, including how the activity or
program will meet the principles of effectiveness
described in section 4115(a), and the means of
evaluating such activity or program; and
``(E) how the services will be targeted to schools
and students with the greatest need;
``(3) a description for how the results of the evaluations
of the effectiveness of the program will be used to refine,
improve, and strengthen the program;
``(4) an assurance that funds under this subpart will be
used to increase the level of State, local, and other non-
Federal funds that would, in the absence of funds under this
subpart, be made available for programs and activities
authorized under this subpart, and in no case supplant such
State, local, and other non-Federal funds;
``(5) a description of the mechanisms used to provide
effective notice to the community of an intention to submit an
application under this subpart;
``(6) an assurance that drug and violence prevention
programs supported under this subpart convey a clear and
consistent message that acts of violence and the illegal use of
drugs are wrong and harmful;
``(7) an assurance that the applicant has, or the schools to
be served have, a plan for keeping schools safe and drug-free
that includes--
``(A) appropriate and effective school discipline
policies that prohibit disorderly conduct, the illegal
possession of weapons, and the illegal use, possession,
distribution, and sale of tobacco, alcohol, and other
drugs by students;
``(B) security procedures at school and while
students are on the way to and from school;
``(C) prevention activities that are designed to
create and maintain safe, disciplined, and drug-free
environments;
``(D) a crisis management plan for responding to
violent or traumatic incidents on school grounds; and
``(E) a code of conduct policy for all students that
clearly states the responsibilities of students,
teachers, and administrators in maintaining a classroom
environment that--
``(i) allows a teacher to communicate
effectively with all students in the class;
``(ii) allows all students in the class to
learn;
``(iii) has consequences that are fair, and
developmentally appropriate;
``(iv) considers the student and the
circumstances of the situation; and
``(v) is enforced accordingly;
``(8) an assurance that the application and any waiver
request under section 4115(a)(3) will be available for public
review after submission of the application; and
``(9) such other assurances, goals, and objectives
identified through scientifically based research that the State
may reasonably require in accordance with the purpose of this
part.
``(e) Review of Application.--
``(1) In general.--In reviewing local applications under
this section, a State educational agency shall use a peer review
[[Page 115 STAT. 1745]]
process or other methods of assuring the quality of such
applications.
``(2) Considerations.--In determining whether to approve the
application of a local educational agency under this section, a
State educational agency shall consider the quality of
application and the extent to which the application meets the
principles of effectiveness described in section 4115(a).
``(f) Approval Process.--
``(1) Deemed approval.--An application submitted by a local
educational agency pursuant to this section shall be deemed to
be approved by the State educational agency unless the State
educational agency makes a written determination, prior to the
expiration of the 120-day period beginning on the date on which
the State educational agency received the application, that the
application is not in compliance with this subpart.
``(2) Disapproval.--The State educational agency shall not
finally disapprove the application, except after giving the
local educational agency notice and opportunity for a hearing.
``(3) Notification.--If the State educational agency finds
that the application is not in compliance, in whole or in part,
with this subpart, the State educational agency shall--
``(A) give the local educational agency notice and
an opportunity for a hearing; and
``(B) notify the local educational agency of the
finding of noncompliance, and in such notification,
shall--
``(i) cite the specific provisions in the
application that are not in compliance; and
``(ii) request additional information, only as
to the noncompliant provisions, needed to make the
application compliant.
``(4) Response.--If the local educational agency responds to
the State educational agency's notification described in
paragraph (3)(B) during the 45-day period beginning on the date
on which the agency received the notification, and resubmits the
application with the requested information described in
paragraph (3)(B)(ii), the State educational agency shall approve
or disapprove such application prior to the later of--
``(A) the expiration of the 45-day period beginning
on the date on which the application is resubmitted; or
``(B) the expiration of the 120-day period described
in paragraph (1).
``(5) Failure to respond.--If the local educational agency
does not respond to the State educational agency's notification
described in paragraph (3)(B) during the 45-day period beginning
on the date on which the agency received the notification, such
application shall be deemed to be disapproved.
``SEC. 4115. <<NOTE: 20 USC 7115.>> AUTHORIZED ACTIVITIES.
``(a) Principles of Effectiveness.--
``(1) In general.--For a program or activity developed
pursuant to this subpart to meet the principles of
effectiveness, such program or activity shall--
``(A) be based on an assessment of objective data
regarding the incidence of violence and illegal drug use
in the elementary schools and secondary schools and
communities to be served, including an objective
analysis
[[Page 115 STAT. 1746]]
of the current conditions and consequences regarding
violence and illegal drug use, including delinquency and
serious discipline problems, among students who attend
such schools (including private school students who
participate in the drug and violence prevention program)
that is based on ongoing local assessment or evaluation
activities;
``(B) be based on an established set of performance
measures aimed at ensuring that the elementary schools
and secondary schools and communities to be served by
the program have a safe, orderly, and drug-free learning
environment;
``(C) be based on scientifically based research that
provides evidence that the program to be used will
reduce violence and illegal drug use;
``(D) be based on an analysis of the data reasonably
available at the time, of the prevalence of risk
factors, including high or increasing rates of reported
cases of child abuse and domestic violence; protective
factors, buffers, assets; or other variables in schools
and communities in the State identified through
scientifically based research; and
``(E) include meaningful and ongoing consultation
with and input from parents in the development of the
application and administration of the program or
activity.
``(2) Periodic evaluation.--
``(A) Requirement.--The program or activity shall
undergo a periodic evaluation to assess its progress
toward reducing violence and illegal drug use in schools
to be served based on performance measures described in
section 4114(d)(2)(B).
``(B) <<NOTE: Public information.>> Use of
results.--The results shall be used to refine, improve,
and strengthen the program, and to refine the
performance measures, and shall also be made available
to the public upon request, with public notice of such
availability provided.
``(3) Waiver.--A local educational agency may apply to the
State for a waiver of the requirement of subsection (a)(1)(C) to
allow innovative activities or programs that demonstrate
substantial likelihood of success.
``(b) Local Educational Agency Activities.--
``(1) Program requirements.--A local educational agency
shall use funds made available under section 4114 to develop,
implement, and evaluate comprehensive programs and activities,
which are coordinated with other school and community-based
services and programs, that shall--
``(A) foster a safe and drug-free learning
environment that supports academic achievement;
``(B) be consistent with the principles of
effectiveness described in subsection (a)(1);
``(C) be designed to--
``(i) prevent or reduce violence; the use,
possession and distribution of illegal drugs; and
delinquency; and
``(ii) create a well disciplined environment
conducive to learning, which includes consultation
between teachers, principals, and other school
personnel to identify early warning signs of drug
use and violence and
[[Page 115 STAT. 1747]]
to provide behavioral interventions as part of
classroom management efforts; and
``(D) include activities to--
``(i) promote the involvement of parents in
the activity or program;
``(ii) promote coordination with community
groups and coalitions, and government agencies;
and
``(iii) distribute information about the local
educational agency's needs, goals, and programs
under this subpart.
``(2) Authorized activities.--Each local educational agency,
or consortium of such agencies, that receives a subgrant under
this subpart may use such funds to carry out activities that
comply with the principles of effectiveness described in
subsection (a), such as the following:
``(A) Age appropriate and developmentally based
activities that--
``(i) address the consequences of violence and
the illegal use of drugs, as appropriate;
``(ii) promote a sense of individual
responsibility;
``(iii) teach students that most people do not
illegally use drugs;
``(iv) teach students to recognize social and
peer pressure to use drugs illegally and the
skills for resisting illegal drug use;
``(v) teach students about the dangers of
emerging drugs;
``(vi) engage students in the learning
process; and
``(vii) incorporate activities in secondary
schools that reinforce prevention activities
implemented in elementary schools.
``(B) Activities that involve families, community
sectors (which may include appropriately trained
seniors), and a variety of drug and violence prevention
providers in setting clear expectations against violence
and illegal use of drugs and appropriate consequences
for violence and illegal use of drugs.
``(C) Dissemination of drug and violence prevention
information to schools and the community.
``(D) Professional development and training for, and
involvement of, school personnel, pupil services
personnel, parents, and interested community members in
prevention, education, early identification and
intervention, mentoring, or rehabilitation referral, as
related to drug and violence prevention.
``(E) Drug and violence prevention activities that
may include the following:
``(i) Community-wide planning and organizing
activities to reduce violence and illegal drug
use, which may include gang activity prevention.
``(ii) Acquiring and installing metal
detectors, electronic locks, surveillance cameras,
or other related equipment and technologies.
``(iii) Reporting criminal offenses committed
on school property.
``(iv) Developing and implementing
comprehensive school security plans or obtaining
technical assistance
[[Page 115 STAT. 1748]]
concerning such plans, which may include obtaining
a security assessment or assistance from the
School Security and Technology Resource Center at
the Sandia National Laboratory located in
Albuquerque, New Mexico.
``(v) Supporting safe zones of passage
activities that ensure that students travel safely
to and from school, which may include bicycle and
pedestrian safety programs.
``(vi) The hiring and mandatory training,
based on scientific research, of school security
personnel (including school resource officers) who
interact with students in support of youth drug
and violence prevention activities under this part
that are implemented in the school.
``(vii) Expanded and improved school-based
mental health services related to illegal drug use
and violence, including early identification of
violence and illegal drug use, assessment, and
direct or group counseling services provided to
students, parents, families, and school personnel
by qualified school-based mental health service
providers.
``(viii) Conflict resolution programs,
including peer mediation programs that educate and
train peer mediators and a designated faculty
supervisor, and youth anti-crime and anti-drug
councils and activities.
``(ix) Alternative education programs or
services for violent or drug abusing students that
reduce the need for suspension or expulsion or
that serve students who have been suspended or
expelled from the regular educational settings,
including programs or services to assist students
to make continued progress toward meeting the
State academic achievement standards and to
reenter the regular education setting.
``(x) Counseling, mentoring, referral
services, and other student assistance practices
and programs, including assistance provided by
qualified school-based mental health services
providers and the training of teachers by school-
based mental health services providers in
appropriate identification and intervention
techniques for students at risk of violent
behavior and illegal use of drugs.
``(xi) Programs that encourage students to
seek advice from, and to confide in, a trusted
adult regarding concerns about violence and
illegal drug use.
``(xii) Drug and violence prevention
activities designed to reduce truancy.
``(xiii) Age-appropriate, developmentally-
based violence prevention and education programs
that address victimization associated with
prejudice and intolerance, and that include
activities designed to help students develop a
sense of individual responsibility and respect for
the rights of others, and to resolve conflicts
without violence.
``(xiv) Consistent with the fourth amendment
to the Constitution of the United States, the
testing of a student for illegal drug use or the
inspecting of
[[Page 115 STAT. 1749]]
a student's locker for weapons or illegal drugs or
drug paraphernalia, including at the request of or
with the consent of a parent or legal guardian of
the student, if the local educational agency
elects to so test or inspect.
``(xv) Emergency intervention services
following traumatic crisis events, such as a
shooting, major accident, or a drug-related
incident that have disrupted the learning
environment.
``(xvi) Establishing or implementing a system
for transferring suspension and expulsion records,
consistent with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g), by a
local educational agency to any public or private
elementary school or secondary school.
``(xvii) Developing and implementing character
education programs, as a component of drug and
violence prevention programs, that take into
account the views of parents of the students for
whom the program is intended and such students,
such as a program described in subpart 3 of part D
of title V.
``(xviii) Establishing and maintaining a
school safety hotline.
``(xix) Community service, including community
service performed by expelled students, and
service-learning projects.
``(xx) Conducting a nationwide background
check of each local educational agency employee,
regardless of when hired, and prospective
employees for the purpose of determining whether
the employee or prospective employee has been
convicted of a crime that bears upon the
employee's fitness--
``(I) to be responsible for the
safety or well-being of children;
``(II) to serve in the particular
capacity in which the employee or
prospective employee is or will be
employed; or
``(III) to otherwise be employed by
the local educational agency.
``(xxi) Programs to train school personnel to
identify warning signs of youth suicide and to
create an action plan to help youth at risk of
suicide.
``(xxii) Programs that respond to the needs of
students who are faced with domestic violence or
child abuse.
``(F) The evaluation of any of the activities
authorized under this subsection and the collection of
objective data used to assess program needs, program
implementation, or program success in achieving program
goals and objectives.
``(c) Limitation.--
``(1) In general.--Except as provided in paragraph (2), not
more than 40 percent of the funds available to a local
educational agency under this subpart may be used to carry out
the activities described in clauses (ii) through (vi) of
subsection (b)(2)(E), of which not more than 50 percent of such
[[Page 115 STAT. 1750]]
amount may be used to carry out the activities described in
clauses (ii) through (v) of such subsection.
``(2) Exception.--A local educational agency may use funds
under this subpart for activities described in clauses (ii)
through (v) of subsection (b)(2)(E) only if funding for these
activities is not received from other Federal agencies.
``(d) Rule of Construction.--Nothing in this section shall be
construed to prohibit the use of funds under this subpart by any local
educational agency or school for the establishment or implementation of
a school uniform policy if such policy is part of the overall
comprehensive drug and violence prevention plan of the State involved
and is supported by the State's needs assessment and other
scientifically based research information.
``SEC. 4116. <<NOTE: 20 USC 7116.>> REPORTING.
``(a) State Report.--
``(1) In <<NOTE: Deadline.>> general.--By December 1, 2003,
and every 2 years thereafter, the chief executive officer of the
State, in cooperation with the State educational agency, shall
submit to the Secretary a report--
``(A) on the implementation and outcomes of State
programs under section 4112(a)(1) and section 4112(c)
and local educational agency programs under section
4115(b), as well as an assessment of their
effectiveness;
``(B) on the State's progress toward attaining its
performance measures for drug and violence prevention
under section 4113(a)(10); and
``(C) on the State's efforts to inform parents of,
and include parents in, violence and drug prevention
efforts.
``(2) Special rule.--The report required by this subsection
shall be--
``(A) in the form specified by the Secretary;
``(B) based on the State's ongoing evaluation
activities, and shall include data on the incidence and
prevalence, age of onset, perception of health risk, and
perception of social disapproval of drug use and
violence by youth in schools and communities; and
``(C) made readily available to the public.
``(b) Local Educational Agency Report.--
``(1) In general.--Each local educational agency receiving
funds under this subpart shall submit to the State educational
agency such information that the State requires to complete the
State report required by subsection (a), including a description
of how parents were informed of, and participated in, violence
and drug prevention efforts.
``(2) Availability.--Information under paragraph (1) shall
be made readily available to the public.
``(3) <<NOTE: Deadline.>> Provision of documentation.--Not
later than January 1 of each year that a State is required to
report under subsection (a), the Secretary shall provide to the
State educational agency all of the necessary documentation
required for compliance with this section.
``SEC. 4117. <<NOTE: 20 USC 7117.>> PROGRAMS FOR NATIVE HAWAIIANS.
``(a) <<NOTE: Contracts.>> General Authority.--From the funds made
available pursuant to section 4111(a)(1)(C) to carry out this section,
the Secretary shall make grants to or enter into cooperative agreements
or contracts with organizations primarily serving and representing
[[Page 115 STAT. 1751]]
Native Hawaiians for the benefit of Native Hawaiians to plan, conduct,
and administer programs, or portions thereof, that are authorized by and
consistent with the provisions of this subpart.
``(b) Definition of Native Hawaiian.--For the purposes of this
section, the term `Native Hawaiian' means any individual any of whose
ancestors were natives, prior to 1778, of the area which now comprises
the State of Hawaii.
``Subpart 2--National Programs
``SEC. 4121. <<NOTE: 20 USC 7131.>> FEDERAL ACTIVITIES.
``(a) Program Authorized.--From funds made available to carry out
this subpart under section 4003(2), the Secretary, in consultation with
the Secretary of Health and Human Services, the Director of the Office
of National Drug Control Policy, and the Attorney General, shall carry
out programs to prevent the illegal use of drugs and violence among, and
promote safety and discipline for, students. The Secretary shall carry
out such programs directly, or through grants, contracts, or cooperative
agreements with public and private entities and individuals, or through
agreements with other Federal agencies, and shall coordinate such
programs with other appropriate Federal activities. Such programs may
include--
``(1) the development and demonstration of innovative
strategies for the training of school personnel, parents, and
members of the community for drug and violence prevention
activities based on State and local needs;
``(2) the development, demonstration, scientifically based
evaluation, and dissemination of innovative and high quality
drug and violence prevention programs and activities, based on
State and local needs, which may include--
``(A) alternative education models, either
established within a school or separate and apart from
an existing school, that are designed to promote drug
and violence prevention, reduce disruptive behavior,
reduce the need for repeat suspensions and expulsions,
enable students to meet challenging State academic
standards, and enable students to return to the regular
classroom as soon as possible;
``(B) community service and service-learning
projects, designed to rebuild safe and healthy
neighborhoods and increase students' sense of individual
responsibility;
``(C) video-based projects developed by
noncommercial telecommunications entities that provide
young people with models for conflict resolution and
responsible decisionmaking; and
``(D) child abuse education and prevention programs
for elementary and secondary students;
``(3) the provision of information on drug abuse education
and prevention to the Secretary of Health and Human Services for
dissemination;
``(4) the provision of information on violence prevention
and education and school safety to the Department of Justice for
dissemination;
``(5) technical assistance to chief executive officers,
State agencies, local educational agencies, and other recipients
of
[[Page 115 STAT. 1752]]
funding under this part to build capacity to develop and
implement high-quality, effective drug and violence prevention
programs consistent with the principles of effectiveness in
section 4115(a);
``(6) assistance to school systems that have particularly
severe drug and violence problems, including hiring drug
prevention and school safety coordinators, or assistance to
support appropriate response efforts to crisis situations;
``(7) the development of education and training programs,
curricula, instructional materials, and professional training
and development for preventing and reducing the incidence of
crimes and conflicts motivated by hate in localities most
directly affected by hate crimes;
``(8) activities in communities designated as empowerment
zones or enterprise communities that will connect schools to
community-wide efforts to reduce drug and violence problems; and
``(9) other activities in accordance with the purpose of
this part, based on State and local needs.
``(b) Peer Review.--The Secretary shall use a peer review process in
reviewing applications for funds under this section.
``SEC. 4122. <<NOTE: 20 USC 7132.>> IMPACT EVALUATION.
``(a) Biennial Evaluation.--The Secretary, in consultation with the
Safe and Drug-Free Schools and Communities Advisory Committee described
in section 4124, shall conduct an independent biennial evaluation of the
impact of programs assisted under this subpart and of other recent and
new initiatives to combat violence and illegal drug use in schools. The
evaluation shall report on whether community and local educational
agency programs funded under this subpart--
``(1) comply with the principles of effectiveness described
in section 4115(a);
``(2) have appreciably reduced the level of illegal drug,
alcohol, and tobacco use, and school violence and the illegal
presence of weapons at schools; and
``(3) have conducted effective parent involvement and
training programs.
``(b) Data Collection.--The National Center for Education Statistics
shall collect data, that is subject to independent review, to determine
the incidence and prevalence of illegal drug use and violence in
elementary schools and secondary schools in the States. The collected
data shall include incident reports by schools officials, anonymous
student surveys, and anonymous teacher surveys.
``(c) <<NOTE: Deadline.>> Biennial Report.--Not later than January
1, 2003, and every 2 years thereafter, the Secretary shall submit to the
President and Congress a report on the findings of the evaluation
conducted under subsection (a) together with the data collected under
subsection (b) and data available from other sources on the incidence
and prevalence, age of onset, perception of health risk, and perception
of social disapproval of drug use and violence in elementary schools and
secondary schools in the States. The Secretary shall include data
submitted by the States pursuant to subsection 4116(a).
``SEC. 4123. <<NOTE: 20 USC 7133.>> HATE CRIME PREVENTION.
``(a) Grant Authorization.--From funds made available to carry out
this subpart under section 4003(2) the Secretary may
[[Page 115 STAT. 1753]]
make grants to local educational agencies and community-based
organizations for the purpose of providing assistance to localities most
directly affected by hate crimes.
``(b) Use of Funds.--
``(1) Program development.--Grants under this section may be
used to improve elementary and secondary educational efforts,
including--
``(A) development of education and training programs
designed to prevent and to reduce the incidence of
crimes and conflicts motivated by hate;
``(B) development of curricula for the purpose of
improving conflict or dispute resolution skills of
students, teachers, and administrators;
``(C) development and acquisition of equipment and
instructional materials to meet the needs of, or
otherwise be part of, hate crime or conflict programs;
and
``(D) professional training and development for
teachers and administrators on the causes, effects, and
resolutions of hate crimes or hate-based conflicts.
``(2) Application.--In order to be eligible to receive a
grant under this section for any fiscal year, a local
educational agency, or a local educational agency in conjunction
with a community-based organization, shall submit an application
to the Secretary in such form and containing such information as
the Secretary may reasonably require.
``(3) Requirements.--Each application under paragraph (2)
shall include--
``(A) a request for funds for the purpose described
in this section;
``(B) a description of the schools and communities
to be served by the grants; and
``(C) assurances that Federal funds received under
this section shall be used to supplement, and not
supplant, non-Federal funds.
``(4) Comprehensive plan.--Each application shall include a
comprehensive plan that contains--
``(A) a description of the hate crime or conflict
problems within the schools or the community targeted
for assistance;
``(B) a description of the program to be developed
or augmented by such Federal and matching funds;
``(C) assurances that such program or activity shall
be administered by or under the supervision of the
applicant;
``(D) procedures for the proper and efficient
administration of such program; and
``(E) fiscal control and fund accounting procedures
as may be necessary to ensure prudent use, proper
disbursement, and accurate accounting of funds received
under this section.
``(c) Award of Grants.--
``(1) Selection of recipients.--The Secretary shall consider
the incidence of crimes and conflicts motivated by bias in the
targeted schools and communities in awarding grants under this
section.
[[Page 115 STAT. 1754]]
``(2) Geographic distribution.--The Secretary shall attempt,
to the extent practicable, to achieve an equitable geographic
distribution of grant awards.
``(3) Dissemination of information.--The Secretary shall
attempt, to the extent practicable, to make available
information regarding successful hate crime prevention programs,
including programs established or expanded with grants under
this section.
``(d) Reports.--The Secretary shall submit to Congress a report
every 2 years that shall contain a detailed statement regarding grants
and awards, activities of grant recipients, and an evaluation of
programs established under this section.
``SEC. 4124. <<NOTE: 20 USC 7134.>> SAFE AND DRUG-FREE SCHOOLS AND
COMMUNITIES ADVISORY COMMITTEE.
``(a) Establishment.--
``(1) In general.--There is hereby established an advisory
committee to be known as the `Safe and Drug Free Schools and
Communities Advisory Committee' (referred to in this section as
the `Advisory Committee') to--
``(A) consult with the Secretary under subsection
(b);
``(B) coordinate Federal school- and community-based
substance abuse and violence prevention programs and
reduce duplicative research or services;
``(C) develop core data sets and evaluation
protocols for safe and drug-free school- and community-
based programs;
``(D) provide technical assistance and training for
safe and drug-free school- and community-based programs;
``(E) provide for the diffusion of scientifically
based research to safe and drug-free school- and
community-based programs; and
``(F) review other regulations and standards
developed under this title.
``(2) Composition.--The Advisory Committee shall be composed
of representatives from--
``(A) the Department of Education;
``(B) the Centers for Disease Control and
Prevention;
``(C) the National Institute on Drug Abuse;
``(D) the National Institute on Alcoholism and
Alcohol Abuse;
``(E) the Center for Substance Abuse Prevention;
``(F) the Center for Mental Health Services;
``(G) the Office of Juvenile Justice and Delinquency
Prevention;
``(H) the Office of National Drug Control Policy;
``(I) State and local governments, including
education agencies; and
``(J) researchers and expert practitioners.
``(3) Consultation.--In carrying out its duties under this
section, the Advisory Committee shall annually consult with
interested State and local coordinators of school- and
community-based substance abuse and violence prevention programs
and other interested groups.
``(b) Programs.--
``(1) In general.--From amounts made available under section
4003(2) to carry out this subpart, the Secretary, in
[[Page 115 STAT. 1755]]
consultation with the Advisory Committee, shall carry out
scientifically based research programs to strengthen the
accountability and effectiveness of the State, chief executive
officer's, and national programs under this part.
``(2) Grants, contracts or cooperative agreements.--The
Secretary shall carry out paragraph (1) directly or through
grants, contracts, or cooperative agreements with public and
private entities and individuals or through agreements with
other Federal agencies.
``(3) Coordination.--The Secretary shall coordinate programs
under this section with other appropriate Federal activities.
``(4) Activities.--Activities that may be carried out under
programs funded under this section may include--
``(A) the provision of technical assistance and
training, in collaboration with other Federal agencies
utilizing their expertise and national and regional
training systems, for Governors, State educational
agencies and local educational agencies to support high
quality, effective programs that--
``(i) provide a thorough assessment of the
substance abuse and violence problem;
``(ii) utilize objective data and the
knowledge of a wide range of community members;
``(iii) develop measurable goals and
objectives; and
``(iv) implement scientifically based research
activities that have been shown to be effective
and that meet identified needs;
``(B) the provision of technical assistance and
training to foster program accountability;
``(C) the diffusion and dissemination of best
practices and programs;
``(D) the development of core data sets and
evaluation tools;
``(E) program evaluations;
``(F) the provision of information on drug abuse
education and prevention to the Secretary of Health and
Human Services for dissemination by the clearinghouse
for alcohol and drug abuse information established under
section 501(d)(16) of the Public Health Service Act; and
``(G) other activities that meet unmet needs related
to the purpose of this part and that are undertaken in
consultation with the Advisory Committee.
``SEC. 4125. <<NOTE: 20 USC 7135.>> NATIONAL COORDINATOR PROGRAM.
``(a) In General.--From funds made available to carry out this
subpart under section 4003(2), the Secretary may provide for the
establishment of a National Coordinator Program under which the
Secretary shall award grants to local educational agencies for the
hiring of drug prevention and school safety program coordinators.
``(b) Use of Funds.--Amounts received under a grant under subsection
(a) shall be used by local educational agencies to recruit, hire, and
train individuals to serve as drug prevention and school safety program
coordinators in schools with significant drug and school safety
problems. Such coordinators shall be responsible for developing,
conducting, and analyzing assessments of drug and
[[Page 115 STAT. 1756]]
crime problems at their schools, and administering the safe and drug-
free grant program at such schools.
``SEC. 4126. <<NOTE: 20 USC 7136.>> COMMUNITY SERVICE GRANT PROGRAM.
``(a) In General.--From funds made available to carry out this
subpart under section 4003(2), the Secretary may make grants to States
to carry out programs under which students expelled or suspended from
school are required to perform community service.
``(b) Allocation.--From the amount described in subsection (a), the
Secretary shall allocate among the States--
``(1) one-half according to the ratio between the school-
aged population of each State and the school-aged population of
all the States; and
``(2) one-half according to the ratio between the amount
each State received under section 1124A for the preceding year
and the sum of such amounts received by all the States.
``(c) Minimum.--For any fiscal year, no State shall be allotted
under this section an amount that is less than one-half of 1 percent of
the total amount allotted to all the States under this section.
``(d) Reallotment.--The Secretary may reallot any amount of any
allotment to a State if the Secretary determines that the State will be
unable to use such amount within 2 years of such allotment. Such
reallotments shall be made on the same basis as allotments are made
under subsection (b).
``(e) Definition.--In this section, the term `State' means each of
the 50 States, the District of Columbia, and the Commonwealth of Puerto
Rico.
``SEC. 4127. <<NOTE: Establishment. 20 USC 7137.>> SCHOOL SECURITY
TECHNOLOGY AND RESOURCE CENTER.
``(a) Center.--From funds made available to carry out this subpart
under section 4003(2), the Secretary, the Attorney General, and the
Secretary of Energy may enter into an agreement for the establishment at
the Sandia National Laboratories, in partnership with the National Law
Enforcement and Corrections Technology Center--Southeast and the
National Center for Rural Law Enforcement in Little Rock, Arkansas, of a
center to be known as the `School Security Technology and Resource
Center' (hereafter in this section `the Center').
``(b) Administration.--The Center established under subsection (a)
shall be administered by the Attorney General.
``(c) Functions.--The center established under subsection (a) shall
be a resource to local educational agencies for school security
assessments, security technology development, evaluation and
implementation, and technical assistance relating to improving school
security. <<NOTE: Publication. Reports.>> The Center will also conduct
and publish school violence research, coalesce data from victim
communities, and monitor and report on schools that implement school
security strategies.
``SEC. 4128. <<NOTE: 20 USC 7138.>> NATIONAL CENTER FOR SCHOOL AND
YOUTH SAFETY.
``(a) Establishment.--From funds made available to carry out this
subpart under section 4003(2), the Secretary of Education and the
Attorney General may jointly establish a National Center for School and
Youth Safety (in this section referred to as the `Center'). The
Secretary of Education and the Attorney General may establish the Center
at an existing facility, if the facility has a history of performing two
or more of the duties described in subsection (b). The Secretary of
Education and the Attorney
[[Page 115 STAT. 1757]]
General shall jointly appoint a Director of the Center to oversee the
operation of the Center.
``(b) Duties.--The Center shall carry out emergency response,
anonymous student hotline, consultation, and information and outreach
activities with respect to elementary and secondary school safety,
including the following:
``(1) Emergency response.--The staff of the Center, and such
temporary contract employees as the Director of the Center shall
determine necessary, shall offer emergency assistance to local
communities to respond to school safety crises. Such assistance
shall include counseling for victims and the community,
assistance to law enforcement to address short-term security
concerns, and advice on how to enhance school safety, prevent
future incidents, and respond to future incidents.
``(2) Anonymous student hotline.--The Center shall establish
a toll-free telephone number for students to report criminal
activity, threats of criminal activity, and other high-risk
behaviors such as substance abuse, gang or cult affiliation,
depression, or other warning signs of potentially violent
behavior. The Center shall relay the reports, without
attribution, to local law enforcement or appropriate school
hotlines. The Director of the Center shall work with the
Attorney General to establish guidelines for Center staff to
work with law enforcement around the Nation to relay information
reported through the hotline.
``(3) Consultation.--The Center shall establish a toll-free
number for the public to contact staff of the Center for
consultation regarding school safety. The Director of the Center
shall hire administrative staff and individuals with expertise
in enhancing school safety, including individuals with
backgrounds in counseling and psychology, education, law
enforcement and criminal justice, and community development to
assist in the consultation.
``(4) Information and outreach.--The Center shall compile
information about the best practices in school violence
prevention, intervention, and crisis management, and shall serve
as a clearinghouse for model school safety program information.
The staff of the Center shall work to ensure local governments,
school officials, parents, students, and law enforcement
officials and agencies are aware of the resources, grants, and
expertise available to enhance school safety and prevent school
crime. The staff of the Center shall give special attention to
providing outreach to rural and impoverished communities.
``SEC. 4129. <<NOTE: 20 USC 7139.>> GRANTS TO REDUCE ALCOHOL ABUSE.
``(a) In General.--The Secretary, in consultation with the
Administrator of the Substance Abuse and Mental Health Services
Administration, may award grants from funds made available to carry out
this subpart under section 4003(2), on a competitive basis, to local
educational agencies to enable such agencies to develop and implement
innovative and effective programs to reduce alcohol abuse in secondary
schools.
``(b) Eligibility.--To be eligible to receive a grant under
subsection (a), a local educational agency shall prepare and submit to
the Secretary an application at such time, in such manner,
[[Page 115 STAT. 1758]]
and containing such information as the Secretary may require,
including--
``(1) a description of the activities to be carried out
under the grant;
``(2) an assurance that such activities will include one or
more of the proven strategies for reducing underage alcohol
abuse as determined by the Substance Abuse and Mental Health
Services Administration;
``(3) an explanation of how activities to be carried out
under the grant that are not described in paragraph (2) will be
effective in reducing underage alcohol abuse, including
references to the past effectiveness of such activities;
``(4) an assurance that the applicant will submit to the
Secretary an annual report concerning the effectiveness of the
programs and activities funded under the grant; and
``(5) such other information as the Secretary determines
appropriate.
``(c) <<NOTE: Procedures.>> Streamlining of Process for Low-Income
and Rural LEAs.--The Secretary, in consultation with the Administrator
of the Substance Abuse and Mental Health Services Administration, shall
develop procedures to make the application process for grants under this
section more user-friendly, particularly for low-income and rural local
educational agencies.
``(d) Reservations.--
``(1) SAMHSA.--The Secretary may reserve 20 percent of any
amount used to carry out this section to enable the
Administrator of the Substance Abuse and Mental Health Services
Administration to provide alcohol abuse resources and start-up
assistance to local educational agencies receiving grants under
this section.
``(2) Low-income and rural areas.--The Secretary may reserve
25 percent of any amount used to carry out this section to award
grants to low-income and rural local educational agencies.
``SEC. 4130. <<NOTE: 20 USC 7140.>> MENTORING PROGRAMS.
``(a) Purpose; Definitions.--
``(1) Purpose.--The purpose of this section is to make
assistance available to promote mentoring programs for children
with greatest need--
``(A) to assist such children in receiving support
and guidance from a mentor;
``(B) to improve the academic achievement of such
children;
``(C) to improve interpersonal relationships between
such children and their peers, teachers, other adults,
and family members;
``(D) to reduce the dropout rate of such children;
and
``(E) to reduce juvenile delinquency and involvement
in gangs by such children.
``(2) Definitions.--In this part:
``(A) Child with greatest need.--The term `child
with greatest need' means a child who is at risk of
educational failure, dropping out of school, or
involvement in criminal or delinquent activities, or who
lacks strong positive role models.
[[Page 115 STAT. 1759]]
``(B) Eligible entity.--The term `eligible entity'
means--
``(i) a local educational agency;
``(ii) a nonprofit, community-based
organization; or
``(iii) a partnership between a local
educational agency and a nonprofit, community-
based organization.
``(C) Mentor.--The term `mentor' means a responsible
adult, a postsecondary school student, or a secondary
school student who works with a child--
``(i) to provide a positive role model for the
child;
``(ii) to establish a supportive relationship
with the child; and
``(iii) to provide the child with academic
assistance and exposure to new experiences and
examples of opportunity that enhance the ability
of the child to become a responsible adult.
``(D) State.--The term `State' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
``(b) Grant Program.--
``(1) In general.--The Secretary may award grants from funds
made available to carry out this subpart under section 4003(2)
to eligible entities to assist such entities in establishing and
supporting mentoring programs and activities for children with
greatest need that--
``(A) are designed to link such children
(particularly children living in rural areas, high-crime
areas, or troubled home environments, or children
experiencing educational failure) with mentors who--
``(i) have received training and support in
mentoring;
``(ii) have been screened using appropriate
reference checks, child and domestic abuse record
checks, and criminal background checks; and
``(iii) are interested in working with
children with greatest need; and
``(B) are intended to achieve one or more of the
following goals with respect to children with greatest
need:
``(i) Provide general guidance.
``(ii) Promote personal and social
responsibility.
``(iii) Increase participation in, and enhance
the ability to benefit from, elementary and
secondary education.
``(iv) Discourage illegal use of drugs and
alcohol, violence, use of dangerous weapons,
promiscuous behavior, and other criminal, harmful,
or potentially harmful activity.
``(v) Encourage participation in community
service and community activities.
``(vi) Encourage setting goals and planning
for the future, including encouragement of
graduation from secondary school and planning for
postsecondary education or training.
``(viii) Discourage involvement in gangs.
``(2) Use of funds.--
[[Page 115 STAT. 1760]]
``(A) In general.--Each eligible entity awarded a
grant under this subsection shall use the grant funds
for activities that establish or implement a mentoring
program, that may include--
``(i) hiring of mentoring coordinators and
support staff;
``(ii) providing for the professional
development of mentoring coordinators and support
staff;
``(iii) recruitment, screening, and training
of mentors;
``(iv) reimbursement to schools, if
appropriate, for the use of school materials or
supplies in carrying out the mentoring program;
``(v) dissemination of outreach materials;
``(vi) evaluation of the mentoring program
using scientifically based methods; and
``(vii) such other activities as the Secretary
may reasonably prescribe by rule.
``(B) Prohibited uses.--Notwithstanding subparagraph
(A), an eligible entity awarded a grant under this
section may not use the grant funds--
``(i) to directly compensate mentors;
``(ii) to obtain educational or other
materials or equipment that would otherwise be
used in the ordinary course of the eligible
entity's operations;
``(iii) to support litigation of any kind; or
``(iv) for any other purpose reasonably
prohibited by the Secretary by rule.
``(3) Availability of funds.--Funds made available through a
grant under this section shall be available for obligation for a
period not to exceed 3 years.
``(4) Application.--Each eligible entity seeking a grant
under this section shall submit to the Secretary an application
that includes--
``(A) a description of the plan for the mentoring
program the eligible entity proposes to carry out with
such grant;
``(B) information on the children expected to be
served by the mentoring program for which such grant is
sought;
``(C) a description of the mechanism the eligible
entity will use to match children with mentors based on
the needs of the children;
``(D) an assurance that no mentor will be assigned
to mentor so many children that the assignment will
undermine the mentor's ability to be an effective mentor
or the mentor's ability to establish a close
relationship (a one-to-one relationship, where
practicable) with each mentored child;
``(E) an assurance that the mentoring program will
provide children with a variety of experiences and
support, including--
``(i) emotional support;
``(ii) academic assistance; and
``(iii) exposure to experiences that the
children might not otherwise encounter on their
own;
``(F) an assurance that the mentoring program will
be monitored to ensure that each child assigned a mentor
[[Page 115 STAT. 1761]]
benefits from that assignment and that the child will be
assigned a new mentor if the relationship between the
original mentor and the child is not beneficial to the
child;
``(G) information regarding how mentors and children
will be recruited to the mentoring program;
``(H) information regarding how prospective mentors
will be screened;
``(I) information on the training that will be
provided to mentors; and
``(J) information on the system that the eligible
entity will use to manage and monitor information
relating to the mentoring program's--
``(i) reference checks;
``(ii) child and domestic abuse record checks;
``(iii) criminal background checks; and
``(iv) procedure for matching children with
mentors.
``(5) Selection.--
``(A) Competitive basis.--In accordance with this
subsection, the Secretary shall award grants to eligible
entities on a competitive basis.
``(B) Priority.--In awarding grants under
subparagraph (A), the Secretary shall give priority to
each eligible entity that--
``(i) serves children with greatest need
living in rural areas, high-crime areas, or
troubled home environments, or who attend schools
with violence problems;
``(ii) provides high quality background
screening of mentors, training of mentors, and
technical assistance in carrying out mentoring
programs; or
``(iii) proposes a school-based mentoring
program.
``(C) Other considerations.--In awarding grants
under subparagraph (A), the Secretary shall also
consider--
``(i) the degree to which the location of the
mentoring program proposed by each eligible entity
contributes to a fair distribution of mentoring
programs with respect to urban and rural
locations;
``(ii) the quality of the mentoring program
proposed by each eligible entity, including--
``(I) the resources, if any, the
eligible entity will dedicate to
providing children with opportunities
for job training or postsecondary
education;
``(II) the degree to which parents,
teachers, community-based organizations,
and the local community have
participated, or will participate, in
the design and implementation of the
proposed mentoring program;
``(III) the degree to which the
eligible entity can ensure that mentors
will develop longstanding relationships
with the children they mentor;
``(IV) the degree to which the
mentoring program will serve children
with greatest need in the 4th through
8th grades; and
``(V) the degree to which the
mentoring program will continue to serve
children from the 9th grade through
graduation from secondary school, as
needed; and
[[Page 115 STAT. 1762]]
``(iii) the capability of each eligible entity
to effectively implement its mentoring program.
``(D) Grant to each state.--Notwithstanding any
other provision of this subsection, in awarding grants
under subparagraph (A), the Secretary shall select not
less than one grant recipient from each State for which
there is an eligible entity that submits an application
of sufficient quality pursuant to paragraph (4).
``(6) Model screening guidelines.--
``(A) In general.--Based on model screening
guidelines developed by the Office of Juvenile Programs
of the Department of Justice, the Secretary shall
develop and distribute to each eligible entity awarded a
grant under this section specific model guidelines for
the screening of mentors who seek to participate in
mentoring programs assisted under this section.
``(B) Background checks.--The guidelines developed
under this subsection shall include, at a minimum, a
requirement that potential mentors be subject to
reference checks, child and domestic abuse record
checks, and criminal background checks.
``Subpart 3--Gun <<NOTE: Gun-Free Schools Act.>> Possession
``SEC. <<NOTE: 20 USC 7151.>> 4141. GUN-FREE REQUIREMENTS.
``(a) Short Title.--This subpart may be cited as the `Gun-Free
Schools Act'.
``(b) Requirements.--
``(1) In general.--Each State receiving Federal funds under
any title of this Act shall have in effect a State law requiring
local educational agencies to expel from school for a period of
not less than 1 year a student who is determined to have brought
a firearm to a school, or to have possessed a firearm at a
school, under the jurisdiction of local educational agencies in
that State, except that such State law shall allow the chief
administering officer of a local educational agency to modify
such expulsion requirement for a student on a case-by-case basis
if such modification is in writing.
``(2) Construction.--Nothing in this subpart shall be
construed to prevent a State from allowing a local educational
agency that has expelled a student from such a student's regular
school setting from providing educational services to such
student in an alternative setting.
``(3) Definition.--For the purpose of this section, the term
`firearm' has the same meaning given such term in section 921(a)
of title 18, United States Code.
``(c) Special Rule.--The provisions of this section shall be
construed in a manner consistent with the Individuals with Disabilities
Education Act.
``(d) Report to State.--Each local educational agency requesting
assistance from the State educational agency that is to be provided from
funds made available to the State under any title of this Act shall
provide to the State, in the application requesting such assistance--
``(1) an assurance that such local educational agency is in
compliance with the State law required by subsection (b); and
[[Page 115 STAT. 1763]]
``(2) a description of the circumstances surrounding any
expulsions imposed under the State law required by subsection
(b), including--
``(A) the name of the school concerned;
``(B) the number of students expelled from such
school; and
``(C) the type of firearms concerned.
``(e) Reporting.--Each State shall report the information described
in subsection (d) to the Secretary on an annual basis.
``(f) Definition.--For the purpose of subsection (d), the term
`school' means any setting that is under the control and supervision of
the local educational agency for the purpose of student activities
approved and authorized by the local educational agency.
``(g) Exception.--Nothing in this section shall apply to a firearm
that is lawfully stored inside a locked vehicle on school property, or
if it is for activities approved and authorized by the local educational
agency and the local educational agency adopts appropriate safeguards to
ensure student safety.
``(h) Policy Regarding Criminal Justice System Referral.--
``(1) In general.--No funds shall be made available under
any title of this Act to any local educational agency unless
such agency has a policy requiring referral to the criminal
justice or juvenile delinquency system of any student who brings
a firearm or weapon to a school served by such agency.
``(2) Definition.--For the purpose of this subsection, the
term `school' has the same meaning given to such term by section
921(a) of title 18, United States Code.
``Subpart 4--General Provisions
``SEC. 4151. <<NOTE: 20 USC 7161.>> DEFINITIONS.
``In this part:
``(1) Controlled substance.--The term `controlled substance'
means a drug or other substance identified under Schedule I, II,
III, IV, or V in section 202(c) of the Controlled Substances Act
(21 U.S.C. 812(c)).
``(2) Drug.--The term `drug' includes controlled substances;
the illegal use of alcohol and tobacco; and the harmful,
abusive, or addictive use of substances, including inhalants and
anabolic steroids.
``(3) Drug and violence prevention.--The term `drug and
violence prevention' means--
``(A) with respect to drugs, prevention, early
intervention, rehabilitation referral, or education
related to the illegal use of drugs;
``(B) with respect to violence, the promotion of
school safety, such that students and school personnel
are free from violent and disruptive acts, including
sexual harassment and abuse, and victimization
associated with prejudice and intolerance, on school
premises, going to and from school, and at school-
sponsored activities, through the creation and
maintenance of a school environment that is free of
weapons and fosters individual responsibility and
respect for the rights of others.
``(4) Hate crime.--The term `hate crime' means a crime as
described in section 1(b) of the Hate Crime Statistics Act of
1990.
[[Page 115 STAT. 1764]]
``(5) Nonprofit.--The term `nonprofit', as applied to a
school, agency, organization, or institution means a school,
agency, organization, or institution owned and operated by one
or more nonprofit corporations or associations, no part of the
net earnings of which inures, or may lawfully inure, to the
benefit of any private shareholder or individual.
``(6) Protective factor, buffer, or asset.--The terms
`protective factor', `buffer', and `asset' mean any one of a
number of the community, school, family, or peer-individual
domains that are known, through prospective, longitudinal
research efforts, or which are grounded in a well-established
theoretical model of prevention, and have been shown to prevent
alcohol, tobacco, or illegal drug use, as well as violent
behavior, by youth in the community, and which promote positive
youth development.
``(7) Risk factor.--The term `risk factor' means any one of
a number of characteristics of the community, school, family, or
peer-individual domains that are known, through prospective,
longitudinal research efforts, to be predictive of alcohol,
tobacco, and illegal drug use, as well as violent behavior, by
youth in the school and community.
``(8) School-aged population.--The term `school-aged
population' means the population aged five through 17, as
determined by the Secretary on the basis of the most recent
satisfactory data available from the Department of Commerce.
``(9) School based mental health services provider.--The
term `school based mental health services provider' includes a
State licensed or State certified school counselor, school
psychologist, school social worker, or other State licensed or
certified mental health professional qualified under State law
to provide such services to children and adolescents.
``(10) School personnel.--The term `school personnel'
includes teachers, principals, administrators, counselors,
social workers, psychologists, nurses, librarians, and other
support staff who are employed by a school or who perform
services for the school on a contractual basis.
``(11) School resource officer.--The term `school resource
officer' means a career law enforcement officer, with sworn
authority, deployed in community oriented policing, and assigned
by the employing police department to a local educational agency
to work in collaboration with schools and community based
organizations to--
``(A) educate students in crime and illegal drug use
prevention and safety;
``(B) develop or expand community justice
initiatives for students; and
``(C) train students in conflict resolution,
restorative justice, and crime and illegal drug use
awareness.
``SEC. 4152. <<NOTE: 20 USC 7162.>> MESSAGE AND MATERIALS.
``(a) `Wrong and Harmful' Message.--Drug and violence prevention
programs supported under this part shall convey a clear and consistent
message that the illegal use of drugs and acts of violence are wrong and
harmful.
``(b) Curriculum.--The Secretary shall not prescribe the use of
specific curricula for programs supported under this part.
[[Page 115 STAT. 1765]]
``SEC. 4153. <<NOTE: 20 USC 7163.>> PARENTAL CONSENT.
``Upon receipt of written notification from the parents or legal
guardians of a student, the local educational agency shall withdraw such
student from any program or activity funded under this part. The local
educational agency shall make reasonable efforts to inform parents or
legal guardians of the content of such programs or activities funded
under this part, other than classroom instruction.
``SEC. 4154. <<NOTE: 20 USC 7164.>> PROHIBITED USES OF FUNDS.
``No funds under this part may be used for--
``(1) construction (except for minor remodeling needed to
accomplish the purposes of this part); or
``(2) medical services, drug treatment or rehabilitation,
except for pupil services or referral to treatment for students
who are victims of, or witnesses to, crime or who illegally use
drugs.
``SEC. 4155. <<NOTE: 20 USC 7165.>> TRANSFER OF SCHOOL DISCIPLINARY
RECORDS.
``(a) Nonapplication of Provisions.--This section shall not apply to
any disciplinary records with respect to a suspension or expulsion that
are transferred from a private, parochial or other nonpublic school,
person, institution, or other entity, that provides education below the
college level.
``(b) <<NOTE: Deadline. Procedures.>> Disciplinary Records.--In
accordance with the Family Educational Rights and Privacy Act of 1974
(20 U.S.C. 1232g), not later than 2 years after the date of enactment of
this part, each State receiving Federal funds under this Act shall
provide an assurance to the Secretary that the State has a procedure in
place to facilitate the transfer of disciplinary records, with respect
to a suspension or expulsion, by local educational agencies to any
private or public elementary school or secondary school for any student
who is enrolled or seeks, intends, or is instructed to enroll, on a
full- or part-time basis, in the school.
``PART B--21ST CENTURY COMMUNITY LEARNING CENTERS
``SEC. 4201. <<NOTE: 20 USC 7171.>> PURPOSE; DEFINITIONS.
``(a) Purpose.--The purpose of this part is to provide opportunities
for communities to establish or expand activities in community learning
centers that--
``(1) provide opportunities for academic enrichment,
including providing tutorial services to help students,
particularly students who attend low-performing schools, to meet
State and local student academic achievement standards in core
academic subjects, such as reading and mathematics;
``(2) offer students a broad array of additional services,
programs, and activities, such as youth development activities,
drug and violence prevention programs, counseling programs, art,
music, and recreation programs, technology education programs,
and character education programs, that are designed to reinforce
and complement the regular academic program of participating
students; and
``(3) offer families of students served by community
learning centers opportunities for literacy and related
educational development.
``(b) Definitions.--In this part:
[[Page 115 STAT. 1766]]
``(1) Community learning center.--The term `community
learning center' means an entity that--
``(A) assists students in meeting State and local
academic achievement standards in core academic
subjects, such as reading and mathematics, by providing
the students with opportunities for academic enrichment
activities and a broad array of other activities (such
as drug and violence prevention, counseling, art, music,
recreation, technology, and character education
programs) during nonschool hours or periods when school
is not in session (such as before and after school or
during summer recess) that reinforce and complement the
regular academic programs of the schools attended by the
students served; and
``(B) offers families of students served by such
center opportunities for literacy and related
educational development.
``(2) Covered program.--The term `covered program' means a
program for which--
``(A) the Secretary made a grant under part I of
title X (as such part was in effect on the day before
the date of enactment of the No Child Left Behind Act of
2001); and
``(B) the grant period had not ended on that date of
enactment.
``(3) Eligible entity.--The term `eligible entity' means a
local educational agency, community-based organization, another
public or private entity, or a consortium of two or more of such
agencies, organizations, or entities.
``(4) State.--The term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. 4202. <<NOTE: 20 USC 7172.>> ALLOTMENTS TO STATES.
``(a) Reservation.--From the funds appropriated under section 4206
for any fiscal year, the Secretary shall reserve--
``(1) such amount as may be necessary to make continuation
awards to grant recipients under covered programs (under the
terms of those grants);
``(2) not more than 1 percent for national activities, which
the Secretary may carry out directly or through grants and
contracts, such as providing technical assistance to eligible
entities carrying out programs under this part or conducting a
national evaluation; and
``(3) not more than 1 percent for payments to the outlying
areas and the Bureau of Indian Affairs, to be allotted in
accordance with their respective needs for assistance under this
part, as determined by the Secretary, to enable the outlying
areas and the Bureau to carry out the purpose of this part.
``(b) State Allotments.--
``(1) Determination.--From the funds appropriated under
section 4206 for any fiscal year and remaining after the
Secretary makes reservations under subsection (a), the Secretary
shall allot to each State for the fiscal year an amount that
bears the same relationship to the remainder as the amount the
State received under subpart 2 of part A of title I for the
preceding fiscal year bears to the amount all States received
under that subpart for the preceding fiscal year, except that
[[Page 115 STAT. 1767]]
no State shall receive less than an amount equal to one-half of
1 percent of the total amount made available to all States under
this subsection.
``(2) Reallotment of unused funds.--If a State does not
receive an allotment under this part for a fiscal year, the
Secretary shall reallot the amount of the State's allotment to
the remaining States in accordance with this section.
``(c) State Use of Funds.--
``(1) In general.--Each State that receives an allotment
under this part shall reserve not less than 95 percent of the
amount allotted to such State under subsection (b), for each
fiscal year for awards to eligible entities under section 4204.
``(2) State administration.--A State educational agency may
use not more than 2 percent of the amount made available to the
State under subsection (b) for--
``(A) the administrative costs of carrying out its
responsibilities under this part;
``(B) establishing and implementing a peer review
process for grant applications described in section
4204(b) (including consultation with the Governor and
other State agencies responsible for administering youth
development programs and adult learning activities); and
supervising the awarding of funds to eligible
entities (in consultation with the Governor and other
State agencies responsible for administering youth
development programs and adult learning activities).
``(3) State activities.--A State educational agency may use
not more than 3 percent of the amount made available to the
State under subsection (b) for the following activities:
``(A) Monitoring and evaluation of programs and
activities assisted under this part.
``(B) Providing capacity building, training, and
technical assistance under this part.
``(C) Comprehensive evaluation (directly, or through
a grant or contract) of the effectiveness of programs
and activities assisted under this part.
``(D) Providing training and technical assistance to
eligible entities who are applicants for or recipients
of awards under this part.
``SEC. 4203. <<NOTE: 20 USC 7173.>> STATE APPLICATION.
``(a) In General.--In order to receive an allotment under section
4202 for any fiscal year, a State shall submit to the Secretary, at such
time as the Secretary may require, an application that--
``(1) designates the State educational agency as the agency
responsible for the administration and supervision of programs
assisted under this part;
``(2) describes how the State educational agency will use
funds received under this part, including funds reserved for
State-level activities;
``(3) contains an assurance that the State educational
agency will make awards under this part only to eligible
entities that propose to serve--
``(A) students who primarily attend--
``(i) schools eligible for schoolwide programs
under section 1114; or
[[Page 115 STAT. 1768]]
``(ii) schools that serve a high percentage of
students from low-income families; and
``(B) the families of students described in
subparagraph (A);
``(4) describes the procedures and criteria the State
educational agency will use for reviewing applications and
awarding funds to eligible entities on a competitive basis,
which shall include procedures and criteria that take into
consideration the likelihood that a proposed community learning
center will help participating students meet local content and
student academic achievement standards;
``(5) describes how the State educational agency will ensure
that awards made under this part are--
``(A) of sufficient size and scope to support high-
quality, effective programs that are consistent with the
purpose of this part; and
``(B) in amounts that are consistent with section
4204(h);
``(6) describes the steps the State educational agency will
take to ensure that programs implement effective strategies,
including providing ongoing technical assistance and training,
evaluation, and dissemination of promising practices;
``(7) describes how programs under this part will be
coordinated with programs under this Act, and other programs as
appropriate;
``(8) contains an assurance that the State educational
agency--
``(A) will make awards for programs for a period of
not less than 3 years and not more than 5 years; and
``(B) will require each eligible entity seeking such
an award to submit a plan describing how the community
learning center to be funded through the award will
continue after funding under this part ends;
``(9) contains an assurance that funds appropriated to carry
out this part will be used to supplement, and not supplant,
other Federal, State, and local public funds expended to provide
programs and activities authorized under this part and other
similar programs;
``(10) contains an assurance that the State educational
agency will require eligible entities to describe in their
applications under section 4204(b) how the transportation needs
of participating students will be addressed;
``(11) provides an assurance that the application was
developed in consultation and coordination with appropriate
State officials, including the chief State school officer, and
other State agencies administering before and after school (or
summer school) programs, the heads of the State health and
mental health agencies or their designees, and representatives
of teachers, parents, students, the business community, and
community-based organizations;
``(12) describes the results of the State's needs and
resources assessment for before and after school activities,
which shall be based on the results of on-going State evaluation
activities;
``(13) describes how the State educational agency will
evaluate the effectiveness of programs and activities carried
out under this part, which shall include, at a minimum--
[[Page 115 STAT. 1769]]
``(A) a description of the performance indicators
and performance measures that will be used to evaluate
programs and activities; and
``(B) public dissemination of the evaluations of
programs and activities carried out under this part; and
``(14) provides for timely public notice of intent to file
an application and an assurance that the application will be
available for public review after submission.
``(b) Deemed Approval.--An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day period beginning
on the date on which the Secretary received the application, that the
application is not in compliance with this part.
``(c) Disapproval.--The Secretary shall not finally disapprove the
application, except after giving the State educational agency notice and
opportunity for a hearing.
``(d) Notification.--If the Secretary finds that the application is
not in compliance, in whole or in part, with this part, the Secretary
shall--
``(1) give the State educational agency notice and an
opportunity for a hearing; and
``(2) notify the State educational agency of the finding of
noncompliance, and, in such notification, shall--
``(A) cite the specific provisions in the
application that are not in compliance; and
``(B) request additional information, only as to the
noncompliant provisions, needed to make the application
compliant.
``(e) Response.--If the State educational agency responds to the
Secretary's notification described in subsection (d)(2) during the 45-
day period beginning on the date on which the agency received the
notification, and resubmits the application with the requested
information described in subsection (d)(2)(B), the Secretary shall
approve or disapprove such application prior to the later of--
``(1) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
``(2) the expiration of the 120-day period described in
subsection (b).
``(f) Failure To Respond.--If the State educational agency does not
respond to the Secretary's notification described in subsection (d)(2)
during the 45-day period beginning on the date on which the agency
received the notification, such application shall be deemed to be
disapproved.
``SEC. 4204. <<NOTE: 20 USC 7174.>> LOCAL COMPETITIVE GRANT PROGRAM.
``(a) In General.--A State that receives funds under this part for a
fiscal year shall provide the amount made available under section
4202(c)(1) to eligible entities for community learning centers in
accordance with this part.
``(b) Application.--
``(1) In general.--To be eligible to receive an award under
this part, an eligible entity shall submit an application to the
State educational agency at such time, in such manner, and
including such information as the State educational agency may
reasonably require.
[[Page 115 STAT. 1770]]
``(2) Contents.--Each application submitted under paragraph
(1) shall include--
``(A) a description of the before and after school
or summer recess activities to be funded, including--
``(i) an assurance that the program will take
place in a safe and easily accessible facility;
``(ii) a description of how students
participating in the program carried out by the
community learning center will travel safely to
and from the center and home; and
``(iii) a description of how the eligible
entity will disseminate information about the
community learning center (including its location)
to the community in a manner that is
understandable and accessible;
``(B) a description of how the activity is expected
to improve student academic achievement;
``(C) an identification of Federal, State, and local
programs that will be combined or coordinated with the
proposed program to make the most effective use of
public resources;
``(D) an assurance that the proposed program was
developed, and will be carried out, in active
collaboration with the schools the students attend;
``(E) a description of how the activities will meet
the principles of effectiveness described in section
4205(b);
``(F) an assurance that the program will primarily
target students who attend schools eligible for
schoolwide programs under section 1114 and the families
of such students;
``(G) an assurance that funds under this part will
be used to increase the level of State, local, and other
non-Federal funds that would, in the absence of funds
under this part, be made available for programs and
activities authorized under this part, and in no case
supplant Federal, State, local, or non-Federal funds;
``(H) a description of the partnership between a
local educational agency, a community-based
organization, and another public entity or private
entity, if appropriate;
``(I) an evaluation of the community needs and
available resources for the community learning center
and a description of how the program proposed to be
carried out in the center will address those needs
(including the needs of working families);
``(J) a demonstration that the eligible entity has
experience, or promise of success, in providing
educational and related activities that will complement
and enhance the academic performance, achievement, and
positive youth development of the students;
``(K) a description of a preliminary plan for how
the community learning center will continue after
funding under this part ends;
``(L) an assurance that the community will be given
notice of an intent to submit an application and that
the application and any waiver request will be available
for public review after submission of the application;
``(M) if the eligible entity plans to use senior
volunteers in activities carried out through the
community learning
[[Page 115 STAT. 1771]]
center, a description of how the eligible entity will
encourage and use appropriately qualified seniors to
serve as the volunteers; and
``(N) such other information and assurances as the
State educational agency may reasonably require.
``(c) Approval of Certain Applications.--The State educational
agency may approve an application under this part for a program to be
located in a facility other than an elementary school or secondary
school only if the program will be at least as available and accessible
to the students to be served as if the program were located in an
elementary school or secondary school.
``(d) Permissive Local Match.--
``(1) In general.--A State educational agency may require an
eligible entity to match funds awarded under this part, except
that such match may not exceed the amount of the grant award and
may not be derived from other Federal or State funds.
``(2) Sliding scale.--The amount of a match under paragraph
(1) shall be established based on a sliding fee scale that takes
into account--
``(A) the relative poverty of the population to be
targeted by the eligible entity; and
``(B) the ability of the eligible entity to obtain
such matching funds.
``(3) In-kind contributions.--Each State educational agency
that requires an eligible entity to match funds under this
subsection shall permit the eligible entity to provide all or
any portion of such match in the form of in-kind contributions.
``(4) Consideration.--Notwithstanding this subsection, a
State educational agency shall not consider an eligible entity's
ability to match funds when determining which eligible entities
will receive awards under this part.
``(e) Peer Review.--In reviewing local applications under this
section, a State educational agency shall use a peer review process or
other methods of assuring the quality of such applications.
``(f) Geographic Diversity.--To the extent practicable, a State
educational agency shall distribute funds under this part equitably
among geographic areas within the State, including urban and rural
communities.
``(g) Duration of Awards.--Grants under this part may be awarded for
a period of not less than 3 years and not more than 5 years.
``(h) Amount of Awards.--A grant awarded under this part may not be
made in an amount that is less than $50,000.
``(i) Priority.--
``(1) In general.--In awarding grants under this part, a
State educational agency shall give priority to applications--
``(A) proposing to target services to students who
attend schools that have been identified as in need of
improvement under section 1116; and
``(B) submitted jointly by eligible entities
consisting of not less than 1--
``(i) local educational agency receiving funds
under part A of title I; and
``(ii) community-based organization or other
public or private entity.
[[Page 115 STAT. 1772]]
``(2) Special rule.--The State educational agency shall
provide the same priority under paragraph (1) to an application
submitted by a local educational agency if the local educational
agency demonstrates that it is unable to partner with a
community-based organization in reasonable geographic proximity
and of sufficient quality to meet the requirements of this part.
``SEC. 4205. <<NOTE: 20 USC 7175.>> LOCAL ACTIVITIES.
``(a) Authorized Activities.--Each eligible entity that receives an
award under this part may use the award funds to carry out a broad array
of before and after school activities (including during summer recess
periods) that advance student academic achievement, including--
``(1) remedial education activities and academic enrichment
learning programs, including providing additional assistance to
students to allow the students to improve their academic
achievement;
``(2) mathematics and science education activities;
``(3) arts and music education activities;
``(4) entrepreneurial education programs;
``(5) tutoring services (including those provided by senior
citizen volunteers) and mentoring programs;
``(6) programs that provide after school activities for
limited English proficient students that emphasize language
skills and academic achievement;
``(7) recreational activities;
``(8) telecommunications and technology education programs;
``(9) expanded library service hours;
``(10) programs that promote parental involvement and family
literacy;
``(11) programs that provide assistance to students who have
been truant, suspended, or expelled to allow the students to
improve their academic achievement; and
``(12) drug and violence prevention programs, counseling
programs, and character education programs.
``(b) Principles of Effectiveness.--
``(1) In general.--For a program or activity developed
pursuant to this part to meet the principles of effectiveness,
such program or activity shall--
``(A) be based upon an assessment of objective data
regarding the need for before and after school programs
(including during summer recess periods) and activities
in the schools and communities;
``(B) be based upon an established set of
performance measures aimed at ensuring the availability
of high quality academic enrichment opportunities; and
``(C) if appropriate, be based upon scientifically
based research that provides evidence that the program
or activity will help students meet the State and local
student academic achievement standards.
``(2) Periodic evaluation.--
``(A) In general.--The program or activity shall
undergo a periodic evaluation to assess its progress
toward achieving its goal of providing high quality
opportunities for academic enrichment.
[[Page 115 STAT. 1773]]
``(B) Use of results.--The results of evaluations
under subparagraph (A) shall be--
``(i) used to refine, improve, and strengthen
the program or activity, and to refine the
performance measures; and
``(ii) <<NOTE: Public information. Notice.>>
made available to the public upon request, with
public notice of such availability provided.
``SEC. 4206. <<NOTE: 20 USC 7176.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated--
``(1) $1,250,000,000 for fiscal year 2002;
``(2) $1,500,000,000 for fiscal year 2003;
``(3) $1,750,000,000 for fiscal year 2004;
``(4) $2,000,000,000 for fiscal year 2005;
``(5) $2,250,000,000 for fiscal year 2006; and
``(6) $2,500,000,000 for fiscal year 2007.
``PART C--ENVIRONMENTAL <<NOTE: Pro-Children Act of 2001.>> TOBACCO
SMOKE
``SEC. 4301. <<NOTE: 20 USC 7181.>> SHORT TITLE.
``This part may be cited as the `Pro-Children Act of 2001'.
``SEC. 4302. <<NOTE: 20 USC 7182.>> DEFINITIONS.
``As used in this part:
``(1) Children.--The term `children' means individuals who
have not attained the age of 18.
``(2) Children's services.--The term `children's services'
means the provision on a routine or regular basis of health, day
care, education, or library services--
``(A) that are funded, after the date of enactment
of the No Child Left Behind Act of 2001, directly by the
Federal Government or through State or local
governments, by Federal grant, loan, loan guarantee, or
contract programs--
``(i) administered by either the Secretary of
Health and Human Services or the Secretary of
Education (other than services provided and funded
solely under titles XVIII and XIX of the Social
Security Act); or
``(ii) administered by the Secretary of
Agriculture in the case of a clinic (as defined in
part 246.2 of title 7, Code of Federal Regulations
(or any corresponding similar regulation or
ruling)) under section 17(b)(6) of the Child
Nutrition Act of 1966; or
``(B) that are provided in indoor facilities that
are constructed, operated, or maintained with such
Federal funds, as determined by the appropriate head of
a Federal agency in any enforcement action carried out
under this part,
except that nothing in clause (ii) of subparagraph (A) is
intended to include facilities (other than clinics) where
coupons are redeemed under the Child Nutrition Act of 1966.
``(3) Indoor facility.--The term `indoor facility' means a
building that is enclosed.
``(4) Person.--The term `person' means any State or local
subdivision of a State, agency of such State or subdivision,
corporation, or partnership that owns or operates or otherwise
controls and provides children's services or any individual who
owns or operates or otherwise controls and provides such
services.
[[Page 115 STAT. 1774]]
``(5) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services.
``SEC. 4303. <<NOTE: 20 USC 7183.>> NONSMOKING POLICY FOR CHILDREN'S
SERVICES.
``(a) Prohibition.--After the date of enactment of the No Child Left
Behind Act of 2001, no person shall permit smoking within any indoor
facility owned or leased or contracted for, and utilized, by such person
for provision of routine or regular kindergarten, elementary, or
secondary education or library services to children.
``(b) Additional Prohibition.--
``(1) In general.--After the date of enactment of the No
Child Left Behind Act of 2001, no person shall permit smoking
within any indoor facility (or portion of such a facility) owned
or leased or contracted for, and utilized by, such person for
the provision of regular or routine health care or day care or
early childhood development (Head Start) services.
``(2) Exception.--Paragraph (1) shall not apply to--
``(A) any portion of such facility that is used for
inpatient hospital treatment of individuals dependent
on, or addicted to, drugs or alcohol; and
``(B) any private residence.
``(c) Federal Agencies.--
``(1) Kindergarten, elementary, or secondary education or
library services.--After the date of enactment of the No Child
Left Behind Act of 2001, no Federal agency shall permit smoking
within any indoor facility in the United States operated by such
agency, directly or by contract, to provide routine or regular
kindergarten, elementary, or secondary education or library
services to children.
``(2) Health or day care or early childhood development
services.--
``(A) In general.--After the date of enactment of
the No Child Left Behind Act of 2001, no Federal agency
shall permit smoking within any indoor facility (or
portion of such facility) operated by such agency,
directly or by contract, to provide routine or regular
health or day care or early childhood development (Head
Start) services to children.
``(B) Exception.--Subparagraph (A) shall not apply
to--
``(i) any portion of such facility that is
used for inpatient hospital treatment of
individuals dependent on, or addicted to, drugs or
alcohol; and
``(ii) any private residence.
``(3) Application of provisions.--The provisions of
paragraph (2) shall also apply to the provision of such routine
or regular kindergarten, elementary or secondary education or
library services in the facilities described in paragraph (2)
not subject to paragraph (1).
``(d) <<NOTE: Federal Register, publication.>> Notice.--The
prohibitions in subsections (a) through (c) shall be published in a
notice in the Federal Register by the Secretary (in consultation with
the heads of other affected agencies) and by such agency heads in
funding arrangements involving the provision of children's services
administered by such heads. Such prohibitions shall be effective 90 days
after such notice is published, or 270 days after the date of enactment
of the No Child Left Behind Act of 2001, whichever occurs first.
[[Page 115 STAT. 1775]]
``(e) Civil Penalties.--
``(1) In general.--Any failure to comply with a prohibition
in this section shall be considered to be a violation of this
section and any person subject to such prohibition who commits
such violation may be liable to the United States for a civil
penalty in an amount not to exceed $1,000 for each violation, or
may be subject to an administrative compliance order, or both,
as determined by the Secretary. Each day a violation continues
shall constitute a separate violation. In the case of any civil
penalty assessed under this section, the total amount shall not
exceed 50 percent of the amount of Federal funds received under
any title of this Act by such person for the fiscal year in
which the continuing violation occurred. For the purpose of the
prohibition in subsection (c), the term `person', as used in
this paragraph, shall mean the head of the applicable Federal
agency or the contractor of such agency providing the services
to children.
``(2) Administrative proceeding.--A civil penalty may be
assessed in a written notice, or an administrative compliance
order may be issued under paragraph (1), by the Secretary only
after an opportunity for a hearing in accordance with section
554 of title 5, United States Code. <<NOTE: Notice. Deadline.>>
Before making such assessment or issuing such order, or both,
the Secretary shall give written notice of the assessment or
order to such person by certified mail with return receipt and
provide information in the notice of an opportunity to request
in writing, not later than 30 days after the date of receipt of
such notice, such hearing. The notice shall reasonably describe
the violation and be accompanied with the procedures for such
hearing and a simple form that may be used to request such
hearing if such person desires to use such form. If a hearing is
requested, the Secretary shall establish by such certified
notice the time and place for such hearing, which shall be
located, to the greatest extent possible, at a location
convenient to such person. The Secretary (or the Secretary's
designee) and such person may consult to arrange a suitable date
and location where appropriate.
``(3) Circumstances affecting penalty or order.--In
determining the amount of the civil penalty or the nature of the
administrative compliance order, the Secretary shall take into
account, as appropriate--
``(A) the nature, circumstances, extent, and gravity
of the violation;
``(B) with respect to the violator, any good faith
efforts to comply, the importance of achieving early and
permanent compliance, the ability to pay or comply, the
effect of the penalty or order on the ability to
continue operation, any prior history of the same kind
of violation, the degree of culpability, and any
demonstration of willingness to comply with the
prohibitions of this section in a timely manner; and
C) such other matters as justice may require.
``(4) Modification.--The Secretary may, as appropriate,
compromise, modify, or remit, with or without conditions, any
civil penalty or administrative compliance order. In the case of
a civil penalty, the amount, as finally determined by the
Secretary or agreed upon in compromise, may be deducted
[[Page 115 STAT. 1776]]
from any sums that the United States or the agencies or
instrumentalities of the United States owe to the person against
whom the penalty is assessed.
``(5) Petition for review.--Any person aggrieved by a
penalty assessed or an order issued, or both, by the Secretary
under this section may file a petition for judicial review of
the order with the United States Court of Appeals for the
District of Columbia Circuit or for any other circuit in which
the person resides or transacts business. <<NOTE: Records.>>
Such person shall provide a copy of the petition to the
Secretary or the Secretary's designee. The petition shall be
filed within 30 days after the Secretary's assessment or order,
or both, are final and have been provided to such person by
certified mail. The Secretary shall promptly provide to the
court a certified copy of the transcript of any hearing held
under this section and a copy of the notice or order.
``(6) Failure to comply.--If a person fails to pay an
assessment of a civil penalty or comply with an order, after the
assessment or order, or both, are final under this section, or
after a court has entered a final judgment under paragraph (5)
in favor of the Secretary, the Attorney General, at the request
of the Secretary, shall recover the amount of the civil penalty
(plus interest at prevailing rates from the day the assessment
or order, or both, are final) or enforce the order in an action
brought in the appropriate district court of the United States.
In such action, the validity and appropriateness of the penalty
or order or the amount of the penalty shall not be subject to
review.
``SEC. 4304. <<NOTE: 20 USC 7184.>> PREEMPTION.
``Nothing in this part is intended to preempt any provision of law
of a State or political subdivision of a State that is more restrictive
than a provision of this part.''.
TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.
Title V (20 U.S.C. 7201 et seq.) is amended to read as follows:
``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS
``PART A--INNOVATIVE PROGRAMS
``SEC. 5101. <<NOTE: 20 USC 7201.>> PURPOSES, STATE AND LOCAL
RESPONSIBILITY.
``(a) Purposes.--The purposes of this part are the following:
``(1) To support local education reform efforts that are
consistent with and support statewide education reform efforts.
[[Page 115 STAT. 1777]]
``(2) To provide funding to enable State educational
agencies and local educational agencies to implement promising
educational reform programs and school improvement programs
based on scientifically based research.
``(3) To provide a continuing source of innovation and
educational improvement, including support programs to provide
library services and instructional and media materials.
``(4) To meet the educational needs of all students,
including at-risk youth.
``(5) To develop and implement education programs to improve
school, student, and teacher performance, including professional
development activities and class size reduction programs.
``(b) State and Local Responsibility.--The State educational agency
shall bear the basic responsibility for the administration of funds made
available under this part, but it is the intent of Congress that the
responsibility be carried out with a minimum of paperwork and that the
responsibility for the design and implementation of programs assisted
under this part be mainly that of local educational agencies, school
superintendents and principals, and classroom teachers and supporting
personnel, because local educational agencies and individuals have the
most direct contact with students and are most likely to be able to
design programs to meet the educational needs of students in their own
school districts.
``Subpart 1--State and Local Programs
``SEC. 5111. <<NOTE: 20 USC 7211.>> ALLOTMENT TO STATES.
``(a) In General.--From the sums appropriated to carry out this part
for each fiscal year and not reserved under subsection (b), the
Secretary shall allot, and make available in accordance with this part,
to each State educational agency an amount that bears the same ratio to
such sums as the school-age population of the State bears to the school-
age population of all States, except that no State shall receive less
than an amount equal to one-half of 1 percent of such sums.
``(b) Reservation.--From the sums appropriated to carry out this
part for each fiscal year, the Secretary shall reserve not more than 1
percent for payments to the outlying areas, to be allotted in accordance
with their respective needs for assistance under this part.
``SEC. 5112. <<NOTE: 20 USC 7211a.>> ALLOCATION TO LOCAL EDUCATIONAL
AGENCIES.
``(a) Distribution Rule.--
``(1) Allocation of base amounts.--From the amount made
available to a State educational agency under this part for a
fiscal year, the State educational agency shall distribute, to
local educational agencies within the State, an amount that is
not less than 85 percent of the amount made available to the
State educational agency under this part for fiscal year 2002,
according to the relative enrollments in public and in private
nonprofit schools within the jurisdictions of such local
educational agencies, adjusted, in accordance with criteria
[[Page 115 STAT. 1778]]
approved by the Secretary, to provide higher per-pupil
allocations to local educational agencies that have the greatest
numbers or percentages of children whose education imposes a
higher-than-average cost per child, such as--
``(A) children living in areas with high
concentrations of economically disadvantaged families;
``(B) children from economically disadvantaged
families; and
``(C) children living in sparsely populated areas.
``(2) Allocation of increased amounts.--From the amount made
available to a State educational agency under this part for a
fiscal year that exceeds the amount made available to the agency
under this part for fiscal year 2002, the State educational
agency shall distribute 100 percent (or, in the case of a State
educational agency receiving a minimum allotment under section
5111(a), not less than 50 percent, notwithstanding subsection
(b)) to local educational agencies within the State, on the same
basis as the State educational agency distributes amounts under
paragraph (1).
``(b) Limitations and Requirements.--Not more than 15 percent of
funds made available under section 5111 for State programs under this
part for any fiscal year may be used for State administration under
section 5121.
``(c) Calculation of Enrollments.--
``(1) In general.--The calculation of relative enrollments
under subsection (a)(1) shall be on the basis of the total of--
``(A) the number of children enrolled in public
schools; and
``(B) the number of children enrolled in private
nonprofit schools that participated in programs assisted
under this part, for the fiscal year preceding the
fiscal year for which the determination is made.
``(2) Rule of construction.--Nothing in this subsection
shall diminish the responsibility of each local educational
agency to contact, on an annual basis, appropriate officials
from private nonprofit schools within the areas served by such
agencies in order to determine whether such schools desire that
their children participate in programs assisted under this part.
``(3) Adjustments.--
``(A) State criteria.--Relative enrollments
calculated under subsection (a)(1) shall be adjusted, in
accordance with criteria approved by the Secretary under
subparagraph (B), to provide higher per-pupil
allocations only to local educational agencies that
serve the greatest numbers or percentages of--
``(i) children living in areas with high
concentrations of economically disadvantaged
families;
``(ii) children from economically
disadvantaged families; or
``(iii) children living in sparsely populated
areas.
``(B) Review of criteria.--The Secretary shall
review criteria submitted by a State educational agency
for adjusting allocations under paragraph (1) and shall
approve such criteria only if the Secretary determines
that such criteria are reasonably calculated to produce
an adjusted allocation that reflects the relative needs
of the State's
[[Page 115 STAT. 1779]]
local educational agencies based on the factors set
forth in subparagraph (A).
``(d) Payment of Allocations.--
``(1) Distribution.--From the funds paid to a State
educational agency under this subpart for a fiscal year, the
State educational agency shall distribute to each eligible local
educational agency that has submitted an application as required
by section 5133 the amount of such local educational agency's
allocation, as determined under subsection (a).
``(2) Additional funds.--
``(A) Use.--Additional funds resulting from higher
per-pupil allocations provided to a local educational
agency on the basis of adjusted enrollments of children
described in subsection (a)(1) may, in the discretion of
the local educational agency, be allocated for
expenditures to provide services for children enrolled
in public schools and private nonprofit schools in
direct proportion to the number of children described in
subsection (a)(1) and enrolled in such schools within
the area served by the local educational agency.
``(B) Allocation.--In any fiscal year, any local
educational agency that elects to allocate such
additional funds in the manner described in subparagraph
(A) shall allocate all additional funds to schools
within the area served by the local educational agency
in such manner.
``(C) Rule of construction.--Subparagraphs (A) and
(B) may not be construed to require any school to limit
the use of the additional funds described in
subparagraph (A) to the provision of services to
specific students or categories of students.
``Subpart 2--State Programs
``SEC. 5121. <<NOTE: 20 USC 7213.>> STATE USES OF FUNDS.
``A State educational agency may use funds made available for State
use under section 5112(b) only for one or more of the following:
``(1) State administration of programs under this part,
including--
``(A) allocating funds to local educational
agencies;
``(B) planning, supervising, and processing State
educational agency funds; and
``(C) monitoring and evaluating programs under this
part.
``(2) Support for the planning, design, and initial
implementation of charter schools as described in part B.
``(3) Statewide education reform, school improvement
programs and technical assistance and direct grants to local
educational agencies, which assist such agencies under section
5131.
``(4) Support for the design and implementation of high-
quality yearly student assessments.
``(5) Support for implementation of challenging State and
local academic achievement standards.
``(6) Support for arrangements that provide for independent
analysis to measure and report on school district achievement.
[[Page 115 STAT. 1780]]
``(7) Support for the program described in section 321 of
the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2001 (as
enacted into law by section 1(a)(1) of Public Law 106-554).
``(8) Support for programs to assist in the implementation
of the policy described in section 9507 which may include
payment of reasonable transportation costs and tuition costs for
such students.
``SEC. 5122. <<NOTE: 20 USC 7213a.>> STATE APPLICATIONS.
``(a) Application Requirements.--Any State that desires to receive
assistance under this part shall submit to the Secretary an application
that includes each of the following:
``(1) Designation of the State educational agency as the
State agency responsible for administration and supervision of
programs assisted under this part.
``(2) Provision for an annual statewide summary of how
assistance under this part is contributing toward improving
student academic achievement or improving the quality of
education for students.
``(3) Information setting forth the allocation of funds
required to implement section 5142.
``(4) A provision that the State educational agency will
keep such records, and provide such information to the
Secretary, as may be required for fiscal audit and program
evaluation (consistent with the responsibilities of the
Secretary under this section).
``(5) An assurance that, apart from providing technical and
advisory assistance and monitoring compliance with this part,
the State educational agency has not exercised, and will not
exercise, any influence in the decisionmaking processes of local
educational agencies as to the expenditure made pursuant to an
application submitted under section 5133.
``(6) An assurance that there is compliance with the
specific requirements of this part.
``(7) Provision for timely public notice and public
dissemination of the information provided under paragraph (3).
``(b) Statewide Summary.--The statewide summary referred to in
subsection (a)(2) shall be submitted annually to the Secretary and shall
be derived from the evaluation information submitted by local
educational agencies to the State educational agency under section
5133(b)(8). The State educational agency shall determine the format and
content of such summary and may include in the summary statistical
measures, such as the number of students served by each type of
innovative assistance program described in section 5131 and the number
of teachers trained.
``(c) Period of Application.--An application submitted by the State
educational agency under subsection (a) shall be for a period not to
exceed 3 years. The agency may amend the application annually, as may be
necessary to reflect changes, without filing a new application.
``(d) Audit Rule.--A local educational agency that receives less
than an average of $10,000 under this part for any 3 consecutive fiscal
years shall not be audited more frequently than once every 5 years.
[[Page 115 STAT. 1781]]
``Subpart 3--Local Innovative Education Programs
``SEC. 5131. <<NOTE: 20 USC 7215.>> LOCAL USES OF FUNDS.
``(a) Innovative Assistance Programs.--Funds made available to local
educational agencies under section 5112 shall be used for innovative
assistance programs, which may include any of the following:
``(1) Programs to recruit, train, and hire highly qualified
teachers to reduce class size, especially in the early grades,
and professional development activities carried out in
accordance with title II, that give teachers, principals, and
administrators the knowledge and skills to provide students with
the opportunity to meet challenging State or local academic
content standards and student academic achievement standards.
``(2) Technology activities related to the implementation of
school-based reform efforts, including professional development
to assist teachers and other school personnel (including school
library media personnel) regarding how to use technology
effectively in the classrooms and the school library media
centers involved.
``(3) Programs for the development or acquisition and use of
instructional and educational materials, including library
services and materials (including media materials), academic
assessments, reference materials, computer software and hardware
for instructional use, and other curricular materials that are
tied to high academic standards, that will be used to improve
student academic achievement, and that are part of an overall
education reform program.
``(4) Promising education reform projects, including magnet
schools.
``(5) Programs to improve the academic achievement of
educationally disadvantaged elementary school and secondary
school students, including activities to prevent students from
dropping out of school.
``(6) Programs to improve the literacy skills of adults,
especially the parents of children served by the local
educational agency, including adult education and family
literacy programs.
``(7) Programs to provide for the educational needs of
gifted and talented children.
``(8) The planning, design, and initial implementation of
charter schools as described in part B.
``(9) School improvement programs or activities under
sections 1116 and 1117.
``(10) Community service programs that use qualified school
personnel to train and mobilize young people to measurably
strengthen their communities through nonviolence,
responsibility, compassion, respect, and moral courage.
``(11) Activities to promote consumer, economic, and
personal finance education, such as disseminating information on
and encouraging use of the best practices for teaching the basic
principles of economics and promoting the concept of achieving
financial literacy through the teaching of personal financial
management skills (including the basic principles involved with
earning, spending, saving, and investing).
[[Page 115 STAT. 1782]]
``(12) Activities to promote, implement, or expand public
school choice.
``(13) Programs to hire and support school nurses.
``(14) Expansion and improvement of school-based mental
health services, including early identification of drug use and
violence, assessment, and direct individual or group counseling
services provided to students, parents, and school personnel by
qualified school-based mental health services personnel.
``(15) Alternative educational programs for those students
who have been expelled or suspended from their regular
educational setting, including programs to assist students to
reenter the regular educational setting upon return from
treatment or alternative educational programs.
``(16) Programs to establish or enhance prekindergarten
programs for children.
``(17) Academic intervention programs that are operated
jointly with community-based organizations and that support
academic enrichment, and counseling programs conducted during
the school day (including during extended school day or extended
school year programs), for students most at risk of not meeting
challenging State academic achievement standards or not
completing secondary school.
``(18) Programs for cardiopulmonary resuscitation (CPR)
training in schools.
``(19) Programs to establish smaller learning communities.
``(20) Activities that encourage and expand improvements
throughout the area served by the local educational agency that
are designed to advance student academic achievement.
``(21) Initiatives to generate, maintain, and strengthen
parental and community involvement.
``(22) Programs and activities that expand learning
opportunities through best-practice models designed to improve
classroom learning and teaching.
``(23) Programs to provide same-gender schools and
classrooms (consistent with applicable law).
``(24) Service learning activities.
``(25) School safety programs, including programs to
implement the policy described in section 9507 and which may
include payment of reasonable transportation costs and tuition
costs for such students.
``(26) Programs that employ research-based cognitive and
perceptual development approaches and rely on a diagnostic-
prescriptive model to improve students' learning of academic
content at the preschool, elementary, and secondary levels.
``(27) Supplemental educational services, as defined in
section 1116(e).
``(b) Requirements.--The innovative assistance programs described in
subsection (a) shall be--
``(1) tied to promoting challenging academic achievement
standards;
``(2) used to improve student academic achievement; and
``(3) part of an overall education reform strategy.
``(c) <<NOTE: Deadline.>> Guidelines.--Not later than 120 days
after the date of enactment of the No Child Left Behind Act of 2001, the
Secretary shall issue guidelines for local educational agencies seeking
funding for programs described in subsection (a)(23).
[[Page 115 STAT. 1783]]
``SEC. 5132. <<NOTE: 20 USC 7215a.>> ADMINISTRATIVE AUTHORITY.
``In order to conduct the programs authorized by this part, each
State educational agency or local educational agency may use funds made
available under this part to make grants to, and to enter into contracts
with, local educational agencies, institutions of higher education,
libraries, museums, and other public and private nonprofit agencies,
organizations, and institutions.
``SEC. 5133. <<NOTE: 20 USC 7215b.>> LOCAL APPLICATIONS.
``(a) Submission of Application.--A local educational agency may
receive an allocation of funds under this part for any year for which
the agency submits an application under this section that the State
educational agency certifies under subsection (b).
``(b) Certification and Contents of Application.--The State
educational agency shall certify each application submitted under
subsection (a) that includes each of the following:
``(1) A description of locally identified needs relative to
the purposes of this part and to the innovative assistance
programs described in section 5131.
``(2) A statement that sets forth the planned allocation of
funds, based on the needs identified in subparagraph (A), among
innovative assistance programs described in section 5131, a
description of the programs that the local educational agency
intends to support, and a description of the reasons for the
selection of such programs.
``(3) Information setting forth the allocation of such funds
required to implement section 5142.
``(4) A description of how assistance under this part will
contribute to improving student academic achievement or
improving the quality of education for students.
``(5) An assurance that the local educational agency will
comply with this part, including the provisions of section 5142
concerning the participation of children enrolled in private
nonprofit schools.
``(6) An assurance that the local educational agency will
keep such records, and provide such information to the State
educational agency, as may be reasonably required for fiscal
audit and program evaluation (consistent with the
responsibilities of the State educational agency under this
part).
``(7) Provision, in the allocation of funds for the
assistance authorized by this part and in the planning, design,
and implementation of such innovative assistance programs, for
systematic consultation with parents of children attending
elementary schools and secondary schools in the area served by
the local educational agency, with teachers and administrative
personnel in such schools, and with such other groups involved
in the implementation of this part (such as librarians, school
counselors, and other pupil services personnel) as may be
considered appropriate by the local educational agency.
``(8) An assurance that--
``(A) programs carried out under this part will be
evaluated annually;
``(B) the evaluation will be used to make decisions
about appropriate changes in programs for the subsequent
year;
``(C) the evaluation will describe how assistance
under this part affected student academic achievement
and will
[[Page 115 STAT. 1784]]
include, at a minimum, information and data on the use
of funds, the types of services furnished, and the
students served under this part; and
``(D) the evaluation will be submitted to the State
educational agency at the time and in the manner
requested by the State educational agency.
``(9) If the local educational agency seeks funds under
section 5131(a)(23), a description of how the agency will comply
with the guidelines issued by the Secretary regarding same-
gender schools and classrooms under section 5131(c).
``(c) Period of Application.--An application submitted by a local
educational agency under subsection (a) may seek allocations under this
part for a period not to exceed 3 fiscal years. The agency may amend the
application annually, as may be necessary to reflect changes, without
the filing of a new application.
``(d) Local Educational Agency Discretion.--
``(1) In general.--Subject to the limitations and
requirements of this part, a local educational agency shall have
complete discretion in determining how funds made available to
carry out this subpart will be divided among programs described
in section 5131.
``(2) Limitation.--In exercising the discretion described in
paragraph (1), a local educational agency shall ensure that
expenditures under this subpart carry out the purposes of this
part and are used to meet the educational needs within the
schools served by the local educational agency.
``Subpart 4--General Provisions
``SEC. 5141. <<NOTE: 20 USC 7217.>> MAINTENANCE OF EFFORT.
``(a) In general.--Except as provided in subsection (b), a State
educational agency is entitled to receive its full allotment of funds
under this part for any fiscal year only if the Secretary determines
that either the combined fiscal effort per student or the aggregate
expenditures within the State, with respect to the provision of free
public education for the fiscal year preceding the fiscal year for which
the determination is made, was not less than 90 percent of such combined
fiscal effort or aggregate expenditures for the second fiscal year
preceding the fiscal year for which the determination is made.
``(b) Reduction of Funds.--The Secretary shall reduce the amount of
the allotment of funds under this part in any fiscal year in the exact
proportion by which the State educational agency fails to meet the
requirements of subsection (a) by falling below 90 percent of the fiscal
effort per student or aggregate expenditures (using the measure most
favorable to the State educational agency), and no such lesser amount
shall be used for computing the effort or expenditures required under
paragraph (1) for subsequent years.
``(c) Waiver.--The Secretary may waive, for 1 fiscal year only, the
requirements of this section, if the Secretary determines that such a
waiver would be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or a precipitous and
unforeseen decline in the financial resources of the State educational
agency.
[[Page 115 STAT. 1785]]
``SEC. 5142. <<NOTE: 20 USC 7217a.>> PARTICIPATION OF CHILDREN ENROLLED
IN PRIVATE SCHOOLS.
``(a) Participation on Equitable Basis.--
``(1) In general.--To the extent consistent with the number
of children in the school district of a local educational agency
that is eligible to receive funds under this part, or that
serves the area in which a program assisted under this part is
located, who are enrolled in private nonprofit elementary
schools and secondary schools, or, with respect to instructional
or personnel training programs funded by the State educational
agency from funds made available for State educational agency
use, the local educational agency, after consultation with
appropriate private school officials--
``(A) shall provide, as may be necessary, for the
benefit of such children in such schools--
``(i) secular, neutral, and nonideological
services, materials, and equipment, including the
participation of the teachers of such children
(and other educational personnel serving such
children) in training programs; and
``(ii) the repair, minor remodeling, or
construction of public facilities (consistent with
subsection (c)); or
``(B) if such services, materials, and equipment are
not feasible or necessary in one or more such private
schools, as determined by the local educational agency
after consultation with the appropriate private school
officials, shall provide such other arrangements as will
assure equitable participation of such children in the
purposes and benefits of this part.
``(2) Other provisions for services.--If no program is
carried out under paragraph (1) in the school district of a
local educational agency, the State educational agency shall
make arrangements, such as through contracts with nonprofit
agencies or organizations, under which children in private
schools in the district are provided with services and materials
to the same extent as would have occurred if the local
educational agency had received funds under this part.
``(3) Application of requirements.--The requirements of this
section relating to the participation of children, teachers, and
other personnel serving such children shall apply to programs
carried out under this part by a State educational agency or
local educational agency, whether directly or through grants to,
or contracts with, other public or private agencies,
institutions, or organizations.
``(b) Equal Expenditures.--
``(1) In general.--Expenditures for programs under
subsection (a) shall be equal (consistent with the number of
children to be served) to expenditures for programs under this
part for children enrolled in the public schools of the local
educational agency.
``(2) Concentrated programs.--Taking into account the needs
of the individual children and other factors that relate to the
expenditures referred to in paragraph (1), and when funds
available to a local educational agency under this part are used
to concentrate programs on a particular group, attendance area,
or grade or age level, children enrolled in private schools who
are included within the group, attendance area,
[[Page 115 STAT. 1786]]
or grade or age level selected for such concentration shall,
after consultation with the appropriate private school
officials, be assured equitable participation in the purposes
and benefits of such programs.
``(c) Administrative Requirements.--
``(1) Funds and property.--The control of funds provided
under this part, and title to materials, equipment, and property
repaired, remodeled, or constructed with such funds, shall be in
a public agency for the uses and purposes provided in this part,
and a public agency shall administer such funds and property.
``(2) Provision of services.--Services provided under this
part shall be provided by employees of a public agency or
through contract by such a public agency with a person,
association, agency, or corporation that, in the provision of
such services, is independent of the private school and of any
religious organizations, and such employment or contract shall
be under the control and supervision of such a public agency.
The funds provided under this part shall not be commingled with
State or local funds.
``(d) Waiver.--
``(1) State prohibition.--If a State educational agency or
local educational agency is prohibited, by reason of any
provision of law, from providing for the participation in
programs of children enrolled in private elementary schools and
secondary schools as required by subsections (a) through (c),
the Secretary shall waive such requirements for the agency
involved and shall arrange for the provision of services to such
children through arrangements that shall be subject to the
requirements of this section.
``(2) Failure to comply.--If the Secretary determines that a
State educational agency or a local educational agency has
substantially failed, or is unwilling, to provide for the
participation on an equitable basis of children enrolled in
private elementary schools and secondary schools as required by
subsections (a) through (c), the Secretary may waive such
requirements and shall arrange for the provision of services to
such children through arrangements that shall be subject to the
requirements of this section.
``(e) Withholding of Allotment or Allocation.--Pending final
resolution of any investigation or complaint that could result in a
waiver under subsection (d)(1) or (d)(2), the Secretary may withhold
from the allotment or allocation of the affected State educational
agency or local educational agency the amount estimated by the Secretary
to be necessary to pay the cost of services to be provided by the
Secretary under such subsection.
``(f) Duration of Determination.--Any determination by the Secretary
under this section shall continue in effect until the Secretary
determines that there will no longer be any failure or inability on the
part of the State educational agency or local educational agency to meet
the requirements of subsections (a) through (c).
``(g) Payment From State Allotment.--When the Secretary arranges for
services under subsection (d), the Secretary shall, after consultation
with the appropriate public school and private
[[Page 115 STAT. 1787]]
school officials, pay the cost of such services, including the
administrative costs of arranging for those services, from the
appropriate allotment of the State educational agency under this part.
``(h) Review of Determination.--
``(1) Written objections.--The Secretary shall not take any
final action under this section until the State educational
agency and the local educational agency affected by such action
have had an opportunity, for not less than 45 days after
receiving written notice thereof, to submit written objections
and to appear before the Secretary or the Secretary's designee
to show cause why that action should not be taken.
``(2) <<NOTE: Deadline.>> Court action.--If a State
educational agency or local educational agency is dissatisfied
with the Secretary's final action after a proceeding under
paragraph (1), such agency may, not later than 60 days after
notice of such action, file with the United States court of
appeals for the circuit in which such State is located a
petition for review of that action. A copy of the petition shall
be transmitted by the clerk of the court to the
Secretary. <<NOTE: Records.>> The Secretary thereupon shall
file in the court the record of the proceedings on which the
Secretary based the action, as provided in section 2112 of title
28, United States Code.
``(3) Remand to secretary.--The findings of fact by the
Secretary with respect to a proceeding under paragraph (1), if
supported by substantial evidence, shall be conclusive. The
court, for good cause shown, may remand the case to the
Secretary to take further evidence and the Secretary may make
new or modified findings of fact and may modify the Secretary's
previous action, and shall file in the court the record of the
further proceedings. Such new or modified findings of fact shall
likewise be conclusive, if supported by substantial evidence.
``(4) Court review.--Upon the filing of a petition under
paragraph (2), the court shall have jurisdiction to affirm the
action of the Secretary or to set such action aside, in whole or
in part. The judgment of the court shall be subject to review by
the Supreme Court upon certiorari or certification, as provided
in section 1254 of title 28, United States Code.
``(i) <<NOTE: Applicability.>> Prior Determination.--Any bypass
determination by the Secretary under title VI (as such title was in
effect on the day preceding the date of enactment of the No Child Left
Behind Act of 2001) shall, to the extent consistent with the purposes of
this part, apply to programs under this part.
``SEC. 5143. <<NOTE: 20 USC 7217b.>> FEDERAL ADMINISTRATION.
``(a) Technical Assistance.--The Secretary, upon request, shall
provide technical assistance to State educational agencies and local
educational agencies under this part.
``(b) Rulemaking.--The Secretary shall issue regulations under this
part only to the extent that such regulations are necessary to ensure
that there is compliance with the specific requirements and assurances
required by this part.
``(c) Availability of Appropriations.--Notwithstanding any other
provision of law, unless expressly in limitation of this subsection,
funds appropriated in any fiscal year to carry out programs under this
part shall become available for obligation on July 1 of such fiscal year
and shall remain available for obligation until the end of the
subsequent fiscal year.
[[Page 115 STAT. 1788]]
``SEC. 5144. <<NOTE: 20 USC 7217c.>> SUPPLEMENT, NOT SUPPLANT.
``Funds made available under this part shall be used to supplement,
and not supplant, any other Federal, State, or local education funds.
``SEC. 5145. <<NOTE: 20 USC 7217d.>> DEFINITIONS.
``In this part:
``(1) Local educational agency.--The term `local educational
agency' means a local educational agency or a consortium of such
agencies.
``(2) Public school.--The term `public school' means a
public elementary school or a public secondary school.
``(3) School-age population.--The term `school-age
population' means the population aged 5 through 17.
``(4) State.--The term `State' means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto Rico.
``SEC. 5146. <<NOTE: 20 USC 7217e.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part--
``(1) $450,000,000 for fiscal year 2002;
``(2) $475,000,000 for fiscal year 2003;
``(3) $500,000,000 for fiscal year 2004;
``(4) $525,000,000 for fiscal year 2005;
``(5) $550,000,000 for fiscal year 2006; and
``(6) $600,000,000 for fiscal year 2007.
``PART B--PUBLIC CHARTER SCHOOLS
``Subpart 1--Charter School Programs
``SEC. 5201. <<NOTE: 20 USC 7221.>> PURPOSE.
``It is the purpose of this subpart to increase national
understanding of the charter schools model by--
``(1) providing financial assistance for the planning,
program design, and initial implementation of charter schools;
``(2) evaluating the effects of such schools, including the
effects on students, student academic achievement, staff, and
parents;
``(3) expanding the number of high-quality charter schools
available to students across the Nation; and
``(4) encouraging the States to provide support to charter
schools for facilities financing in an amount more nearly
commensurate to the amount the States have typically provided
for traditional public schools.
``SEC. 5202. <<NOTE: 20 USC 7221a.>> PROGRAM AUTHORIZED.
``(a) In General.--The Secretary may award grants to State
educational agencies having applications approved pursuant to section
5203 to enable such agencies to conduct a charter school grant program
in accordance with this subpart.
``(b) Special Rule.--If a State educational agency elects not to
participate in the program authorized by this subpart or does not have
an application approved under section 5203, the Secretary may award a
grant to an eligible applicant that serves such State and has an
application approved pursuant to section 5203(c).
``(c) Program Periods.--
[[Page 115 STAT. 1789]]
``(1) Grants to states.--Grants awarded to State educational
agencies under this subpart shall be for a period of not more
than 3 years.
``(2) Grants to eligible applicants.--Grants awarded by the
Secretary to eligible applicants or subgrants awarded by State
educational agencies to eligible applicants under this subpart
shall be for a period of not more than 3 years, of which the
eligible applicant may use--
``(A) not more than 18 months for planning and
program design;
``(B) not more than 2 years for the initial
implementation of a charter school; and
``(C) not more than 2 years to carry out
dissemination activities described in section
5204(f)(6)(B).
``(d) Limitation.--A charter school may not receive--
``(1) more than one grant for activities described in
subparagraphs (A) and (B) of subsection (c)(2); or
``(2) more than one grant for activities under subparagraph
(C) of subsection (c)(2).
``(e) Priority Treatment.--
``(1) In general.--In awarding grants under this subpart for
fiscal year 2002 or any succeeding fiscal year from any funds
appropriated under section 5211 (other than funds reserved to
carry out section 5205(b)), the Secretary shall give priority to
States to the extent that the States meet the criteria described
in paragraph (2) and one or more of the criteria described in
subparagraph (A), (B), or (C) of paragraph (3).
``(2) Review and evaluation priority criteria.--The criteria
referred to in paragraph (1) are that the State provides for
periodic review and evaluation by the authorized public
chartering agency of each charter school, at least once every 5
years unless required more frequently by State law, to determine
whether the charter school is meeting the terms of the school's
charter, and is meeting or exceeding the student academic
achievement requirements and goals for charter schools as set
forth under State law or the school's charter.
``(3) Priority criteria.--The criteria referred to in
paragraph (1) are the following:
``(A) The State has demonstrated progress, in
increasing the number of high-quality charter schools
that are held accountable in the terms of the schools'
charters for meeting clear and measurable objectives for
the educational progress of the students attending the
schools, in the period prior to the period for which a
State educational agency or eligible applicant applies
for a grant under this subpart.
``(B) The State--
``(i) provides for one authorized public
chartering agency that is not a local educational
agency, such as a State chartering board, for each
individual or entity seeking to operate a charter
school pursuant to such State law; or
``(ii) in the case of a State in which local
educational agencies are the only authorized
public chartering agencies, allows for an appeals
process for the denial of an application for a
charter school.
[[Page 115 STAT. 1790]]
``(C) The State ensures that each charter school has
a high degree of autonomy over the charter school's
budgets and expenditures.
``(f) Amount Criteria.--In determining the amount of a grant to be
awarded under this subpart to a State educational agency, the Secretary
shall take into consideration the number of charter schools that are
operating, or are approved to open, in the State.
``SEC. 5203. <<NOTE: 20 USC 7221b.>> APPLICATIONS.
``(a) Applications From State Agencies.--Each State educational
agency desiring a grant from the Secretary under this subpart shall
submit to the Secretary an application at such time, in such manner, and
containing or accompanied by such information as the Secretary may
require.
``(b) Contents of a State Educational Agency Application.--Each
application submitted pursuant to subsection (a) shall--
``(1) describe the objectives of the State educational
agency's charter school grant program and a description of how
such objectives will be fulfilled, including steps taken by the
State educational agency to inform teachers, parents, and
communities of the State educational agency's charter school
grant program; and
``(2) describe how the State educational agency--
``(A) will inform each charter school in the State
regarding--
``(i) Federal funds that the charter school is
eligible to receive; and
``(ii) Federal programs in which the charter
school may participate;
``(B) will ensure that each charter school in the
State receives the charter school's commensurate share
of Federal education funds that are allocated by formula
each year, including during the first year of operation
of the charter school; and
``(C) will disseminate best or promising practices
of charter schools to each local educational agency in
the State; and
``(3) contain assurances that the State educational agency
will require each eligible applicant desiring to receive a
subgrant to submit an application to the State educational
agency containing--
``(A) a description of the educational program to be
implemented by the proposed charter school, including--
``(i) how the program will enable all students
to meet challenging State student academic
achievement standards;
``(ii) the grade levels or ages of children to
be served; and
``(iii) the curriculum and instructional
practices to be used;
``(B) a description of how the charter school will
be managed;
``(C) a description of--
``(i) the objectives of the charter school;
and
[[Page 115 STAT. 1791]]
``(ii) the methods by which the charter school
will determine its progress toward achieving those
objectives;
``(D) a description of the administrative
relationship between the charter school and the
authorized public chartering agency;
``(E) a description of how parents and other members
of the community will be involved in the planning,
program design, and implementation of the charter
school;
``(F) a description of how the authorized public
chartering agency will provide for continued operation
of the school once the Federal grant has expired, if
such agency determines that the school has met the
objectives described in subparagraph (C)(i);
``(G) a request and justification for waivers of any
Federal statutory or regulatory provisions that the
eligible applicant believes are necessary for the
successful operation of the charter school, and a
description of any State or local rules, generally
applicable to public schools, that will be waived for,
or otherwise not apply to, the school;
``(H) a description of how the subgrant funds or
grant funds, as appropriate, will be used, including a
description of how such funds will be used in
conjunction with other Federal programs administered by
the Secretary;
``(I) a description of how students in the community
will be--
``(i) informed about the charter school; and
``(ii) given an equal opportunity to attend
the charter school;
``(J) an assurance that the eligible applicant will
annually provide the Secretary and the State educational
agency such information as may be required to determine
if the charter school is making satisfactory progress
toward achieving the objectives described in
subparagraph (C)(i);
``(K) an assurance that the eligible applicant will
cooperate with the Secretary and the State educational
agency in evaluating the program assisted under this
subpart;
``(L) a description of how a charter school that is
considered a local educational agency under State law,
or a local educational agency in which a charter school
is located, will comply with sections 613(a)(5) and
613(e)(1)(B) of the Individuals with Disabilities
Education Act;
``(M) if the eligible applicant desires to use
subgrant funds for dissemination activities under
section 5202(c)(2)(C), a description of those activities
and how those activities will involve charter schools
and other public schools, local educational agencies,
developers, and potential developers; and
``(N) such other information and assurances as the
Secretary and the State educational agency may require.
``(c) Eligible Applicant Application.--Each eligible applicant
desiring a grant pursuant to section 5202(b) shall submit an application
to the Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(d) Contents of Eligible Applicant Application.--Each application
submitted pursuant to subsection (c) shall contain--
[[Page 115 STAT. 1792]]
``(1) the information and assurances described in
subparagraphs (A) through (N) of subsection (b)(3), except that
for purposes of this subsection subparagraphs (J), (K), and (N)
of such subsection shall be applied by striking `and the State
educational agency' each place such term appears;
``(2) assurances that the State educational agency--
``(A) will grant, or will obtain, waivers of State
statutory or regulatory requirements; and
``(B) will assist each subgrantee in the State in
receiving a waiver under section 5204(e); and
``(3) assurances that the eligible applicant has provided
its authorized public chartering authority timely notice, and a
copy, of the application, except that the State educational
agency (or the Secretary, in the case of an application
submitted to the Secretary) may waive the requirement of this
paragraph in the case of an application for a precharter
planning grant or subgrant if the authorized public chartering
authority to which a charter school proposal will be submitted
has not been determined at the time the grant or subgrant
application is submitted.
``SEC. 5204. <<NOTE: 20 USC 7221c.>> ADMINISTRATION.
``(a) Selection Criteria for State Educational Agencies.--The
Secretary shall award grants to State educational agencies under this
subpart on the basis of the quality of the applications submitted under
section 5203(b), after taking into consideration such factors as--
``(1) the contribution that the charter schools grant
program will make to assisting educationally disadvantaged and
other students in meeting State academic content standards and
State student academic achievement standards;
``(2) the degree of flexibility afforded by the State
educational agency to charter schools under the State's charter
schools law;
``(3) the ambitiousness of the objectives for the State
charter school grant program;
``(4) the quality of the strategy for assessing achievement
of those objectives;
``(5) the likelihood that the charter school grant program
will meet those objectives and improve educational results for
students;
``(6) the number of high-quality charter schools created
under this subpart in the State; and
``(7) in the case of State educational agencies that propose
to use grant funds to support dissemination activities under
subsection (f)(6)(B), the quality of those activities and the
likelihood that those activities will improve student academic
achievement.
``(b) Selection Criteria for Eligible Applicants.--The Secretary
shall award grants to eligible applicants under this subpart on the
basis of the quality of the applications submitted under section
5203(c), after taking into consideration such factors as--
``(1) the quality of the proposed curriculum and
instructional practices;
``(2) the degree of flexibility afforded by the State
educational agency and, if applicable, the local educational
agency to the charter school;
[[Page 115 STAT. 1793]]
``(3) the extent of community support for the application;
``(4) the ambitiousness of the objectives for the charter
school;
``(5) the quality of the strategy for assessing achievement
of those objectives;
``(6) the likelihood that the charter school will meet those
objectives and improve educational results for students; and
``(7) in the case of an eligible applicant that proposes to
use grant funds to support dissemination activities under
subsection (f)(6)(B), the quality of those activities and the
likelihood that those activities will improve student
achievement.
``(c) Peer Review.--The Secretary, and each State educational agency
receiving a grant under this subpart, shall use a peer review process to
review applications for assistance under this subpart.
``(d) Diversity of Projects.--The Secretary and each State
educational agency receiving a grant under this subpart, shall award
grants and subgrants under this subpart in a manner that, to the extent
possible, ensures that such grants and subgrants--
``(1) are distributed throughout different areas of the
Nation and each State, including urban and rural areas; and
``(2) will assist charter schools representing a variety of
educational approaches, such as approaches designed to reduce
school size.
``(e) Waivers.--The Secretary may waive any statutory or regulatory
requirement over which the Secretary exercises administrative authority
except any such requirement relating to the elements of a charter school
described in section 5210(1), if--
``(1) the waiver is requested in an approved application
under this subpart; and
``(2) the Secretary determines that granting such a waiver
will promote the purpose of this subpart.
``(f) Use of Funds.--
``(1) State educational agencies.--Each State educational
agency receiving a grant under this subpart shall use such grant
funds to award subgrants to one or more eligible applicants in
the State to enable such applicant to plan and implement a
charter school in accordance with this subpart, except that the
State educational agency may reserve not more than 10 percent of
the grant funds to support dissemination activities described in
paragraph (6).
``(2) Eligible applicants.--Each eligible applicant
receiving funds from the Secretary or a State educational agency
shall use such funds to plan and implement a charter school, or
to disseminate information about the charter school and
successful practices in the charter school, in accordance with
this subpart.
``(3) Allowable activities.--An eligible applicant receiving
a grant or subgrant under this subpart may use the grant or
subgrant funds only for--
(A) post-award planning and design of the
educational program, which may include--
``(i) refinement of the desired educational
results and of the methods for measuring progress
toward achieving those results; and
``(ii) professional development of teachers
and other staff who will work in the charter
school; and
[[Page 115 STAT. 1794]]
``(B) initial implementation of the charter school,
which may include--
``(i) informing the community about the
school;
``(ii) acquiring necessary equipment and
educational materials and supplies;
``(iii) acquiring or developing curriculum
materials; and
``(iv) other initial operational costs that
cannot be met from State or local sources.
``(4) Administrative expenses.--
``(A) State educational agency administrative
expenses.--Each State educational agency receiving a
grant pursuant to this subpart may reserve not more than
5 percent of such grant funds for administrative
expenses associated with the charter school grant
program assisted under this subpart.
``(B) Local administrative expenses.--A local
educational agency may not deduct funds for
administrative fees or expenses from a subgrant awarded
to an eligible applicant, unless the eligible applicant
enters voluntarily into a mutually agreed upon
arrangement for administrative services with the
relevant local educational agency. Absent such approval,
the local educational agency shall distribute all such
subgrant funds to the eligible applicant without delay.
``(5) Revolving loan funds.--Each State educational agency
receiving a grant pursuant to this subpart may reserve not more
than 10 percent of the grant funds for the establishment of a
revolving loan fund. Such fund may be used to make loans to
eligible applicants that have received a subgrant under this
subpart, under such terms as may be determined by the State
educational agency, for the initial operation of the charter
school grant program of the eligible applicant until such time
as the recipient begins receiving ongoing operational support
from State or local financing sources.
``(6) Dissemination.--
``(A) In general.--A charter school may apply for
funds under this subpart, whether or not the charter
school has applied for or received funds under this
subpart for planning, program design, or implementation,
to carry out the activities described in subparagraph
(B) if the charter school has been in operation for at
least 3 consecutive years and has demonstrated overall
success, including--
``(i) substantial progress in improving
student academic achievement;
``(ii) high levels of parent satisfaction; and
``(iii) the management and leadership
necessary to overcome initial start-up problems
and establish a thriving, financially viable
charter school.
``(B) Activities.--A charter school described in
subparagraph (A) may use funds reserved under paragraph
(1) to assist other schools in adapting the charter
school's program (or certain aspects of the charter
school's program), or to disseminate information about
the charter school, through such activities as--
``(i) assisting other individuals with the
planning and start-up of one or more new public
schools,
[[Page 115 STAT. 1795]]
including charter schools, that are independent of
the assisting charter school and the assisting
charter school's developers, and that agree to be
held to at least as high a level of accountability
as the assisting charter school;
``(ii) developing partnerships with other
public schools, including charter schools,
designed to improve student academic achievement
in each of the schools participating in the
partnership;
``(iii) developing curriculum materials,
assessments, and other materials that promote
increased student achievement and are based on
successful practices within the assisting charter
school; and
``(iv) conducting evaluations and developing
materials that document the successful practices
of the assisting charter school and that are
designed to improve student performance in other
schools.
``(g) Tribally Controlled Schools.--Each State that receives a grant
under this subpart and designates a tribally controlled school as a
charter school shall not consider payments to a school under the
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in
determining--
``(1) the eligibility of the school to receive any other
Federal, State, or local aid; or
``(2) the amount of such aid.
``SEC. 5205. <<NOTE: 20 USC 7221d.>> NATIONAL ACTIVITIES.
``(a) In General.--The Secretary shall reserve for each fiscal year
the greater of 5 percent or $5,000,000 of the amount appropriated to
carry out this subpart, except that in no fiscal year shall the total
amount so reserved exceed $8,000,000, to carry out the following
activities:
``(1) To provide charter schools, either directly or through
State educational agencies, with--
``(A) information regarding--
``(i) Federal funds that charter schools are
eligible to receive; and
``(ii) other Federal programs in which charter
schools may participate; and
``(B) assistance in applying for Federal education
funds that are allocated by formula, including
assistance with filing deadlines and submission of
applications.
``(2) To provide for other evaluations or studies that
include the evaluation of the impact of charter schools on
student academic achievement, including information regarding--
``(A) students attending charter schools reported on
the basis of race, age, disability, gender, limited
English proficiency, and previous enrollment in public
school; and
``(B) the professional qualifications of teachers
within a charter school and the turnover of the teaching
force.
``(3) To provide--
``(A) information to applicants for assistance under
this subpart;
``(B) assistance to applicants for assistance under
this subpart with the preparation of applications under
section 5203;
[[Page 115 STAT. 1796]]
``(C) assistance in the planning and startup of
charter schools;
``(D) training and technical assistance to existing
charter schools; and
``(E) for the dissemination to other public schools
of best or promising practices in charter schools.
``(4) To provide (including through the use of one or more
contracts that use a competitive bidding process) for the
collection of information regarding the financial resources
available to charter schools, including access to private
capital, and to widely disseminate to charter schools any such
relevant information and model descriptions of successful
programs.
``(5) To carry out evaluations of, technical assistance for,
and information dissemination regarding, the per-pupil
facilities aid programs. In carrying out the evaluations, the
Secretary may carry out one or more evaluations of State
programs assisted under this subsection, which shall, at a
minimum, address--
``(A) how, and the extent to which, the programs
promote educational equity and excellence; and
``(B) the extent to which charter schools supported
through the programs are--
``(i) held accountable to the public;
``(ii) effective in improving public
education; and
``(iii) open and accessible to all students.
``(b) Per-Pupil Facilities Aid Programs.--
``(1) Definition of per-pupil facilities aid program.--In
this subsection, the term `per-pupil facilities aid program'
means a program in which a State makes payments, on a per-pupil
basis, to charter schools to provide the schools with
financing--
``(A) that is dedicated solely for funding charter
school facilities; or
``(B) a portion of which is dedicated for funding
charter school facilities.
``(2) Grants.--
``(A) In general.--From the amount made available to
carry out this subsection under paragraphs (2) and
(3)(B) of section 5211(b) for any fiscal year, the
Secretary shall make grants, on a competitive basis, to
States to pay for the Federal share of the cost of
establishing or enhancing, and administering per-pupil
facilities aid programs.
``(B) Period.--The Secretary shall award grants
under this subsection for periods of not more than 5
years.
``(C) Federal share.--The Federal share of the cost
described in subparagraph (A) for a per-pupil facilities
aid program shall be not more than--
``(i) 90 percent of the cost, for the first
fiscal year for which the program receives
assistance under this subsection;
``(ii) 80 percent in the second such year;
``(iii) 60 percent in the third such year;
``(iv) 40 percent in the fourth such year; and
``(v) 20 percent in the fifth such year.
``(3) Use of funds.--
``(A) In general.--A State that receives a grant
under this subsection shall use the funds made available
through
[[Page 115 STAT. 1797]]
the grant to establish or enhance, and administer, a
per-pupil facilities aid program for charter schools in
the State.
``(B) Evaluations; technical assistance;
dissemination.--From the amount made available to a
State through a grant under this subsection for a fiscal
year, the State may reserve not more than 5 percent to
carry out evaluations, to provide technical assistance,
and to disseminate information.
``(C) Supplement, not supplant.--Funds made
available under this subsection shall be used to
supplement, and not supplant, State and local public
funds expended to provide per pupil facilities aid
programs, operations financing programs, or other
programs, for charter schools.
``(4) Requirements.--
``(A) Voluntary participation.--No State may be
required to participate in a program carried out under
this subsection.
``(B) State law.--To be eligible to receive a grant
under this subsection, a State shall establish or
enhance, and administer, a per-pupil facilities aid
program for charter schools in the State, that--
``(i) is specified in State law; and
``(ii) provides annual financing, on a per-
pupil basis, for charter school facilities.
``(5) Applications.--To be eligible to receive a grant under
this subsection, a State shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(6) Priorities.--In making grants under this subsection,
the Secretary shall give priority to States that meet the
criteria described in paragraph (2), and subparagraphs (A), (B),
and (C) of paragraph (3), of section 5202(e).
``(c) Rule of Construction.--Nothing in this section shall be
construed to require charter schools to collect any data described in
subsection (a).
``SEC. 5206. <<NOTE: 20 USC 7221e.>> FEDERAL FORMULA ALLOCATION DURING
FIRST YEAR AND FOR SUCCESSIVE ENROLLMENT EXPANSIONS.
``(a) In General.--For purposes of the allocation to schools by the
States or their agencies of funds under part A of title I, and any other
Federal funds which the Secretary allocates to States on a formula
basis, the Secretary and each State educational agency shall take such
measures as are necessary to ensure that every charter school receives
the Federal funding for which the charter school is eligible not later
than 5 months after the charter school first opens, notwithstanding the
fact that the identity and characteristics of the students enrolling in
that charter school are not fully and completely determined until that
charter school actually opens. The measures similarly shall ensure that
every charter school expanding its enrollment in any subsequent year of
operation receives the Federal funding for which the charter school is
eligible not later than 5 months after such expansion.
``(b) Adjustment and Late Openings.--
``(1) In general.--The measures described in subsection (a)
shall include provision for appropriate adjustments, through
recovery of funds or reduction of payments for the succeeding
year, in cases where payments made to a charter school on
[[Page 115 STAT. 1798]]
the basis of estimated or projected enrollment data exceed the
amounts that the school is eligible to receive on the basis of
actual or final enrollment data.
``(2) Rule.--For charter schools that first open after
November 1 of any academic year, the State, in accordance with
guidance provided by the Secretary and applicable Federal
statutes and regulations, shall ensure that such charter schools
that are eligible for the funds described in subsection (a) for
such academic year have a full and fair opportunity to receive
those funds during the charter schools' first year of operation.
``SEC. 5207. <<NOTE: 20 USC 7221f.>> SOLICITATION OF INPUT FROM CHARTER
SCHOOL OPERATORS.
``To the extent practicable, the Secretary shall ensure that
administrators, teachers, and other individuals directly involved in the
operation of charter schools are consulted in the development of any
rules or regulations required to implement this subpart, as well as in
the development of any rules or regulations relevant to charter schools
that are required to implement part A of title I, the Individuals with
Disabilities Education Act, or any other program administered by the
Secretary that provides education funds to charter schools or regulates
the activities of charter schools.
``SEC. 5208. <<NOTE: 20 USC 7221g.>> RECORDS TRANSFER.
``State educational agencies and local educational agencies, to the
extent practicable, shall ensure that a student's records and, if
applicable, a student's individualized education program as defined in
section 602(11) of the Individuals with Disabilities Education Act, are
transferred to a charter school upon the transfer of the student to the
charter school, and to another public school upon the transfer of the
student from a charter school to another public school, in accordance
with applicable State law.
``SEC. 5209. <<NOTE: 20 USC 7221h.>> PAPERWORK REDUCTION.
``To the extent practicable, the Secretary and each authorized
public chartering agency shall ensure that implementation of this
subpart results in a minimum of paperwork for any eligible applicant or
charter school.
``SEC. 5210. <<NOTE: 20 USC 7221i.>> DEFINITIONS.
``In this subpart:
``(1) Charter school.--The term `charter school' means a
public school that--
``(A) in accordance with a specific State statute
authorizing the granting of charters to schools, is
exempt from significant State or local rules that
inhibit the flexible operation and management of public
schools, but not from any rules relating to the other
requirements of this paragraph;
``(B) is created by a developer as a public school,
or is adapted by a developer from an existing public
school, and is operated under public supervision and
direction;
``(C) operates in pursuit of a specific set of
educational objectives determined by the school's
developer and agreed to by the authorized public
chartering agency;
``(D) provides a program of elementary or secondary
education, or both;
[[Page 115 STAT. 1799]]
``(E) is nonsectarian in its programs, admissions
policies, employment practices, and all other
operations, and is not affiliated with a sectarian
school or religious institution;
``(F) does not charge tuition;
``(G) complies with the Age Discrimination Act of
1975, title VI of the Civil Rights Act of 1964, title IX
of the Education Amendments of 1972, section 504 of the
Rehabilitation Act of 1973, and part B of the
Individuals with Disabilities Education Act;
``(H) is a school to which parents choose to send
their children, and that admits students on the basis of
a lottery, if more students apply for admission than can
be accommodated;
``(I) agrees to comply with the same Federal and
State audit requirements as do other elementary schools
and secondary schools in the State, unless such
requirements are specifically waived for the purpose of
this program;
``(J) meets all applicable Federal, State, and local
health and safety requirements;
``(K) operates in accordance with State law; and
``(L) has a written performance contract with the
authorized public chartering agency in the State that
includes a description of how student performance will
be measured in charter schools pursuant to State
assessments that are required of other schools and
pursuant to any other assessments mutually agreeable to
the authorized public chartering agency and the charter
school.
``(2) Developer.--The term `developer' means an individual
or group of individuals (including a public or private nonprofit
organization), which may include teachers, administrators and
other school staff, parents, or other members of the local
community in which a charter school project will be carried out.
``(3) Eligible applicant.--The term `eligible applicant'
means a developer that has--
``(A) applied to an authorized public chartering
authority to operate a charter school; and
``(B) provided adequate and timely notice to that
authority under section 5203(d)(3).
``(4) Authorized public chartering agency.--The term
`authorized public chartering agency' means a State educational
agency, local educational agency, or other public entity that
has the authority pursuant to State law and approved by the
Secretary to authorize or approve a charter school.
``SEC. 5211. <<NOTE: 20 USC 7221j.>> AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subpart $300,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 5 succeeding fiscal years.
``(b) Reservation.--From the amount appropriated under subsection
(a) for each fiscal year, the Secretary shall reserve--
``(1) $200,000,000 to carry out this subpart, other than
section 5205(b); and
``(2) any funds in excess of $200,000,000, that do not
exceed $300,000,000, to carry out section 5205(b); and
[[Page 115 STAT. 1800]]
``(3)(A) 50 percent of any funds in excess of $300,000,000
to carry out this subpart, other than section 5205(b); and
``(B) 50 percent of any funds in excess of $300,000,000 to
carry out section 5205(b).
``Subpart 2--Credit Enhancement Initiatives To Assist Charter School
Facility Acquisition, Construction, and Renovation
``SEC. 5221. <<NOTE: 20 USC 7223.>> PURPOSE.
``The purpose of this subpart is to provide grants to eligible
entities to permit the eligible entities to demonstrate innovative
credit enhancement initiatives that assist charter schools to address
the cost of acquiring, constructing, and renovating facilities.
``SEC. 5222. <<NOTE: 20 USC 7223a.>> GRANTS TO ELIGIBLE ENTITIES.
``(a) Grants.--The Secretary shall use 100 percent of the amount
available to carry out this subpart to award not less than three grants
to eligible entities that have applications approved under this subpart
to demonstrate innovative methods of assisting charter schools to
address the cost of acquiring, constructing, and renovating facilities
by enhancing the availability of loans or bond financing.
``(b) Grantee Selection.--
``(1) Evaluation of application.--The Secretary shall
evaluate each application submitted under section 5223, and
shall determine whether the application is sufficient to merit
approval.
``(2) Distribution of grants.--The Secretary shall award at
least one grant to an eligible entity described in section
5230(2)(A), at least one grant to an eligible entity described
in section 5230(2)(B), and at least one grant to an eligible
entity described in section 5230(2)(C), if applications are
submitted that permit the Secretary to do so without approving
an application that is not of sufficient quality to merit
approval.
``(c) Grant Characteristics.--Grants under this subpart shall be of
a sufficient size, scope, and quality so as to ensure an effective
demonstration of an innovative means of enhancing credit for the
financing of charter school acquisition, construction, or renovation.
``(d) Special Rule.--In the event the Secretary determines that the
funds made available under this subpart are insufficient to permit the
Secretary to award not less than three grants in accordance with
subsections (a) through (c), such three-grant minimum and subsection
(b)(2) shall not apply, and the Secretary may determine the appropriate
number of grants to be awarded in accordance with subsection (c).
``SEC. 5223. <<NOTE: 20 USC 7223b.>> APPLICATIONS.
``(a) In General.--To receive a grant under this subpart, an
eligible entity shall submit to the Secretary an application in such
form as the Secretary may reasonably require.
``(b) Contents.--An application submitted under subsection (a) shall
contain--
``(1) a statement identifying the activities proposed to be
undertaken with funds received under this subpart, including how
the eligible entity will determine which charter schools
[[Page 115 STAT. 1801]]
will receive assistance, and how much and what types of
assistance charter schools will receive;
``(2) a description of the involvement of charter schools in
the application's development and the design of the proposed
activities;
``(3) a description of the eligible entity's expertise in
capital market financing;
``(4) a description of how the proposed activities will
leverage the maximum amount of private-sector financing capital
relative to the amount of government funding used and otherwise
enhance credit available to charter schools;
``(5) a description of how the eligible entity possesses
sufficient expertise in education to evaluate the likelihood of
success of a charter school program for which facilities
financing is sought;
``(6) in the case of an application submitted by a State
governmental entity, a description of the actions that the
entity has taken, or will take, to ensure that charter schools
within the State receive the funding the charter schools need to
have adequate facilities; and
``(7) such other information as the Secretary may reasonably
require.
``SEC. 5224. <<NOTE: 20 USC 7223c.>> CHARTER SCHOOL OBJECTIVES.
``An eligible entity receiving a grant under this subpart shall use
the funds deposited in the reserve account established under section
5225(a) to assist one or more charter schools to access private sector
capital to accomplish one or both of the following objectives:
``(1) The acquisition (by purchase, lease, donation, or
otherwise) of an interest (including an interest held by a third
party for the benefit of a charter school) in improved or
unimproved real property that is necessary to commence or
continue the operation of a charter school.
``(2) The construction of new facilities, or the renovation,
repair, or alteration of existing facilities, necessary to
commence or continue the operation of a charter school.
``SEC. 5225. <<NOTE: 20 USC 7223d.>> RESERVE ACCOUNT.
``(a) Use of Funds.--To assist charter schools to accomplish the
objectives described in section 5224, an eligible entity receiving a
grant under this subpart shall, in accordance with State and local law,
directly or indirectly, alone or in collaboration with others, deposit
the funds received under this subpart (other than funds used for
administrative costs in accordance with section 5226) in a reserve
account established and maintained by the eligible entity for this
purpose. Amounts deposited in such account shall be used by the eligible
entity for one or more of the following purposes:
``(1) Guaranteeing, insuring, and reinsuring bonds, notes,
evidences of debt, loans, and interests therein, the proceeds of
which are used for an objective described in section 5224.
``(2) Guaranteeing and insuring leases of personal and real
property for an objective described in section 5224.
``(3) Facilitating financing by identifying potential
lending sources, encouraging private lending, and other similar
activities that directly promote lending to, or for the benefit
of, charter schools.
[[Page 115 STAT. 1802]]
``(4) Facilitating the issuance of bonds by charter schools,
or by other public entities for the benefit of charter schools,
by providing technical, administrative, and other appropriate
assistance (including the recruitment of bond counsel,
underwriters, and potential investors and the consolidation of
multiple charter school projects within a single bond issue).
``(b) Investment.--Funds received under this subpart and deposited
in the reserve account established under subsection (a) shall be
invested in obligations issued or guaranteed by the United States or a
State, or in other similarly low-risk securities.
``(c) Reinvestment of Earnings.--Any earnings on funds received
under this subpart shall be deposited in the reserve account established
under subsection (a) and used in accordance with such subsection.
``SEC. 5226. <<NOTE: 20 USC 7223e.>> LIMITATION ON ADMINISTRATIVE
COSTS.
``An eligible entity may use not more than 0.25 percent of the funds
received under this subpart for the administrative costs of carrying out
its responsibilities under this subpart.
``SEC. 5227. <<NOTE: 20 USC 7223f.>> AUDITS AND REPORTS.
``(a) Financial Record Maintenance and Audit.--The financial records
of each eligible entity receiving a grant under this subpart shall be
maintained in accordance with generally accepted accounting principles
and shall be subject to an annual audit by an independent public
accountant.
``(b) Reports.--
``(1) Grantee annual reports.--Each eligible entity
receiving a grant under this subpart annually shall submit to
the Secretary a report of its operations and activities under
this subpart.
``(2) Contents.--Each annual report submitted under
paragraph (1) shall include--
``(A) a copy of the most recent financial
statements, and any accompanying opinion on such
statements, prepared by the independent public
accountant reviewing the financial records of the
eligible entity;
``(B) a copy of any report made on an audit of the
financial records of the eligible entity that was
conducted under subsection (a) during the reporting
period;
``(C) an evaluation by the eligible entity of the
effectiveness of its use of the Federal funds provided
under this subpart in leveraging private funds;
``(D) a listing and description of the charter
schools served during the reporting period;
``(E) a description of the activities carried out by
the eligible entity to assist charter schools in meeting
the objectives set forth in section 5224; and
``(F) a description of the characteristics of
lenders and other financial institutions participating
in the activities undertaken by the eligible entity
under this subpart during the reporting period.
``(3) Secretarial report.--The Secretary shall review the
reports submitted under paragraph (1) and shall provide a
comprehensive annual report to Congress on the activities
conducted under this subpart.
[[Page 115 STAT. 1803]]
``SEC. 5228. <<NOTE: 20 USC 7223g.>> NO FULL FAITH AND CREDIT FOR
GRANTEE OBLIGATIONS.
``No financial obligation of an eligible entity entered into
pursuant to this subpart (such as an obligation under a guarantee, bond,
note, evidence of debt, or loan) shall be an obligation of, or
guaranteed in any respect by, the United States. The full faith and
credit of the United States is not pledged to the payment of funds which
may be required to be paid under any obligation made by an eligible
entity pursuant to any provision of this subpart.
``SEC. 5229. <<NOTE: 20 USC 7223h.>> RECOVERY OF FUNDS.
``(a) In General.--The Secretary, in accordance with chapter 37 of
title 31, United States Code, shall collect--
``(1) all of the funds in a reserve account established by
an eligible entity under section 5225(a) if the Secretary
determines, not earlier than 2 years after the date on which the
eligible entity first received funds under this subpart, that
the eligible entity has failed to make substantial progress in
carrying out the purposes described in section 5225(a); or
``(2) all or a portion of the funds in a reserve account
established by an eligible entity under section 5225(a) if the
Secretary determines that the eligible entity has permanently
ceased to use all or a portion of the funds in such account to
accomplish any purpose described in section 5225(a).
``(b) Exercise of Authority.--The Secretary shall not exercise the
authority provided in subsection (a) to collect from any eligible entity
any funds that are being properly used to achieve one or more of the
purposes described in section 5225(a).
``(c) <<NOTE: Applicability.>> Procedures.--The provisions of
sections 451, 452, and 458 of the General Education Provisions Act shall
apply to the recovery of funds under subsection (a).
``(d) Construction.--This section shall not be construed to impair
or affect the authority of the Secretary to recover funds under part D
of the General Education Provisions Act.
``SEC. 5230. <<NOTE: 20 USC 7223i.>> DEFINITIONS.
``In this subpart:
``(1) Charter school.--The term `charter school' has the
meaning given such term in section 5210.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) a public entity, such as a State or local
governmental entity;
``(B) a private nonprofit entity; or
``(C) a consortium of entities described in
subparagraphs (A) and (B).
``SEC. 5231. <<NOTE: 20 USC 7223j.>> AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this subpart, there are authorized
to be appropriated $150,000,000 for fiscal year 2002 and such sums as
may be necessary for fiscal year 2003.
``Subpart 3--Voluntary Public School Choice Programs
``SEC. 5241. <<NOTE: 20 USC 7225.>> GRANTS.
``(a) Authorization.--From funds made available under section 5248
to carry out this subpart, the Secretary shall award grants, on a
competitive basis, to eligible entities to enable the entities
[[Page 115 STAT. 1804]]
to establish or expand a program of public school choice (referred to in
this subpart as a `program') in accordance with this subpart.
``(b) Duration.--Grants awarded under subsection (a) may be awarded
for a period of not more than 5 years.
``SEC. 5242. <<NOTE: 20 USC 7225a.>> USES OF FUNDS.
``(a) Required Use of Funds.--An eligible entity that receives a
grant under this subpart shall use the grant funds to provide students
selected to participate in the program with transportation services or
the cost of transportation to and from the public elementary schools and
secondary schools, including charter schools, that the students choose
to attend under the program.
``(b) Permissible Uses of Funds.--An eligible entity that receives a
grant under this subpart may use the grant funds for--
``(1) planning or designing a program (for not more than 1
year);
``(2) the cost of making tuition transfer payments to public
elementary schools or secondary schools to which students
transfer under the program;
``(3) the cost of capacity-enhancing activities that enable
high-demand public elementary schools or secondary schools to
accommodate transfer requests under the program;
``(4) the cost of carrying out public education campaigns to
inform students and parents about the program; and
``(5) other costs reasonably necessary to implement the
program.
``(c) Nonpermissible Uses of Funds.--An eligible entity that
receives a grant under this subpart may not use the grant funds for
school construction.
``(d) Administrative Expenses.--The eligible entity may use not more
than 5 percent of the funds made available through the grant for any
fiscal year for administrative expenses.
``SEC. 5243. <<NOTE: 20 USC 7225b.>> APPLICATIONS.
``(a) Submission.--An eligible entity that desires a grant under
this subpart shall submit an application to the Secretary at such time,
in such manner, and containing such information as the Secretary may
require.
``(b) Contents.--An application submitted under subsection (a) shall
include--
``(1) a description of the program for which the eligible
entity seeks funds and the goals for such program;
``(2) a description of how and when parents of students will
be given the notice required under section 5245(a)(2);
``(3) a description of how students will be selected for the
program;
``(4) a description of how the program will be coordinated
with, and will complement and enhance, other related Federal and
non-Federal projects;
``(5) if the program is to be carried out by a partnership,
the name of each partner and a description of the partner's
responsibilities; and
``(6) such other information as the Secretary may require.
``SEC. 5244. <<NOTE: 20 USC 7225c.>> PRIORITIES.
``In awarding grants under this subpart, the Secretary shall give
priority to an eligible entity--
[[Page 115 STAT. 1805]]
``(1) whose program would provide the widest variety of
choices to all students in participating schools;
``(2) whose program would, through various choice options,
have the most impact in allowing students in low-performing
schools to attend higher-performing schools; and
``(3) that is a partnership that seeks to implement an
interdistrict approach to carrying out a program.
``SEC. 5245. <<NOTE: 20 USC 7225d.>> REQUIREMENTS AND VOLUNTARY
PARTICIPATION.
``(a) Parent and Community Involvement and Notice.--In carrying out
a program under this subpart, an eligible entity shall--
``(1) develop the program with--
``(A) the involvement of parents and others in the
community to be served; and
``(B) individuals who will carry out the program,
including administrators, teachers, principals, and
other staff; and
``(2) provide to parents of students in the area to be
served by the program with prompt notice of--
``(A) the existence of the program;
``(B) the program's availability; and
``(C) a clear explanation of how the program will
operate.
``(b) Selection of Students.--An eligible entity that receives a
grant under this subpart shall select students to participate in a
program on the basis of a lottery, if more students apply for admission
to the program than can be accommodated.
``(c) Voluntary Participation.--Student participation in a program
funded under this subpart shall be voluntary.
``SEC. 5246. <<NOTE: 20 USC 7225e.>> EVALUATIONS.
``(a) In General.--From the amount made available to carry out this
subpart for any fiscal year, the Secretary may reserve not more than 5
percent--
``(1) to carry out evaluations;
``(2) to provide technical assistance; and
``(3) to disseminate information.
``(b) Evaluations.--In carrying out the evaluations under subsection
(a), the Secretary shall, at a minimum, address--
``(1) how, and the extent to which, the programs promote
educational equity and excellence;
``(2) the characteristics of the students participating in
the programs; and
``(3) the effect of the programs on the academic achievement
of students participating in the programs, particularly students
who move from schools identified under section 1116 to schools
not so identified, and on the overall quality of participating
schools and districts.
``SEC. 5247. <<NOTE: 20 USC 7225f.>> DEFINITIONS.
``In this subpart:
``(1) Charter school.--The term `charter school' has the
meaning given such term in section 5210.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) one or more State educational agencies;
``(B) one or more local educational agencies; or
``(C) a partnership of--
``(i) one or more--
[[Page 115 STAT. 1806]]
``(I) State educational agencies;
and
``(II) local educational agencies or
other public, for-profit, or nonprofit
entities; or
``(ii) one or more--
``(I) local educational agencies;
and
``(II) public, for-profit, or
nonprofit entities.
``(3) Low-performing school.--The term `low-performing
school' means a public elementary school or secondary school
that has failed to make adequate yearly progress, as described
in section 1111(b), for two or more consecutive years.
``SEC. 5248. <<NOTE: 20 USC 7225g.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this subpart
$100,000,000 for fiscal year 2002 and each of the 5 succeeding fiscal
years.
``PART C--MAGNET SCHOOLS ASSISTANCE
``SEC. 5301. <<NOTE: 20 USC 7231.>> FINDINGS AND PURPOSE.
``(a) Findings.--Congress makes the following findings:
``(1) Magnet schools are a significant part of the Nation's
effort to achieve voluntary desegregation in our Nation's
schools.
``(2) The use of magnet schools has increased dramatically
since the inception of the magnet schools assistance program
under this Act, with approximately 2,000,000 students nationwide
attending such schools, of whom more than 65 percent are non-
white.
``(3) Magnet schools offer a wide range of distinctive
programs that have served as models for school improvement
efforts.
``(4) It is in the best interests of the United States--
``(A) to continue the Federal Government's support
of local educational agencies that are implementing
court-ordered desegregation plans and local educational
agencies that are voluntarily seeking to foster
meaningful interaction among students of different
racial and ethnic backgrounds, beginning at the earliest
stage of such students' education;
``(B) to ensure that all students have equitable
access to a high quality education that will prepare all
students to function well in a technologically oriented
and a highly competitive economy comprised of people
from many different racial and ethnic backgrounds; and
``(C) to continue to desegregate and diversify
schools by supporting magnet schools, recognizing that
segregation exists between minority and nonminority
students as well as among students of different minority
groups.
``(5) Desegregation efforts through magnet school programs
are a significant part of our Nation's effort to achieve
voluntary desegregation in schools and help to ensure equal
educational opportunities for all students.
``(b) Purpose.--The purpose of this part is to assist in the
desegregation of schools served by local educational agencies by
providing financial assistance to eligible local educational agencies
for--
[[Page 115 STAT. 1807]]
``(1) the elimination, reduction, or prevention of minority
group isolation in elementary schools and secondary schools with
substantial proportions of minority students, which shall
include assisting in the efforts of the United States to achieve
voluntary desegregation in public schools;
``(2) the development and implementation of magnet school
programs that will assist local educational agencies in
achieving systemic reforms and providing all students the
opportunity to meet challenging State academic content standards
and student academic achievement standards;
``(3) the development and design of innovative educational
methods and practices that promote diversity and increase
choices in public elementary schools and public secondary
schools and public educational programs;
``(4) courses of instruction within magnet schools that will
substantially strengthen the knowledge of academic subjects and
the attainment of tangible and marketable vocational,
technological, and professional skills of students attending
such schools;
``(5) improving the capacity of local educational agencies,
including through professional development, to continue
operating magnet schools at a high performance level after
Federal funding for the magnet schools is terminated; and
``(6) ensuring that all students enrolled in the magnet
school programs have equitable access to high quality education
that will enable the students to succeed academically and
continue with postsecondary education or productive employment.
``SEC. 5302. <<NOTE: 20 USC 7231a.>> DEFINITION.
``For the purpose of this part, the term `magnet school' means a
public elementary school, public secondary school, public elementary
education center, or public secondary education center that offers a
special curriculum capable of attracting substantial numbers of students
of different racial backgrounds.
``SEC. 5303. <<NOTE: 20 USC 7231b.>> PROGRAM AUTHORIZED.
``The Secretary, in accordance with this part, is authorized to
award grants to eligible local educational agencies, and consortia of
such agencies where appropriate, to carry out the purpose of this part
for magnet schools that are--
``(1) part of an approved desegregation plan; and
``(2) designed to bring students from different social,
economic, ethnic, and racial backgrounds together.
``SEC. 5304. <<NOTE: 20 USC 7231c.>> ELIGIBILITY.
``A local educational agency, or consortium of such agencies where
appropriate, is eligible to receive a grant under this part to carry out
the purpose of this part if such agency or consortium--
``(1) is implementing a plan undertaken pursuant to a final
order issued by a court of the United States, or a court of any
State, or any other State agency or official of competent
jurisdiction, that requires the desegregation of minority-group-
segregated children or faculty in the elementary schools and
secondary schools of such agency; or
``(2) without having been required to do so, has adopted and
is implementing, or will, if a grant is awarded to such local
educational agency, or consortium of such agencies, under this
part, adopt and implement a plan that has been approved
[[Page 115 STAT. 1808]]
by the Secretary as adequate under title VI of the Civil Rights
Act of 1964 for the desegregation of minority-group-segregated
children or faculty in such schools.
``SEC. 5305. <<NOTE: 20 USC 7231d.>> APPLICATIONS AND REQUIREMENTS.
``(a) Applications.--An eligible local educational agency, or
consortium of such agencies, desiring to receive a grant under this part
shall submit an application to the Secretary at such time, in such
manner, and containing such information and assurances as the Secretary
may reasonably require.
``(b) Information and Assurances.--Each application submitted under
subsection (a) shall include--
``(1) a description of--
``(A) how a grant awarded under this part will be
used to promote desegregation, including how the
proposed magnet school programs will increase
interaction among students of different social,
economic, ethnic, and racial backgrounds;
``(B) the manner and extent to which the magnet
school program will increase student academic
achievement in the instructional area or areas offered
by the school;
``(C) how the applicant will continue the magnet
school program after assistance under this part is no
longer available, and, if applicable, an explanation of
why magnet schools established or supported by the
applicant with grant funds under this part cannot be
continued without the use of grant funds under this
part;
``(D) how grant funds under this part will be used--
``(i) to improve student academic achievement
for all students attending the magnet school
programs; and
``(ii) to implement services and activities
that are consistent with other programs under this
Act, and other Acts, as appropriate; and
``(E) the criteria to be used in selecting students
to attend the proposed magnet school program; and
``(2) assurances that the applicant will--
``(A) use grant funds under this part for the
purposes specified in section 5301(b);
``(B) employ highly qualified teachers in the
courses of instruction assisted under this part;
``(C) not engage in discrimination based on race,
religion, color, national origin, sex, or disability
in--
``(i) the hiring, promotion, or assignment of
employees of the applicant or other personnel for
whom the applicant has any administrative
responsibility;
``(ii) the assignment of students to schools,
or to courses of instruction within the schools,
of such applicant, except to carry out the
approved plan; and
``(iii) designing or operating extracurricular
activities for students;
``(D) carry out a high-quality education program
that will encourage greater parental decisionmaking and
involvement; and
``(E) give students residing in the local attendance
area of the proposed magnet school program equitable
consideration for placement in the program, consistent
with
[[Page 115 STAT. 1809]]
desegregation guidelines and the capacity of the
applicant to accommodate the students.
``(c) Special Rule.--No grant shall be awarded under this part
unless the Assistant Secretary of Education for Civil Rights determines
that the assurances described in subsection (b)(2)(C) will be met.
``SEC. 5306. <<NOTE: 20 USC 7231e.>> PRIORITY.
``In awarding grants under this part, the Secretary shall give
priority to applicants that--
``(1) demonstrate the greatest need for assistance, based on
the expense or difficulty of effectively carrying out approved
desegregation plans and the magnet school program for which the
grant is sought;
``(2) propose to carry out new magnet school programs, or
significantly revise existing magnet school programs; and
``(3) propose to select students to attend magnet school
programs by methods such as lottery, rather than through
academic examination.
``SEC. 5307. <<NOTE: 20 USC 7231f.>> USE OF FUNDS.
``(a) In General.--Grant funds made available under this part may be
used by an eligible local educational agency, or consortium of such
agencies--
``(1) for planning and promotional activities directly
related to the development, expansion, continuation, or
enhancement of academic programs and services offered at magnet
schools;
``(2) for the acquisition of books, materials, and
equipment, including computers and the maintenance and operation
of materials, equipment, and computers, necessary to conduct
programs in magnet schools;
``(3) for the compensation, or subsidization of the
compensation, of elementary school and secondary school teachers
who are highly qualified, and instructional staff where
applicable, who are necessary to conduct programs in magnet
schools;
``(4) with respect to a magnet school program offered to
less than the entire student population of a school, for
instructional activities that--
``(A) are designed to make available the special
curriculum that is offered by the magnet school program
to students who are enrolled in the school but who are
not enrolled in the magnet school program; and
``(B) further the purpose of this part;
``(5) for activities, which may include professional
development, that will build the recipient's capacity to operate
magnet school programs once the grant period has ended;
``(6) to enable the local educational agency, or consortium
of such agencies, to have more flexibility in the administration
of a magnet school program in order to serve students attending
a school who are not enrolled in a magnet school program; and
``(7) to enable the local educational agency, or consortium
of such agencies, to have flexibility in designing magnet
schools for students in all grades.
``(b) Special Rule.--Grant funds under this part may be used for
activities described in paragraphs (2) and (3) of subsection (a) only if
the activities are directly related to improving student academic
achievement based on the State's challenging academic
[[Page 115 STAT. 1810]]
content standards and student academic achievement standards or directly
related to improving student reading skills or knowledge of mathematics,
science, history, geography, English, foreign languages, art, or music,
or to improving vocational, technological, and professional skills.
``SEC. 5308. <<NOTE: 20 USC 7231g.>> PROHIBITION.
``Grants under this part may not be used for transportation or any
activity that does not augment academic improvement.
``SEC. 5309. <<NOTE: 20 USC 7231h.>> LIMITATIONS.
``(a) Duration of Awards.--A grant under this part shall be awarded
for a period that shall not exceed 3 fiscal years.
``(b) Limitation on Planning Funds.--A local educational agency, or
consortium of such agencies, may expend for planning (professional
development shall not be considered to be planning for purposes of this
subsection) not more than 50 percent of the grant funds received under
this part for the first year of the program and not more than 15 percent
of such funds for each of the second and third such years.
``(c) Amount.--No local educational agency, or consortium of such
agencies, awarded a grant under this part shall receive more than
$4,000,000 under this part for any 1 fiscal year.
``(d) <<NOTE: Deadline.>> Timing.--To the extent practicable, the
Secretary shall award grants for any fiscal year under this part not
later than July 1 of the applicable fiscal year.
``SEC. 5310. <<NOTE: 20 USC 7231i.>> EVALUATIONS.
``(a) Reservation.--The Secretary may reserve not more than 2
percent of the funds appropriated under section 5311(a) for any fiscal
year to carry out evaluations, provide technical assistance, and carry
out dissemination projects with respect to magnet school programs
assisted under this part.
``(b) Contents.--Each evaluation described in subsection (a), at a
minimum, shall address--
``(1) how and the extent to which magnet school programs
lead to educational quality and improvement;
``(2) the extent to which magnet school programs enhance
student access to a high quality education;
``(3) the extent to which magnet school programs lead to the
elimination, reduction, or prevention of minority group
isolation in elementary schools and secondary schools with
substantial proportions of minority students; and
``(4) the extent to which magnet school programs differ from
other school programs in terms of the organizational
characteristics and resource allocations of such magnet school
programs.
``(c) <<NOTE: Public information.>> Dissemination.--The Secretary
shall collect and disseminate to the general public information on
successful magnet school programs.
``SEC. 5311. <<NOTE: 20 USC 7231j.>> AUTHORIZATION OF APPROPRIATIONS;
RESERVATION.
``(a) Authorization.--For the purpose of carrying out this part,
there are authorized to be appropriated $125,000,000 for fiscal year
2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(b) Availability of Funds for Grants to Agencies Not Previously
Assisted.--In any fiscal year for which the amount
[[Page 115 STAT. 1811]]
appropriated pursuant to subsection (a) exceeds $75,000,000, the
Secretary shall give priority in using such amounts in excess of
$75,000,000 to awarding grants to local educational agencies or
consortia of such agencies that did not receive a grant under this part
in the preceding fiscal year.
``PART D--FUND FOR THE IMPROVEMENT OF EDUCATION
``SEC. 5401. <<NOTE: 20 USC 7241.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part the
following amounts:
``(1) $550,000,000 for fiscal year 2002.
``(2) $575,000,000 for fiscal year 2003.
``(3) $600,000,000 for fiscal year 2004.
``(4) $625,000,000 for fiscal year 2005.
``(5) $650,000,000 for fiscal year 2006.
``(6) $675,000,000 for fiscal year 2007.
``Subpart 1--Fund for the Improvement of Education
``SEC. 5411. <<NOTE: 20 USC 7243.>> PROGRAMS AUTHORIZED.
``(a) Authorization.--The Secretary is authorized to support
nationally significant programs to improve the quality of elementary and
secondary education at the State and local levels and help all children
meet challenging State academic content and student academic achievement
standards. The Secretary may carry out such programs directly, or
through grants to, or contracts with--
``(1) States or local educational agencies;
``(2) institutions of higher education; and
``(3) other public and private agencies, organizations, and
institutions.
``(b) Uses of Funds.--Funds made available under section 5401 to
carry out this subpart may be used for any of the following programs:
``(1) Activities to promote systemic education reform at the
State and local levels, including scientifically based research,
development, and evaluation designed to improve--
``(A) student academic achievement at the State and
local level; and
``(B) strategies for effective parent and community
involvement.
``(2) Programs at the State and local levels that are
designed to yield significant results, including programs to
explore approaches to public school choice and school-based
decisionmaking.
``(3) Recognition programs, which may include financial
awards to States, local educational agencies, and schools that
have made the greatest progress, based on the Secretary's
determination or on a nomination by the State in which the
school is located (or in the case of a Bureau funded school, by
the Secretary of the Interior) in--
``(A) improving the academic achievement of
economically disadvantaged students and students from
major racial and ethnic minority groups; and
[[Page 115 STAT. 1812]]
``(B) closing the academic achievement gap for those
groups of students farthest away from the proficient
level on the academic assessments administered by the
State under section 1111.
``(4) Scientifically based studies and evaluations of
education reform strategies and innovations, and the
dissemination of information on the effectiveness of such
strategies and innovations.
``(5) Identification and recognition of exemplary schools
and programs, such as Blue Ribbon Schools, including programs to
evaluate the effectiveness of using the best practices of
exemplary or Blue Ribbon Schools to improve academic
achievement.
``(6) Activities to support Scholar-Athlete Games programs,
including the World Scholar-Athlete Games and the U.S. Scholar-
Athlete Games.
``(7) Programs to promote voter participation in American
elections through programs, such as the National Student/Parent
Mock Election and Kids Voting USA.
``(8) Demonstrations relating to the planning and evaluation
of the effectiveness of programs under which local educational
agencies or schools contract with private management
organizations to reform a school or schools.
``(9) Other programs that meet the purposes of this Act.
``(c) Basis of Awards.--The Secretary is authorized to--
``(1) make awards under this subpart on the basis of
competitions announced by the Secretary; and
``(2) support meritorious unsolicited proposals for awards
under this subpart.
``(d) Effectiveness of Programs.--The Secretary shall ensure that
programs supported under this subpart are designed so that their
effectiveness is readily ascertainable, and shall ensure that such
effectiveness is assessed using rigorous, scientifically based research
and evaluations.
``SEC. 5412. <<NOTE: 20 USC 7243a.>> APPLICATIONS.
``(a) Submission.--To be eligible for an award under this subpart,
an entity shall submit an application to the Secretary, at such time, in
such manner, and containing such information as the Secretary may
require.
``(b) Contents.--Each application submitted under subsection (a)
shall--
``(1) establish clear objectives, which are based on
scientifically based research, for the proposed program; and
``(2) describe the activities the applicant will carry out
in order to meet the objectives described in paragraph (1).
``(c) Peer Review.--The Secretary shall use a peer review process in
reviewing applications for awards under this subpart and in recognizing
States, local educational agencies, and schools under section
5411(b)(3), only if funds are used for such recognition programs. The
Secretary may use funds appropriated under this subpart for the cost of
such peer review.
``SEC. 5413. <<NOTE: 20 USC 7243b.>> PROGRAM REQUIREMENTS.
``(a) Evaluations.--A recipient of an award under this subpart
shall--
[[Page 115 STAT. 1813]]
``(1) evaluate the effectiveness of the program funded under
the award in achieving the objectives stated in applications
submitted under section 5412; and
``(2) report to the Secretary such information as may be
required to determine the effectiveness of such program,
including evidence of progress toward meeting such objectives.
``(b) <<NOTE: Public information. Notice.>> Dissemination of
Evaluation Results.--The Secretary shall provide for the dissemination
of the evaluations of programs funded under this subpart by making the
evaluations publicly available upon request, and shall provide public
notice that the evaluations are so available.
``(c) Matching Funds.--The Secretary may require recipients of
awards under this subpart to provide matching funds from non-Federal
sources, and shall permit the recipients to match funds in whole or in
part with in-kind contributions.
``(d) Special Rule for Recognition Programs.--The application
requirements of section 5412(b), and the evaluation requirements of
subsections (a) and (b) of this section, do not apply to recognition
programs under section 5411(b)(3).
``SEC. 5414. <<NOTE: 20 USC 7243c.>> STUDIES OF NATIONAL SIGNIFICANCE.
``(a) Studies.--The Secretary shall conduct the following studies of
national significance:
``(1) Unhealthy public school buildings.--A study regarding
the health and learning impacts of environmentally unhealthy
public school buildings on students and teachers. The study
shall include the following information:
``(A) The characteristics of those public elementary
school and secondary school buildings that contribute to
unhealthy school environments.
``(B) The health and learning impacts of
environmental unhealthy public school buildings on
students that are attending or that have attended such
schools.
``(C) Recommendations to Congress on how to assist
schools that are out of compliance with Federal or State
health and safety codes, and a cost estimate of bringing
up environmentally unhealthy public school buildings to
minimum Federal health and safety building standards.
``(2) Exposure to violent entertainment.--A study regarding
how exposure to violent entertainment (such as in movies, music,
television, Internet content, video games, and arcade games)
affects children's cognitive development and educational
achievement.
``(3) Sexual abuse in schools.--A study regarding the
prevalence of sexual abuse in schools, including recommendations
and legislative remedies for addressing the problem of sexual
abuse in schools.
``(b) Completion Date.--The studies under subsection (a) shall be
completed not later than 18 months after the date of enactment of the No
Child Left Behind Act of 2001.
``(c) Public Dissemination.--The Secretary shall make the study
conducted under subsection (a)(1) available to the public through the
Educational Resources Information Center National Clearinghouse for
Educational Facilities of the Department.
[[Page 115 STAT. 1814]]
``Subpart 2--Elementary and Secondary School Counseling Programs
``SEC. 5421. <<NOTE: 20 USC 7245.>> ELEMENTARY AND SECONDARY SCHOOL
COUNSELING PROGRAMS.
``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to local educational agencies to enable such agencies to
establish or expand elementary school and secondary school
counseling programs that comply with the requirements of
subsection (c)(2).
``(2) Special consideration.--In awarding grants under this
section, the Secretary shall give special consideration to
applications describing programs that--
``(A) demonstrate the greatest need for new or
additional counseling services among children in the
schools served by the local educational agency, in part
by providing information on current ratios of students
to school counselors, students to school social workers,
and students to school psychologists;
``(B) propose the most promising and innovative
approaches for initiating or expanding school
counseling; and
``(C) show the greatest potential for replication
and dissemination.
``(3) Equitable distribution.--In awarding grants under this
section, the Secretary shall ensure an equitable geographic
distribution among the regions of the United States and among
local educational agencies located in urban, rural, and suburban
areas.
``(4) Duration.--A grant under this section shall be awarded
for a period not to exceed 3 years.
``(5) Maximum grant.--A grant awarded under this section
shall not exceed $400,000 for any fiscal year.
``(6) Supplement, not supplant.--Funds made available under
this section shall be used to supplement, and not supplant,
other Federal, State, or local funds used for providing school-
based counseling and mental health services to students.
``(b) Applications.--
``(1) In general.--Each local educational agency desiring a
grant under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``(2) Contents.--Each application for a grant under this
section shall--
``(A) describe the school population to be targeted
by the program, the particular counseling needs of such
population, and the current school counseling resources
available for meeting such needs;
``(B) describe the activities, services, and
training to be provided by the program and the specific
approaches to be used to meet the needs described in
subparagraph (A);
``(C) describe the methods to be used to evaluate
the outcomes and effectiveness of the program;
[[Page 115 STAT. 1815]]
``(D) describe how the local educational agency will
involve community groups, social service agencies, and
other public and private entities in collaborative
efforts to enhance the program and promote school-linked
services integration;
``(E) document that the local educational agency has
the personnel qualified to develop, implement, and
administer the program;
``(F) describe how diverse cultural populations, if
applicable, will be served through the program;
``(G) assure that the funds made available under
this subpart for any fiscal year will be used to
supplement, and not supplant, any other Federal, State,
or local funds used for providing school-based
counseling and mental health services to students; and
``(H) assure that the applicant will appoint an
advisory board composed of interested parties, including
parents, teachers, school administrators, counseling
services providers described in subsection (c)(2)(D),
and community leaders, to advise the local educational
agency on the design and implementation of the program.
``(c) Use of Funds.--
``(1) In general.--The Secretary is authorized to award
grants to local educational agencies to enable the local
educational agencies to initiate or expand elementary school or
secondary school counseling programs that comply with the
requirements of paragraph (2).
``(2) Requirements.--Each program funded under this section
shall--
``(A) be comprehensive in addressing the counseling
and educational needs of all students;
``(B) use a developmental, preventive approach to
counseling;
``(C) increase the range, availability, quantity,
and quality of counseling services in the elementary
schools and secondary schools of the local educational
agency;
``(D) expand counseling services through qualified
school counselors, school social workers, school
psychologists, other qualified psychologists, or child
and adolescent psychiatrists;
``(E) use innovative approaches to increase
children's understanding of peer and family
relationships, work and self, decisionmaking, or
academic and career planning, or to improve peer
interaction;
``(F) provide counseling services in settings that
meet the range of student needs;
``(G) include in-service training appropriate to the
activities funded under this Act for teachers,
instructional staff, and appropriate school personnel,
including in-service training in appropriate
identification and early intervention techniques by
school counselors, school social workers, school
psychologists, other qualified psychologists, and child
and adolescent psychiatrists;
``(H) involve parents of participating students in
the design, implementation, and evaluation of the
counseling program;
[[Page 115 STAT. 1816]]
``(I) involve community groups, social service
agencies, or other public or private entities in
collaborative efforts to enhance the program and promote
school-linked integration of services;
``(J) evaluate annually the effectiveness and
outcomes of the counseling services and activities
assisted under this section;
``(K) ensure a team approach to school counseling in
the schools served by the local educational agency by
working toward ratios recommended by the American School
Health Association of one school counselor to 250
students, one school social worker to 800 students, and
one school psychologist to 1,000 students; and
``(L) ensure that school counselors, school
psychologists, other qualified psychologists, school
social workers, or child and adolescent psychiatrists
paid from funds made available under this section spend
a majority of their time counseling students or in other
activities directly related to the counseling process.
``(d) Limitation on Administrative Costs.--Not more than 4 percent
of the amounts made available under this section for any fiscal year may
be used for administrative costs to carry out this section.
``(e) Definitions.--For the purpose of this section--
``(1) the term `child and adolescent psychiatrist' means an
individual who--
``(A) possesses State medical licensure; and
``(B) has completed residency training programs in
both general psychiatry and child and adolescent
psychiatry;
``(2) the term `other qualified psychologist' means an
individual who has demonstrated competence in counseling
children in a school setting and who--
``(A) is licensed in psychology by the State in
which the individual works; and
``(B) practices in the scope of the individual's
education, training, and experience with children in
school settings;
``(3) the term `school counselor' means an individual who
has documented competence in counseling children and adolescents
in a school setting and who--
``(A) is licensed by the State or certified by an
independent professional regulatory authority;
``(B) in the absence of such State licensure or
certification, possesses national certification in
school counseling or a specialty of counseling granted
by an independent professional organization; or
``(C) holds a minimum of a master's degree in school
counseling from a program accredited by the Council for
Accreditation of Counseling and Related Educational
Programs or the equivalent;
``(4) the term `school psychologist' means an individual
who--
``(A) has completed a minimum of 60 graduate
semester hours in school psychology from an institution
of higher education and has completed 1,200 clock hours
in a supervised school psychology internship, of which
600 hours are in the school setting;
[[Page 115 STAT. 1817]]
``(B) is licensed or certified in school psychology
by the State in which the individual works; or
``(C) in the absence of such State licensure or
certification, possesses national certification by the
National School Psychology Certification Board; and
``(5) the term `school social worker' means an individual
who--
``(A) holds a master's degree in social work from a
program accredited by the Council on Social Work
Education; and
``(B)(i) is licensed or certified by the State in
which services are provided; or
``(ii) in the absence of such State licensure or
certification, possesses a national credential or
certification as a school social work specialist granted
by an independent professional organization.
``(f) <<NOTE: Deadline.>> Report.--Not later than 2 years after
assistance is made available to local educational agencies under
subsection (c), the Secretary shall make publicly available a report--
``(1) evaluating the programs assisted pursuant to each
grant under this subpart; and
``(2) outlining the information from local educational
agencies regarding the ratios of students to--
``(A) school counselors;
``(B) school social workers; and
``(C) school psychologists.
``(g) Special Rule.--
``(1) Amount equals or exceeds $40,000,000.--If the amount
of funds made available by the Secretary for this subpart equals
or exceeds $40,000,000, the Secretary shall award not less than
$40,000,000 in grants to local educational agencies to enable
the agencies to establish or expand counseling programs in
elementary schools.
``(2) Amount less than $40,000,000.--If the amount of funds
made available by the Secretary for this subpart is less than
$40,000,000, the Secretary shall award grants to local
educational agencies only to establish or expand counseling
programs in elementary schools.
``Subpart 3--Partnerships in Character Education
``SEC. 5431. <<NOTE: 20 USC 7247.>> PARTNERSHIPS IN CHARACTER EDUCATION
PROGRAM.
``(a) Program Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to eligible entities for the design and implementation of
character education programs that--
``(A) are able to be integrated into classroom
instruction and to be consistent with State academic
content standards; and
``(B) are able to be carried out in conjunction with
other educational reform efforts.
``(2) Eligible entity.--In this section, the term `eligible
entity' means--
``(A) a State educational agency in partnership
with--
``(i) one or more local educational agencies;
or
``(ii) one or more--
``(I) local educational agencies;
and
[[Page 115 STAT. 1818]]
``(II) nonprofit organizations or
entities, including an institution of
higher education;
``(B) a local educational agency or consortium of
local educational agencies; or
``(C) a local educational agency in partnership with
one or more nonprofit organizations or entities,
including an institution of higher education.
``(3) Duration.--Each grant under this section shall be
awarded for a period not to exceed 5 years, of which the
eligible entity may not use more than 1 year for planning and
program design.
``(4) Amount of grants for state educational agencies.--
Subject to the availability of appropriations, the amount of a
grant made by the Secretary to a State educational agency under
this section shall not be less than $500,000 if the State
educational agency--
``(A) is in a partnership described in paragraph
(2)(A); and
``(B) meets such requirements as the Secretary may
establish under this section.
``(b) Contracts Under Program.--
``(1) Evaluation.--Each eligible entity awarded a grant
under this section may contract with outside sources, including
institutions of higher education and private and nonprofit
organizations, for the purposes of--
``(A) evaluating the program for which the
assistance is made available;
``(B) measuring the integration of such program into
the curriculum and teaching methods of schools where the
program is carried out; and
``(C) measuring the success of such program in
fostering the elements of character selected by the
recipient under subsection (c).
``(2) Materials and program development.--Each eligible
entity awarded a grant under this section may contract with
outside sources, including institutions of higher education and
private and nonprofit organizations, for assistance in--
``(A) developing secular curricula, materials,
teacher training, and other activities related to
character education; and
``(B) integrating secular character education into
the curricula and teaching methods of schools where the
program is carried out.
``(c) Elements of Character.--
``(1) Selection.--
``(A) In general.--Each eligible entity awarded a
grant under this section may select the elements of
character that will be taught under the program for
which the grant was awarded.
``(B) Consideration of views.--In selecting elements
of character under subparagraph (A), the eligible entity
shall consider the views of the parents of the students
to be taught under the program and the views of the
students.
``(2) Example elements.--Elements of character selected
under this subsection may include any of the following:
``(A) Caring.
[[Page 115 STAT. 1819]]
``(B) Civic virtue and citizenship.
``(C) Justice and fairness.
``(D) Respect.
``(E) Responsibility.
``(F) Trustworthiness.
``(G) Giving.
``(H) Any other elements deemed appropriate by the
eligible entity.
``(d) Use of Funds by State Educational Agency Recipients.--Of the
total funds received in any fiscal year under this section by an
eligible entity that is a State educational agency--
``(1) not more than 3 percent of such funds may be used for
administrative purposes; and
``(2) the remainder of such funds may be used for--
``(A) collaborative initiatives with and between
local educational agencies and schools;
``(B) the preparation or purchase of materials, and
teacher training;
``(C) providing assistance to local educational
agencies, schools, or institutions of higher education;
and
``(D) technical assistance and evaluation.
``(e) Application.--
``(1) In general.--Each eligible entity desiring a grant
under this section shall submit an application to the Secretary
at such time and in such manner as the Secretary may require.
``(2) Required information.--Each application for a grant
under this section shall include (together with any other
information that the Secretary may require) information that--
``(A) demonstrates that the program for which the
grant is sought has clear objectives that are based on
scientifically based research;
``(B) describes any partnerships or collaborative
efforts among the organizations and entities of the
eligible entity;
``(C) describes the activities that will be carried
out with the grant funds and how such activities will
meet the objectives described in subparagraph (A),
including--
``(i) how parents, students, students with
disabilities (including those with mental or
physical disabilities), and other members of the
community, including members of private and
nonprofit organizations, will be involved in the
design and implementation of the program and how
the eligible entity will work with the larger
community to increase the reach and promise of the
program;
``(ii) curriculum and instructional practices
that will be used or developed; and
``(iii) methods of teacher training and parent
education that will be used or developed;
``(D) describes how the program for which the grant
is sought will be linked to other efforts to improve
academic achievement, including--
``(i) broader educational reforms that are
being instituted by the eligible entity or its
partners; and
``(ii) State academic content standards;
``(E) in the case of an eligible entity that is a
State educational agency, describes how the State
educational agency--
[[Page 115 STAT. 1820]]
``(i) will provide technical and professional
assistance to its local educational agency
partners in the development and implementation of
character education programs; and
``(ii) will assist other interested local
educational agencies that are not members of the
original partnership in designing and establishing
character education programs;
``(F) describes how the eligible entity will
evaluate the success of its program--
``(i) based on the objectives described in
subparagraph (A); and
``(ii) in cooperation with any national
evaluation conducted pursuant to subsection
(h)(2)(B)(iii); and
``(G) assures that the eligible entity annually will
provide to the Secretary such information as may be
required to determine the effectiveness of the program.
``(f) Selection of Recipients.--
``(1) Peer review.--
``(A) In general.--In selecting eligible entities to
receive grants under this section from among the
applicants for such grants, the Secretary shall use a
peer review process that includes the participation of
experts in the field of character education and
development.
``(B) Use of funds.--The Secretary may use funds
appropriated under this section for the cost of carrying
out peer reviews under this paragraph.
``(2) Selection criteria.--Each selection under paragraph
(1) shall be made on the basis of the quality of the application
submitted, taking into consideration such factors as--
``(A) the extent to which the program fosters
character in students and the potential for improved
student academic achievement;
``(B) the extent and ongoing nature of parental,
student, and community involvement;
``(C) the quality of the plan for measuring and
assessing success; and
``(D) the likelihood that the objectives of the
program will be achieved.
``(3) Equitable distribution.--In making selections under
this subsection, the Secretary shall ensure, to the extent
practicable under paragraph (2), that the programs assisted
under this section are equitably distributed among the
geographic regions of the United States, and among urban,
suburban, and rural areas.
``(g) Participation by Private School Children and Teachers.--Each
eligible entity that receives a grant under this section shall provide,
to the extent feasible and appropriate, for the participation in
programs and activities under this section of students and teachers in
private elementary schools and secondary schools.
``(h) Evaluation and Program Development.--
``(1) State and local reporting and evaluation.--Each
eligible entity receiving a grant under this section shall
submit to the Secretary a comprehensive evaluation of the
program assisted under this section, including its impact on
students,
[[Page 115 STAT. 1821]]
students with disabilities (including those with mental or
physical disabilities), teachers, administrators, parents, and
others--
``(A) by the end of the second year of the program;
and
``(B) <<NOTE: Deadline.>> not later than 1 year
after completion of the grant period.
``(2) National research, dissemination, and evaluation.--
``(A) In general.--
``(i) Authorization.--The Secretary is
authorized to award grants to, or enter into
contracts or cooperative agreements with, State
educational agencies or local educational
agencies, institutions of higher education, tribal
organizations, or other public or private agencies
or organizations to carry out research,
development, dissemination, technical assistance,
and evaluation activities that support or inform
State and local character education programs.
``(ii) Reservation of funds.--The Secretary
shall reserve not more than 5 percent of the funds
made available under this section to carry out
this paragraph.
``(B) Uses.--Funds made available under subparagraph
(A) may be used for the following:
``(i) Conducting research and development
activities that focus on matters such as--
``(I) the extent to which schools
are undertaking character education
initiatives;
``(II) the effectiveness of
instructional models for all students,
including students with disabilities
(including those with mental or physical
disabilities);
``(III) materials and curricula for
use by programs in character education;
``(IV) models of professional
development in character education;
``(V) the development of measures of
effectiveness for character education
programs (which may include the factors
described in paragraph (3)); and
``(VI) the effectiveness of State
and local programs receiving funds under
this section.
``(ii) Providing technical assistance to State
and local programs, particularly on matters of
program evaluation.
``(iii) Conducting evaluations of State and
local programs receiving funding under this
section, that may be conducted through a national
clearinghouse under clause (iv).
``(iv) Compiling and disseminating, through a
national clearinghouse or other means--
``(I) information on model character
education programs;
``(II) information about high
quality character education materials
and curricula;
``(III) research findings in the
area of character education and
character development; and
[[Page 115 STAT. 1822]]
``(IV) any other information that
will be useful to character education
program participants nationwide,
including educators, parents, and
administrators.
``(C) Partnerships.--In carrying out national
activities under this paragraph, the Secretary may enter
into partnerships with national nonprofit character
education organizations and institutions of higher
education with expertise and successful experience in
implementing--
``(i) character education programs that had an
effective impact on schools, students, students
with disabilities (including those with mental or
physical disabilities), and teachers; or
``(ii) character education program evaluation
and research.
``(D) Partnership for activities under subparagraph
(B)(iv).--In carrying out national activities under
subparagraph (B)(iv), the Secretary may enter into a
partnership with a national nonprofit character
education organization that will disseminate information
to educators, parents, administrators, and others
nationwide, including information about the range of
model character education programs, materials, and
curricula.
``(E) Report.--Each entity awarded a grant or
entering into a contract or cooperative agreement under
this paragraph shall submit an annual report to the
Secretary that--
``(i) describes the entity's progress in
carrying out research, development, dissemination,
evaluation, and technical assistance under this
paragraph;
``(ii) identifies unmet and future information
needs in the field of character education; and
``(iii) if applicable, describes the progress
of the entity in carrying out the requirements of
subparagraph (B)(iv), including a listing of--
``(I) the number of requests for
information received by the entity in
the course of carrying out such
requirements;
``(II) the types of organizations
making such requests; and
``(III) the types of information
requested.
``(3) Factors.--Factors that may be considered in evaluating
the success of programs funded under this section include the
following:
``(A) Discipline issues.
``(B) Student academic achievement.
``(C) Participation in extracurricular activities.
``(D) Parental and community involvement.
``(E) Faculty and administration involvement.
``(F) Student and staff morale.
``(G) Overall improvements in school climate for all
students, including students with disabilities
(including those with mental or physical disabilities).
``(i) Permissive Match.--
``(1) In general.--The Secretary may require eligible
entities to match funds awarded under this section with non-
Federal funds, except that the amount of the match may not
exceed the amount of the grant award.
[[Page 115 STAT. 1823]]
``(2) Sliding scale.--The amount of a match under paragraph
(1) shall be established based on a sliding scale that takes
into account--
``(A) the poverty of the population to be targeted
by the eligible entity; and
``(B) the ability of the eligible entity to obtain
funding for the match.
``(3) In-kind contributions.--The Secretary shall permit
eligible entities to match funds in whole or in part with in-
kind contributions.
``(4) Consideration.--Notwithstanding this subsection, the
Secretary in making awards under this section shall not consider
the ability of an eligible entity to match funds.
``Subpart 4--Smaller Learning Communities
``SEC. 5441. <<NOTE: 20 USC 7249.>> SMALLER LEARNING COMMUNITIES.
``(a) Grant Authority.--The Secretary is authorized to award grants
to local educational agencies to enable the agencies to create a smaller
learning community or communities.
``(b) Application.--Each local educational agency desiring a grant
under this subpart shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information as the
Secretary may require. The application shall include descriptions of the
following:
``(1) Strategies and methods the local educational agency
will use to create the smaller learning community or
communities.
``(2) Curriculum and instructional practices, including any
particular themes or emphases, to be used in the smaller
learning environment.
``(3) The extent of involvement of teachers and other school
personnel in investigating, designing, implementing, and
sustaining the smaller learning community or communities.
``(4) The process to be used for involving students,
parents, and other stakeholders in the development and
implementation of the smaller learning community or communities.
``(5) Any cooperation or collaboration among community
agencies, organizations, businesses, and others to develop or
implement a plan to create the smaller learning community or
communities.
``(6) The training and professional development activities
that will be offered to teachers and others involved in the
activities assisted under this subpart.
``(7) The objectives of the activities assisted under this
subpart, including a description of how such activities will
better enable all students to reach challenging State academic
content standards and State student academic achievement
standards.
``(8) The methods by which the local educational agency will
assess progress in meeting the objectives described in paragraph
(7).
``(9) If the smaller learning community or communities exist
as a school-within-a-school, the relationship, including
governance and administration, of the smaller learning community
to the remainder of the school.
[[Page 115 STAT. 1824]]
``(10) The administrative and managerial relationship
between the local educational agency and the smaller learning
community or communities, including how such agency will
demonstrate a commitment to the continuity of the smaller
learning community or communities (including the continuity of
student and teacher assignment to a particular learning
community).
``(11) How the local educational agency will coordinate or
use funds provided under this subpart with other funds provided
under this Act or other Federal laws.
``(12) The grade levels or ages of students who will
participate in the smaller learning community or communities.
``(13) The method of placing students in the smaller
learning community or communities, such that students are not
placed according to ability or any other measure, but are placed
at random or by their own choice, and not pursuant to testing or
other judgments.
``(c) Authorized Activities.--Funds under this section may be used
for one or more of the following:
``(1) To study--
``(A) the feasibility of creating the smaller
learning community or communities; and
``(B) effective and innovative organizational and
instructional strategies that will be used in the
smaller learning community or communities.
``(2) To research, develop, and implement--
``(A) strategies for creating the smaller learning
community or communities; and
``(B) strategies for effective and innovative
changes in curriculum and instruction, geared to
challenging State academic content standards and State
student academic achievement standards.
``(3) To provide professional development for school staff
in innovative teaching methods that--
``(A) challenge and engage students; and
``(B) will be used in the smaller learning community
or communities.
``(4) To develop and implement strategies to include
parents, business representatives, local institutions of higher
education, community-based organizations, and other community
members in the smaller learning communities as facilitators of
activities that enable teachers to participate in professional
development activities and provide links between students and
their community.
``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution
Program
``SEC. 5451. <<NOTE: 20 USC 7251.>> INEXPENSIVE BOOK DISTRIBUTION
PROGRAM FOR READING MOTIVATION.
``(a) Purpose.--The purpose of this subpart is to establish and
implement a model partnership between a governmental entity and a
private entity, to help prepare young children for reading and to
motivate older children to read, through the distribution of inexpensive
books. Local reading motivation programs assisted under this section
shall use such assistance to provide books, training for volunteers,
motivational activities, and other essential
[[Page 115 STAT. 1825]]
literacy resources and shall assign the highest priority to serving the
youngest and neediest children in the United States.
``(b) Authorization.--The <<NOTE: Contracts.>> Secretary is
authorized to enter into a contract with Reading Is Fundamental (RIF)
(hereafter in this section referred to as the `contractor') to support
and promote programs, which include the distribution of inexpensive
books to young and school-age children, that motivate children to read.
``(c) Requirements of Contract.--Any contract entered into under
subsection (b) shall contain each of the following:
``(1) A provision that the contractor will enter into
subcontracts with local private nonprofit groups or
organizations, or with public agencies, under which each
subcontractor will agree to establish, operate, and provide the
non-Federal share of the cost of reading motivation programs
that include the distribution of books, by gift (to the extent
feasible) or by loan, to children from birth through secondary
school age, including children in family literacy programs.
``(2) A provision that funds made available to
subcontractors will be used only to pay the Federal share of the
cost of such programs.
``(3) A provision that, in selecting subcontractors for
initial funding, the contractor will give priority to programs
that will serve a substantial number or percentage of children
with special needs, such as the following:
``(A) Low-income children, particularly in high-
poverty areas.
``(B) Children at risk of school failure.
``(C) Children with disabilities.
``(D) Foster children.
``(E) Homeless children.
``(F) Migrant children.
ildren without access to libraries.
``(H) Institutionalized or incarcerated children.
``(I) Children whose parents are institutionalized
or incarcerated.
``(4) A provision that the contractor will provide such
training and technical assistance to subcontractors as may be
necessary to carry out the purpose of this subpart.
``(5) A provision that the contractor will annually report
to the Secretary the number, and a description, of programs
funded under paragraph (3).
``(6) Such other terms and conditions as the Secretary
determines to be appropriate to ensure the effectiveness of such
programs.
``(d) Restriction on Payments.--The Secretary shall make no payment
of the Federal share of the cost of acquiring and distributing books
under any contract under this section unless the Secretary determines
that the contractor or subcontractor, as the case may be, has made
arrangements with book publishers or distributors to obtain books at
discounts at least as favorable as discounts that are customarily given
by such publisher or distributor for book purchases made under similar
circumstances in the absence of Federal assistance.
``(e) Special Rules for Certain Subcontractors.--
``(1) Funds from other federal sources.--Subcontractors
operating programs under this section in low-income
[[Page 115 STAT. 1826]]
communities with a substantial number or percentage of children
with special needs, as described in subsection (c)(3), may use
funds from other Federal sources to pay the non-Federal share of
the cost of the program, if those funds do not comprise more
than 50 percent of the non-Federal share of the funds used for
the cost of acquiring and distributing books.
``(2) Waiver authority.--Notwithstanding subsection (c), the
contractor may waive, in whole or in part, the requirement in
subsection (c)(1) for a subcontractor, if the subcontractor
demonstrates that it would otherwise not be able to participate
in the program, and enters into an agreement with the contractor
with respect to the amount of the non-Federal share to which the
waiver will apply. In a case in which such a waiver is granted,
the requirement in subsection (c)(2) shall not apply.
``(f) Multi-Year Contracts.--The contractor may enter into a multi-
year subcontract under this section, if--
``(1) the contractor believes that such subcontract will
provide the subcontractor with additional leverage in seeking
local commitments; and
``(2) the subcontract does not undermine the finances of the
national program.
``(g) Federal Share Defined.--In this section, the term `Federal
share' means, with respect to the cost to a subcontractor of purchasing
books to be paid for under this section, 75 percent of such costs to the
subcontractor, except that the Federal share for programs serving
children of migrant or seasonal farmworkers shall be 100 percent of such
costs to the subcontractor.
``Subpart <<NOTE: Jacob K. Javits Gifted and Talented Students Education
Act of 2001.>> 6--Gifted and Talented Students
``SEC. 5461. <<NOTE: 20 USC 7253.>> SHORT TITLE.
``This subpart may be cited as the `Jacob K. Javits Gifted and
Talented Students Education Act of 2001'.
``SEC. 5462. <<NOTE: 20 USC 7253a.>> PURPOSE.
``The purpose of this subpart is to initiate a coordinated program
of scientifically based research, demonstration projects, innovative
strategies, and similar activities designed to build and enhance the
ability of elementary schools and secondary schools nationwide to meet
the special educational needs of gifted and talented students.
``SEC. 5463. <<NOTE: 20 USC 7253b.>> RULE OF CONSTRUCTION.
Nothing in this subpart shall be construed to prohibit a recipient
of funds under this subpart from serving gifted and talented students
simultaneously with students with similar educational needs, in the same
educational settings, where appropriate.
``SEC. 5464. <<NOTE: 20 USC 7253c.>> AUTHORIZED PROGRAMS.
``(a) Establishment of Program.--
``(1) In general.--The Secretary (after consultation with
experts in the field of the education of gifted and talented
students) is authorized to make grants to, or enter into
contracts with, State educational agencies, local educational
agencies, institutions of higher education, other public
agencies, and other private agencies and organizations
(including Indian tribes and Indian organizations (as such terms
are defined
[[Page 115 STAT. 1827]]
in section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)) and Native Hawaiian
organizations) to assist such agencies, institutions, and
organizations in carrying out programs or projects authorized by
this subpart that are designed to meet the educational needs of
gifted and talented students, including the training of
personnel in the education of gifted and talented students and
in the use, where appropriate, of gifted and talented services,
materials, and methods for all students.
``(2) Application.--Each entity seeking assistance under
this subpart shall submit an application to the Secretary at
such time, in such manner, and containing such information as
the Secretary may reasonably require. Each such application
shall describe how--
``(A) the proposed gifted and talented services,
materials, and methods can be adapted, if appropriate,
for use by all students; and
``(B) the proposed programs can be evaluated.
``(b) Use of Funds.--Programs and projects assisted under this
section may include each of the following:
``(1) Conducting--
``(A) scientifically based research on methods and
techniques for identifying and teaching gifted and
talented students and for using gifted and talented
programs and methods to serve all students; and
``(B) program evaluations, surveys, and the
collection, analysis, and development of information
needed to accomplish the purpose of this subpart.
``(2) Carrying out professional development (including
fellowships) for personnel (including leadership personnel)
involved in the education of gifted and talented students.
``(3) Establishing and operating model projects and
exemplary programs for serving gifted and talented students,
including innovative methods for identifying and educating
students who may not be served by traditional gifted and
talented programs (such as summer programs, mentoring programs,
service learning programs, and cooperative programs involving
business, industry, and education).
``(4) Implementing innovative strategies, such as
cooperative learning, peer tutoring, and service learning.
``(5) Carrying out programs of technical assistance and
information dissemination, including assistance and information
with respect to how gifted and talented programs and methods,
where appropriate, may be adapted for use by all students.
``(6) Making materials and services available through State
regional educational service centers, institutions of higher
education, or other entities.
``(7) Providing funds for challenging, high-level course
work, disseminated through technologies (including distance
learning), for individual students or groups of students in
schools and local educational agencies that would not otherwise
have the resources to provide such course work.
``(c) Special Rule.--To the extent that funds appropriated to carry
out this subpart for a fiscal year beginning with fiscal year 2002
exceed such funds appropriated for fiscal year 2001, the Secretary shall
use such excess funds to award grants, on a competitive
[[Page 115 STAT. 1828]]
basis, to State educational agencies, local educational agencies, or
both, to implement activities described in subsection (b).
``(d) Center for Research and Development.--
``(1) In General.--The Secretary (after consultation with
experts in the field of the education of gifted and talented
students) shall establish a National Research Center for the
Education of Gifted and Talented Children and Youth through
grants to, or contracts with, one or more institutions of higher
education or State educational agencies, or a combination or
consortium of such institutions and agencies and other public or
private agencies and organizations, for the purpose of carrying
out activities described in subsection (b).
``(2) Director.--The National Center shall be headed by a
Director. The Secretary may authorize the Director to carry out
such functions of the National Center as may be agreed upon
through arrangements with institutions of higher education,
State educational agencies, local educational agencies, or other
public or private agencies and organizations.
``(3) Funding.--The Secretary may use not more than 30
percent of the funds made available under this subpart for
fiscal year 2001 to carry out this subsection.
``(e) Coordination.--Scientifically based research activities
supported under this subpart--
``(1) shall be carried out in consultation with the Office
of Educational Research and Improvement to ensure that such
activities are coordinated with and enhance the research and
development activities supported by such Office; and
``(2) may include collaborative scientifically based
research activities which are jointly funded and carried out
with such Office.
``SEC. 5465. <<NOTE: 20 USC 7253d.>> PROGRAM PRIORITIES.
``(a) General Priority.--In carrying out this subpart, the Secretary
shall give highest priority to programs and projects designed to develop
new information that--
``(1) improves the capability of schools to plan, conduct,
and improve programs to identify and serve gifted and talented
students; and
``(2) assists schools in the identification of, and
provision of services to, gifted and talented students
(including economically disadvantaged individuals, individuals
with limited English proficiency, and individuals with
disabilities) who may not be identified and served through
traditional assessment methods.
``(b) Service Priority.--The Secretary shall ensure that not less
than 50 percent of the applications approved under section 5464(a)(2) in
a fiscal year address the priority described in subsection (a)(2).
``SEC. 5466. <<NOTE: 20 USC 7253e.>> GENERAL PROVISIONS.
``(a) Participation of Private School Children and Teachers.--In
making grants and entering into contracts under this subpart, the
Secretary shall ensure, where appropriate, that provision is made for
the equitable participation of students and teachers in private
nonprofit elementary schools and secondary schools, including the
participation of teachers and other personnel in professional
development programs serving such students.
[[Page 115 STAT. 1829]]
``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
``(1) use a peer review process in reviewing applications
under this subpart;
``(2) ensure that information on the activities and results
of programs and projects funded under this subpart is
disseminated to appropriate State educational agencies, local
educational agencies, and other appropriate organizations,
including nonprofit private organizations; and
``(3) <<NOTE: Deadline.>> evaluate the effectiveness of
programs under this subpart in accordance with section 9601, in
terms of the impact on students traditionally served in separate
gifted and talented programs and on other students, and submit
the results of such evaluation to Congress not later than 2
years after the date of enactment of the No Child Left Behind
Act of 2001.
``(c) Program Operations.--The Secretary shall ensure that the
programs under this subpart are administered within the Department by a
person who has recognized professional qualifications and experience in
the field of the education of gifted and talented students and who
shall--
``(1) administer and coordinate the programs authorized
under this subpart;
``(2) serve as a focal point of national leadership and
information on the educational needs of gifted and talented
students and the availability of educational services and
programs designed to meet such needs;
``(3) assist the Assistant Secretary for Educational
Research and Improvement in identifying research priorities that
reflect the needs of gifted and talented students; and
``(4) shall disseminate, and consult on, the information
developed under this subpart with other offices within the
Department.
``Subpart <<NOTE: Star Schools Act.>> 7--Star Schools Program
``SEC. 5471. <<NOTE: 20 USC 7255.>> SHORT TITLE.
``This subpart may be cited as the `Star Schools Act'.
``SEC. 5472. <<NOTE: 20 USC 7255a.>> PURPOSES.
``The purposes of this subpart are the following:
``(1) To encourage improved instruction in mathematics,
science, and foreign languages as well as other subjects (such
as literacy skills and vocational education).
``(2) To serve underserved populations, including
disadvantaged, illiterate, limited English proficient
populations, and individuals with disabilities through a Star
Schools program under which grants are made to eligible
telecommunication partnerships to enable such partnerships--
``(A) to develop, construct, acquire, maintain, and
operate telecommunications audio and visual facilities
and equipment;
``(B) to develop and acquire educational and
instructional programming; and
``(C) to obtain technical assistance for the use of
such facilities and instructional programming.
[[Page 115 STAT. 1830]]
``SEC. 5473. <<NOTE: 20 USC 7255b.>> GRANT PROGRAM AUTHORIZED.
``(a) Authorization.--The Secretary, in conjunction with the Office
of Educational Technology, is authorized to make grants, in accordance
with the provisions of this subpart, to eligible entities to pay the
Federal share of the cost of the following:
``(1) Development, construction, acquisition, maintenance,
and operation of telecommunications facilities and equipment.
``(2) Development and acquisition of live, interactive
instructional programming.
``(3) Development and acquisition of preservice and
inservice teacher training programs based on established
research regarding teacher-to-teacher mentoring, and ongoing,
in-class instruction.
``(4) Establishment of teleconferencing facilities and
resources for making interactive training available to teachers.
``(5) Obtaining technical assistance.
``(6) Coordination of the design and connectivity of
telecommunications networks to reach the greatest number of
schools.
``(b) Duration and Amount.--
``(1) In general.--A grant under this section may not
exceed--
``(A) 5 years in duration (subject to subsection
(c)); and
``(B) $10,000,000 in any single fiscal year.
``(c) Renewal.--
``(1) In general.--Grants awarded under subsection (a) may
be renewed for a single additional period of 3 years.
``(2) Continuing Eligibility.--In order to be eligible to
receive a grant renewal under this subsection, a grant recipient
shall demonstrate, to the satisfaction of the Secretary, in an
addendum to its application submitted under section 5474, that
the grant recipient will--
``(A) continue to provide services in the subject
areas and geographic areas assisted with funds received
under this subpart for the previous grant period; and
``(B) use all grant funds received under this
subpart for the 3 year renewal period to provide
expanded services by--
``(i) increasing the number of students,
schools, or school districts served by the courses
of instruction assisted under this part in the
previous fiscal year;
``(ii) providing new courses of instruction;
and
``(iii) serving new populations of underserved
individuals, such as children or adults who are
disadvantaged, have limited English proficiency,
are individuals with disabilities, are illiterate,
or lack secondary school diplomas or their
recognized equivalent.
``(3) Supplement, not supplant.--Grant funds received under
this subsection shall be used to supplement, and not supplant,
services provided by the grant recipient under this subpart in
the previous fiscal year.
``(d) Reservations.--
``(1) Instructional programming.--At least 25 percent of the
funds made available to the Secretary for any fiscal year under
this subpart shall be used for the cost of instructional
programming.
[[Page 115 STAT. 1831]]
``(2) Local educational agency assistance.--At least 50
percent of the funds available in any fiscal year under this
subpart shall be used for the cost of facilities, equipment,
teacher training or retraining, technical assistance, or
programming, for local educational agencies that are eligible to
receive assistance under part A of title I.
``(e) Federal Share.--
``(1) Amount.--The Federal share of the cost of projects
funded under this section shall not exceed the following
amounts:
``(A) 75 percent for the first and second years for
which an eligible telecommunications partnership
receives a grant under this subpart.
``(B) 60 percent for the third and fourth such
years.
``(C) 50 percent for the fifth such year.
``(2) Reduction or waiver.--The Secretary may reduce or
waive the corresponding non-Federal share under paragraph (1)
upon a showing of financial hardship.
``(f) Required local educational agency participation.--The
Secretary is authorized to make a grant under this section to any
eligible entity, if at least one local educational agency is
participating in the proposed program.
``(g) Assistance Obtaining Satellite Time.--The Secretary may assist
recipients of grants made under this section in acquiring satellite
time, where appropriate, as economically as possible.
``SEC. 5474. <<NOTE: 20 USC 7255c.>> APPLICATIONS.
``(a) Submission.--Each eligible entity that desires to receive a
grant under section 5473 shall submit an application to the Secretary,
at such time, in such manner, and containing or accompanied by such
information as the Secretary may reasonably require.
``(b) Contents.--An application submitted under subsection (a) shall
include each of the following:
``(1) A description of how the proposed program will assist
all students to have an opportunity to meet challenging State
academic achievement standards, how such program will assist
State and local educational reform efforts, and how such program
will contribute to creating a high-quality system of educational
development.
``(2) A description of the telecommunications facilities and
equipment and technical assistance for which assistance is
sought, which may include--
``(A) the design, development, construction,
acquisition, maintenance, and operation of State or
multistate educational telecommunications networks and
technology resource centers;
``(B) microwave, fiber optics, cable, and satellite
transmission equipment or any combination thereof;
``(C) reception facilities;
``(D) satellite time;
``(E) production facilities;
``(F) other telecommunications equipment capable of
serving a wide geographic area;
``(G) the provision of training services to
instructors who will be using the facilities and
equipment for which
[[Page 115 STAT. 1832]]
assistance is sought, including training in using such
facilities and equipment and training in integrating
programs into the classroom curriculum; and
``(H) the development of educational and related
programming for use on a telecommunications network.
``(3) In the case of an application for assistance for
instructional programming, a description of the types of
programming that will be developed to enhance instruction and
training and provide an assurance that such programming will be
designed in consultation with professionals (including classroom
teachers) who are experts in the applicable subject matter and
grade level.
``(4) A description of how the eligible entity has engaged
in sufficient survey and analysis of the area to be served to
ensure that the services offered by the eligible entity will
increase the availability of courses of instruction in English,
mathematics, science, foreign languages, arts, history,
geography, or other disciplines.
``(5) A description of the professional development policies
for teachers and other school personnel to be implemented to
ensure the effective use of the telecommunications facilities
and equipment for which assistance is sought.
``(6) A description of the manner in which historically
underserved students (such as students from low-income families,
limited English proficient students, students with disabilities,
or students who have low literacy skills) and their families,
will participate in the benefits of the telecommunications
facilities, equipment, technical assistance, and programming
assisted under this subpart.
``(7) A description of how existing telecommunications
equipment, facilities, and services, where available, will be
used.
``(8) An assurance that the financial interest of the United
States in the telecommunications facilities and equipment will
be protected for the useful life of such facilities and
equipment.
``(9) An assurance that a significant portion of any
facilities and equipment, technical assistance, and programming
for which assistance is sought for elementary schools and
secondary schools will be made available to schools or local
educational agencies that have a high number or percentage of
children eligible to be counted under part A of title I.
``(10) An assurance that the applicant will use the funds
provided under this subpart to supplement, and not supplant,
funds available for the purposes of this subpart.
``(11) A description of how funds received under this
subpart will be coordinated with funds received for educational
technology in the classroom.
``(12) A description of the activities or services for which
assistance is sought, such as--
``(A) providing facilities, equipment, training
services, and technical assistance;
``(B) making programs accessible to students with
disabilities through mechanisms such as closed
captioning and descriptive video services;
``(C) linking networks around issues of national
importance (such as elections) or to provide information
about
[[Page 115 STAT. 1833]]
employment opportunities, job training, or student and
other social service programs;
``(D) sharing curriculum resources between networks
and development of program guides which demonstrate
cooperative, cross-network listing of programs for
specific curriculum areas;
``(E) providing teacher and student support
services, including classroom and training support
materials which permit student and teacher involvement
in the live interactive distance learning telecasts;
``(F) incorporating community resources, such as
libraries and museums, into instructional programs;
``(G) providing professional development for
teachers, including, as appropriate, training to early
childhood development and Head Start teachers and staff
and vocational education teachers and staff, and adult
and family educators;
``(H) providing programs for adults to maximize the
use of telecommunications facilities and equipment;
``(I) providing teacher training on proposed or
established models of exemplary academic content
standards in mathematics and science and other
disciplines as such standards are developed; and
``(J) providing parent education programs during and
after the regular school day which reinforce a student's
course of study and actively involve parents in the
learning process.
``(13) A description of how the proposed program as a whole
will be financed and how arrangements for future financing will
be developed before the program expires.
``(14) An assurance that a significant portion of any
facilities, equipment, technical assistance, and programming for
which assistance is sought for elementary schools and secondary
schools will be made available to schools in local educational
agencies that have a high percentage of children counted for the
purpose of part A of title I.
``(15) An assurance that the applicant will provide such
information and cooperate in any evaluation that the Secretary
may conduct under this subpart.
``(16) Such additional assurances as the Secretary may
reasonably require.
``(c) Approval.--In approving applications submitted under
subsection (a) for grants under section 5473, the Secretary shall--
``(1) to the extent feasible, ensure an equitable geographic
distribution of services provided under this subpart.
``(2) give priority to applications describing programs
that--
``(A) propose high-quality plans, will provide
instruction consistent with State academic content
standards, or will otherwise provide significant and
specific assistance to States and local educational
agencies undertaking systemic education reform;
``(B) will provide services to programs serving
adults, especially parents, with low levels of literacy;
``(C) will serve schools with significant numbers of
children counted for the purposes of part A of title I;
``(D) ensure that the eligible entity will--
[[Page 115 STAT. 1834]]
``(i) serve the broadest range of
institutions, programs providing instruction
outside of the school setting, programs serving
adults, especially parents, with low levels of
literacy, institutions of higher education,
teacher training centers, research institutes, and
private industry;
``(ii) have substantial academic and teaching
capabilities, including the capability of
training, retraining, and inservice upgrading of
teaching skills and the capability to provide
professional development;
``(iii) provide a comprehensive range of
courses for educators to teach instructional
strategies for students with different skill
levels;
``(iv) provide training to participating
educators in ways to integrate telecommunications
courses into existing school curriculum;
``(v) provide instruction for students,
teachers, and parents;
``(vi) serve a multistate area; and
``(vii) give priority to the provision of
equipment and linkages to isolated areas; and
``(E) involve a telecommunications entity (such as a
satellite, cable, telephone, computer, or public or
private television stations) participating in the
eligible entity and donating equipment or in-kind
services for telecommunications linkages.
``SEC. 5475. <<NOTE: 20 USC 7255d.>> OTHER GRANT ASSISTANCE.
``(a) Special Statewide Network.--
``(1) In general.--The Secretary, in conjunction with the
Office of Educational Technology, may provide assistance to a
statewide telecommunications network if such network--
``(A) provides 2-way full-motion interactive video
and audio communications;
``(B) links together public colleges and
universities and secondary schools throughout the State;
and
``(C) meets any other requirements determined
appropriate by the Secretary.
``(2) Matching contribution.--A statewide telecommunications
network assisted under paragraph (1) shall contribute, either
directly or through private contributions, non-Federal funds
equal to not less than 50 percent of the cost of such network.
``(b) Special Local Network.--
``(1) In general.--The Secretary is authorized to provide
assistance, on a competitive basis, to a local educational
agency, or a consortium of such agencies, to enable such agency
or consortium to establish a high-technology demonstration
program.
``(2) Program requirements.--A high-technology demonstration
program assisted under paragraph (1) shall--
``(A) include 2-way full-motion interactive video,
audio, and text communications;
``(B) link together elementary schools and secondary
schools, colleges, and universities;
``(C) provide parent participation and family
programs;
``(D) include a staff development program; and
[[Page 115 STAT. 1835]]
``(E) have a significant contribution and
participation from business and industry.
``(3) Matching requirement.--A local educational agency or
consortium receiving a grant under paragraph (1) shall provide,
either directly or through private contributions, non-Federal
matching funds equal to not less than 50 percent of the amount
of the grant.
``(c) Telecommunications Programs for Continuing Education.--
``(1) Authority.--The Secretary is authorized to award
grants, on a competitive basis, to eligible entities to develop
and operate one or more programs that provide online access to
educational resources in support of continuing education and
curriculum requirements relevant to achieving a secondary school
diploma or its recognized equivalent. The program authorized by
this subsection shall be designed to advance adult literacy,
secondary school completion, and the acquisition of specified
competency by the end of the 12th grade.
``(2) Applications.--Each eligible entity desiring a grant
under this subsection shall submit an application to the
Secretary. The application shall include each of the following:
``(A) A demonstration that the applicant will use
publicly funded or free public telecommunications
infrastructure to deliver video, voice, and data in an
integrated service to support and assist in the
acquisition of a secondary school diploma or its
recognized equivalent.
``(B) An assurance that the content of the materials
to be delivered is consistent with the accreditation
requirements of the State for which such materials are
used.
``(C) To the extent feasible, materials developed in
the Federal departments and agencies and under
appropriate federally funded programs.
``(D) An assurance that the applicant has the
technological and substantive experience to carry out
the program.
``(E) Such additional assurances as the Secretary
may reasonably require.
``SEC. 5476. <<NOTE: 20 USC 7255e.>> ADMINISTRATIVE PROVISIONS.
``(a) Leadership, Evaluation, and Peer Review.--
``(1) Reservation of funds.--The Secretary may reserve not
more than 5 percent of the amount made available to carry out
this subpart for a fiscal year for national leadership,
evaluation, and peer review activities, which the Secretary may
carry out directly or through grants, contracts, and cooperative
agreements.
``(2) Leadership.--Funds reserved for leadership activities
under paragraph (1) may be used for--
``(A) disseminating information, including lists and
descriptions of services available from grant recipients
under this subpart; and
``(B) other activities designed to enhance the
quality of distance learning activities nationwide.
``(3) Evaluation.--Funds reserved for evaluation activities
under paragraph (1) may be used to conduct independent
evaluations of the activities assisted under this subpart and of
distance learning in general, including--
[[Page 115 STAT. 1836]]
``(A) analyses of distance learning efforts
(including such efforts that are, or are not, assisted
under this subpart); and
``(B) comparisons of the effects (including student
outcomes) of different technologies in distance learning
efforts.
``(4) Peer review.--Funds reserved for peer review
activities under paragraph (1) may be used for peer review of--
``(A) applications for grants under this subpart;
and
``(B) activities assisted under this subpart.
``(b) Coordination.--The Department, the National Science
Foundation, the Department of Agriculture, the Department of Commerce,
and any other Federal department or agency operating a
telecommunications network for educational purposes, shall coordinate
the activities assisted under this subpart with the activities of such
department or agency relating to a telecommunications network for
educational purposes.
``(c) Funds From Other Agencies.--The Secretary may accept funds
from other Federal departments or agencies to carry out the purposes of
this subpart, including funds for the purchase of equipment.
``(d) Availability of Funds.--Funds made available to carry out this
subpart shall remain available until expended.
``(e) Closed Captioning and Descriptive Video.--The Secretary shall
encourage each entity receiving funds under this subpart to provide--
``(1) closed captioning of the verbal content of the
entity's programming, as appropriate; and
``(2) descriptive video of the visual content of the
entity's programming, as appropriate.
``SEC. 5477. <<NOTE: 20 USC 7255f.>> DEFINITIONS.
``In this subpart:
``(1) Educational institution.--The term `educational
institution' means an institution of higher education, a local
educational agency, or a State educational agency.
``(2) Eligible entity.--The term `eligible entity' includes
any of the following that is organized on a Statewide or
multistate basis:
``(A) A public agency or corporation established for
the purpose of developing and operating
telecommunications networks to enhance educational
opportunities provided by educational institutions,
teacher training centers, and other entities, except
that any such agency or corporation shall represent the
interests of elementary schools and secondary schools
that are eligible to participate in the program under
part A of title I.
``(B) A partnership that will provide
telecommunications services and that includes three or
more of the following entities, at least one of which
shall be an agency described in clause (i) or (ii):
``(i) A local educational agency that serves a
significant number of elementary schools and
secondary schools that are eligible for assistance
under part A of title I, or elementary schools and
secondary schools operated or funded for Indian
children by the Department of the Interior
eligible under section 1121(d)(1)(A).
[[Page 115 STAT. 1837]]
``(ii) A State educational agency.
``(iii) An adult and family education program.
``(iv) An institution of higher education or a
State higher education agency (as that term is
defined in section 103 of the Higher Education Act
of 1965 (20 U.S.C. 1003)).
``(v) A teacher training center or academy
that--
``(I) provides teacher preservice
and inservice training; and
``(II) receives Federal financial
assistance or has been approved by a
State agency;
``(vi)(I) A public or private entity with
experience and expertise in the planning and
operation of a telecommunications network,
including entities involved in telecommunications
through satellite, cable, telephone, or computer;
or
``(II) a public broadcasting entity with such
experience.
``(vii) A public or private elementary school
or secondary school.
``(3) Instructional programming.--The term `instructional
programming' means courses of instruction and training courses
for elementary and secondary students, teachers, and others, and
materials for use in such instruction and training that have
been prepared in audio and visual form on tape, disc, film, or
live, and presented by means of telecommunications devices.
``(4) Public broadcasting entity.--The term `public
broadcasting entity' has the same meaning given such term in
section 397 of the Communications Act of 1934 (47 U.S.C. 397).
``Subpart 8--Ready to Teach
``SEC. 5481. <<NOTE: 20 USC 7257.>> GRANTS.
``(a) In General.--The Secretary is authorized to award grants to a
nonprofit telecommunications entity, or partnership of such entities,
for the purpose of carrying out a national telecommunications-based
program to improve teaching in core curriculum areas. The program shall
be designed to assist elementary school and secondary school teachers in
preparing all students to achieve challenging State academic content and
student academic achievement standards in core curriculum areas.
``(b) Digital Educational Programming.--The Secretary is authorized
to award grants, as provided for in section 5484, to eligible entities
described in subsection (b) of such section, to enable such entities to
develop, produce, and distribute innovative educational and
instructional video programming that is designed for use by elementary
schools and secondary schools and based on challenging State academic
content and student academic achievement standards. In awarding such
grants, the Secretary shall ensure that eligible entities enter into
multiyear content development collaborative arrangements with State
educational agencies, local educational agencies, institutions of higher
education, businesses, or other agencies or organizations.
[[Page 115 STAT. 1838]]
``SEC. 5482. <<NOTE: 20 USC 7257a.>> APPLICATION REQUIRED.
``(a) General Application.--
``(1) In general.--To be eligible to receive a grant under
section 5481(a), a nonprofit telecommunications entity, or
partnership of such entities shall submit an application to the
Secretary. Each such application shall--
``(A) demonstrate that the applicant will use the
public broadcasting infrastructure, the Internet, and
school digital networks, where available, to deliver
video and data in an integrated service to train
teachers in the use of materials and learning
technologies for achieving challenging State academic
content and student academic achievement standards;
``(B) ensure that the project for which assistance
is sought will be conducted in cooperation with
appropriate State educational agencies, local
educational agencies, and State or local nonprofit
public telecommunications entities;
``(C) ensure that a significant portion of the
benefits available for elementary schools and secondary
schools from the project for which assistance is sought
will be available to schools of local educational
agencies that have a high percentage of children counted
for the purpose of part A of title I; and
``(D) contain such additional assurances as the
Secretary may reasonably require.
``(2) Sites.--In approving applications under paragraph (1),
the Secretary shall ensure that the program authorized by
section 5481(a) is conducted at elementary school and secondary
school sites throughout the United States.
``(b) Programming Application.--To be eligible to receive a grant
under section 5481(b), an entity shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require.
``SEC. 5483. <<NOTE: 20 USC 7257b.>> REPORTS AND EVALUATION.
``An entity receiving a grant under section 5481(a) shall prepare
and submit to the Secretary an annual report that contains such
information as the Secretary may require. At a minimum, such report
shall describe the program activities undertaken with funds received
under the grant, including--
``(1) the core curriculum areas for which program activities
have been undertaken and the number of teachers using the
program in each core curriculum area; and
``(2) the States in which teachers using the program are
located.
``SEC. 5484. <<NOTE: 20 USC 7257c.>> DIGITAL EDUCATIONAL PROGRAMMING
GRANTS.
``(a) Grants.--The Secretary is authorized to award grants under
section 5481(b) to eligible entities to facilitate the development of
educational programming that shall--
``(1) include student assessment tools to provide feedback
on student academic achievement;
``(2) include built-in teacher utilization and support
components to ensure that teachers understand and can easily use
the content of the programming with group instruction or for
individual student use;
[[Page 115 STAT. 1839]]
``(3) be created for, or adaptable to, challenging State
academic content standards and student academic achievement
standards; and
``(4) be capable of distribution through digital
broadcasting and school digital networks.
``(b) Eligible Entities.--To be eligible to receive a grant under
section 5481(b), an entity shall be a local public telecommunications
entity, as defined in section 397(12) of the Communications Act of 1934,
that is able to demonstrate a capacity for the development and
distribution of educational and instructional television programming of
high quality.
``(c) Competitive Basis.--Grants under section 5481(b) shall be
awarded on a competitive basis as determined by the Secretary.
``(d) Matching Requirement.--To be eligible to receive a grant under
section 5481(b), an entity shall contribute to the activities assisted
under such grant non-Federal matching funds in an amount equal to not
less than 100 percent of the amount of the grant. Such matching funds
may include funds provided for the transition to digital broadcasting,
as well as in-kind contributions.
``(e) Duration.--A grant under section 5481(b) shall be awarded for
a period of 3 years in order to provide a sufficient period of time for
the creation of a substantial body of significant content.
``SEC. 5485. <<NOTE: 20 USC 7257d.>> ADMINISTRATIVE COSTS.
``An entity that receives a grant under this subpart may not use
more than 5 percent of the amount received under the grant for
administrative costs.
``Subpart <<NOTE: Foreign Language Assistance Act of 2001.>> 9--Foreign
Language Assistance Program
``SEC. 5491. <<NOTE: 20 USC 7259.>> SHORT TITLE.
``This subpart may be cited as the `Foreign Language Assistance Act
of 2001'.
``SEC. 5492. <<NOTE: 20 USC 7259a.>> PROGRAM AUTHORIZED.
``(a) Program Authority.--
``(1) In general.--The Secretary is authorized to make
grants, on a competitive basis, to State educational agencies or
local educational agencies to pay the Federal share of the cost
of innovative model programs providing for the establishment,
improvement, or expansion of foreign language study for
elementary school and secondary school students.
``(2) Duration.--Each grant under paragraph (1) shall be
awarded for a period of 3 years.
``(b) Requirements.--
``(1) Grants to state educational agencies.--In awarding a
grant under subsection (a) to a State educational agency, the
Secretary shall support programs that promote systemic
approaches to improving foreign language learning in the State.
``(2) Grants to local educational agencies.--In awarding a
grant under subsection (a) to a local educational agency, the
Secretary shall support programs that--
``(A) show the promise of being continued beyond the
grant period;
[[Page 115 STAT. 1840]]
``(B) demonstrate approaches that can be
disseminated and duplicated in other local educational
agencies; and
``(C) may include a professional development
component.
``(c) Federal Share.--
``(1) In general.--The Federal share for each fiscal year
shall be 50 percent.
``(2) Waiver.--Notwithstanding paragraph (1), the Secretary
may determine the Federal share for any local educational agency
which the Secretary determines does not have adequate resources
to pay the non-Federal share of the cost of the activities
assisted under this subpart.
``(d) Special rule.--Not less than \3/4\ of the funds made available
under section 5401 to carry out this subpart shall be used for the
expansion of foreign language learning in the elementary grades.
``(e) Reservation.--The Secretary may reserve not more than 5
percent of funds made available under section 5401 to carry out this
subpart for a fiscal year to evaluate the efficacy of programs assisted
under this subpart.
``SEC. 5493. <<NOTE: 20 USC 7259b.>> APPLICATIONS.
``(a) In General.--Any State educational agency or local educational
agency desiring a grant under this subpart shall submit an application
to the Secretary at such time, in such manner, and containing such
information and assurances as the Secretary may require.
``(b) Special Consideration.--The Secretary shall give special
consideration to applications describing programs that--
``(1) include intensive summer foreign language programs for
professional development;
``(2) link nonnative English speakers in the community with
the schools in order to promote two-way language learning;
``(3) promote the sequential study of a foreign language for
students, beginning in elementary schools;
``(4) make effective use of technology, such as computer-
assisted instruction, language laboratories, or distance
learning, to promote foreign language study;
``(5) promote innovative activities, such as foreign
language immersion, partial foreign language immersion, or
content-based instruction; and
``(6) are carried out through a consortium comprised of the
agency receiving the grant and an elementary school or secondary
school.
``SEC. 5494. <<NOTE: 20 USC 7259c.>> ELEMENTARY SCHOOL FOREIGN LANGUAGE
INCENTIVE PROGRAM.
``(a) Incentive Payments.--From amounts made available under section
5401 to carry out this subpart, the Secretary shall make an incentive
payment for each fiscal year to each public elementary school that
provides to students attending such school a program designed to lead to
communicative competency in a foreign language.
``(b) Amount.--The Secretary shall determine the amount of the
incentive payment under subsection (a) for each public elementary school
for each fiscal year on the basis of the number of students
participating in a program described in such subsection at such school
for such year compared to the total number of
[[Page 115 STAT. 1841]]
such students at all such schools in the United States for such year.
``(c) Requirement.--The Secretary shall consider a program to be
designed to lead to communicative competency in a foreign language if
such program is comparable to a program that provides not less than 45
minutes of instruction in a foreign language for not fewer than 4 days
per week throughout an academic year.
``Subpart <<NOTE: Carol M. White Physical Education Program.>> 10--
Physical Education
``SEC. 5501. <<NOTE: 20 USC 7261.>> SHORT TITLE.
``This subpart may be cited as the `Carol M. White Physical
Education Program'.
``SEC. 5502. <<NOTE: 20 USC 7261a.>> PURPOSE.
``The purpose of this subpart is to award grants and contracts to
initiate, expand, and improve physical education programs for all
kindergarten through 12th-grade students.
``SEC. 5503. <<NOTE: 20 USC 7261b.>> PROGRAM AUTHORIZED.
``(a) Authorization.--The Secretary is authorized to award grants to
local educational agencies and community-based organizations (such as
Boys and Girls Clubs, Boy Scouts and Girl Scouts, and the Young Men's
Christian Organization (YMCA) and Young Women's Christian Organization
(YWCA)) to pay the Federal share of the costs of initiating, expanding,
and improving physical education programs (including after-school
programs) for kindergarten through 12th-grade students by--
``(1) providing equipment and support to enable students to
participate actively in physical education activities; and
``(2) providing funds for staff and teacher training and
education.
``(b) Program Elements.--A physical education program funded under
this subpart may provide for one or more of the following:
``(1) Fitness education and assessment to help students
understand, improve, or maintain their physical well-being.
``(2) Instruction in a variety of motor skills and physical
activities designed to enhance the physical, mental, and social
or emotional development of every student.
``(3) Development of, and instruction in, cognitive concepts
about motor skill and physical fitness that support a lifelong
healthy lifestyle.
``(4) Opportunities to develop positive social and
cooperative skills through physical activity participation.
``(5) Instruction in healthy eating habits and good
nutrition.
``(6) Opportunities for professional development for
teachers of physical education to stay abreast of the latest
research, issues, and trends in the field of physical education.
``(c) Special Rule.--For the purpose of this subpart,
extracurricular activities, such as team sports and Reserve Officers'
Training Corps (ROTC) program activities, shall not be considered as
part of the curriculum of a physical education program assisted under
this subpart.
``SEC. 5504. <<NOTE: 20 USC 7261c.>> APPLICATIONS.
``(a) Submission.--Each local educational agency or community-based
organization desiring a grant or contract under this subpart
[[Page 115 STAT. 1842]]
shall submit to the Secretary an application that contains a plan to
initiate, expand, or improve physical education programs in order to
make progress toward meeting State standards for physical education.
``(b) Private School and Home-Schooled Students.--An application for
funds under this subpart may provide for the participation, in the
activities funded under this subpart, of--
``(1) students enrolled in private nonprofit elementary
schools or secondary schools, and their parents and teachers; or
``(2) home-schooled students, and their parents and
teachers.
``SEC. 5505. <<NOTE: 20 USC 7261d.>> REQUIREMENTS.
``(a) Annual Report to the Secretary.--In order to continue
receiving funding after the first year of a multiyear grant or contract
under this subpart, the administrator of the grant or contract for the
local educational agency or community-based organization shall submit to
the Secretary an annual report that--
``(1) describes the activities conducted during the
preceding year; and
``(2) demonstrates that progress has been made toward
meeting State standards for physical education.
``(b) Administrative Expenses.--Not more than 5 percent of the grant
funds made available to a local educational agency or community-based
organization under this subpart for any fiscal year may be used for
administrative expenses.
``SEC. 5506. <<NOTE: 20 USC 7261e.>> ADMINISTRATIVE PROVISIONS.
``(a) Federal Share.--The Federal share under this subpart may not
exceed--
``(1) 90 percent of the total cost of a program for the
first year for which the program receives assistance under this
subpart; and
``(2) 75 percent of such cost for the second and each
subsequent such year.
``(b) Proportionality.--To the extent practicable, the Secretary
shall ensure that grants awarded under this subpart shall be equitably
distributed among local educational agencies and community-based
organizations serving urban and rural areas.
``(c) <<NOTE: Deadline.>> Report to Congress.--Not later than June
1, 2003, the Secretary shall submit a report to Congress that--
``(1) describes the programs assisted under this subpart;
``(2) documents the success of such programs in improving
physical fitness; and
``(3) makes such recommendations as the Secretary determines
appropriate for the continuation and improvement of the programs
assisted under this subpart.
``(d) Availability of Funds.--Amounts made available to the
Secretary to carry out this subpart shall remain available until
expended.
``SEC. 5507. <<NOTE: 20 USC 7261f.>> SUPPLEMENT, NOT SUPPLANT.
``Funds made available under this subpart shall be used to
supplement, and not supplant, any other Federal, State, or local funds
available for physical education activities.
[[Page 115 STAT. 1843]]
``Subpart 11--Community Technology Centers
``SEC. 5511. <<NOTE: 20 USC 7263.>> PURPOSE AND PROGRAM AUTHORIZATION.
``(a) Purpose.--It is the purpose of this subpart to assist eligible
applicants--
``(1) to create or expand community technology centers that
will provide disadvantaged residents of economically distressed
urban and rural communities with access to information
technology and related training; and
``(2) to provide technical assistance and support to
community technology centers.
``(b) Program Authorization.--The Secretary is authorized, in
conjunction with the Office of Educational Technology, to award grants,
contracts, or cooperative agreements, on a competitive basis, for a
period of not more than 3 years, to eligible applicants in order to
assist such applicants in--
``(1) creating or expanding community technology centers; or
``(2) providing technical assistance and support to
community technology centers.
``(3) Service of americorps participants.--The Secretary may
collaborate with the Chief Executive Officer of the Corporation
for National and Community Service on the use in community
technology centers of participants in National Service programs
carried out under subtitle C of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
``SEC. 5512. <<NOTE: 20 USC 7263a.>> ELIGIBILITY AND APPLICATION
REQUIREMENTS.
``(a) Eligible Applicants.--In order to be eligible to receive an
award under this subpart, an applicant shall--
``(1) be an entity (such as a foundation, museum, library,
for-profit business, public or private nonprofit organization,
or community-based organization), an institution of higher
education, a State educational agency, a local education agency,
or a consortium of such entities, institutions, or agencies; and
``(2) have the capacity to significantly expand access to
computers and related services for disadvantaged residents of
economically distressed urban and rural communities (who would
otherwise be denied such access).
``(b) Application Requirements.--In order to receive an award under
this subpart, an eligible applicant shall submit an application to the
Secretary at such time, and containing such information, as the
Secretary may require. The application shall include each of the
following:
``(1) A description of the proposed project, including a
description of the magnitude of the need for the services and
how the project would expand access to information technology
and related services to disadvantaged residents of an
economically distressed urban or rural community.
``(2) A demonstration of--
``(A) the commitment, including the financial
commitment, of entities (such as institutions,
organizations, business and other groups in the
community) that will provide support for the creation,
expansion, and continuation of the proposed project; and
``(B) the extent to which the proposed project
coordinates with other appropriate agencies, efforts,
and
[[Page 115 STAT. 1844]]
organizations providing services to disadvantaged
residents of an economically distressed urban or rural
community.
``(3) A description of how the proposed project would be
sustained once the Federal funds awarded under this subpart end.
``(4) A plan for the evaluation of the program, which shall
include benchmarks to monitor progress toward specific project
objectives.
``(c) Matching Requirements.--The Federal share of the cost of any
project funded under this subpart shall not exceed 50 percent. The non-
Federal share of such project may be in cash or in kind, fairly
evaluated, including services.
``SEC. 5513. <<NOTE: 20 USC 7263b.>> USES OF FUNDS.
``(a) Required Uses.--A recipient shall use funds under this subpart
for--
``(1) creating or expanding community technology centers
that expand access to information technology and related
training for disadvantaged residents of distressed urban or
rural communities; and
``(2) evaluating the effectiveness of the project.
``(b) Permissible Uses.--A recipient may use funds under this
subpart for activities, described in its application, that carry out the
purposes of this subpart, such as--
``(1) supporting a center coordinator, and staff, to
supervise instruction and build community partnerships;
``(2) acquiring equipment, networking capabilities, and
infrastructure to carry out the project; and
``(3) developing and providing services and activities for
community residents that provide access to computers,
information technology, and the use of such technology in
support of preschool preparation, academic achievement,
educational development, and workforce development, such as the
following:
``(A) After-school activities in which children and
youths use software that provides academic enrichment
and assistance with homework, develop their technical
skills, explore the Internet, and participate in
multimedia activities, including web page design and
creation.
``(B) Adult education and family literacy activities
through technology and the Internet, including--
``(i) General Education Development, Language
Instruction Educational Programs, and adult basic
education classes or programs;
``(ii) introduction to computers;
``(iii) intergenerational activities; and
``(iv) educational development opportunities.
``(C) Career development and job preparation
activities, such as--
``(i) training in basic and advanced computer
skills;
``(ii) resume writing workshops; and
``(iii) access to databases of employment
opportunities, career information, and other
online materials.
``(D) Small business activities, such as--
``(i) computer-based training for basic
entrepreneurial skills and electronic commerce;
and
``(ii) access to information on business
start-up programs that is available online, or
from other sources.
[[Page 115 STAT. 1845]]
``(E) Activities that provide home access to
computers and technology, such as assistance and
services to promote the acquisition, installation, and
use of information technology in the home through low-
cost solutions such as networked computers, web-based
television devices, and other technology.
``Subpart <<NOTE: Alaska Native and Native Hawaiian Education Through
Cultural and Historical Organizations Act.>> 12--Educational, Cultural,
Apprenticeship, and Exchange Programs for Alaska Natives, Native
Hawaiians, and Their Historical Whaling and Trading Partners in
Massachusetts
``SEC. 5521. <<NOTE: 20 USC 7265.>> SHORT TITLE.
``This subpart may be cited as the `Alaska Native and Native
Hawaiian Education Through Cultural and Historical Organizations Act'.
``SEC. 5522. <<NOTE: 20 USC 7265a.>> FINDINGS AND PURPOSES.
``(a) Findings.--Congress finds the following:
``(1) Alaska Natives and Native Hawaiians have been linked
for over 200 years to the coastal towns of Salem, Massachusetts,
and New Bedford, Massachusetts, through the China trade from
Salem and whaling voyages from New Bedford.
``(2) Nineteenth-century trading ships sailed from Salem,
Massachusetts, around Cape Horn of South America, and up the
Northwest coast of the United States to Alaska, where their
crews traded with Alaska Native people for furs, and then went
on to Hawaii to trade for sandalwood with Native Hawaiians
before going on to China.
``(3) During the 19th century, over 2,000 whaling voyages
sailed out of New Bedford, Massachusetts to the Arctic region of
Alaska, and joined Alaska Natives from Barrow, Alaska and other
areas in the Arctic region in subsistence whaling activities.
``(4) Many New Bedford whaling voyages continued on to
Hawaii, where they joined Native Hawaiians from the neighboring
islands.
``(5) From those commercial and whaling voyages, a rich
cultural exchange and strong trading relationships developed
among the three peoples involved.
``(6) In the past decades, awareness of the historical
trading, cultural, and whaling links has faded among Alaska
Natives, Native Hawaiians, and the people of the continental
United States.
``(7) In 2000, the Alaska Native Heritage Center in Alaska,
the Bishop Museum in Hawaii, and the Peabody-Essex Museum in
Massachusetts initiated the New Trade Winds project to use 21st-
century technology, including the Internet, to educate students
and their parents about historic and contemporary cultural and
trading ties that continue to link the diverse cultures of the
peoples involved.
``(8) The New Bedford Whaling Museum, in partnership with
the New Bedford Whaling National Historical Park, has developed
a cultural exchange and educational program with the Inupiat
Heritage Center in Barrow, Alaska to bring together the
children, parents, and elders from the Arctic region of
[[Page 115 STAT. 1846]]
Alaska with children and families of Massachusetts to learn
about their historical ties and about each other's contemporary
cultures.
``(9) Within the fast-growing cultural sector, meaningful
educational and career opportunities based on traditional
relationships exist for Alaska Natives, Native Hawaiians, and
low-income youth in Massachusetts.
``(10) Cultural institutions can provide practical,
culturally relevant, education-related internship and apprentice
programs, such as the Museum Action Corps at the Peabody-Essex
Museum and similar programs at the New Bedford Oceanarium and
other institutions, to prepare youths and their families for
careers in the cultural sector.
``(11) The resources of the institutions described in
paragraphs (7) and (8) provide unique opportunities for
illustrating and interpreting the contributions of Alaska
Natives, Native Hawaiians, the whaling industry, and the China
trade to the economic, social, and environmental history of the
United States, for educating students and their parents, and for
providing opportunities for internships and apprenticeships
leading to careers with cultural institutions.
``(b) Purposes.--The purposes of this subpart are the following:
``(1) To authorize and develop innovative culturally-based
educational programs and cultural exchanges to assist Alaska
Natives, Native Hawaiians, and children and families of
Massachusetts linked by history and tradition to Alaska and
Hawaii to learn about shared culture and traditions.
``(2) To authorize and develop internship and apprentice
programs to assist Alaska Natives, Native Hawaiians, and
children and families of Massachusetts linked by history and
tradition with Alaska and Hawaii to prepare for careers with
cultural institutions.
``(3) To supplement programs and authorities in the area of
education to further the objectives of this subpart.
``SEC. 5523. <<NOTE: 20 USC 7265b.>> PROGRAM AUTHORIZATION.
``(a) Grants and Contracts.--In order to carry out programs that
fulfill the purposes of this subpart, the Secretary is authorized to
make grants to, or enter into contracts with, the following:
``(1) The Alaska Native Heritage Center in Anchorage,
Alaska.
``(2) The Inupiat Heritage Center in Barrow, Alaska.
``(3) The Bishop Museum in Hawaii.
``(4) The Peabody-Essex Museum in Salem, Massachusetts.
``(5) The New Bedford Whaling Museum and the New Bedford
Oceanarium in New Bedford, Massachusetts.
``(6) Other Alaska Native and Native Hawaiian cultural and
educational organizations.
``(7) Cultural and educational organizations with experience
in developing or operating programs that illustrate and
interpret the contributions of Alaska Natives, Native Hawaiians,
the whaling industry, and the China trade to the economic,
social, and environmental history of the United States.
``(8) Consortia of the organizations and entities described
in this subsection.
[[Page 115 STAT. 1847]]
``(b) Uses of Funds.--Activities provided through programs carried
out under this subpart may include one or more of the following:
``(1) Development and implementation of educational programs
to increase understanding of cultural diversity and
multicultural communication among Alaska Natives, Native
Hawaiians, and the people of the continental United States,
based on historic patterns of trading and commerce.
``(2) Development and implementation of programs using
modern technology, including the Internet, to educate students,
their parents, and teachers about historic and contemporary
cultural and trading ties that continue to link the diverse
cultures of Alaska Natives, Native Hawaiians, and the people of
Massachusetts.
``(3) Cultural exchanges of elders, students, parents, and
teachers among Alaska Natives, Native Hawaiians, and the people
of Massachusetts to increase awareness of diverse cultures among
each group.
``(4) Sharing of collections among cultural institutions
designed to increase awareness of diverse cultures and links
among them.
``(5) Development and implementation of internship and
apprentice programs in cultural institutions to train Alaska
Natives, Native Hawaiians, and low-income students in
Massachusetts for careers with cultural institutions.
``(6) Other activities, consistent with the purposes of this
subpart, to meet the educational needs of Alaska Natives, Native
Hawaiians, and students and their parents in Massachusetts.
``SEC. 5524. <<NOTE: 20 USC 7265c.>> ADMINISTRATIVE PROVISIONS.
``(a) Application Required.--No grant may be made under this
subpart, and no contract may be entered into under this subpart, unless
the entity seeking the grant or contract submits an application to the
Secretary at such time, in such manner, and containing such information
as the Secretary may determine to be necessary to carry out the
provisions of this subpart.
``(b) Local Educational Agency Coordination.--Each applicant for a
grant or contract under this subpart shall inform each local educational
agency serving students who will participate in the program to be
carried out under the grant or contract about the application.
``SEC. 5525. <<NOTE: 20 USC 7265d.>> AVAILABILITY OF FUNDS.
``If sufficient funds are made available under section 5401 to carry
out this subpart for a fiscal year, the Secretary shall make available,
to support activities described in section 5523(b), the following
amounts:
``(1) Not less than $2,000,000 each to--
``(A) the New Bedford Whaling Museum, in partnership
with the New Bedford Oceanarium, in Massachusetts; and
``(B) the Inupiat Heritage Center in Alaska.
``(2) For the New Trade Winds project, not less than
$1,000,000 each to--
``(A) the Alaska Native Heritage Center in Alaska;
``(B) the Bishop Museum in Hawaii; and
``(C) the Peabody-Essex Museum in Massachusetts.
[[Page 115 STAT. 1848]]
``(3) For internship and apprenticeship programs (including
the Museum Action Corps of the Peabody-Essex Museum), not less
than $1,000,000 each to--
``(A) the Alaska Native Heritage Center in Alaska;
``(B) the Bishop Museum in Hawaii; and
``(C) the Peabody-Essex Museum in Massachusetts.
``SEC. 5526. <<NOTE: 20 USC 7265e.>> DEFINITIONS.
``In this subpart:
``(1) Alaska native.--The term `Alaska Native' has the
meaning given that term in section 7306.
``(2) Native hawaiian.--The term `Native Hawaiian' has the
meaning given that term in section 7207.
``Subpart <<NOTE: Excellence in Economic Education Act of 2001.>> 13--
Excellence in Economic Education
``SEC. 5531. <<NOTE: 20 USC 7267.>> SHORT TITLE.
``This subpart may be cited as the `Excellence in Economic Education
Act of 2001'.
``SEC. 5532. <<NOTE: 20 USC 7267a.>> PURPOSE AND GOALS.
``(a) Purpose.--The purpose of this subpart is to promote economic
and financial literacy among all students in kindergarten through grade
12 by awarding a competitive grant to a national nonprofit educational
organization that has as its primary purpose the improvement of the
quality of student understanding of personal finance and economics.
``(b) Objectives.--The objectives of this subpart are the following:
``(1) To increase students' knowledge of, and achievement
in, economics to enable the students to become more productive
and informed citizens.
``(2) To strengthen teachers' understanding of, and
competency in, economics to enable the teachers to increase
student mastery of economic principles and the practical
application of those principles.
``(3) To encourage economic education research and
development, to disseminate effective instructional materials,
and to promote replication of best practices and exemplary
programs that foster economic literacy.
``(4) To assist States in measuring the impact of education
in economics.
``(5) To leverage and expand private and public support for
economic education partnerships at national, State, and local
levels.
``SEC. 5533. <<NOTE: 20 USC 7267b.>> GRANT PROGRAM AUTHORIZED.
``(a) Authorization.--The Secretary is authorized to award a
competitive grant to a national nonprofit educational organization that
has as its primary purpose the improvement of the quality of student
understanding of personal finance and economics through effective
teaching of economics in the Nation's classrooms (referred to in this
subpart as the `grantee').
``(b) Uses of Funds.--
``(1) Direct activities.--The grantee shall use 25 percent
of the funds made available through the grant for a fiscal
year--
[[Page 115 STAT. 1849]]
``(A) to strengthen and expand the grantee's
relationships with State and local personal finance,
entrepreneurial, and economic education organizations;
``(B) to support and promote training of teachers
who teach a grade from kindergarten through grade 12
regarding economics, including the dissemination of
information on effective practices and research findings
regarding the teaching of economics;
``(C) to support research on effective teaching
practices and the development of assessment instruments
to document student understanding of personal finance
and economics; and
``(D) to develop and disseminate appropriate
materials to foster economic literacy.
``(2) Subgrants.--The grantee shall use 75 percent of the
funds made available through the grant for a fiscal year to
award subgrants to State educational agencies or local
educational agencies, and State or local economic, personal
finance, or entrepreneurial education organizations (referred to
in this section as the `recipient'). The grantee shall award
such a subgrant to pay for the Federal share of the cost of
enabling the recipient to work in partnership with one or more
of the entities described in paragraph (3) for one or more of
the following purposes:
``(A) Collaboratively establishing and conducting
teacher training programs that use effective and
innovative approaches to the teaching of economics,
personal finance, and entrepreneurship.
``(B) Providing resources to school districts that
desire to incorporate economics and personal finance
into the curricula of the schools in the districts.
``(C) Conducting evaluations of the impact of
economic and financial literacy education on students.
``(D) Conducting economic and financial literacy
education research.
``(E) Creating and conducting school-based student
activities to promote consumer, economic, and personal
finance education (such as saving, investing, and
entrepreneurial education) and to encourage awareness
and student academic achievement in economics.
``(F) Encouraging replication of best practices to
promote economic and financial literacy.
``(3) Partnership entities.--The entities described in this
paragraph are the following:
``(A) A private sector entity.
``(B) A State educational agency.
``(C) A local educational agency.
``(D) An institution of higher education.
``(E) An organization promoting economic
development.
``(F) An organization promoting educational
excellence.
``(G) An organization promoting personal finance or
entrepreneurial education.
``SEC. 5534. <<NOTE: 20 USC 7267c.>> APPLICATIONS.
``(a) Grantee Applications.--To be eligible to receive a grant under
this subpart, the grantee shall submit to the Secretary an
[[Page 115 STAT. 1850]]
application at such time, in such manner, and accompanied by such
information as the Secretary may require.
``(b) Recipient Applications.--
``(1) Submission.--To be eligible to receive a subgrant
under this section, a recipient shall submit an application to
the grantee at such time, in such manner, and accompanied by
such information as the grantee may require.
``(2) Review.--The grantee shall invite the individuals
described in paragraph (3) to review all applications from
recipients for a subgrant under this section and to make
recommendations to the grantee regarding the approval of the
applications.
``(3) Reviewers.--The individuals described in this
paragraph are the following:
``(i) Leaders in the fields of economics and
education.
``(ii) Such other individuals as the grantee
determines to be necessary, especially members of
the State and local business, banking, and finance
communities.
``SEC. 5535. <<NOTE: 20 USC 7267d.>> REQUIREMENTS.
``(a) Administrative Costs.--The grantee and each recipient
receiving a subgrant under this subpart for a fiscal year may use not
more than 5 percent of the funds made available through the grant or
subgrant for administrative costs.
``(b) Teacher Training Programs.--In carrying out the teacher
training programs described in section 5533(b)(2)(A), a recipient
shall--
``(1) train teachers who teach a grade from kindergarten
through grade 12; and
``(2) encourage teachers from disciplines other than
economics and financial literacy to participate in such teacher
training programs, if the training will promote the economic and
financial literacy of those teachers' students.
``(c) Involvement of Business Community.--In carrying out the
activities assisted under this subpart, the grantee and recipients are
strongly encouraged to--
``(1) include interactions with the local business community
to the fullest extent possible to reinforce the connection
between economic and financial literacy and economic
development; and
``(2) work with private businesses to obtain matching
contributions for Federal funds and assist recipients in working
toward self-sufficiency.
``(d) Additional Requirements and Technical Assistance.--The grantee
shall--
``(1) meet such other requirements as the Secretary
determines to be necessary to assure compliance with this
section; and
``(2) receive from the Secretary such technical assistance
as may be necessary to carry out this section.
``SEC. 5536. <<NOTE: 20 USC 7267e.>> ADMINISTRATIVE PROVISIONS.
``(a) Federal Share.--The Federal share of the cost described in
section 5533(b)(2) shall be 50 percent.
``(b) Payment of Non-Federal Share.--The non-Federal share may be
paid in cash or in kind (fairly evaluated, including plant, equipment,
or services).
[[Page 115 STAT. 1851]]
``(c) Reports to Congress.--Not later than 2 years after the date
funds are first made available to carry out this subpart, and every 2
years thereafter, the Secretary shall submit to the appropriate
committees of Congress a report regarding activities assisted under this
subpart.
``SEC. 5537. <<NOTE: 20 USC 7267f.>> SUPPLEMENT, NOT SUPPLANT.
``Funds made available to carry out this subpart shall be used to
supplement, and not supplant, other Federal, State, and local funds
expended for the purpose described in section 5532(a).
``Subpart 14--Grants to Improve the Mental Health of Children
``SEC. 5541. <<NOTE: 20 USC 7269.>> GRANTS FOR THE INTEGRATION OF
SCHOOLS AND MENTAL HEALTH SYSTEMS.
``(a) Authorization.--The Secretary is authorized to award grants
to, or enter into contracts or cooperative agreements with, State
educational agencies, local educational agencies, or Indian tribes, for
the purpose of increasing student access to quality mental health care
by developing innovative programs to link local school systems with the
local mental health system.
``(b) Duration.--With respect to a grant, contract, or cooperative
agreement awarded or entered into under this section, the period during
which payments under such grant, contract or agreement are made to the
recipient may not exceed 5 years.
``(c) Use of Funds.--A State educational agency, local educational
agency, or Indian tribe that receives a grant, contract, or cooperative
agreement under this section shall use amounts made available through
such grant, contract, or cooperative agreement for the following:
``(1) To enhance, improve, or develop collaborative efforts
between school-based service systems and mental health service
systems to provide, enhance, or improve prevention, diagnosis,
and treatment services to students.
``(2) To enhance the availability of crisis intervention
services, appropriate referrals for students potentially in need
of mental health services, and ongoing mental health services.
``(3) To provide training for the school personnel and
mental health professionals who will participate in the program
carried out under this section.
``(4) To provide technical assistance and consultation to
school systems and mental health agencies and families
participating in the program carried out under this section.
``(5) To provide linguistically appropriate and culturally
competent services.
``(6) To evaluate the effectiveness of the program carried
out under this section in increasing student access to quality
mental health services, and make recommendations to the
Secretary about sustainability of the program.
``(d) Applications.--To be eligible to receive a grant, contract, or
cooperative agreement under this section, a State educational agency,
local educational agency, or Indian tribe shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require. The application
shall include each of the following:
[[Page 115 STAT. 1852]]
``(1) A description of the program to be funded under the
grant, contract, or cooperative agreement.
``(2) A description of how such program will increase access
to quality mental health services for students.
``(3) A description of how the applicant will establish a
crisis intervention program to provide immediate mental health
services to the school community when necessary.
``(4) An assurance that--
``(A) persons providing services under the grant,
contract, or cooperative agreement are adequately
trained to provide such services;
``(B) the services will be provided in accordance
with subsection (c);
``(C) teachers, principal administrators, and other
school personnel are aware of the program; and
``(D) parents of students participating in services
under this section will be involved in the design and
implementation of the services.
``(5) An explanation of how the applicant will support and
integrate existing school-based services with the program to
provide appropriate mental health services for students.
``(6) An explanation of how the applicant will establish a
program that will support students and the school in maintaining
an environment conducive to learning.
``(e) Interagency Agreements.--
``(1) Designation of lead agency.--The recipient of each
grant, contract, or cooperative agreement shall designate a lead
agency to direct the establishment of an interagency agreement
among local educational agencies, juvenile justice authorities,
mental health agencies, and other relevant entities in the
State, in collaboration with local entities and parents and
guardians of students.
``(2) Contents.--The interagency agreement shall ensure the
provision of the services described in subsection (c),
specifying with respect to each agency, authority, or entity--
``(A) the financial responsibility for the services;
``(B) the conditions and terms of responsibility for
the services, including quality, accountability, and
coordination of the services; and
``(C) the conditions and terms of reimbursement
among the agencies, authorities, or entities that are
parties to the interagency agreement, including
procedures for dispute resolution.
``(f) Evaluation.--The Secretary shall evaluate each program carried
out by a State educational agency, local educational agency, or Indian
tribe under this section and shall disseminate the findings with respect
to each such evaluation to appropriate public and private entities.
``(g) Distribution of Awards.--The Secretary shall ensure that
grants, contracts, and cooperative agreements awarded or entered into
under this section are equitably distributed among the geographical
regions of the United States and among urban, suburban, and rural
populations.
``(h) Rule of Construction.--Nothing in Federal law shall be
construed--
[[Page 115 STAT. 1853]]
``(1) to prohibit an entity involved with a program carried
out under this section from reporting a crime that is committed
by a student to appropriate authorities; or
``(2) to prevent State law enforcement and judicial
authorities from exercising their responsibilities with regard
to the application of Federal and State law to crimes committed
by a student.
``(i) Supplement, Not Supplant.--Any services provided through
programs carried out under this section must supplement, and not
supplant, existing mental health services, including any services
required to be provided under the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.).
``SEC. 5542. <<NOTE: 20 USC 7269a.>> PROMOTION OF SCHOOL READINESS
THROUGH EARLY CHILDHOOD EMOTIONAL AND SOCIAL DEVELOPMENT.
``(a) Authorization.--The Secretary, in consultation with the
Secretary of Health and Human Services, may award grants (to be known as
`Foundations for Learning Grants') to local educational agencies, local
councils, community-based organizations, and other public or nonprofit
private entities to assist eligible children to become ready for school.
``(b) Applications.--To be eligible to receive a grant under this
section, a local educational agency, local council, community-based
organization, or other public or nonprofit private entity, or a
combination of such entities, shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may reasonably require. The application
shall include each of the following:
``(1) A description of the population that the applicant
intends to serve and the types of services to be provided under
the grant.
``(2) A description of the manner in which services under
the grant will be coordinated with existing similar services
provided by public and nonprofit private entities within the
State.
``(3) An assurance that--
``(A) services under the grant shall be provided by
or under the supervision of qualified professionals with
expertise in early childhood development;
``(B) such services shall be culturally competent;
``(C) such services shall be provided in accordance
with subsection (c);
``(D) funds received under this section shall be
used to supplement, and not supplant, non-Federal funds;
and
``(E) parents of students participating in services
under this section will be involved in the design and
implementation of the services.
``(c) Uses of Funds.--A local educational agency, local council,
community-based organization, or other public or nonprofit private
entity that receives funds under this section may use such funds to
benefit eligible children, for one or more of the following:
``(1) To deliver services to eligible children and their
families that foster eligible children's emotional, behavioral,
and social development and take into consideration the
characteristics described in subsection (f)(1).
``(2) To coordinate and facilitate access by eligible
children and their families to the services available through
community
[[Page 115 STAT. 1854]]
resources, including mental health, physical health, substance
abuse, educational, domestic violence prevention, child welfare,
and social services.
``(3) To provide ancillary services such as transportation
or child care in order to facilitate the delivery of any other
services or activities authorized by this section.
``(4) To develop or enhance early childhood community
partnerships and build toward a community system of care that
brings together child-serving agencies or organizations to
provide individualized supports for eligible children and their
families.
``(5) To evaluate the success of strategies and services
provided pursuant to this section in promoting young children's
successful entry to school and to maintain data systems required
for effective evaluations.
``(6) To pay for the expenses of administering the
activities authorized under this section, including assessment
of children's eligibility for services.
``(d) Limitations.--
``(1) Services not otherwise funded.--A local educational
agency, local council, community-based organization, or other
public or nonprofit private entity may use funds under this
section only to pay for services that cannot be paid for using
other Federal, State, or local public resources or through
private insurance.
``(2) Administrative expenses.--A grantee may not use more
than 3 percent of the amount of the grant to pay the
administrative expenses described in subsection (c)(6).
``(e) Evaluations.--The Secretary shall directly evaluate, or enter
into a contract for an outside evaluation of, each program carried out
under this section and shall disseminate the findings with respect to
such evaluation to appropriate public and private entities.
``(f) Definitions.--In this section:
``(1) Eligible child.--The term `eligible child' means a
child who has not attained the age of 7 years, and to whom two
or more of the following characteristics apply:
``(A) The child has been abused, maltreated, or
neglected.
``(B) The child has been exposed to violence.
``(C) The child has been homeless.
``(D) The child has been removed from child care,
Head Start, or preschool for behavioral reasons or is at
risk of being so removed.
``(E) The child has been exposed to parental
depression or other mental illness.
``(F) The family income with respect to the child is
below 200 percent of the poverty line.
``(G) The child has been exposed to parental
substance abuse.
``(H) The child has had early behavioral and peer
relationship problems.
``(I) The child had a low birth weight.
``(J) The child has a cognitive deficit or
developmental disability.
``(2) Local council.--The term `local council' means a
council that is established or designated by a local government
[[Page 115 STAT. 1855]]
entity, Indian tribe, regional corporation, or native Hawaiian
entity, as appropriate, which is composed of representatives of
local agencies directly affected by early learning programs,
parents, key community leaders, and other individuals concerned
with early learning issues in the locality, such as elementary
education, child care resource and referral services, early
learning opportunities, child care, and health services.
``(3) Provider of early childhood services.--The term
`provider of early childhood services' means a public or private
entity that has regular contact with young children, including
child welfare agencies, child care providers, Head Start and
Early Head Start providers, preschools, kindergartens,
libraries, mental health professionals, family courts, homeless
shelters, and primary care providers.
``Subpart 15--Arts in Education
``SEC. 5551. <<NOTE: 20 USC 7271.>> ASSISTANCE FOR ARTS EDUCATION.
``(a) Purposes.--The purposes of this subpart are the following:
``(1) To support systemic education reform by strengthening
arts education as an integral part of the elementary school and
secondary school curriculum.
``(2) To help ensure that all students meet challenging
State academic content standards and challenging State student
academic achievement standards in the arts.
``(3) To support the national effort to enable all students
to demonstrate competence in the arts.
``(b) Authority.--The Secretary is authorized to make grants to, or
enter into contracts or cooperative agreements with, eligible entities
described in subsection (c).
``(c) Eligible Entities.--The Secretary may make assistance
available under subsection (b) to each of the following eligible
entities:
``(1) State educational agencies.
``(2) Local educational agencies.
``(3) Institutions of higher education.
``(4) Museums or other cultural institutions.
``(5) Any other public or private agencies, institutions, or
organizations.
``(d) Use of Funds.--Assistance made available under this subpart
may be used for any of the following:
``(1) Research on arts education.
``(2) Planning, developing, acquiring, expanding, improving,
or disseminating information about model school-based arts
education programs.
``(3) The development of model State arts education
assessments based on State academic achievement standards.
``(4) The development and implementation of curriculum
frameworks for arts education.
``(5) The development of model inservice professional
development programs for arts educators and other instructional
staff.
``(6) Supporting collaborative activities with Federal
agencies or institutions involved in arts education, arts
educators, and organizations representing the arts, including
State and local arts agencies involved in arts education.
[[Page 115 STAT. 1856]]
``(7) Supporting model projects and programs in the
performing arts for children and youth through arrangements made
with the John F. Kennedy Center for the Performing Arts.
``(8) Supporting model projects and programs by Very Special
Arts which assure the participation in mainstream settings in
arts and education programs of individuals with disabilities.
``(9) Supporting model projects and programs to integrate
arts education into the regular elementary school and secondary
school curriculum.
``(10) Other activities that further the purposes of this
subpart.
``(e) Special Rule.--If the amount made available to the Secretary
to carry out this subpart for any fiscal year is $15,000,000 or less,
then such amount shall only be available to carry out the activities
described in paragraphs (7) and (8) of subsection (d).
``(f) Conditions.--As conditions of receiving assistance made
available under this subpart, the Secretary shall require each entity
receiving such assistance--
``(1) to coordinate, to the extent practicable, each project
or program carried out with such assistance with appropriate
activities of public or private cultural agencies, institutions,
and organizations, including museums, arts education
associations, libraries, and theaters; and
``(2) to use such assistance only to supplement, and not to
supplant, any other assistance or funds made available from non-
Federal sources for the activities assisted under this subpart.
``(g) Consultation.--In carrying out this subpart, the Secretary
shall consult with Federal agencies or institutions, arts educators
(including professional arts education associations), and organizations
representing the arts (including State and local arts agencies involved
in arts education).
``Subpart 16--Parental Assistance and Local Family Information Centers
``SEC. 5561. <<NOTE: 20 USC 7273.>> PURPOSES.
``The purposes of this subpart are the following:
``(1) To provide leadership, technical assistance, and
financial support to nonprofit organizations (including
statewide nonprofit organizations) and local educational
agencies to help the organizations and agencies implement
successful and effective parental involvement policies,
programs, and activities that lead to improvements in student
academic achievement.
``(2) To strengthen partnerships among parents (including
parents of children from birth through age 5), teachers,
principals, administrators, and other school personnel in
meeting the educational needs of children.
``(3) To develop and strengthen the relationship between
parents and their children's school.
``(4) To further the developmental progress of children
assisted under this subpart.
``(5) To coordinate activities funded under this subpart
with parental involvement initiatives funded under section 1118
and other provisions of this Act.
[[Page 115 STAT. 1857]]
``(6) To provide a comprehensive approach to improving
student learning, through coordination and integration of
Federal, State, and local services and programs.
``SEC. 5562. <<NOTE: 20 USC 7273a.>> GRANTS AUTHORIZED.
``(a) Parental Information and Resource Centers.--The Secretary is
authorized to award grants in each fiscal year to nonprofit
organizations (including statewide nonprofit organizations), and
consortia of such organizations and local educational agencies, to
establish school-linked or school-based parental information and
resource centers that provide comprehensive training, information, and
support to--
``(1) parents of children enrolled in elementary schools and
secondary schools;
``(2) individuals who work with the parents of children
enrolled in elementary schools and secondary schools;
``(3) State educational agencies, local educational
agencies, schools, organizations that support family-school
partnerships (such as parent-teacher associations and Parents as
Teachers organizations), and other organizations that carry out
parent education and family involvement programs; and
``(4) parents of children from birth through age 5.
``(b) Geographic Distribution.--In awarding grants under this
subpart, the Secretary shall, to the extent practicable, ensure that
such grants are distributed in all geographic regions of the United
States.
``SEC. 5563. <<NOTE: 20 USC 7273b.>> APPLICATIONS.
``(a) Submission.--Each nonprofit organization (including a
statewide nonprofit organization), or a consortia of such an
organization and a local educational agency, that desires a grant under
this subpart shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary may
require.
``(b) Contents.--Each application submitted under subsection (a), at
a minimum, shall include assurances that the organization or consortium
will--
``(1)(A) be governed by a board of directors the membership
of which includes parents; or
``(B) be an organization or consortium that represents the
interests of parents;
``(2) establish a special advisory committee the membership
of which includes--
``(A) parents of children enrolled in elementary
schools and secondary schools, who shall constitute a
majority of the members of the special advisory
committee;
``(B) representatives of education professionals
with expertise in improving services for disadvantaged
children; and
``(C) representatives of local elementary schools
and secondary schools, including students and
representatives from local youth organizations;
``(3) use at least 50 percent of the funds received under
this subpart in each fiscal year to serve areas with high
concentrations of low-income families, in order to serve parents
who are severely educationally or economically disadvantaged;
[[Page 115 STAT. 1858]]
``(4) operate a center of sufficient size, scope, and
quality to ensure that the center is adequate to serve the
parents in the area;
``(5) serve both urban and rural areas;
``(6) design a center that meets the unique training,
information, and support needs of parents of children enrolled
in elementary schools and secondary schools, particularly such
parents who are educationally or economically disadvantaged;
``(7) demonstrate the capacity and expertise to conduct the
effective training, information, and support activities for
which assistance is sought;
``(8) network with--
``(A) local educational agencies and schools;
``(B) parents of children enrolled in elementary
schools and secondary schools;
``(C) parent training and information centers
assisted under section 682 of the Individuals with
Disabilities Education Act;
``(D) clearinghouses; and
``(E) other organizations and agencies;
``(9) focus on serving parents of children enrolled in
elementary schools and secondary schools who are parents of low-
income, minority, and limited English proficient children;
``(10) use at least 30 percent of the funds received under
this subpart in each fiscal year to establish, expand, or
operate Parents as Teachers programs, Home Instruction for
Preschool Youngsters programs, or other early childhood parent
education programs;
``(11) provide assistance to parents in areas such as
understandingState and local standards and measures of student
and school academic achievement;
``(12) work with State educational agencies and local
educational agencies to determine parental needs and the best
means for delivery of services;
``(13) identify and coordinate Federal, State, and local
services and programs that support improved student learning,
including programs supported under this Act, violence prevention
programs, nutrition programs, housing programs, Head Start
programs, adult education, and job training; and
``(14) work with and foster partnerships with other agencies
that provide programs and deliver services described in
paragraph (13) to make such programs and services more
accessible to children and families.
``SEC. 5564. <<NOTE: 20 USC 7273c.>> USES OF FUNDS.
``(a) In General.--Grant funds received under this subpart shall be
used for one or more of the following:
``(1) To assist parents in participating effectively in
their children's education and to help their children meet State
and local standards, such as assisting parents--
``(A) to engage in activities that will improve
student academic achievement, including understanding
the accountability systems in place within their State
educational agency and local educational agency and
understanding their children's educational academic
achievement in comparison to State and local standards;
[[Page 115 STAT. 1859]]
``(B) to provide follow-up support for their
children's educational achievement;
``(C) to communicate effectively with teachers,
principals, counselors, administrators, and other school
personnel;
``(D) to become active participants in the
development, implementation, and review of school-parent
compacts, parent involvement policies, and school
planning and improvement;
``(E) to participate in the design and provision of
assistance to students who are not making adequate
academic progress;
``(F) to participate in State and local
decisionmaking; and
``(G) to train other parents (such as training
related to Parents as Teachers activities).
``(2) To obtain information about the range of options,
programs, services, and resources available at the national,
State, and local levels to assist parents and school personnel
who work with parents.
``(3) To help the parents learn and use the technology
applied in their children's education.
``(4) To plan, implement, and fund activities for parents
that coordinate the education of their children with other
Federal, State, and local services and programs that serve their
children or their families.
``(5) To provide support for State or local educational
personnel, if the participation of such personnel will further
the activities assisted under the grant.
``(6) To coordinate and integrate early childhood programs
with school-age programs.
``(b) Permissive Activities.--Grant funds received under this
subpart may be used to assist schools with activities including one or
more of the following:
``(1) Developing and implementing the schools' plans or
activities under sections 1118 and 1119.
``(2) Developing and implementing school improvement plans,
including addressing problems that develop in the implementation
of the schools' plans or activities under sections 1118 and
1119.
``(3) Providing information about assessment and individual
results to parents in a manner and a language the family can
understand.
``(4) Coordinating the efforts of Federal, State, and local
parent education and family involvement initiatives.
``(5) Providing training, information, and support to--
``(A) State educational agencies;
``(B) local educational agencies and schools,
especially low-performing local educational agencies and
schools; and
``(C) organizations that support family-school
partnerships.
``SEC. 5565. <<NOTE: 20 USC 7273d.>> ADMINISTRATIVE PROVISIONS.
``(a) Matching Funds for Grant Renewal.--For each fiscal year after
the first fiscal year in which an organization or consortium receives
assistance under this subpart, the organization or consortium shall
demonstrate in the application submitted for such
[[Page 115 STAT. 1860]]
fiscal year, that a portion of the services provided by the organization
or consortium is supported through non-Federal contributions, which
contributions may be in cash or in kind.
``(b) Submission of Information.--
``(1) In general.--Each organization or consortium receiving
assistance under this subpart shall submit to the Secretary, on
an annual basis, information concerning the parental information
and resource centers assisted under this subpart, including the
following information:
``(A) The number of parents (including the number of
minority and limited English proficient parents) who
receive information and training.
``(B) The types and modes of training, information,
and support provided under this subpart.
``(C) The strategies used to reach and serve parents
of minority and limited English proficient children,
parents with limited literacy skills, and other parents
in need of the services provided under this subpart.
``(D) The parental involvement policies and
practices used by the center and an evaluation of
whether such policies and practices are effective in
improving home-school communication, student academic
achievement, student and school academic achievement,
and parental involvement in school planning, review, and
improvement.
``(E) The effectiveness of the activities that local
educational agencies and schools are carrying out, with
regard to parental involvement and other activities
assisted under this Act, that lead to improved student
academic achievement and improved student and school
academic achievement.
``(2) Dissemination.--The Secretary shall disseminate
annually to Congress and the public the information that each
organization or consortium submits under paragraph (1).
``(c) Technical Assistance.--The Secretary shall provide technical
assistance, by grant or contract, for the establishment, development,
and coordination of parent training, information, and support programs
and parental information and resource centers.
``(d) Rule of Construction.--Nothing in this subpart shall be
construed to prohibit a parental information and resource center from--
``(1) having its employees or agents meet with a parent at a
site that is not on school grounds; or
``(2) working with another agency that serves children.
``(e) Parental Rights.--Notwithstanding any other provision of this
subpart--
``(1) no person (including a parent who educates a child at
home, a public school parent, or a private school parent) shall
be required to participate in any program of parent education or
developmental screening under this subpart; and
``(2) no program or center assisted under this subpart shall
take any action that infringes in any manner on the right of a
parent to direct the education of their children.
``(f) Continuation of Awards.--The Secretary shall use funds made
available under this subpart to continue to make grant or contract
payments to each entity that was awarded a multiyear grant or contract
under title IV of the Goals 2000: Educate America Act (as such title was
in effect on the day before the date of
[[Page 115 STAT. 1861]]
enactment of the No Child Left Behind Act of 2001) for the duration of
the grant or contract award.
``SEC. 5566. <<NOTE: 20 USC 7273e.>> LOCAL FAMILY INFORMATION CENTERS.
``(a) In General.--If the amount made available to carry out this
subpart for a fiscal year is more than $50,000,000, the Secretary is
authorized to award 50 percent of the amount that exceeds $50,000,000 as
grants to, and enter into contracts and cooperative agreements with,
local nonprofit parent organizations to enable the organizations to
support local family information centers that help ensure that parents
of students in elementary schools and secondary schools assisted under
this subpart have the training, information, and support the parents
need to enable the parents to participate effectively in their
children's early childhood education, in their children's elementary and
secondary education, and in helping their children to meet challenging
State academic content and student academic achievement standards.
``(b) Local Nonprofit Parent Organization Defined.--In this section,
the term `local nonprofit parent organization' means a private nonprofit
organization (other than an institution of higher education) that--
``(1) has a demonstrated record of working with low-income
individuals and parents;
``(2)(A) has a board of directors, the majority of whom are
parents of students in elementary schools and secondary schools
assisted under part A of title I and located in the geographic
area to be served by a local family information center; or
``(B) has a special governing committee to direct and
implement a local family information center, a majority of the
members of whom are parents of students in schools assisted
under part A of title I; and
``(3) is located in a community with elementary schools and
secondary schools that receive funds under part A of title I,
and is accessible to the families of students in those schools.
``Subpart 17--Combatting Domestic Violence
``SEC. 5571. <<NOTE: 20 USC 7275.>> GRANTS TO COMBAT THE IMPACT OF
EXPERIENCING OR WITNESSING DOMESTIC VIOLENCE ON ELEMENTARY
AND SECONDARY SCHOOL CHILDREN.
``(a) Definitions.--In this section:
``(1) Domestic violence.--The term `domestic violence' has
the meaning given that term in section 2003 of the Omnibus Crime
Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-2).
``(2) Expert.--The term `expert' means--
``(A) an expert on domestic violence, sexual
assault, and child abuse from the educational, legal,
youth, mental health, substance abuse, or victim
advocacy field; and
``(B) a State or local domestic violence coalition
or community-based youth organization.
``(3) Witness domestic violence.--
``(A) In general.--The term `witness domestic
violence' means to witness--
``(i) an act of domestic violence that
constitutes actual or attempted physical assault;
or
[[Page 115 STAT. 1862]]
``(ii) a threat or other action that places
the victim in fear of domestic violence.
``(B) Witness.--In subparagraph (A), the term
`witness' means--
``(i) to directly observe an act, threat, or
action described in subparagraph (A), or the
aftermath of that act, threat, or action; or
``(ii) to be within earshot of an act, threat,
or action described in subparagraph (A), or the
aftermath of that act, threat, or action.
``(b) Grants Authorized.--
``(1) Authority.--The Secretary is authorized to award
grants to local educational agencies that work with experts to
enable the elementary schools and secondary schools served by
the local educational agency--
``(A) to provide training to school administrators,
faculty, and staff, with respect to issues concerning
children who experience domestic violence in dating
relationships or who witness domestic violence, and the
impact of the violence on the children;
``(B) to provide educational programming for
students regarding domestic violence and the impact of
experiencing or witnessing domestic violence on
children;
``(C) to provide support services for students and
school personnel to develop and strengthen effective
prevention and intervention strategies with respect to
issues concerning children who experience domestic
violence in dating relationships or who witness domestic
violence, and the impact of the violence on the
children; and
``(D) to develop and implement school system
policies regarding appropriate and safe responses to,
identification of, and referral procedures for, students
who are experiencing or witnessing domestic violence.
``(2) Award basis.--The Secretary is authorized to award
grants under this section--
``(A) on a competitive basis; and
``(B) in a manner that ensures that such grants are
equitably distributed among local educational agencies
located in rural, urban, and suburban areas.
``(3) Policy dissemination.--The Secretary shall disseminate
to local educational agencies any Department policy guidance
regarding the prevention of domestic violence and the impact on
children of experiencing or witnessing domestic violence.
``(c) Uses of Funds.--Funds made available to carry out this subpart
may be used for one or more of the following purposes:
``(1) To provide training for elementary school and
secondary school administrators, faculty, and staff that
addresses issues concerning elementary school and secondary
school students who experience domestic violence in dating
relationships or who witness domestic violence, and the impact
of such violence on those students.
``(2) To provide education programs for elementary school
and secondary school students that are developmentally
appropriate for the students' grade levels and are designed to
meet any unique cultural and language needs of the particular
student populations.
[[Page 115 STAT. 1863]]
``(3) To develop and implement elementary school and
secondary school system policies regarding--
``(A) appropriate and safe responses to,
identification of, and referral procedures for, students
who are experiencing or witnessing domestic violence;
and
``(B) to develop and implement policies on reporting
and referral procedures for those students.
``(4) To provide the necessary human resources to respond to
the needs of elementary school and secondary school students and
personnel who are faced with the issue of domestic violence,
such as a resource person who is either on-site or on-call and
who is an expert.
``(5) To provide media center materials and educational
materials to elementary schools and secondary schools that
address issues concerning children who experience domestic
violence in dating relationships or who witness domestic
violence, and the impact of the violence on those children.
``(6) To conduct evaluations to assess the impact of
programs and policies assisted under this subpart in order to
enhance the development of the programs.
``(d) Confidentiality.--Policies, programs, training materials, and
evaluations developed and implemented under subsection (c) shall address
issues of safety and confidentiality for the victim and the victim's
family in a manner consistent with applicable Federal and State laws.
``(e) Application.--To be eligible for a grant under this section
for a fiscal year, a local educational agency, in consultation with an
expert, shall submit an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require. The application shall include each of the following:
``(1) A description of the need for funds provided under the
grant and the plan for implementation of any of the activities
described in subsection (c).
``(2) A description of how the experts will work in
consultation and collaboration with the local educational
agency.
``(3) Measurable objectives for, and expected results from,
the use of the funds provided under the grant.
``(4) Provisions for appropriate remuneration for
collaborating partners.
``Subpart 18--Healthy, High-Performance Schools
``SEC. 5581. <<NOTE: 20 USC 7277.>> GRANT PROGRAM AUTHORIZED.
``The Secretary, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agency, is authorized
to award grants to State educational agencies to permit such State
educational agencies to carry out section 5582.
``SEC. 5582. <<NOTE: 20 USC 7277a.>> STATE USES OF FUNDS.
``(a) Subgrants.--
``(1) In general.--A State educational agency receiving a
grant under this subpart shall use funds made available under
the grant to award subgrants to local educational agencies to
permit such local educational agencies to carry out the
activities described in section 5583.
[[Page 115 STAT. 1864]]
``(2) Limitation.--A State educational agency shall award
subgrants under this subsection to local educational agencies
that are the neediest, as determined by the State, and that have
made a commitment to develop healthy, high-performance school
buildings in accordance with the plan developed and approved
under paragraph (3)(A).
``(3) Implementation.--
``(A) Plans.--A State educational agency shall award
subgrants under this subsection only to local
educational agencies that, in consultation with the
State educational agency and State agencies with
responsibilities relating to energy and health, have
developed plans that the State educational agency
determines to be feasible and appropriate in order to
achieve the purposes for which the subgrants are made.
``(B) Supplementing grant funds.--The State
educational agency shall encourage local educational
agencies that receive subgrants under this subsection to
supplement their subgrant funds with funds from other
sources in order to implement their plans.
``(b) Administration.--A State educational agency receiving a grant
under this subpart shall use the grant funds made available under this
subpart for one or more of the following:
``(1) To evaluate compliance by local educational agencies
with the requirements of this subpart.
``(2) To distribute information and materials on healthy,
high-performance school buildings for both new and existing
facilities.
``(3) To organize and conduct programs for school board
members, school district personnel, and others to disseminate
information on healthy, high-performance school buildings.
``(4) To provide technical services and assistance in
planning and designing healthy, high-performance school
buildings.
``(5) To collect and monitor information pertaining to
healthy, high-performance school building projects.
``SEC. 5583. <<NOTE: 20 USC 7277b.>> LOCAL USES OF FUNDS.
``(a) In General.--A local educational agency that receives a
subgrant under section 5582(a) shall use the subgrant funds to plan and
prepare for healthy, high-performance school building projects that--
``(1) reduce energy use to at least 30 percent below that of
a school constructed in compliance with standards prescribed in
chapter 8 of the 2000 International Energy Conservation Code, or
a similar State code intended to achieve substantially
equivalent results;
``(2) meet Federal and State health and safety codes; and
``(3) support healthful, energy efficient, and
environmentally sound practices.
``(b) Use of Funds.--A local educational agency that receives a
subgrant under section 5582(a) shall use funds for one or more of the
following:
``(1) To develop a comprehensive energy audit of the energy
consumption characteristics of a building and the need for
additional energy conservation measures necessary to allow
schools to meet the guidelines set out in subsection (a).
[[Page 115 STAT. 1865]]
``(2) To produce a comprehensive analysis of building
strategies, designs, materials, and equipment that--
``(A) are cost effective, produce greater energy
efficiency, and enhance indoor air quality; and
``(B) can be used when conducting school
construction and renovation or purchasing materials and
equipment.
``(3) To obtain research and provide technical services and
assistance in planning and designing healthy, high-performance
school buildings, including developing a timeline for
implementation of such plans.
``SEC. 5584. <<NOTE: 20 USC 7277c.>> REPORT TO CONGRESS.
``The Secretary shall conduct a biennial review of State actions
implementing this subpart and carrying out the plans developed under
this subpart through State and local funding, and shall submit a report
to Congress on the results of such reviews.
``SEC. 5585. <<NOTE: 20 USC 7277d.>> LIMITATIONS.
``No funds received under this subpart may be used for any of the
following:
``(1) Payment of maintenance of costs in connection with any
projects constructed in whole or in part with Federal funds
provided under this subpart.
``(2) Construction, renovation, or repair of school
facilities.
``(3) Construction, renovation, repair, or acquisition of a
stadium or other facility primarily used for athletic contests
or exhibitions, or other events for which admission is charged
to the general public.
``SEC. 5586. <<NOTE: 20 USC 7277e.>> HEALTHY, HIGH-PERFORMANCE SCHOOL
BUILDING DEFINED.
``In this subpart, the term `healthy, high-performance school
building' means a school building in which the design, construction,
operation, and maintenance--
``(1) use energy-efficient and affordable practices and
materials;
``(2) are cost-effective;
``(3) enhance indoor air quality; and
``(4) protect and conserve water.
``Subpart 19--Grants for Capital Expenses of Providing Equitable
Services for Private School Students
``SEC. 5591. <<NOTE: 20 USC 7279.>> GRANT PROGRAM AUTHORIZED.
``The Secretary is authorized to award grants to State educational
agencies, from allotments made under section 5593, to enable the State
educational agencies to award subgrants to local educational agencies to
pay for capital expenses in accordance with this subpart.
``SEC. 5592. <<NOTE: 20 USC 7279a.>> USES OF FUNDS.
``A local educational agency that receives a subgrant under this
subpart shall use the subgrant funds only to pay for capital expenses
incurred in providing equitable services for private school students
under section 1120.
[[Page 115 STAT. 1866]]
``SEC. 5593. <<NOTE: 20 USC 7279b.>> ALLOTMENTS TO STATES.
``From the funds made available to carry out this subpart for a
fiscal year, the Secretary shall allot to each State an amount that
bears the same ratio to the funds made available as the number of
private school students who received services under part A of title I in
the State in the most recent year for which data, satisfactory to the
Secretary, are available bears to the number of such students in all
States in such year.
``SEC. 5594. <<NOTE: 20 USC 7279c.>> SUBGRANTS TO LOCAL EDUCATIONAL
AGENCIES.
``(a) Applications.--A local educational agency that desires to
receive a subgrant under this subpart shall submit an application to the
State educational agency involved at such time, in such manner, and
containing such information as the State educational agency may require.
``(b) Distribution.--A State educational agency shall award
subgrants to local educational agencies within the State based on the
degree of need set forth in their respective applications submitted
under subsection (a).
``SEC. 5595. <<NOTE: 20 USC 7279d.>> CAPITAL EXPENSES DEFINED.
``In this subpart, the term `capital expenses' means--
``(1) expenditures for noninstructional goods and services,
such as the purchase, lease, or renovation of real and personal
property, including mobile educational units and leasing of
neutral sites or spaces;
``(2) insurance and maintenance costs;
``(3) transportation; and
``(4) other comparable goods and services.
``SEC. 5596. <<NOTE: 20 USC 7279e.>> TERMINATION.
``The authority provided by this subpart terminates effective
October 1, 2003.
``Subpart 20--Additional Assistance for Certain Local Educational
Agencies Impacted by Federal Property Acquisition
``SEC. 5601. <<NOTE: 20 USC 7281.>> RESERVATION.
``The Secretary is authorized to provide additional assistance to
meet special circumstances relating to the provision of education in
local educational agencies eligible to receive assistance under section
8002.
``SEC. 5602. <<NOTE: 20 USC 7281a.>> ELIGIBILITY.
``A local educational agency is eligible to receive additional
assistance under this subpart only if such agency--
``(1) received a payment under both section 8002 and section
8003(b) for fiscal year 1996 and is eligible to receive payments
under those sections for the year of application;
``(2) provided a free public education to children described
under subparagraph (A), (B), or (D) of section 8003(a)(1);
``(3) had a military installation located within the
geographic boundaries of the local educational agency that was
closed as a result of base closure or realignment and, at the
time at which the agency is applying for a payment under
[[Page 115 STAT. 1867]]
this subpart, the agency does not have a military installation
located within its geographic boundaries;
``(4) remains responsible for the free public education of
children residing in housing located on Federal property within
the boundaries of the closed military installation but whose
parents are on active duty in the uniformed services and
assigned to a military activity located within the boundaries of
an adjoining local educational agency; and
``(5) demonstrates to the satisfaction of the Secretary that
such agency's per-pupil revenue derived from local sources for
current expenditures is not less than that revenue for the
preceding fiscal year.
``SEC. 5603. <<NOTE: 20 USC 7281b.>> MAXIMUM AMOUNT.
``(a) Maximum Amount.--The maximum amount that a local educational
agency is eligible to receive under this subpart for any fiscal year,
when combined with its payment under section 8002(b), shall not be more
than 50 percent of the maximum amount determined under section 8002(b).
``(b) Insufficient Funds.--If funds appropriated under section 5401
are insufficient to pay the amount determined under subsection (a), the
Secretary shall ratably reduce the payment to each local educational
agency eligible under this subpart.
``(c) Excess Funds.--If funds appropriated under section 5401 are in
excess of the amount determined under subsection (a), the Secretary
shall ratably distribute any excess funds to all local educational
agencies eligible for payment under section 8002(b).
``Subpart <<NOTE: Women's Educational Equity Act of 2001.>> 21--Women's
Educational Equity Act
``SEC. 5611. <<NOTE: 20 USC 7283.>> SHORT TITLE AND FINDINGS.
``(a) Short Title.--This subpart may be cited as the `Women's
Educational Equity Act of 2001'.
``(b) Findings.--Congress finds that--
``(1) since the enactment of title IX of the Education
Amendments of 1972, women and girls have made strides in
educational achievement and in their ability to avail themselves
of educational opportunities;
``(2) because of funding provided under the Women's
Educational Equity Act of 2001, more curricula, training, and
other educational materials concerning educational equity for
women and girls are available for national dissemination;
``(3) teaching and learning practices in the United States
are frequently inequitable as such practices relate to women and
girls, for example--
``(A) sexual harassment, particularly that
experienced by girls, undermines the ability of schools
to provide a safe and equitable learning or workplace
environment;
``(B) classroom textbooks and other educational
materials do not sufficiently reflect the experiences,
achievements, or concerns of women and, in most cases,
are not written by women or persons of color;
``(C) girls do not take as many mathematics and
science courses as boys, girls lose confidence in their
mathematics and science ability as girls move through
adolescence, and there are few women role models in the
sciences; and
[[Page 115 STAT. 1868]]
``(D) pregnant and parenting teenagers are at high
risk for dropping out of school and existing dropout
prevention programs do not adequately address the needs
of such teenagers;
``(4) efforts to improve the quality of public education
also must include efforts to ensure equal access to quality
education programs for all women and girls;
``(5) Federal support should address not only research and
development of innovative model curricula and teaching and
learning strategies to promote gender equity, but should also
assist schools and local communities implement gender equitable
practices;
``(6) Federal assistance for gender equity must be tied to
systemic reform, involve collaborative efforts to implement
effective gender practices at the local level, and encourage
parental participation; and
``(7) excellence in education, high educational achievements
and standards, and the full participation of women and girls in
American society, cannot be achieved without educational equity
for women and girls.
``SEC. 5612. <<NOTE: 20 USC 7283a.>> STATEMENT OF PURPOSE.
``It is the purpose of this subpart--
``(1) to promote gender equity in education in the United
States;
``(2) to provide financial assistance to enable educational
agencies and institutions to meet the requirements of title IX
of the Educational Amendments of 1972; and
``(3) to promote equity in education for women and girls who
suffer from multiple forms of discrimination based on sex, race,
ethnic origin, limited English proficiency, disability, or age.
``SEC. 5613. <<NOTE: 20 USC 7283b.>> PROGRAMS AUTHORIZED.
``(a) In General.--The Secretary is authorized--
``(1) to promote, coordinate, and evaluate gender equity
policies, programs, activities, and initiatives in all Federal
education programs and offices;
``(2) to develop, maintain, and disseminate materials,
resources, analyses, and research relating to education equity
for women and girls;
``(3) to provide information and technical assistance to
assure the effective implementation of gender equity programs;
``(4) to coordinate gender equity programs and activities
with other Federal agencies with jurisdiction over education and
related programs;
``(5) to assist the Assistant Secretary of the Office of
Educational Research and Improvement in identifying research
priorities related to education equity for women and girls; and
``(6) to perform any other activities consistent with
achieving the purposes of this subpart.
``(b) Grants Authorized.--
``(1) In general.--The Secretary is authorized to award
grants to, and enter into contracts and cooperative agreements
with, public agencies, private nonprofit agencies,
organizations, institutions, student groups, community groups,
and individuals, for a period not to exceed 4 years, to--
[[Page 115 STAT. 1869]]
``(A) provide grants to develop model equity
programs; and
``(B) provide funds for the implementation of equity
programs in schools throughout the Nation.
``(2) Support and technical assistance.--To achieve the
purposes of this subpart, the Secretary is authorized to provide
support and technical assistance--
``(A) to implement effective gender-equity policies
and programs at all educational levels, including--
``(i) assisting educational agencies and
institutions to implement policies and practices
to comply with title IX of the Education
Amendments of 1972;
``(ii) training for teachers, counselors,
administrators, and other school personnel,
especially preschool and elementary school
personnel, in gender equitable teaching and
learning practices;
``(iii) leadership training for women and
girls to develop professional and marketable
skills to compete in the global marketplace,
improve self-esteem, and benefit from exposure to
positive role models;
``(iv) school-to-work transition programs,
guidance and counseling activities, and other
programs to increase opportunities for women and
girls to enter a technologically demanding
workplace and, in particular, to enter highly
skilled, high paying careers in which women and
girls have been underrepresented;
``(v) enhancing educational and career
opportunities for those women and girls who suffer
multiple forms of discrimination, based on sex,
and on race, ethnic origin, limited English
proficiency, disability, socioeconomic status, or
age;
``(vi) assisting pregnant students and
students rearing children to remain in or to
return to secondary school, graduate, and prepare
their preschool children to start school;
``(vii) evaluating exemplary model programs to
assess the ability of such programs to advance
educational equity for women and girls;
``(viii) introduction into the classroom of
textbooks, curricula, and other materials designed
to achieve equity for women and girls;
``(ix) programs and policies to address sexual
harassment and violence against women and girls
and to ensure that educational institutions are
free from threats to the safety of students and
personnel;
``(x) nondiscriminatory tests of aptitude and
achievement and of alternative assessments that
eliminate biased assessment instruments from use;
``(xi) programs to increase educational
opportunities, including higher education,
vocational training, and other educational
programs for low-income women, including
underemployed and unemployed women, and women
receiving assistance under a State program funded
under part A of title IV of the Social Security
Act;
``(xii) programs to improve representation of
women in educational administration at all levels;
and
[[Page 115 STAT. 1870]]
``(xiii) planning, development, and initial
implementation of--
``(I) comprehensive institutionwide
or districtwide evaluation to assess the
presence or absence of gender equity in
educational settings;
``(II) comprehensive plans for
implementation of equity programs in
State educational agencies and local
educational agencies and institutions of
higher education, including community
colleges; and
``(III) innovative approaches to
school-community partnerships for
educational equity; and
``(B) for research and development, which shall be
coordinated with each of the research institutes of the
Office of Educational Research and Improvement to avoid
duplication of research efforts, designed to advance
gender equity nationwide and to help make policies and
practices in educational agencies and institutions, and
local communities, gender equitable, including--
``(i) research and development of innovative
strategies and model training programs for
teachers and other education personnel;
``(ii) the development of high-quality and
challenging assessment instruments that are
nondiscriminatory;
``(iii) the development and evaluation of
model curricula, textbooks, software, and other
educational materials to ensure the absence of
gender stereotyping and bias;
``(iv) the development of instruments and
procedures that employ new and innovative
strategies to assess whether diverse educational
settings are gender equitable;
``(v) the development of instruments and
strategies for evaluation, dissemination, and
replication of promising or exemplary programs
designed to assist local educational agencies in
integrating gender equity in their educational
policies and practices;
``(vi) updating high-quality educational
materials previously developed through awards made
under this subpart;
``(vii) the development of policies and
programs to address and prevent sexual harassment
and violence to ensure that educational
institutions are free from threats to safety of
students and personnel;
``(viii) the development and improvement of
programs and activities to increase opportunity
for women, including continuing educational
activities, vocational education, and programs for
low-income women, including underemployed and
unemployed women, and women receiving assistance
under the State program funded under part A of
title IV of the Social Security Act; and
``(ix) the development of guidance and
counseling activities, including career education
programs, designed to ensure gender equity.
[[Page 115 STAT. 1871]]
``SEC. 5614. <<NOTE: 20 USC 7283c.>> APPLICATIONS.
``An application under this subpart shall--
``(1) set forth policies and procedures that will ensure a
comprehensive evaluation of the activities assisted under this
subpart, including an evaluation of the practices, policies, and
materials used by the applicant and an evaluation or estimate of
the continued significance of the work of the project following
completion of the award period;
``(2) demonstrate how the applicant will address perceptions
of gender roles based on cultural differences or stereotypes;
``(3) for applications for assistance under section
5613(b)(1), demonstrate how the applicant will foster
partnerships and, where applicable, share resources with State
educational agencies, local educational agencies, institutions
of higher education, community-based organizations (including
organizations serving women), parent, teacher, and student
groups, businesses, or other recipients of Federal educational
funding which may include State literacy resource centers;
``(4) for applications for assistance under section
5613(b)(1), demonstrate how parental involvement in the project
will be encouraged; and
``(5) for applications for assistance under section
5613(b)(1), describe plans for continuation of the activities
assisted under this subpart with local support following
completion of the grant period and termination of Federal
support under this subpart.
``SEC. 5615. <<NOTE: 20 USC 7283d.>> CRITERIA AND PRIORITIES.
``(a) Criteria and Priorities.--
``(1) In general.--The Secretary shall establish separate
criteria and priorities for awards under paragraphs (1) and (2)
of section 5613(b) to ensure that funds under this subpart are
used for programs that most effectively will achieve the
purposes of this subpart.
``(2) Criteria.--The criteria described in paragraph (1) may
include the extent to which the activities assisted under this
subpart--
``(A) address the needs of women and girls of color
and women and girls with disabilities;
``(B) meet locally defined and documented
educational equity needs and priorities, including
compliance with title IX of the Education Amendments of
1972;
``(C) are a significant component of a comprehensive
plan for educational equity and compliance with title IX
of the Education Amendments of 1972 in the particular
school district, institution of higher education,
vocational-technical institution, or other educational
agency or institution; and
``(D) implement an institutional change strategy
with long-term impact that will continue as a central
activity of the applicant after the grant under this
subpart has terminated.
``(b) Priorities.--In awarding grants under this subpart, the
Secretary may give special consideration to applications--
``(1) submitted by applicants that have not received
assistance under this subpart or this subpart's predecessor
authorities;
[[Page 115 STAT. 1872]]
``(2) for projects that will contribute significantly to
directly improving teaching and learning practices in the local
community; and
``(3) for projects that will--
``(A) provide for a comprehensive approach to
enhancing gender equity in educational institutions and
agencies;
``(B) draw on a variety of resources, including the
resources of local educational agencies, community-based
organizations, institutions of higher education, and
private organizations;
``(C) implement a strategy with long-term impact
that will continue as a central activity of the
applicant after the grant under this subpart has
terminated;
``(D) address issues of national significance that
can be duplicated; and
``(E) address the educational needs of women and
girls who suffer multiple or compound discrimination
based on sex and on race, ethnic origin, disability, or
age.
``(c) Special Rule.--To the extent feasible, the Secretary shall
ensure that grants awarded under this subpart for each fiscal year
address--
``(1) all levels of education, including preschool,
elementary and secondary education, higher education, vocational
education, and adult education;
``(2) all regions of the United States; and
``(3) urban, rural, and suburban educational institutions.
``(d) Coordination.--Research activities supported under this
subpart--
``(1) shall be carried out in consultation with the Office
of Educational Research and Improvement to ensure that such
activities are coordinated with and enhance the research and
development activities supported by the Office; and
``(2) may include collaborative research activities which
are jointly funded and carried out with the Office of
Educational Research and Improvement.
``(e) Limitation.--Nothing in this subpart shall be construed as
prohibiting men and boys from participating in any programs or
activities assisted with funds under this subpart.
``SEC. 5616. <<NOTE: 20 USC 7283e.>> REPORT.
``Not <<NOTE: Deadline.>> later than January 1, 2006, the Secretary
shall submit to the President and Congress a report on the status of
educational equity for girls and women in the Nation.
``SEC. 5617. <<NOTE: 20 USC 7283f.>> ADMINISTRATION.
``(a) Evaluation and <<NOTE: Deadline.>> Dissemination.--Not later
than January 1, 2005, the Secretary shall evaluate and disseminate
materials and programs developed under this subpart and shall report to
Congress regarding such evaluation materials and programs.
``(b) Program Operations.--The Secretary shall ensure that the
activities assisted under this subpart are administered within the
Department by a person who has recognized professional qualifications
and experience in the field of gender equity education.
[[Page 115 STAT. 1873]]
``SEC. 5618. <<NOTE: 20 USC 7283g.>> AMOUNT.
``From amounts made available to carry out this subpart for a fiscal
year, not less than two-thirds of such amount shall be used to carry out
the activities described in section 5613(b)(1).''.
SEC. 502. <<NOTE: 20 USC 6301 note.>> CONTINUATION OF AWARDS.
(a) In General.--Notwithstanding any other provision of this Act or
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et
seq.), in the case of any agency or consortium that was awarded a grant
under section 5111 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7211) or any person or agency that was awarded a contract or
grant under part B, D, or E of title X of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 et seq., 8131 et
seq.), prior to the date of enactment of this Act, the Secretary of
Education shall continue to provide funds in accordance with the terms
of such award until the date on which the award period terminates under
such terms.
(b) Special Rule.--Notwithstanding any other provision of this Act,
any person or agency that was awarded or entered into a grant, contract,
or cooperative agreement under part B of title V of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7231 et seq.), prior to the
date of enactment of this Act shall continue to receive funds in
accordance with the terms of such grant, contract, or agreement until
the date on which the grant, contract, or agreement period terminates
under such terms.
TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
SEC. 601. FLEXIBILITY AND ACCOUNTABILITY.
Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:
``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY
``PART A--IMPROVING ACADEMIC ACHIEVEMENT
``Subpart 1--Accountability
``SEC. 6111. <<NOTE: 20 USC 7301.>> GRANTS FOR STATE ASSESSMENTS AND
RELATED ACTIVITIES.
``The Secretary shall make grants to States to enable the States--
``(1) to pay the costs of the development of the additional
State assessments and standards required by section 1111(b),
which may include the costs of working in voluntary partnerships
with other States, at the sole discretion of each such State;
and
``(2) if a State has developed the assessments and standards
required by section 1111(b), to administer those assessments or
to carry out other activities described in this subpart and
other activities related to ensuring that the State's schools
[[Page 115 STAT. 1874]]
and local educational agencies are held accountable for results,
such as the following:
``(A) Developing challenging State academic content
and student academic achievement standards and aligned
assessments in academic subjects for which standards and
assessments are not required by section 1111(b).
``(B) Developing or improving assessments of English
language proficiency necessary to comply with section
1111(b)(7).
``(C) Ensuring the continued validity and
reliability of State assessments.
``(D) Refining State assessments to ensure their
continued alignment with the State's academic content
standards and to improve the alignment of curricula and
instructional materials.
``(E) Developing multiple measures to increase the
reliability and validity of State assessment systems.
``(F) Strengthening the capacity of local
educational agencies and schools to provide all students
the opportunity to increase educational achievement,
including carrying out professional development
activities aligned with State student academic
achievement standards and assessments.
``(G) Expanding the range of accommodations
available to students with limited English proficiency
and students with disabilities to improve the rates of
inclusion of such students, including professional
development activities aligned with State academic
achievement standards and assessments.
``(H) Improving the dissemination of information on
student achievement and school performance to parents
and the community, including the development of
information and reporting systems designed to identify
best educational practices based on scientifically based
research or to assist in linking records of student
achievement, length of enrollment, and graduation over
time.
``SEC. 6112. <<NOTE: 20 USC 7301a.>> GRANTS FOR ENHANCED ASSESSMENT
INSTRUMENTS.
``(a) Grant Program Authorized.--From funds made available to carry
out this subpart, the Secretary shall award, on a competitive basis,
grants to State educational agencies that have submitted an application
at such time, in such manner, and containing such information as the
Secretary may require, which demonstrate to the satisfaction of the
Secretary, that the requirements of this section will be met, for the
following:
``(1) To enable States (or consortia of States) to
collaborate with institutions of higher education, other
research institutions, or other organizations to improve the
quality, validity, and reliability of State academic assessments
beyond the requirements for such assessments described in
section 1111(b)(3).
``(2) To measure student academic achievement using multiple
measures of student academic achievement from multiple sources.
``(3) To chart student progress over time.
``(4) To evaluate student academic achievement through the
development of comprehensive academic assessment
[[Page 115 STAT. 1875]]
instruments, such as performance and technology-based academic
assessments.
``(b) Application.--Each State wishing to apply for funds under this
section shall include in its State plan under part A of title I such
information as the Secretary may require.
``(c) Annual Report.--Each State educational agency receiving a
grant under this section shall submit an annual report to the Secretary
describing its activities, and the result of those activities, under the
grant.
``SEC. 6113. <<NOTE: 20 USC 7301b.>> FUNDING.
``(a) Authorization of Appropriations.--
``(1) National assessment of educational progress.--For the
purpose of administering the State assessments under the
National Assessment of Educational Progress, there are
authorized to be appropriated $72,000,000 for fiscal year 2002,
and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``(2) State assessments and related activities.--For the
purpose of carrying out this subpart, there are authorized to be
appropriated $490,000,000 for fiscal year 2002, and such sums as
may be necessary for each of the 5 succeeding fiscal years.
``(b) Allotment of Appropriated Funds.--
``(1) In general.--From amounts made available for each
fiscal year under subsection (a)(2) that are equal to or less
than the amount described in section 1111(b)(3)(D) (hereinafter
in this subsection referred to as the `trigger amount'), the
Secretary shall--
``(A) reserve one-half of 1 percent for the Bureau
of Indian Affairs;
``(B) reserve one-half of 1 percent for the outlying
areas; and
``(C) from the remainder, allocate to each State an
amount equal to--
``(i) $3,000,000; and
``(ii) with respect to any amounts remaining
after the allocation is made under clause (i), an
amount that bears the same relationship to such
total remaining amounts as the number of students
ages 5 through 17 in the State (as determined by
the Secretary on the basis of the most recent
satisfactory data) bears to the total number of
such students in all States.
``(2) Remainder.--Any amounts remaining for a fiscal year
after the Secretary carries out paragraph (1) shall be made
available as follows:
``(A)(i) To award funds under section 6112 to States
according to the quality, needs, and scope of the State
application under that section.
``(ii) In determining the grant amount under clause
(i), the Secretary shall ensure that a State's grant
shall include an amount that bears the same relationship
to the total funds available under this paragraph for
the fiscal year as the number of students ages 5 through
17 in the State (as determined by the Secretary on the
basis
[[Page 115 STAT. 1876]]
of the most recent satisfactory data) bears to the total
number of such students in all States.
``(B) Any amounts remaining after the Secretary
awards funds under subparagraph (A) shall be allocated
to each State that did not receive a grant under such
subparagraph, in an amount that bears the same
relationship to the total funds available under this
subparagraph as the number of students ages 5 through 17
in the State (as determined by the Secretary on the
basis of the most recent satisfactory data) bears to the
total number of such students in all States.
``(c) State Defined.--In this section, the term `State' means each
of the 50 States, the District of Columbia, and the Commonwealth of
Puerto Rico.
``Subpart <<NOTE: State and Local Transferability Act.>> 2--Funding
Transferability for State and Local Educational Agencies
``SEC. 6121. <<NOTE: 20 USC 7305.>> SHORT TITLE.
``This subpart may be cited as the `State and Local Transferability
Act'.
``SEC. 6122. <<NOTE: 20 USC 7305a.>> PURPOSE.
``The purpose of this subpart is to allow States and local
educational agencies the flexibility--
``(1) to target Federal funds to Federal programs that most
effectively address the unique needs of States and localities;
and
``(2) to transfer Federal funds allocated to other
activities to allocations for certain activities authorized
under title I.
``SEC. 6123. <<NOTE: 20 USC 7305b.>> TRANSFERABILITY OF FUNDS.
``(a) Transfers by States.--
``(1) In general.--In accordance with this subpart, a State
may transfer not more than 50 percent of the nonadministrative
State funds (including funds transferred under paragraph (2))
allotted to the State for use for State-level activities under
the following provisions for a fiscal year to one or more of the
State's allotments for such fiscal year under any other of such
provisions:
``(A) Section 2113(a)(3).
``(B) Section 2412(a)(1).
``(C) Subsections (a)(1) (with the agreement of the
Governor) and (c)(1) of section 4112 and section
4202(c)(3).
``(D) Section 5112(b).
``(2) Additional funds for title i.--In accordance with this
subpart and subject to the 50 percent limitation described in
paragraph (1), a State may transfer any funds allotted to the
State under a provision listed in paragraph (1) to its allotment
under title I.
``(b) Transfers by Local Educational Agencies.--
``(1) Authority to transfer funds.--
``(A) In general.--In accordance with this subpart,
a local educational agency (except a local educational
agency identified for improvement under section 1116(c)
or subject to corrective action under section
1116(c)(9))
[[Page 115 STAT. 1877]]
may transfer not more than 50 percent of the funds
allocated to it (including funds transferred under
subparagraph (C)) under each of the provisions listed in
paragraph (2) for a fiscal year to one or more of its
allocations for such fiscal year under any other
provision listed in paragraph (2).
``(B) Agencies identified for improvement.--In
accordance with this subpart, a local educational agency
identified for improvement under section 1116(c) may
transfer not more than 30 percent of the funds allocated
to it (including funds transferred under subparagraph
(C)) under each of the provisions listed in paragraph
(2) for a fiscal year--
``(i) to its allocation for school improvement
for such fiscal year under section 1003; or
``(ii) to any other allocation for such fiscal
year if such transferred funds are used only for
local educational agency improvement activities
consistent with section 1116(c).
``(C) Additional funds for title i.--In accordance
with this subpart and subject to the percentage
limitation described in subparagraph (A) or (B), as
applicable, a local educational agency may transfer
funds allocated to such agency under any of the
provisions listed in paragraph (2) for a fiscal year to
its allocation for part A of title I for that fiscal
year.
``(2) Applicable provisions.--A local educational agency may
transfer funds under subparagraph (A), (B), or (C) of paragraph
(1) from allocations made under each of the following
provisions:
``(A) Section 2121.
``(B) Section 2412(a)(2)(A).
``(C) Section 4112(b)(1).
``(D) Section 5112(a).
``(c) No Transfer of Title I Funds.--A State or a local educational
agency may not transfer under this subpart to any other program any
funds allotted or allocated to it for part A of title I.
``(d) Modification of Plans and Applications; Notification.--
``(1) State <<NOTE: Deadline.>> transfers.--Each State that
makes a transfer of funds under this section shall--
``(A) modify, to account for such transfer, each
State plan, or application submitted by the State, to
which such funds relate;
``(B) not later than 30 days after the date of such
transfer, submit a copy of such modified plan or
application to the Secretary; and
``(C) not later than 30 days before the effective
date of such transfer, notify the Secretary of such
transfer.
``(2) Local transfers.--Each local educational agency that
makes a transfer of funds under this section shall--
``(A) modify, to account for such transfer, each
local plan, or application submitted by the agency, to
which such funds relate;
[[Page 115 STAT. 1878]]
``(B) <<NOTE: Deadline.>> not later than 30 days
after the date of such transfer, submit a copy of such
modified plan or application to the State; and
``(C) <<NOTE: Deadline.>> not later than 30 days
before the effective date of such transfer, notify the
State of such transfer.
``(e) Applicable Rules.--
``(1) In general.--Except as otherwise provided in this
subpart, funds transferred under this section are subject to
each of the rules and requirements applicable to the funds under
the provision to which the transferred funds are transferred.
``(2) Consultation.--Each State educational agency or local
educational agency that transfers funds under this section shall
conduct consultations in accordance with section 9501, if such
transfer transfers funds from a program that provides for the
participation of students, teachers, or other educational
personnel, from private schools.
``Subpart <<NOTE: State and Local Flexibility Demonstration Act.>> 3--
State and Local Flexibility Demonstration
``SEC. 6131. <<NOTE: 20 USC 7311.>> SHORT TITLE.
``This subpart may be cited as the `State and Local Flexibility
Demonstration Act'.
``SEC. 6132. <<NOTE: 20 USC 7311a.>> PURPOSE.
``The purpose of this subpart is to create options for selected
State educational agencies and local educational agencies--
``(1) to improve the academic achievement of all students,
and to focus the resources of the Federal Government upon such
achievement;
``(2) to improve teacher quality and subject matter mastery,
especially in mathematics, reading, and science;
``(3) to better empower parents, educators, administrators,
and schools to effectively address the needs of their children
and students;
``(4) to give participating State educational agencies and
local educational agencies greater flexibility in determining
how to increase their students' academic achievement and
implement education reforms in their schools;
``(5) to eliminate barriers to implementing effective State
and local education reform, while preserving the goals of
opportunity for all students and accountability for student
progress;
``(6) to hold participating State educational agencies and
local educational agencies accountable for increasing the
academic achievement of all students, especially disadvantaged
students; and
``(7) to narrow achievement gaps between the lowest and
highest achieving groups of students so that no child is left
behind.
``SEC. 6133. <<NOTE: 20 USC 7311b.>> GENERAL PROVISION.
``For purposes of this subpart, any State that is one local
educational agency shall be considered a State educational agency and
not a local educational agency.
[[Page 115 STAT. 1879]]
``CHAPTER A--STATE FLEXIBILITY AUTHORITY
``SEC. 6141. <<NOTE: 20 USC 7315.>> STATE FLEXIBILITY.
``(a) Flexibility Authority.--Except as otherwise provided in this
chapter, the Secretary shall, on a competitive basis, grant flexibility
authority to not more than seven eligible State educational agencies,
under which the agencies may consolidate and use funds in accordance
with section 6142.
``(b) Definitions.--In this chapter:
``(1) Eligible state educational agency.--The term `eligible
State educational agency' means a State educational agency
that--
``(A) submits an approvable application under
subsection (c); and
``(B) proposes performance agreements--
``(i) that shall be entered into with not
fewer than 4, and not more than 10, local
educational agencies;
``(ii) not fewer than half of which shall be
entered into with high-poverty local educational
agencies; and
``(iii) that require the local educational
agencies described in clause (i) to align their
use of consolidated funds under section 6152 with
the State educational agency's use of consolidated
funds under section 6142.
``(2) High-poverty local educational agency.--The term
`high-poverty local educational agency' means a local
educational agency for which 20 percent or more of the children
who are age 5 through 17, and served by the local educational
agency, are from families with incomes below the poverty line.
``(c) State Applications.--
``(1) Applications.--To be eligible to receive flexibility
authority under this chapter, a State educational agency shall
submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may
require, including--
``(A) information demonstrating, to the satisfaction
of the Secretary, that the grant of authority offers
substantial promise of--
``(i) assisting the State educational agency
in making adequate yearly progress, as defined
under section 1111(b)(2); and
``(ii) aligning State and local reforms and
assisting the local educational agencies that
enter into performance agreements with the State
educational agency under paragraph (2) in making
such adequate yearly progress;
``(B) the performance agreements that the State
educational agency proposes to enter into with eligible
local educational agencies under paragraph (2);
``(C) information demonstrating that the State
educational agency has consulted with and involved
parents, representatives of local educational agencies,
and other educators in the development of the terms of
the grant of authority;
``(D) a provision specifying that the grant of
flexibility authority shall be for a term of not more
than 5 years;
``(E) a list of the programs described in section
6142(b) that are included in the scope of the grant of
authority;
[[Page 115 STAT. 1880]]
``(F) a provision specifying that no requirements of
any program described in section 6142(b) and included by
a State educational agency in the scope of the grant of
authority shall apply to that agency, except as
otherwise provided in this chapter;
``(G) a 5-year plan describing how the State
educational agency intends to consolidate and use the
funds from programs included in the scope of the grant
of authority, for any educational purpose authorized
under this Act, in order to make adequate yearly
progress and advance the education priorities of the
State and the local educational agencies with which the
State educational agency enters into performance
agreements;
``(H) an assurance that the State educational agency
will provide parents, teachers, and representatives of
local educational agencies and schools with notice and
an opportunity to comment on the proposed terms of the
grant of authority;
``(I) an assurance that the State educational
agency, and the local educational agencies with which
the State educational agency enters into performance
agreements, will use fiscal control and fund accounting
procedures that will ensure proper disbursement of, and
accounting for, Federal funds consolidated and used
under the grant of authority;
``(J) an assurance that the State educational
agency, and the local educational agencies with which
the State educational agency enters into performance
agreements, will meet the requirements of all applicable
Federal civil rights laws in carrying out the grant of
authority, including consolidating and using funds under
the grant of authority;
``(K) an assurance that, in consolidating and using
funds under the grant of authority--
``(i) the State educational agency, and the
local educational agencies with which the State
educational agency enters into performance
agreements, will provide for the equitable
participation of students and professional staff
in private schools consistent with section 9501;
and
``(ii) that sections 9502, 9503, and 9504
shall apply to all services and assistance
provided with such funds in the same manner as
such sections apply to services and assistance
provided in accordance with section 9501;
``(L) an assurance that the State educational agency
will, for the duration of the grant of authority, use
funds consolidated under section 6142 only to supplement
the amount of funds that would, in the absence of those
Federal funds, be made available from non-Federal
sources for the education of students participating in
programs assisted with the consolidated funds, and not
to supplant those funds; and
``(M) an assurance that the State educational agency
shall, not later than 1 year after the date on which the
Secretary makes the grant of authority, and annually
thereafter during the term of the grant of authority,
disseminate widely to parents and the general public,
transmit to the
[[Page 115 STAT. 1881]]
Secretary, distribute to print and broadcast media, and
post on the Internet, a report, which shall include a
detailed description of how the State educational
agency, and the local educational agencies with which
the State educational agency enters into performance
agreements, used the funds consolidated under the grant
of authority to make adequate yearly progress and
advance the education priorities of the State and local
educational agencies in the State.
``(2) Proposed performance agreements with local educational
agencies.--
``(A) In general.--A State educational agency that
wishes to receive flexibility authority under this
subpart shall propose performance agreements that meet
the requirements of clauses (i) and (ii) of subsection
(b)(1)(B) (subject to approval of the application or
amendment involved under subsection (d) or (e)).
``(B) Performance agreements.--Each proposed
performance agreement with a local educational agency
shall--
``(i) contain plans for the local educational
agency to consolidate and use funds in accordance
with section 6152, for activities that are aligned
with the State educational agency's plan described
in paragraph (1)(G);
``(ii) be subject to the requirements of
chapter B relating to agreements between the
Secretary and a local educational agency, except--
``(I) that, as appropriate,
references in that chapter to the
Secretary shall be deemed to be
references to the State educational
agency; and
``(II) as otherwise provided in this
chapter; and
``(iii) contain an assurance that the local
educational agency will, for the duration of the
grant of authority, use funds consolidated under
section 6152 only to supplement the amount of
funds that would, in the absence of those Federal
funds, be made available from non-Federal sources
for the education of students participating in
programs assisted with the consolidated funds, and
not to supplant those funds.
``(d) Approval and Selection.--The Secretary shall--
``(1) establish a peer review process to assist in the
review of proposed State applications under this section; and
``(2) appoint individuals to participate in the peer review
process who are--
``(A) representative of parents, teachers, State
educational agencies, and local educational agencies;
and
``(B) familiar with educational standards,
assessments, accountability, curricula, instruction, and
staff development, and other diverse educational needs
of students.
``(e) Amendment to Grant of Authority.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall amend the grant of flexibility authority made to a State
educational agency under this chapter, in each of the following
circumstances:
``(A) Reduction in scope of the grant of
authority.--Not later than 1 year after receiving a
grant
[[Page 115 STAT. 1882]]
of flexibility authority, the State educational agency
seeks to amend the grant of authority to remove from the
scope of the grant of authority any program described in
section 6142(b).
``(B) Expansion of scope of the grant of
authority.--Not later than 1 year after receiving a
grant of flexibility authority, the State educational
agency seeks to amend the grant of authority to include
in the scope of the grant of authority any additional
program described in section 6142(b) or any additional
achievement indicators for which the State will be held
accountable.
``(C) Changes with respect to number of performance
agreements.--The State educational agency seeks to amend
the grant of authority to include or remove performance
agreements that the State educational agency proposes to
enter into with eligible local educational agencies,
except that in no case may the State educational agency
enter into performance agreements that do not meet the
requirements of clauses (i) and (ii) of subsection
(b)(1)(B).
``(2) Approval and disapproval.--
``(A) Deemed approval.--A proposed amendment to a
grant of flexibility authority submitted by a State
educational agency pursuant to paragraph (1) shall be
deemed to be approved by the Secretary unless the
Secretary makes a written determination, prior to the
expiration of the 120-day period beginning on the date
on which the Secretary received the proposed amendment,
that the proposed amendment is not in compliance with
this chapter.
``(B) Disapproval.--The Secretary shall not finally
disapprove the proposed amendment, except after giving
the State educational agency notice and an opportunity
for a hearing.
``(C) Notification.--If the Secretary finds that the
proposed amendment is not in compliance, in whole or in
part, with this chapter, the Secretary shall--
``(i) give the State educational agency notice
and an opportunity for a hearing; and
``(ii) notify the State educational agency of
the finding of noncompliance and, in such
notification, shall--
``(I) cite the specific provisions
in the proposed amendment that are not
in compliance; and
``(II) request additional
information, only as to the noncompliant
provisions, needed to make the proposed
amendment compliant.
``(D) Response.--If the State educational agency
responds to the Secretary's notification described in
subparagraph (C)(ii) during the 45-day period beginning
on the date on which the agency received the
notification, and resubmits the proposed amendment with
the requested information described in subparagraph
(C)(ii)(II), the Secretary shall approve or disapprove
such proposed amendment prior to the later of--
``(i) the expiration of the 45-day period
beginning on the date on which the proposed
amendment is resubmitted; or
[[Page 115 STAT. 1883]]
``(ii) the expiration of the 120-day period
described in subparagraph (A).
``(E) Failure to respond.--If the State educational
agency does not respond to the Secretary's notification
described in subparagraph (C)(ii) during the 45-day
period beginning on the date on which the agency
received the notification, such proposed amendment shall
be deemed to be disapproved.
``(3) Treatment of program funds withdrawn from grant of
authority.--Beginning on the effective date of an amendment
executed under paragraph (1)(A), each program requirement of
each program removed from the scope of a grant of authority
shall apply to the use of funds made available under the program
by the State educational agency and each local educational
agency with which the State educational agency has a performance
agreement.
``SEC. 6142. <<NOTE: 20 USC 7315a.>> CONSOLIDATION AND USE OF FUNDS.
``(a) In General.--
``(1) Authority.--Under a grant of flexibility authority
made under this chapter, a State educational agency may
consolidate Federal funds described in subsection (b) and made
available to the agency, and use such funds for any educational
purpose authorized under this Act.
``(2) Program requirements.--Except as otherwise provided in
this chapter, a State educational agency may use funds under
paragraph (1) notwithstanding the program requirements of the
program under which the funds were made available to the State.
``(b) Eligible Funds and Programs.--
``(1) Funds.--The funds described in this subsection are
funds, for State-level activities and State administration, that
are described in the following provisions:
``(A) Section 1004.
``(B) Paragraphs (4) and (5) of section 1202(d).
``(C) Section 2113(a)(3).
``(D) Section 2412(a)(1).
``(E) Subsections (a) (with the agreement of the
Governor), (b)(2), and (c)(1) of section 4112.
``(F) Paragraphs (2) and (3) of section 4202(c).
``(G) Section 5112(b).
``(2) Programs.--The programs described in this subsection
are the programs authorized to be carried out with funds
described in paragraph (1).
``(c) Special Rule.--A State educational agency that receives a
grant of flexibility authority under this chapter--
``(1) shall ensure that the funds described in section
5112(a) are allocated to local educational agencies in the State
in accordance with section 5112(a); but
``(2) may specify how the local educational agencies shall
use the allocated funds.
``SEC. 6143. <<NOTE: 20 USC 7315b.>> PERFORMANCE REVIEW AND PENALTIES.
``(a) Midterm Review.--
``(1) Failure to make adequate yearly progress.--If, during
the term of a grant of flexibility authority under this chapter,
a State educational agency fails to make adequate yearly
progress for 2 consecutive years, the Secretary shall,
[[Page 115 STAT. 1884]]
after providing notice and an opportunity for a hearing,
terminate the grant of authority promptly.
``(2) Noncompliance.--The Secretary may, after providing
notice and an opportunity for a hearing (including the
opportunity to provide evidence as described in paragraph (3)),
terminate a grant of flexibility authority for a State if there
is evidence that the State educational agency involved has
failed to comply with the terms of the grant of authority.
``(3) Evidence.--If a State educational agency believes that
a determination of the Secretary under this subsection is in
error for statistical or other substantive reasons, the State
educational agency may provide supporting evidence to the
Secretary, and the Secretary shall consider that evidence before
making a final termination determination under this subsection.
``(b) Final Review.--
``(1) In general.--If, at the end of the 5-year term of a
grant of flexibility authority made under this chapter, the
State educational agency has not met the requirements described
in section 6141(c), the Secretary may not renew the grant of
flexibility authority under section 6144.
``(2) Compliance.--Beginning on the date on which such term
ends, the State educational agency, and the local educational
agencies with which the State educational agency has entered
into performance agreements, shall be required to comply with
each of the program requirements in effect on such date for each
program that was included in the grant of authority.
``SEC. 6144. <<NOTE: 20 USC 7315c.>> RENEWAL OF GRANT OF FLEXIBILITY
AUTHORITY.
``(a) In General.--Except as provided in section 6143 and in
accordance with this section, if a State educational agency has met, by
the end of the original 5-year term of a grant of flexibility authority
under this chapter, the requirements described in section 6141(c), the
Secretary shall renew a grant of flexibility authority for one
additional 5-year term.
``(b) Renewal.--The Secretary may not renew a grant of flexibility
authority under this chapter unless, not later than 6 months before the
end of the original term of the grant of authority, the State
educational agency seeking the renewal notifies the Secretary, and the
local educational agencies with which the State educational agency has
entered into performance agreements, of the agency's intention to renew
the grant of authority.
``(c) Effective Date.--A renewal under this section shall be
effective on the later of--
``(1) the expiration of the original term of the grant of
authority; or
``(2) the date on which the State educational agency seeking
the renewal provides to the Secretary all data required for the
application described in section 6141(c).
``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION
``SEC. 6151. <<NOTE: 20 USC 7321.>> LOCAL FLEXIBILITY DEMONSTRATION
AGREEMENTS.
``(a) Authority.--Except as otherwise provided in this chapter, the
Secretary shall, on a competitive basis, enter into local flexibility
demonstration agreements--
[[Page 115 STAT. 1885]]
``(1) with local educational agencies that submit approvable
proposed agreements under subsection (c) and that are selected
under subsection (b); and
``(2) under which those agencies may consolidate and use
funds in accordance with section 6152.
``(b) Selection of Local Educational Agencies.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall enter into local flexibility demonstration agreements
under this chapter with not more than 80 local educational
agencies. Each local educational agency shall be selected on a
competitive basis from among those local educational agencies
that--
``(A) submit a proposed local flexibility
demonstration agreement under subsection (c) to the
Secretary and demonstrate, to the satisfaction of the
Secretary, that the agreement--
``(i) has a substantial promise of assisting
the local educational agency in meeting the
State's definition of adequate yearly progress,
advancing the education priorities of the local
educational agency, meeting the general purposes
of the programs included under this chapter and
the purposes of this part, improving student
achievement, and narrowing achievement gaps in
accordance with section 1111(b);
``(ii) meets the requirements of this chapter;
and
``(iii) contains a plan to consolidate and use
funds in accordance with section 6152 in order to
meet the State's definition of adequate yearly
progress and the local educational agency's
specific, measurable goals for improving student
achievement and narrowing achievement gaps; and
``(B) have consulted and involved parents and other
educators in the development of the proposed local
flexibility demonstration agreement.
``(2) Geographic distribution.--
``(A) Initial agreements.--The Secretary may enter
into not more than three local flexibility demonstration
agreements under this chapter with local educational
agencies in each State that does not have a grant of
flexibility authority under chapter A.
``(B) Urban and rural areas.--If more than three
local educational agencies in a State submit approvable
local flexibility demonstration agreements under this
chapter, the Secretary shall select local educational
agencies with which to enter into such agreements in a
manner that ensures an equitable distribution among such
agencies serving urban and rural areas.
``(C) Priority of states to enter into state
flexibility demonstration agreements.--Notwithstanding
any other provision of this part, a local educational
agency may not seek to enter into a local flexibility
demonstration agreement under this chapter if that
agency is located in a State for which the State
educational agency--
``(i) has, not later than 4 months after the
date of enactment of the No Child Left Behind Act
of 2001, notified the Secretary of its intent to
apply for a grant of flexibility authority under
chapter A and, within
[[Page 115 STAT. 1886]]
such period of time as the Secretary may
establish, is provided with such authority by the
Secretary; or
``(ii) has, at any time after such period,
been granted flexibility authority under chapter
A.
``(c) Required Terms of Local Flexibility Demonstration Agreement.--
Each local flexibility demonstration agreement entered into with the
Secretary under this chapter shall contain each of the following terms:
``(1) Duration.--The local flexibility demonstration
agreement shall be for a term of 5 years.
``(2) Application of program requirements.--The local
flexibility demonstration agreement shall provide that no
requirements of any program described in section 6152 and
included by a local educational agency in the scope of its
agreement shall apply to that agency, except as otherwise
provided in this chapter.
``(3) List of programs.--The local flexibility demonstration
agreement shall list which of the programs described in section
6152 are included in the scope of the agreement.
``(4) Use of funds to improve student achievement.--The
local flexibility demonstration agreement shall contain a 5-year
plan describing how the local educational agency intends to
consolidate and use the funds from programs included in the
scope of the agreement for any educational purpose authorized
under this Act to advance the education priorities of the local
educational agency, meet the general purposes of the included
programs, improve student achievement, and narrow achievement
gaps in accordance with section 1111(b).
``(5) Local input.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will provide parents, teachers, and representatives of
schools with notice and an opportunity to comment on the
proposed terms of the local flexibility demonstration agreement.
``(6) Fiscal responsibilities.--The local flexibility
demonstration agreement shall contain an assurance that the
local educational agency will use fiscal control and fund
accounting procedures that will ensure proper disbursement of,
and accounting for, Federal funds consolidated and used under
the agreement.
``(7) Civil rights.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency will meet the requirements of all applicable Federal
civil rights laws in carrying out the agreement and in
consolidating and using the funds under the agreement.
``(8) Private school participation.--The local flexibility
demonstration agreement shall contain an assurance that the
local educational agency agrees that in consolidating and using
funds under the agreement--
``(A) the local educational agency, will provide for
the equitable participation of students and professional
staff in private schools consistent with section 9501;
and
``(B) that sections 9502, 9503, and 9504 shall apply
to all services and assistance provided with such funds
in the same manner as such sections apply to services
and assistance provided in accordance with section 9501.
``(9) Supplanting.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
[[Page 115 STAT. 1887]]
agency will, for the duration of the grant of authority, use
funds consolidated under section 6152 only to supplement the
amount of funds that would, in the absence of those Federal
funds, be made available from non-Federal sources for the
education of students participating in programs assisted with
the consolidated funds, and not to supplant those funds.
``(10) Annual reports.--The local flexibility demonstration
agreement shall contain an assurance that the local educational
agency shall, not later than 1 year after the date on which the
Secretary enters into the agreement, and annually thereafter
during the term of the agreement, disseminate widely to parents
and the general public, transmit to the Secretary, and the State
educational agency for the State in which the local educational
agency is located, distribute to print and broadcast media, and
post on the Internet, a report that includes a detailed
description of how the local educational agency used the funds
consolidated under the agreement to improve student academic
achievement and reduce achievement gaps.
``(d) Peer Review.--The Secretary shall--
``(1) establish a peer review process to assist in the
review of proposed local flexibility demonstration agreements
under this chapter; and
``(2) appoint individuals to the peer review process who are
representative of parents, teachers, State educational agencies,
and local educational agencies, and who are familiar with
educational standards, assessments, accountability, curriculum,
instruction and staff development, and other diverse educational
needs of students.
``(e) Amendment to Performance Agreement.--
``(1) In general.--In each of the following circumstances,
the Secretary shall amend a local flexibility demonstration
agreement entered into with a local educational agency under
this chapter:
``(A) Reduction in scope of local flexibility
demonstration agreement.--Not <<NOTE: Deadline.>> later
than 1 year after entering into a local flexibility
demonstration agreement, the local educational agency
seeks to amend the agreement to remove from the scope
any program described in section 6152.
``(B) Expansion of scope of local flexibility
demonstration agreement.--Not <<NOTE: Deadline.>> later
than 1 year after entering into the local flexibility
demonstration agreement, a local educational agency
seeks to amend the agreement to include in its scope any
additional program described in section 6251 or any
additional achievement indicators for which the local
educational agency will be held accountable.
``(2) Approval and disapproval.--
``(A) Deemed approval.--A proposed amendment to a
local flexibility demonstration agreement pursuant to
paragraph (1) shall be deemed to be approved by the
Secretary unless the Secretary makes a written
determination, prior to the expiration of the 120-day
period beginning on the date on which the Secretary
received the proposed amendment, that the proposed
amendment is not in compliance with this chapter.
[[Page 115 STAT. 1888]]
``(B) Disapproval.--The Secretary shall not finally
disapprove the proposed amendment, except after giving
the local educational agency notice and an opportunity
for a hearing.
``(C) Notification.--If the Secretary finds that the
proposed amendment is not in compliance, in whole or in
part, with this chapter, the Secretary shall--
``(i) give the local educational agency notice
and an opportunity for a hearing; and
``(ii) notify the local educational agency of
the finding of noncompliance and, in such
notification, shall--
``(I) cite the specific provisions
in the proposed amendment that are not
in compliance; and
``(II) request additional
information, only as to the noncompliant
provisions, needed to make the proposed
amendment compliant.
``(D) Response.--If the local educational agency
responds to the Secretary's notification described in
subparagraph (C)(ii) during the 45-day period beginning
on the date on which the agency received the
notification, and resubmits the proposed amendment with
the requested information described in subparagraph
(C)(ii)(II), the Secretary shall approve or disapprove
such proposed amendment prior to the later of--
``(i) the expiration of the 45-day period
beginning on the date on which the proposed
amendment is resubmitted; or
``(ii) the expiration of the 120-day period
described in subparagraph (A).
``(E) Failure to respond.--If the local educational
agency does not respond to the Secretary's notification
described in subparagraph (C)(ii) during the 45-day
period beginning on the date on which the agency
received the notification, such proposed amendment shall
be deemed to be disapproved.
``(3) Treatment of program funds withdrawn from agreement.--
Beginning on the effective date of an amendment executed under
paragraph (1)(A), each program requirement of each program
removed from the scope of a local flexibility demonstration
agreement shall apply to the use of funds made available under
the program by the local educational agency.
``SEC. 6152. <<NOTE: 20 USC 7321a.>> CONSOLIDATION AND USE OF FUNDS.
``(a) In General.--
``(1) Authority.--Under a local flexibility demonstration
agreement entered into under this chapter, a local educational
agency may consolidate Federal funds made available to the
agency under the provisions listed in subsection (b) and use
such funds for any educational purpose permitted under this Act.
``(2) Program requirements.--Except as otherwise provided in
this chapter, a local educational agency may use funds under
paragraph (1) notwithstanding the program requirements of the
program under which the funds were made available to the agency.
[[Page 115 STAT. 1889]]
``(b) Eligible Programs.--Program funds made available to local
educational agencies on the basis of a formula under the following
provisions may be consolidated and used under subsection (a):
``(1) Subpart 2 of part A of title II.
``(2) Subpart 1 of part D of title II.
``(3) Subpart 1 of part A of title IV.
``(4) Subpart 1 of part A of title V.
``SEC. 6153. <<NOTE: 20 USC 7321b.>> LIMITATIONS ON ADMINISTRATIVE
EXPENDITURES.
``Each local educational agency that has entered into a local
flexibility demonstration agreement with the Secretary under this
chapter may use for administrative purposes not more than 4 percent of
the total amount of funds allocated to the agency under the programs
included in the scope of the agreement.
``SEC. 6154. <<NOTE: 20 USC 7321c.>> PERFORMANCE REVIEW AND PENALTIES.
``(a) Midterm Review.--
``(1) Failure to make adequate yearly progress.--If, during
the term of a local flexibility demonstration agreement, a local
educational agency fails to make adequate yearly progress for 2
consecutive years, the Secretary shall, after notice and
opportunity for a hearing, promptly terminate the agreement.
``(2) Noncompliance.--The Secretary may, after providing
notice and an opportunity for a hearing (including the
opportunity to provide information as provided for in paragraph
(3)), terminate a local flexibility demonstration agreement
under this chapter if there is evidence that the local
educational agency has failed to comply with the terms of the
agreement.
``(3) Evidence.--If a local educational agency believes that
the Secretary's determination under this subsection is in error
for statistical or other substantive reasons, the local
educational agency may provide supporting evidence to the
Secretary, and the Secretary shall consider that evidence before
making a final early termination determination.
``(b) Final Review.--If, at the end of the 5-year term of a local
flexibility demonstration agreement entered into under this chapter, the
local educational agency has not met the requirements described in
section 6151(c), the Secretary may not renew the agreement under section
6155 and, beginning on the date on which such term ends, the local
educational agency shall be required to comply with each of the program
requirements in effect on such date for each program included in the
local flexibility demonstration agreement.
``SEC. 6155. <<NOTE: 20 USC 7321d.>> RENEWAL OF LOCAL FLEXIBILITY
DEMONSTRATION AGREEMENT.
``(a) In General.--Except as provided in section 6154 and in
accordance with this section, the Secretary shall renew for one
additional 5-year term a local flexibility demonstration agreement
entered into under this chapter if the local educational agency has met,
by the end of the original term of the agreement, the requirements
described in section 6151(c).
``(b) Notification.--The Secretary may not renew a local flexibility
demonstration agreement under this chapter unless, not less than 6
months before the end of the original term of the agreement,
[[Page 115 STAT. 1890]]
the local educational agency seeking the renewal notifies the Secretary
of its intention to renew.
``(c) Effective Date.--A renewal under this section shall be
effective at the end of the original term of the agreement or on the
date on which the local educational agency seeking renewal provides to
the Secretary all data required under the agreement, whichever is later.
``SEC. 6156. <<NOTE: 20 USC 7321e.>> REPORTS.
``(a) Transmittal to Congress.--Not later than 60 days after the
Secretary receives a report described in section 6151(b)(10), the
Secretary shall make the report available to the Committee on Education
and the Workforce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate.
``(b) Limitation.--A State in which a local educational agency that
has a local flexibility demonstration agreement is located may not
require such local educational agency to provide any application
information with respect to the programs included within the scope of
that agreement other than that information that is required to be
included in the report described in section 6151(b)(10).
``Subpart 4--State Accountability for Adequate Yearly Progress
``SEC. 6161. <<NOTE: 20 USC 7325.>> ACCOUNTABILITY FOR ADEQUATE YEARLY
PROGRESS.
``In the case of a State educational agency that has a plan approved
under subpart 1 of part A of title I after the date of enactment of the
No Child Left Behind Act of 2001, and has a plan approved under subpart
1 of part A of title III of such Act after such date of enactment, the
Secretary shall annually, starting with the beginning of the first
school year following the first two school years for which such plans
were implemented, review whether the State has--
``(1) made adequate yearly progress, as defined in section
1111(b)(2)(B), for each of the groups of students described in
section 1111(b)(2)(C)(v); and
``(2) met its annual measurable achievement objectives under
section 3122(a).
``SEC. 6162. <<NOTE: 20 USC 7325a.>> PEER REVIEW.
``The Secretary shall use a peer review process to review, based on
data from the State assessments administered under section 1111(b)(3)
and on data from the evaluations conducted under section 3121, whether
the State has failed to make adequate yearly progress for 2 consecutive
years or whether the State has met its annual measurable achievement
objectives.
``SEC. 6163. <<NOTE: 20 USC 7325b.>> TECHNICAL ASSISTANCE.
``(a) Provision of Assistance.--
``(1) Adequate yearly progress.--Based on the review
described in section 6161(1), the Secretary shall provide
technical assistance to a State that has failed to make adequate
yearly progress, as defined in section 1111(b)(2), for 2
consecutive years. The Secretary shall provide such assistance
not later than the beginning of the first school year that
begins after such determination is made.
[[Page 115 STAT. 1891]]
``(2) Annual measurable achievement objectives.--Based on
the reviews described in section 6161(2), the Secretary may
provide technical assistance to a State that has failed to meet
its annual measurable achievement objectives under section
3122(a) for 2 consecutive years. The Secretary shall provide
such assistance not later than the beginning of the first school
year that begins after such determination is made.
``(b) Characteristics.--The technical assistance described in
subsection (a) shall--
``(1) be valid, reliable and rigorous; and
``(2) provide constructive feedback to help the State make
adequate yearly progress, as defined in section 1111(b)(2), or
meet the annual measurable achievement objectives under section
3122(a).
``SEC. 6164. <<NOTE: 20 USC 7325c.>> REPORT TO CONGRESS.
``Beginning with the school year that begins in 2005, the Secretary
shall submit an annual report to the Committee on Education and the
Workforce of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate containing the following:
``(1) A list of each State that has not made adequate yearly
progress based on the review conducted under section 6161(1).
``(2) A list of each State that has not met its annual
measurable achievement objectives based on the review conducted
under section 6161(2).
``(3) The information reported by the State to the Secretary
pursuant to section 1119(a).
``(4) A description of any technical assistance provided
pursuant to section 6163.
``PART <<NOTE: Rural Education Achievement Program.>> B--RURAL
EDUCATION INITIATIVE
``SEC. 6201. <<NOTE: 20 USC 7341.>> SHORT TITLE.
``This part may be cited as the `Rural Education Achievement
Program'.
``SEC. 6202. <<NOTE: 20 USC 7341a.>> PURPOSE.
``It is the purpose of this part to address the unique needs of
rural school districts that frequently--
``(1) lack the personnel and resources needed to compete
effectively for Federal competitive grants; and
``(2) receive formula grant allocations in amounts too small
to be effective in meeting their intended purposes.
``Subpart 1--Small, Rural School Achievement Program
``SEC. 6211. <<NOTE: 20 USC 7345.>> USE OF APPLICABLE FUNDING.
``(a) Alternative Uses.--
``(1) In general.--Notwithstanding any other provision of
law, an eligible local educational agency may use the applicable
funding that the agency is eligible to receive from the State
educational agency for a fiscal year to carry out local
activities authorized under any of the following provisions:
``(A) Part A of title I.
``(B) Part A or D of title II.
[[Page 115 STAT. 1892]]
``(C) Title III.
``(D) Part A or B of title IV.
``(E) Part A of title V.
``(2) Notification.--An eligible local educational agency
shall notify the State educational agency of the local
educational agency's intention to use the applicable funding in
accordance with paragraph (1), by a date that is established by
the State educational agency for the notification.
``(b) Eligibility.--
``(1) In general.--A local educational agency shall be
eligible to use the applicable funding in accordance with
subsection (a) if--
``(A)(i)(I) the total number of students in average
daily attendance at all of the schools served by the
local educational agency is fewer than 600; or
``(II) each county in which a school served by the
local educational agency is located has a total
population density of fewer than 10 persons per square
mile; and
``(ii) all of the schools served by the local
educational agency are designated with a school locale
code of 7 or 8, as determined by the Secretary; or
``(B) the agency meets the criteria established in
subparagraph (A)(i) and the Secretary, in accordance
with paragraph (2), grants the local educational
agency's request to waive the criteria described in
subparagraph (A)(ii).
``(2) Certification.--The Secretary shall determine whether
to waive the criteria described in paragraph (1)(A)(ii) based on
a demonstration by the local educational agency, and concurrence
by the State educational agency, that the local educational
agency is located in an area defined as rural by a governmental
agency of the State.
``(c) Applicable Funding Defined.--In this section, the term
`applicable funding' means funds provided under any of the following
provisions:
``(1) Subpart 2 and section 2412(a)(2)(A) of title II.
``(2) Section 4114.
``(3) Part A of title V.
``(d) Disbursement.--Each State educational agency that receives
applicable funding for a fiscal year shall disburse the applicable
funding to local educational agencies for alternative uses under this
section for the fiscal year at the same time as the State educational
agency disburses the applicable funding to local educational agencies
that do not intend to use the applicable funding for such alternative
uses for the fiscal year.
``(e) Applicable Rules.--Applicable funding under this section shall
be available to carry out local activities authorized under subsection
(a).
``SEC. 6212. <<NOTE: 20 USC 7345a.>> GRANT PROGRAM AUTHORIZED.
``(a) In General.--The Secretary is authorized to award grants to
eligible local educational agencies to enable the local educational
agencies to carry out activities authorized under any of the following
provisions:
``(1) Part A of title I.
``(2) Part A or D of title II.
``(3) Title III.
``(4) Part A or B of title IV.
[[Page 115 STAT. 1893]]
``(5) Part A of title V.
``(b) Allocation.--
``(1) In general.--Except as provided in paragraph (3), the
Secretary shall award a grant under subsection (a) to a local
educational agency eligible under section 6211(b) for a fiscal
year in an amount equal to the initial amount determined under
paragraph (2) for the fiscal year minus the total amount
received by the agency under the provisions of law described in
section 6211(c) for the preceding fiscal year.
``(2) Determination of initial amount.--The initial amount
referred to in paragraph (1) is equal to $100 multiplied by the
total number of students in excess of 50 students, in average
daily attendance at the schools served by the local educational
agency, plus $20,000, except that the initial amount may not
exceed $60,000.
``(3) Ratable adjustment.--
``(A) In general.--If the amount made available to
carry out this section for any fiscal year is not
sufficient to pay in full the amounts that local
educational agencies are eligible to receive under
paragraph (1) for such year, the Secretary shall ratably
reduce such amounts for such year.
``(B) Additional amounts.--If additional funds
become available for making payments under paragraph (1)
for such fiscal year, payments that were reduced under
subparagraph (A) shall be increased on the same basis as
such payments were reduced.
``(c) Disbursement.--The Secretary shall disburse the funds awarded
to a local educational agency under this section for a fiscal year not
later than July 1 of that fiscal year.
``(d) Special Eligibility Rule.--A local educational agency that is
eligible to receive a grant under this subpart for a fiscal year is not
eligible to receive funds for such fiscal year under subpart 2.
``SEC. 6213. <<NOTE: 20 USC 7345b.>> ACCOUNTABILITY.
``(a) Academic Achievement Assessment.--Each local educational
agency that uses or receives funds under this subpart for a fiscal year
shall administer an assessment that is consistent with section
1111(b)(3).
``(b) Determination Regarding Continuing Participation.--Each State
educational agency that receives funding under the provisions of law
described in section 6211(c) shall--
``(1) after the third year that a local educational agency
in the State participates in a program under this subpart and on
the basis of the results of the assessments described in
subsection (a), determine whether the local educational agency
participating in the program made adequate yearly progress, as
described in section 1111(b)(2);
``(2) permit only those local educational agencies that
participated and made adequate yearly progress, as described in
section 1111(b)(2), to continue to participate; and
``(3) permit those local educational agencies that
participated and failed to make adequate yearly progress, as
described in section 1111(b)(2), to continue to participate only
if such local educational agencies use applicable funding under
this subpart to carry out the requirements of section 1116.
[[Page 115 STAT. 1894]]
``Subpart 2--Rural and Low-Income School Program
``SEC. 6221. <<NOTE: 20 USC 7351.>> PROGRAM AUTHORIZED.
``(a) Grants to States.--
``(1) In general.--From amounts appropriated under section
6234 for this subpart for a fiscal year that are not reserved
under subsection (c), the Secretary shall award grants (from
allotments made under paragraph (2)) for the fiscal year to
State educational agencies that have applications submitted
under section 6223 approved to enable the State educational
agencies to award grants to eligible local educational agencies
for local authorized activities described in section 6222(a).
``(2) Allotment.--From amounts described in paragraph (1)
for a fiscal year, the Secretary shall allot to each State
educational agency for that fiscal year an amount that bears the
same ratio to those amounts as the number of students in average
daily attendance served by eligible local educational agencies
in the State for that fiscal year bears to the number of all
such students served by eligible local educational agencies in
all States for that fiscal year.
``(3) Specially qualified agencies.--
``(A) Eligibility and application.--If a State
educational agency elects not to participate in the
program under this subpart or does not have an
application submitted under section 6223 approved, a
specially qualified agency in such State desiring a
grant under this subpart may submit an application under
such section directly to the Secretary to receive an
award under this subpart.
``(B) Direct awards.--The Secretary may award, on a
competitive basis or by formula, the amount the State
educational agency is eligible to receive under
paragraph (2) directly to a specially qualified agency
in the State that has submitted an application in
accordance with subparagraph (A) and obtained approval
of the application.
``(C) Specially qualified agency defined.--In this
subpart, the term `specially qualified agency' means an
eligible local educational agency served by a State
educational agency that does not participate in a
program under this subpart in a fiscal year, that may
apply directly to the Secretary for a grant in such year
under this subsection.
``(b) Local Awards.--
``(1) Eligibility.--A local educational agency shall be
eligible to receive a grant under this subpart if--
``(A) 20 percent or more of the children ages 5
through 17 years served by the local educational agency
are from families with incomes below the poverty line;
and
``(B) all of the schools served by the agency are
designated with a school locale code of 6, 7, or 8, as
determined by the Secretary.
``(2) Award basis.--A State educational agency shall award
grants to eligible local educational agencies--
``(A) on a competitive basis;
[[Page 115 STAT. 1895]]
``(B) according to a formula based on the number of
students in average daily attendance served by the
eligible local educational agencies or schools in the
State; or
``(C) according to an alternative formula, if, prior
to awarding the grants, the State educational agency
demonstrates, to the satisfaction of the Secretary, that
the alternative formula enables the State educational
agency to allot the grant funds in a manner that serves
equal or greater concentrations of children from
families with incomes below the poverty line, relative
to the concentrations that would be served if the State
educational agency used the formula described in
subparagraph (B).
``(c) Reservations.--From amounts appropriated under section 6234
for this subpart for a fiscal year, the Secretary shall reserve--
``(1) one-half of 1 percent to make awards to elementary
schools or secondary schools operated or supported by the Bureau
of Indian Affairs, to carry out the activities authorized under
this subpart; and
``(2) one-half of 1 percent to make awards to the outlying
areas in accordance with their respective needs, to carry out
the activities authorized under this subpart.
``SEC. 6222. <<NOTE: 20 USC 7351a.>> USES OF FUNDS.
``(a) Local Awards.--Grant funds awarded to local educational
agencies under this subpart shall be used for any of the following:
``(1) Teacher recruitment and retention, including the use
of signing bonuses and other financial incentives.
``(2) Teacher professional development, including programs
that train teachers to utilize technology to improve teaching
and to train special needs teachers.
``(3) Educational technology, including software and
hardware, as described in part D of title II.
``(4) Parental involvement activities.
``(5) Activities authorized under the Safe and Drug-Free
Schools program under part A of title IV.
``(6) Activities authorized under part A of title I.
``(7) Activities authorized under title III.
``(b) Administrative Costs.--A State educational agency receiving a
grant under this subpart may not use more than 5 percent of the amount
of the grant for State administrative costs and to provide technical
assistance to eligible local educational agencies.
``SEC. 6223. <<NOTE: 20 USC 7351b.>> APPLICATIONS.
``(a) In General.--Each State educational agency or specially
qualified agency desiring to receive a grant under this subpart shall
submit an application to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may require.
``(b) Contents.--At a minimum, each application submitted under
subsection (a) shall include information on specific measurable goals
and objectives to be achieved through the activities carried out through
the grant, which may include specific educational goals and objectives
relating to--
``(1) increased student academic achievement;
``(2) decreased student dropout rates; or
``(3) such other factors as the State educational agency or
specially qualified agency may choose to measure.
[[Page 115 STAT. 1896]]
``SEC. 6224. <<NOTE: 20 USC 7351c.>> ACCOUNTABILITY.
``(a) State Report.--Each State educational agency that receives a
grant under this subpart shall prepare and submit an annual report to
the Secretary. The report shall describe--
``(1) the method the State educational agency used to award
grants to eligible local educational agencies, and to provide
assistance to schools, under this subpart;
``(2) how local educational agencies and schools used funds
provided under this subpart; and
``(3) the degree to which progress has been made toward
meeting the goals and objectives described in the application
submitted under section 6223.
``(b) Specially Qualified Agency Report.--Each specially qualified
agency that receives a grant under this subpart shall provide an annual
report to the Secretary. Such report shall describe--
``(1) how such agency uses funds provided under this
subpart; and
``(2) the degree to which progress has been made toward
meeting the goals and objectives described in the application
submitted under section 6223.
``(c) Report to Congress.--The Secretary shall prepare and submit to
the Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a biennial report. The report shall describe--
``(1) the methods the State educational agencies used to
award grants to eligible local educational agencies, and to
provide assistance to schools, under this subpart;
local educational agencies and schools used funds provided
under this subpart; and
``(3) the degree to which progress has been made toward
meeting the goals and objectives described in the applications
submitted under section 6223.
``(d) Academic Achievement Assessment.--Each local educational
agency or specially qualified agency that receives a grant under this
subpart for a fiscal year shall administer an assessment that is
consistent with section 1111(b)(3).
``(e) Determination Regarding Continuing Participation.--Each State
educational agency or specially qualified agency that receives a grant
under this subpart shall--
``(1) after the third year that a local educational agency
or specially qualified agency in the State receives funds under
this subpart, and on the basis of the results of the assessments
described in subsection (d)--
``(A) in the case of a local educational agency,
determine whether the local educational agency made
adequate yearly progress, as described in section
1111(b)(2); and
``(B) in the case of a specially qualified agency,
submit to the Secretary information that would allow the
Secretary to determine whether the specially qualified
agency has made adequate yearly progress, as described
in section 1111(b)(2);
``(2) permit only those local educational agencies or
specially qualified agencies that made adequate yearly progress,
as described in section 1111(b)(2), to continue to receive
grants under this subpart; and
[[Page 115 STAT. 1897]]
``(3) permit those local educational agencies or specially
qualified agencies that failed to make adequate yearly progress,
as described in section 1111(b)(2), to continue to receive such
grants only if the State educational agency disbursed such
grants to the local educational agencies or specially qualified
agencies to carry out the requirements of section 1116.
``Subpart 3--General Provisions
``SEC. 6231. <<NOTE: 20 USC 7355.>> ANNUAL AVERAGE DAILY ATTENDANCE
DETERMINATION.
``(a) <<NOTE: Deadlines.>> Census Determination.--Each local
educational agency desiring a grant under section 6212 and each local
educational agency or specially qualified agency desiring a grant under
subpart 2 shall--
``(1) not later than December 1 of each year, conduct a
census to determine the number of students in average daily
attendance in kindergarten through grade 12 at the schools
served by the agency; and
``(2) not later than March 1 of each year, submit the number
described in paragraph (1) to the Secretary (and to the State
educational agency, in the case of a local educational agency
seeking a grant under subpart (2)).
``(b) Penalty.--If the Secretary determines that a local educational
agency or specially qualified agency has knowingly submitted false
information under subsection (a) for the purpose of gaining additional
funds under section 6212 or subpart 2, then the agency shall be fined an
amount equal to twice the difference between the amount the agency
received under this section and the correct amount the agency would have
received under section 6212 or subpart 2 if the agency had submitted
accurate information under subsection (a).
``SEC. 6232. <<NOTE: 20 USC 7355a.>> SUPPLEMENT, NOT SUPPLANT.
``Funds made available under subpart 1 or subpart 2 shall be used to
supplement, and not supplant, any other Federal, State, or local
education funds.
``SEC. 6233. <<NOTE: 20 USC 7355b.>> RULE OF CONSTRUCTION.
``Nothing in this part shall be construed to prohibit a local
educational agency that enters into cooperative arrangements with other
local educational agencies for the provision of special, compensatory,
or other education services, pursuant to State law or a written
agreement, from entering into similar arrangements for the use, or the
coordination of the use, of the funds made available under this part.
``SEC. 6234. <<NOTE: 20 USC 7355c.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$300,000,000 for fiscal year 2002 and such sums as may be necessary for
each of the 5 succeeding fiscal years, to be distributed equally between
subparts 1 and 2.
``PART C--GENERAL PROVISIONS
``SEC. <<NOTE: 20 USC 7371.>> 6301. PROHIBITION AGAINST FEDERAL
MANDATES, DIRECTION, OR CONTROL.
``Nothing in this title shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or
[[Page 115 STAT. 1898]]
control a State, local educational agency, or school's specific
instructional content, academic achievement standards and assessments,
curriculum, or program of instruction, as a condition of eligibility to
receive funds under this Act.
``SEC. 6302. <<NOTE: 20 USC 7372.>> RULE OF CONSTRUCTION ON EQUALIZED
SPENDING.
``Nothing in this title shall be construed to mandate equalized
spending per pupil for a State, local educational agency, or school.''.
SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS ACT OF 1994.
(a) National Assessment of Educational Progress.--Section 411 of the
National Education Statistics Act of 1994 (20 U.S.C. 9010) is amended to
read as follows:
``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.
``(a) Establishment.--The Commissioner shall, with the advice of the
National Assessment Governing Board established under section 412, and
with the technical assistance of the Advisory Council established under
section 407, carry out, through grants, contracts, or cooperative
agreements with one or more qualified organizations, or consortia
thereof, a National Assessment of Educational Progress, which
collectively refers to a national assessment, State assessments, and a
long-term trend assessment in reading and mathematics.
``(b) Purpose; State Assessments.--
``(1) Purpose.--The purpose of this section is to provide,
in a timely manner, a fair and accurate measurement of student
academic achievement and reporting trends in such achievement in
reading, mathematics, and other subject matter as specified in
this section.
``(2) Measurement and reporting.--The Commissioner, in
carrying out the measurement and reporting described in
paragraph (1), shall--
``(A) use a random sampling process which is
consistent with relevant, widely accepted professional
assessment standards and that produces data that are
representative on a national and regional basis;
``(B) conduct a national assessment and collect and
report assessment data, including achievement data
trends, in a valid and reliable manner on student
academic achievement in public and private elementary
schools and secondary schools at least once every 2
years, in grades 4 and 8 in reading and mathematics;
``(C) conduct a national assessment and collect and
report assessment data, including achievement data
trends, in a valid and reliable manner on student
academic achievement in public and private schools in
reading and mathematics in grade 12 in regularly
scheduled intervals, but at least as often as such
assessments were conducted prior to the date of
enactment of the No Child Left Behind Act of 2001;
``(D) to the extent time and resources allow, and
after the requirements described in subparagraph (B) are
implemented and the requirements described in
subparagraph (C) are met, conduct additional national
assessments and collect and report assessment data,
including achievement data trends, in a valid and
reliable manner on student
[[Page 115 STAT. 1899]]
academic achievement in grades 4, 8, and 12 in public
and private elementary schools and secondary schools in
regularly scheduled intervals in additional subject
matter, including writing, science, history, geography,
civics, economics, foreign languages, and arts, and the
trend assessment described in subparagraph (F);
``(E) conduct the reading and mathematics
assessments described in subparagraph (B) in the same
year, and every other year thereafter, to provide for 1
year in which no such assessments are conducted in
between each administration of such assessments;
``(F) continue to conduct the trend assessment of
academic achievement at ages 9, 13, and 17 for the
purpose of maintaining data on long-term trends in
reading and mathematics;
``(G) include information on special groups,
including, whenever feasible, information collected,
cross tabulated, compared, and reported by race,
ethnicity, socioeconomic status, gender, disability and
limited English proficiency; and
``(H) ensure that achievement data are made
available on a timely basis following official
reporting, in a manner that facilitates further analysis
and that includes trend lines.
``(3) State assessments.--
``(A) In general.--The Commissioner--
``(i) shall conduct biennial State academic
assessments of student achievement in reading and
mathematics in grades 4 and 8 as described in
paragraphs (1)(B) and (1)(E);
``(ii) may conduct the State academic
assessments of student achievement in reading and
mathematics in grade 12 as described in paragraph
(1)(C);
``(iii) may conduct State academic assessments
of student achievement in grades 4, 8, and 12 as
described in paragraph (1)(D); and
``(iv) shall conduct each such State
assessment, in each subject area and at each grade
level, on a developmental basis until the
Commissioner determines, as the result of an
evaluation required by subsection (f), that such
assessment produces high quality data that are
valid and reliable.
``(B) Agreement.--
``(i) In general.--States participating in
State assessments shall enter into an agreement
with the Secretary pursuant to subsection (d)(3).
``(ii) Content.--Such agreement shall contain
information sufficient to give States full
information about the process for decision-making
(which shall include the consensus process used),
on objectives to be tested, and the standards for
random sampling, test administration, test
security, data collection, validation, and
reporting.
``(C) Review and release.--
``(i) In general.--Except as provided in
clause (ii), a participating State shall review
and give permission for the release of results
from any test of its
[[Page 115 STAT. 1900]]
students administered as a part of a State
assessment prior to the release of such data.
Refusal by a State to release its data shall not
restrict the release of data from other States
that have approved the release of such data.
``(ii) Special rule.--A State participating in
the biennial academic assessments of student
achievement in reading and mathematics in grades 4
and 8 shall be deemed to have given its permission
to release its data if the State has an approved
plan under section 1111 of the Elementary and
Secondary Education Act of 1965.
``(4) Prohibited activities.--
``(A) In general.--The use of assessment items and
data on any assessment authorized under this section by
an agent or agents of the Federal Government to rank,
compare, or otherwise evaluate individual students or
teachers, or to provide rewards or sanctions for
individual students, teachers, schools or local
educational agencies is prohibited.
``(B) Special rule.--Any assessment authorized under
this section shall not be used by an agent or agents of
the Federal Government to establish, require, or
influence the standards, assessments, curriculum,
including lesson plans, textbooks, or classroom
materials, or instructional practices of States or local
educational agencies.
``(C) Applicability to student educational
decisions.--Nothing in this section shall be construed
to prescribe the use of any assessment authorized under
this section for student promotion or graduation
purposes.
``(D) Applicability to home schools.--Nothing in
this section shall be construed to affect home schools,
whether or not a home school is treated as a home school
or a private school under State law, nor shall any home
schooled student be required to participate in any
assessment referenced or authorized under this section.
``(5) Requirement.--In carrying out any assessment
authorized under this section, the Commissioner, in a manner
consistent with subsection (c)(2), shall--
``(A) use widely accepted professional testing
standards, objectively measure academic achievement,
knowledge, and skills, and ensure that any academic
assessment authorized under this section be tests that
do not evaluate or assess personal or family beliefs and
attitudes or publicly disclose personally identifiable
information;
``(B) only collect information that is directly
related to the appraisal of academic achievement, and to
the fair and accurate presentation of such information;
and
``(C) collect information on race, ethnicity,
socioeconomic status, disability, limited English
proficiency, and gender.
``(6) Technical assistance.--In carrying out any assessment
authorized under this section, the Commissioner may provide
technical assistance to States, localities, and other parties.
``(c) Access.--
``(1) Public access.--
[[Page 115 STAT. 1901]]
``(A) In general.--Except as provided in paragraph
(3), parents and members of the public shall have access
to all assessment data, questions, and complete and
current assessment instruments of any assessment
authorized under this section. The local educational
agency shall make reasonable efforts to inform parents
and members of the public about the access required
under this paragraph.
``(B) Timeline.--The access described in this
paragraph shall be provided within 45 days of the date
the request was made, in writing, and be made available
in a secure setting that is convenient to both parties.
``(C) Prohibition.--To protect the integrity of the
assessment, no copy of the assessment items or
assessment instruments shall be duplicated or taken from
the secure setting.
``(2) Complaints.--
``(A) In general.--Parents and members of the public
may submit written complaints to the National Assessment
Governing Board.
``(B) Forwarding of complaints.--The National
Assessment Governing Board shall forward such complaints
to the Commissioner, the Secretary of Education, and the
State and local educational agency from within which the
complaint originated within 30 days of receipt of such
complaint.
``(C) Review.--The National Assessment Governing
Board, in consultation with the Commissioner, shall
review such complaint and determine whether revisions
are necessary and appropriate. As determined by such
review, the Board shall revise, as necessary and
appropriate, the procedures or assessment items that
have generated the complaint and respond to the
individual submitting the complaint, with a copy of such
response provided to the Secretary, describing any
action taken, not later than 30 days after so acting.
``(D) Report.--The Secretary shall submit a summary
report of all complaints received pursuant to
subparagraph (A) and responses by the National
Assessment Governing Board pursuant to subparagraph (B)
to the Chairman of the House Committee on Education and
the Workforce, and the Chairman of the Senate Committee
on Health, Education, Labor, and Pensions.
``(E) Cognitive questions.--
``(i) In general.--The Commissioner may
decline to make available through public means,
such as posting on the Internet, distribution to
the media, distribution through public agencies,
or in response to a request under section 552 of
title 5, United States Code, for a period, not to
exceed 10 years after initial use, cognitive
questions that the Commissioner intends to reuse
in the future.
``(ii) Extension.--Notwithstanding clause (i),
the Commissioner may decline to make cognitive
questions available as described in clause (i) for
a period longer than 10 years if the Commissioner
determines such additional period is necessary to
protect the security and integrity of long-term
trend data.
[[Page 115 STAT. 1902]]
``(3) Personally identifiable information.--
``(A) In general.--The Commissioner shall ensure
that all personally identifiable information about
students, their academic achievement, and their
families, and that information with respect to
individual schools, remains confidential, in accordance
with section 552a of title 5, United States Code.
``(B) Prohibition.--The National Board, the
Commissioner, and any contractor or subcontractor shall
not maintain any system of records containing a
student's name, birth information, Social Security
number, or parents' name or names, or any other
personally identifiable information.
``(4) Penalties.--Any unauthorized person who knowingly
discloses, publishes, or uses assessment questions, or complete
and current assessment instruments of any assessment authorized
under this section may be fined as specified in section 3571 of
title 18, United States Code or charged with a class E felony.
``(d) Participation.--
``(1) Voluntary participation.--Participation in any
assessment authorized under this section shall be voluntary for
students, schools, and local educational agencies.
``(2) Student participation.--Parents of children selected
to participate in any assessment authorized under this section
shall be informed before the administration of any authorized
assessment, that their child may be excused from participation
for any reason, is not required to finish any authorized
assessment, and is not required to answer any test question.
``(3) State participation.--
``(A) Voluntary.--Participation in assessments
authorized under this section, other than reading and
mathematics in grades 4 and 8, shall be voluntary.
``(B) Agreement.--For reading and mathematics
assessments in grades 4 and 8, the Secretary shall enter
into an agreement with any State carrying out an
assessment for the State under this section. Each such
agreement shall contain provisions designed to ensure
that the State will participate in the assessment.
``(4) Review.--Representatives of State educational agencies
and local educational agencies or the chief State school officer
shall have the right to review any assessment item or procedure
of any authorized assessment upon request in a manner consistent
with subsection (c), except the review described in subparagraph
(2)(C) of subsection (c) shall take place in consultation with
the representatives described in this paragraph.
``(e) Student Achievement Levels.--
``(1) Achievement levels.--The National Assessment Governing
Board shall develop appropriate student achievement levels for
each grade or age in each subject area to be tested under
assessments authorized under this section, except the trend
assessment described in subsection (b)(2)(F).
``(2) Determination of levels.--
``(A) In general.--Such levels shall--
``(i) be determined by--
[[Page 115 STAT. 1903]]
``(I) identifying the knowledge that
can be measured and verified objectively
using widely accepted professional
assessment standards; and
``(II) developing achievement levels
that are consistent with relevant widely
accepted professional assessment
standards and based on the appropriate
level of subject matter knowledge for
grade levels to be assessed, or the age
of the students, as the case may be.
``(B) National consensus approach.--After the
determinations described in subparagraph (A), devising a
national consensus approach.
``(C) Trial basis.--The achievement levels shall be
used on a trial basis until the Commissioner determines,
as a result of an evaluation under subsection (f), that
such levels are reasonable, valid, and informative to
the public.
``(D) Status.--The Commissioner and the Board shall
ensure that reports using such levels on a trial basis
do so in a manner that makes clear the status of such
levels.
``(E) Updates.--Such levels shall be updated as
appropriate by the National Assessment Governing Board
in consultation with the Commissioner.
``(3) Reporting.--After determining that such levels are
reasonable, valid, and informative to the public, as the result
of an evaluation under subsection (f), the Commissioner shall
use such levels or other methods or indicators for reporting
results of the National Assessment and State assessments.
``(4) Review.--The National Assessment Governing Board shall
provide for a review of any trial student achievement levels
under development by representatives of State educational
agencies or the chief State school officer in a manner
consistent with subsection (c), except the review described in
subparagraph (2)(C) shall take place in consultation with the
representatives described in this paragraph.
``(f) Review of National and State Assessments.--
``(1) Review.--
``(A) In general.--The Secretary shall provide for
continuing review of any assessment authorized under
this section, and student achievement levels, by one or
more professional assessment evaluation organizations.
``(B) Issues addressed.--Such continuing review
shall address--
``(i) whether any authorized assessment is
properly administered, produces high quality data
that are valid and reliable, is consistent with
relevant widely accepted professional assessment
standards, and produces data on student
achievement that are not otherwise available to
the State (other than data comparing participating
States to each other and the Nation);
``(ii) whether student achievement levels are
reasonable, valid, reliable, and informative to
the public;-
``(iii) whether any authorized assessment is
being administered as a random sample and is
reporting the trends in academic achievement in a
valid and reliable manner in the subject areas
being assessed;
[[Page 115 STAT. 1904]]
``(iv) whether any of the test questions are
biased, as described in section 412(e)(4); and
``(v) whether the appropriate authorized
assessments are measuring, consistent with this
section, reading ability and mathematical
knowledge.
``(2) Report.--The Secretary shall report to the Committee
on Education and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor, and Pensions of
the Senate, the President, and the Nation on the findings and
recommendations of such reviews.
``(3) Use of findings and recommendations.--The Commissioner
and the National Assessment Governing Board shall consider the
findings and recommendations of such reviews in designing the
competition to select the organization, or organizations,
through which the Commissioner carries out the National
Assessment.
``(g) Coverage Agreements.--
``(1) Department of defense schools.--The Secretary and the
Secretary of Defense may enter into an agreement, including such
terms as are mutually satisfactory, to include in the National
Assessment elementary schools and secondary schools operated by
the Department of Defense.
``(2) Bureau of indian affairs schools.--The Secretary and
the Secretary of the Interior may enter into an agreement,
including such terms as are mutually satisfactory, to include in
the National Assessment schools for Indian children operated or
supported by the Bureau of Indian Affairs.''.
(b) National Assessment Governing Board.--Section 412 of the
National Education Statistics Act of 1994 (20 U.S.C. 9011) is amended to
read as follows:
``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.
``(a) Establishment.--There is established the National Assessment
Governing Board (hereafter in this title referred to as the `Board'),
which shall formulate policy guidelines for the National Assessment.
``(b) Membership.--
``(1) Appointment and composition.--The Board shall be
appointed by the Secretary and be composed as follows:
``(A) Two Governors, or former Governors, who shall
not be members of the same political party.
``(B) Two State legislators, who shall not be
members of the same political party.
``(C) Two chief State school officers.
``(D) One superintendent of a local educational
agency.
``(E) One member of a State board of education.
``(F) One member of a local board of education.
``(G) Three classroom teachers representing the
grade levels at which the National Assessment is
conducted.
``(H) One representative of business or industry.
``(I) Two curriculum specialists.
``(J) Three testing and measurement experts, who
shall have training and experience in the field of
testing and measurement.
``(K) One nonpublic school administrator or
policymaker.
[[Page 115 STAT. 1905]]
``(L) Two school principals, of whom one shall be an
elementary school principal and one shall be a secondary
school principal.
``(M) Two parents who are not employed by a local,
State or Federal educational agency.
``(N) Two additional members who are representatives
of the general public, and who may be parents, but who
are not employed by a local, State, or Federal
educational agency.
``(2) Assistant secretary for educational research.--The
Assistant Secretary for Educational Research and Improvement
shall serve as an ex officio, nonvoting member of the Board.
``(3) Balance and diversity.--The Secretary and the Board
shall ensure at all times that the membership of the Board
reflects regional, racial, gender, and cultural balance and
diversity and that the Board exercises its independent judgment,
free from inappropriate influences and special interests.
``(c) Terms.--
``(1) In general.--Terms of service of members of the Board
shall be staggered and may not exceed a period of 4 years, as
determined by the Secretary.
``(2) Service limitation.--Members of the Board may serve
not more than two terms.
``(3) Change of status.--A member of the Board who changes
status under subsection (b) during the term of the appointment
of the member may continue to serve as a member until the
expiration of such term.
``(4) Conforming provision.--Members of the Board previously
granted 3 year terms, whose terms are in effect on the date of
enactment of the Department of Education Appropriations Act,
2001, shall have their terms extended by 1 year.
``(d) Vacancies.--
``(1) In general.--
``(A) Organizations.--The Secretary shall appoint
new members to fill vacancies on the Board from among
individuals who are nominated by organizations
representing the type of individuals described in
subsection (b)(1) with respect to which the vacancy
exists.
``(B) Nominations.--Each organization submitting
nominations to the Secretary with respect to a
particular vacancy shall nominate for such vacancy six
individuals who are qualified by experience or training
to fill the particular Board vacancy.
``(C) Maintenance of board.--The Secretary's
appointments shall maintain the composition, diversity,
and balance of the Board required under subsection (b).
``(2) Additional nominations.--The Secretary may request
that each organization described in paragraph (1)(A) submit
additional nominations if the Secretary determines that none of
the individuals nominated by such organization have appropriate
knowledge or expertise.
``(e) Duties.--
``(1) In general.--In carrying out its functions under this
section the Board shall--
``(A) select the subject areas to be assessed
(consistent with section 411(b));
[[Page 115 STAT. 1906]]
``(B) develop appropriate student achievement levels
as provided in section 411(e);
``(C) develop assessment objectives consistent with
the requirements of this section and test specifications
that produce an assessment that is valid and reliable,
and are based on relevant widely accepted professional
standards;
``(D) develop a process for review of the assessment
which includes the active participation of teachers,
curriculum specialists, local school administrators,
parents, and concerned members of the public;
``(E) design the methodology of the assessment to
ensure that assessment items are valid and reliable, in
consultation with appropriate technical experts in
measurement and assessment, content and subject matter,
sampling, and other technical experts who engage in
large scale surveys, including the Advisory Council
established under section 407;
``(F) consistent with section 411, measure student
academic achievement in grades 4, 8, and 12 in the
authorized academic subjects;
``(G) develop guidelines for reporting and
disseminating results;
``(H) develop standards and procedures for regional
and national comparisons; and
``(I) take appropriate actions needed to improve the
form, content, use, and reporting of results of any
assessment authorized by section 411 consistent with the
provisions of this section and section 411.
``(2) Delegation.--The Board may delegate any of the Board's
procedural and administrative functions to its staff.
``(3) All cognitive and noncognitive assessment items.--The
Board shall have final authority on the appropriateness of all
assessment items.
``(4) Prohibition against bias.--The Board shall take steps
to ensure that all items selected for use in the National
Assessment are free from racial, cultural, gender, or regional
bias and are secular, neutral, and non-ideological.
``(5) Technical.--In carrying out the duties required by
paragraph (1), the Board may seek technical advice, as
appropriate, from the Commissioner and the Advisory Council on
Education Statistics and other experts.
``(6) <<NOTE: Deadline.>> Report.--Not later than 90 days
after an evaluation of the student achievement levels under
section 411(e), the Board shall make a report to the Secretary,
the Committee on Education and the Workforce of the House of
Representatives, and the Committee on Health, Education, Labor,
and Pensions of the Senate describing the steps the Board is
taking to respond to each of the recommendations contained in
such evaluation.
``(f) Personnel.--
``(1) In general.--In the exercise of its responsibilities,
the Board shall be independent of the Secretary and the other
offices and officers of the Department.
``(2) Staff.--
``(A) In general.--The Secretary may appoint, at the
request of the Board, such staff as will enable the
Board to carry out its responsibilities.
[[Page 115 STAT. 1907]]
``(B) Technical employees.--Such appointments may
include, for terms not to exceed 3 years and without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, not
more than six technical employees who may be paid
without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates.
``(g) Coordination.--The Commissioner and the Board shall meet
periodically--
``(1) to ensure coordination of their duties and activities
relating to the National Assessment; and
``(2) for the Commissioner to report to the Board on the
Department's actions to implement the decisions of the Board.
``(h) Administration.--The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply with respect to the Board, other than sections 10,
11, and 12 of such Act.''.
TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
SEC. 701. INDIANS, NATIVE HAWAIIANS, AND ALASKA NATIVES.
Title VII (20 U.S.C. 7401 et seq.) is amended to read as follows:
``TITLE VII--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION
``PART A--INDIAN EDUCATION
``SEC. 7101. <<NOTE: 20 USC 7401.>> STATEMENT OF POLICY.
``It is the policy of the United States to fulfill the Federal
Government's unique and continuing trust relationship with and
responsibility to the Indian people for the education of Indian
children. The Federal Government will continue to work with local
educational agencies, Indian tribes and organizations, postsecondary
institutions, and other entities toward the goal of ensuring that
programs that serve Indian children are of the highest quality and
provide for not only the basic elementary and secondary educational
needs, but also the unique educational and culturally related academic
needs of these children.
``SEC. 7102. <<NOTE: 20 USC 7402.>> PURPOSE.
``(a) Purpose.--It is the purpose of this part to support the
efforts of local educational agencies, Indian tribes and organizations,
postsecondary institutions, and other entities to meet the unique
educational and culturally related academic needs of American Indian and
Alaska Native students, so that such students can meet the same
challenging State student academic achievement standards as all other
students are expected to meet.
``(b) Programs.--This part carries out the purpose described in
subsection (a) by authorizing programs of direct assistance for--
``(1) meeting the unique educational and culturally related
academic needs of American Indians and Alaska Natives;
``(2) the education of Indian children and adults;
[[Page 115 STAT. 1908]]
``(3) the training of Indian persons as educators and
counselors, and in other professions serving Indian people; and
``(4) research, evaluation, data collection, and technical
assistance.
``Subpart 1--Formula Grants to Local Educational Agencies
``SEC. 7111. <<NOTE: 20 USC 7421.>> PURPOSE.
``It is the purpose of this subpart to support local educational
agencies in their efforts to reform elementary school and secondary
school programs that serve Indian students in order to ensure that such
programs--
``(1) are based on challenging State academic content and
student academic achievement standards that are used for all
students; and
``(2) are designed to assist Indian students in meeting
those standards.
``SEC. 7112. <<NOTE: 20 USC 7422.>> GRANTS TO LOCAL EDUCATIONAL
AGENCIES AND TRIBES.
``(a) In General.--The Secretary may make grants, from allocations
made under section 7113, to local educational agencies and Indian
tribes, in accordance with this section and section 7113.
``(b) Local Educational Agencies.--
``(1) Enrollment requirements.--A local educational agency
shall be eligible for a grant under this subpart for any fiscal
year if the number of Indian children eligible under section
7117 who were enrolled in the schools of the agency, and to whom
the agency provided free public education, during the preceding
fiscal year--
``(A) was at least 10; or
``(B) constituted not less than 25 percent of the
total number of individuals enrolled in the schools of
such agency.
``(2) Exclusion.--The requirement of paragraph (1) shall not
apply in Alaska, California, or Oklahoma, or with respect to any
local educational agency located on, or in proximity to, a
reservation.
``(c) Indian Tribes.--
``(1) In general.--If a local educational agency that is
otherwise eligible for a grant under this subpart does not
establish a committee under section 7114(c)(4) for such grant,
an Indian tribe that represents not less than \1/2\ of the
eligible Indian children who are served by such local
educational agency may apply for such grant.
``(2) Special rule.--The Secretary shall treat each Indian
tribe applying for a grant pursuant to paragraph (1) as if such
Indian tribe were a local educational agency for purposes of
this subpart, except that any such tribe is not subject to
section 7114(c)(4), section 7118(c), or section 7119.
``SEC. 7113. <<NOTE: 20 USC 2423.>> AMOUNT OF GRANTS.
``(a) Amount of Grant Awards.--
``(1) In general.--Except as provided in subsection (b) and
paragraph (2), the Secretary shall allocate to each local
educational agency that has an approved application under this
subpart an amount equal to the product of--
[[Page 115 STAT. 1909]]
``(A) the number of Indian children who are eligible
under section 7117 and served by such agency; and
``(B) the greater of--
``(i) the average per pupil expenditure of the
State in which such agency is located; or
``(ii) 80 percent of the average per pupil
expenditure of all the States.
``(2) Reduction.--The Secretary shall reduce the amount of
each allocation otherwise determined under this section in
accordance with subsection (e).
``(b) Minimum Grant.--
``(1) In general.--Notwithstanding subsection (e), an entity
that is eligible for a grant under section 7112, and a school
that is operated or supported by the Bureau of Indian Affairs
that is eligible for a grant under subsection (d), that submits
an application that is approved by the Secretary, shall, subject
to appropriations, receive a grant under this subpart in an
amount that is not less than $3,000.
``(2) Consortia.--Local educational agencies may form a
consortium for the purpose of obtaining grants under this
subpart.
``(3) Increase.--The Secretary may increase the minimum
grant under paragraph (1) to not more than $4,000 for all
grantees if the Secretary determines such increase is necessary
to ensure the quality of the programs provided.
``(c) Definition.--For the purpose of this section, the term
`average per pupil expenditure', used with respect to a State, means an
amount equal to--
``(1) the sum of the aggregate current expenditures of all
the local educational agencies in the State, plus any direct
current expenditures by the State for the operation of such
agencies, without regard to the sources of funds from which such
local or State expenditures were made, during the second fiscal
year preceding the fiscal year for which the computation is
made; divided by
``(2) the aggregate number of children who were included in
average daily attendance for whom such agencies provided free
public education during such preceding fiscal year.
``(d) Schools Operated or Supported by the Bureau of Indian
Affairs.--
``(1) In general.--Subject to subsection (e), in addition to
the grants awarded under subsection (a), the Secretary shall
allocate to the Secretary of the Interior an amount equal to the
product of--
``(A) the total number of Indian children enrolled
in schools that are operated by--
``(i) the Bureau of Indian Affairs; or
``(ii) an Indian tribe, or an organization
controlled or sanctioned by an Indian tribal
government, for the children of that tribe under a
contract with, or grant from, the Department of
the Interior under the Indian Self-Determination
Act or the Tribally Controlled Schools Act of
1988; and
``(B) the greater of--
``(i) the average per pupil expenditure of the
State in which the school is located; or
[[Page 115 STAT. 1910]]
``(ii) 80 percent of the average per pupil
expenditure of all the States.
``(2) Special rule.--Any school described in paragraph
(1)(A) that wishes to receive an allocation under this subpart
shall submit an application in accordance with section 7114, and
shall otherwise be treated as a local educational agency for the
purpose of this subpart, except that such school shall not be
subject to section 7114(c)(4), section 7118(c), or section 7119.
``(e) Ratable Reductions.--If the sums appropriated for any fiscal
year under section 7152(a) are insufficient to pay in full the amounts
determined for local educational agencies under subsection (a)(1) and
for the Secretary of the Interior under subsection (d), each of those
amounts shall be ratably reduced.
``SEC. 7114. <<NOTE: 20 USC 7424.>> APPLICATIONS.
``(a) Application Required.--Each local educational agency that
desires to receive a grant under this subpart shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may reasonably require.
``(b) Comprehensive Program Required.--Each application submitted
under subsection (a) shall include a description of a comprehensive
program for meeting the needs of Indian children served by the local
educational agency, including the language and cultural needs of the
children, that--
``(1) describes how the comprehensive program will offer
programs and activities to meet the culturally related academic
needs of American Indian and Alaska Native students;
``(2)(A) is consistent with the State and local plans
submitted under other provisions of this Act; and
``(B) includes academic content and student academic
achievement goals for such children, and benchmarks for
attaining such goals, that are based on the challenging State
academic content and student academic achievement standards
adopted under title I for all children;
``(3) explains how Federal, State, and local programs,
especially programs carried out under title I, will meet the
needs of such students;
``(4) demonstrates how funds made available under this
subpart will be used for activities described in section 7115;
``(5) describes the professional development opportunities
that will be provided, as needed, to ensure that--
``(A) teachers and other school professionals who
are new to the Indian community are prepared to work
with Indian children; and
``(B) all teachers who will be involved in programs
assisted under this subpart have been properly trained
to carry out such programs; and
``(6) describes how the local educational agency--
``(A) will periodically assess the progress of all
Indian children enrolled in the schools of the local
educational agency, including Indian children who do not
participate in programs assisted under this subpart, in
meeting the goals described in paragraph (2);
``(B) will provide the results of each assessment
referred to in subparagraph (A) to--
[[Page 115 STAT. 1911]]
``(i) the committee described in subsection
(c)(4); and
``(ii) the community served by the local
educational agency; and
``(C) is responding to findings of any previous
assessments that are similar to the assessments
described in subparagraph (A).
``(c) Assurances.--Each application submitted under subsection (a)
shall include assurances that--
``(1) the local educational agency will use funds received
under this subpart only to supplement the funds that, in the
absence of the Federal funds made available under this subpart,
such agency would make available for the education of Indian
children, and not to supplant such funds;
``(2) the local educational agency will prepare and submit
to the Secretary such reports, in such form and containing such
information, as the Secretary may require to--
``(A) carry out the functions of the Secretary under
this subpart; and
``(B) determine the extent to which activities
carried out with funds provided to the local educational
agency under this subpart are effective in improving the
educational achievement of Indian students served by
such agency;
``(3) the program for which assistance is sought--
``(A) is based on a comprehensive local assessment
and prioritization of the unique educational and
culturally related academic needs of the American Indian
and Alaska Native students for whom the local
educational agency is providing an education;
``(B) will use the best available talents and
resources, including individuals from the Indian
community; and
``(C) was developed by such agency in open
consultation with parents of Indian children and
teachers, and, if appropriate, Indian students from
secondary schools, including through public hearings
held by such agency to provide to the individuals
described in this subparagraph a full opportunity to
understand the program and to offer recommendations
regarding the program; and
``(4) the local educational agency developed the program
with the participation and written approval of a committee--
``(A) that is composed of, and selected by--
``(i) parents of Indian children in the local
educational agency's schools;
``(ii) teachers in the schools; and
``(iii) if appropriate, Indian students
attending secondary schools of the agency;
``(B) a majority of whose members are parents of
Indian children;
``(C) that has set forth such policies and
procedures, including policies and procedures relating
to the hiring of personnel, as will ensure that the
program for which assistance is sought will be operated
and evaluated in consultation with, and with the
involvement of, parents of the children, and
representatives of the area, to be served;
[[Page 115 STAT. 1912]]
``(D) with respect to an application describing a
schoolwide program in accordance with section 7115(c),
that has--
``(i) reviewed in a timely fashion the
program; and
``(ii) determined that the program will not
diminish the availability of culturally related
activities for American Indian and Alaska Native
students; and
``(E) that has adopted reasonable bylaws for the
conduct of the activities of the committee and abides by
such bylaws.
``SEC. 7115. <<NOTE: 20 USC 7425.>> AUTHORIZED SERVICES AND ACTIVITIES.
``(a) General Requirements.--Each local educational agency that
receives a grant under this subpart shall use the grant funds, in a
manner consistent with the purpose specified in section 7111, for
services and activities that--
(1) are designed to carry out the comprehensive program of the
local educational agency for Indian students, and described in
the application of the local educational agency submitted to the
Secretary under section 7114(a);
``(2) are designed with special regard for the language and
cultural needs of the Indian students; and
``(3) supplement and enrich the regular school program of
such agency.
``(b) Particular Activities.--The services and activities referred
to in subsection (a) may include--
``(1) culturally related activities that support the program
described in the application submitted by the local educational
agency;
``(2) early childhood and family programs that emphasize
school readiness;
``(3) enrichment programs that focus on problem solving and
cognitive skills development and directly support the attainment
of challenging State academic content and student academic
achievement standards;
``(4) integrated educational services in combination with
other programs that meet the needs of Indian children and their
families;
``(5) career preparation activities to enable Indian
students to participate in programs such as the programs
supported by the Carl D. Perkins Vocational and Technical
Education Act of 1998, including programs for tech-prep
education, mentoring, and apprenticeship;
``(6) activities to educate individuals concerning substance
abuse and to prevent substance abuse;
``(7) the acquisition of equipment, but only if the
acquisition of the equipment is essential to achieve the purpose
described in section 7111;
``(8) activities that promote the incorporation of
culturally responsive teaching and learning strategies into the
educational program of the local educational agency;
``(9) activities that incorporate American Indian and Alaska
Native specific curriculum content, consistent with State
standards, into the curriculum used by the local educational
agency;
``(10) family literacy services; and
[[Page 115 STAT. 1913]]
``(11) activities that recognize and support the unique
cultural and educational needs of Indian children, and
incorporate appropriately qualified tribal elders and seniors.
``(c) Schoolwide Programs.--Notwithstanding any other provision of
law, a local educational agency may use funds made available to such
agency under this subpart to support a schoolwide program under section
1114 if--
``(1) the committee established pursuant to section
7114(c)(4) approves the use of the funds for the schoolwide
program; and
``(2) the schoolwide program is consistent with the purpose
described in section 7111.
``(d) Limitation on Administrative Costs.--Not more than 5 percent
of the funds provided to a grantee under this subpart for any fiscal
year may be used for administrative purposes.
``SEC. 7116. <<NOTE: 20 USC 7426.>> INTEGRATION OF SERVICES AUTHORIZED.
``(a) Plan.--An entity receiving funds under this subpart may submit
a plan to the Secretary for the integration of education and related
services provided to Indian students.
``(b) Consolidation of Programs.--Upon the receipt of an acceptable
plan under subsection (a), the Secretary, in cooperation with each
Federal agency providing grants for the provision of education and
related services to the entity, shall authorize the entity to
consolidate, in accordance with such plan, the federally funded
education and related services programs of the entity and the Federal
programs, or portions of the programs, serving Indian students in a
manner that integrates the program services involved into a single,
coordinated, comprehensive program and reduces administrative costs by
consolidating administrative functions.
``(c) Programs Affected.--The funds that may be consolidated in a
demonstration project under any such plan referred to in subsection (a)
shall include funds for any Federal program exclusively serving Indian
children, or the funds reserved under any Federal program to exclusively
serve Indian children, under which the entity is eligible for receipt of
funds under a statutory or administrative formula for the purposes of
providing education and related services that would be used to serve
Indian students.
``(d) Plan Requirements.--For a plan to be acceptable pursuant to
subsection (b), the plan shall--
``(1) identify the programs or funding sources to be
consolidated;
``(2) be consistent with the objectives of this section
concerning authorizing the services to be integrated in a
demonstration project;
``(3) describe a comprehensive strategy that identifies the
full range of potential educational opportunities and related
services to be provided to assist Indian students to achieve the
objectives set forth in this subpart;
``(4) describe the way in which services are to be
integrated and delivered and the results expected from the plan;
``(5) identify the projected expenditures under the plan in
a single budget;
``(6) identify the State, tribal, or local agency or
agencies to be involved in the delivery of the services
integrated under the plan;
[[Page 115 STAT. 1914]]
``(7) identify any statutory provisions, regulations,
policies, or procedures that the entity believes need to be
waived in order to implement the plan;
``(8) set forth measures for academic content and student
academic achievement goals designed to be met within a specific
period of time; and
``(9) be approved by a committee formed in accordance with
section 7114(c)(4), if such a committee exists.
``(e) Plan Review.--Upon receipt of the plan from an eligible
entity, the Secretary shall consult with the Secretary of each Federal
department providing funds to be used to implement the plan, and with
the entity submitting the plan. The parties so consulting shall identify
any waivers of statutory requirements or of Federal departmental
regulations, policies, or procedures necessary to enable the entity to
implement the plan. Notwithstanding any other provision of law, the
Secretary of the affected department shall have the authority to waive
any regulation, policy, or procedure promulgated by that department that
has been so identified by the entity or department, unless the Secretary
of the affected department determines that such a waiver is inconsistent
with the objectives of this subpart or those provisions of the statute
from which the program involved derives authority that are specifically
applicable to Indian students.
``(f) <<NOTE: Deadline.>> Plan Approval.--Within 90 days after the
receipt of an entity's plan by the Secretary, the Secretary shall inform
the entity, in writing, of the Secretary's approval or disapproval of
the plan. If the plan is disapproved, the entity shall be informed, in
writing, of the reasons for the disapproval and shall be given an
opportunity to amend the plan or to petition the Secretary to reconsider
such disapproval.
``(g) Responsibilities <<NOTE: Deadline.>> of Department of
Education.--Not later than 180 days after the date of enactment of the
No Child Left Behind Act of 2001, the Secretary of Education, the
Secretary of the Interior, and the head of any other Federal department
or agency identified by the Secretary of Education, shall enter into an
interdepartmental memorandum of agreement providing for the
implementation of the demonstration projects authorized under this
section. The lead agency head for a demonstration project under this
section shall be--
``(1) the Secretary of the Interior, in the case of an
entity meeting the definition of a contract or grant school
under title XI of the Education Amendments of 1978; or
``(2) the Secretary of Education, in the case of any other
entity.
``(h) Responsibilities of Lead Agency.--The responsibilities of the
lead agency shall include--
``(1) the use of a single report format related to the plan
for the individual project, which shall be used by an eligible
entity to report on the activities undertaken under the project;
``(2) the use of a single report format related to the
projected expenditures for the individual project which shall be
used by an eligible entity to report on all project
expenditures;
``(3) the development of a single system of Federal
oversight for the project, which shall be implemented by the
lead agency; and
``(4) the provision of technical assistance to an eligible
entity appropriate to the project, except that an eligible
entity
[[Page 115 STAT. 1915]]
shall have the authority to accept or reject the plan for
providing such technical assistance and the technical assistance
provider.
``(i) Report Requirements.--A single report format shall be
developed by the Secretary, consistent with the requirements of this
section. Such report format shall require that reports described in
subsection (h), together with records maintained on the consolidated
program at the local level, shall contain such information as will allow
a determination that the eligible entity has complied with the
requirements incorporated in its approved plan, including making a
demonstration of student academic achievement, and will provide
assurances to each Secretary that the eligible entity has complied with
all directly applicable statutory requirements and with those directly
applicable regulatory requirements that have not been waived.
``(j) No Reduction in Amounts.--In no case shall the amount of
Federal funds available to an eligible entity involved in any
demonstration project be reduced as a result of the enactment of this
section.
``(k) Interagency Fund Transfers Authorized.--The Secretary is
authorized to take such action as may be necessary to provide for an
interagency transfer of funds otherwise available to an eligible entity
in order to further the objectives of this section.
``(l) Administration of Funds.--
``(1) In general.--Program funds for the consolidated
programs shall be administered in such a manner as to allow for
a determination that funds from a specific program are spent on
allowable activities authorized under such program, except that
the eligible entity shall determine the proportion of the funds
granted that shall be allocated to such program.
``(2) Separate records not required.--Nothing in this
section shall be construed as requiring the eligible entity to
maintain separate records tracing any services or activities
conducted under the approved plan to the individual programs
under which funds were authorized for the services or
activities, nor shall the eligible entity be required to
allocate expenditures among such individual programs.
``(m) Overage.--The eligible entity may commingle all administrative
funds from the consolidated programs and shall be entitled to the full
amount of such funds (under each program's or agency's regulations). The
overage (defined as the difference between the amount of the commingled
funds and the actual administrative cost of the programs) shall be
considered to be properly spent for Federal audit purposes, if the
overage is used for the purposes provided for under this section.
``(n) Fiscal Accountability.--Nothing in this part shall be
construed so as to interfere with the ability of the Secretary or the
lead agency to fulfill the responsibilities for the safeguarding of
Federal funds pursuant to chapter 75 of title 31, United States Code.
``(o) Report on Statutory Obstacles to Program Integration.--
``(1) Preliminary <<NOTE: Deadline.>> report.--Not later
than 2 years after the date of enactment of the No Child Left
Behind Act of 2001, the Secretary of Education shall submit a
preliminary report to the Committee on Education and the
Workforce and the Committee on Resources of the House of
Representatives
[[Page 115 STAT. 1916]]
and the Committee on Health, Education, Labor, and Pensions and
the Committee on Indian Affairs of the Senate on the status of
the implementation of the demonstration projects authorized
under this section.
``(2) Final <<NOTE: Deadline.>> report.--Not later than 5
years after the date of enactment of the No Child Left Behind
Act of 2001, the Secretary of Education shall submit a report to
the Committee on Education and the Workforce and the Committee
on Resources of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions and the Committee on
Indian Affairs of the Senate on the results of the
implementation of the demonstration projects authorized under
this section. Such report shall identify statutory barriers to
the ability of participants to integrate more effectively their
education and related services to Indian students in a manner
consistent with the objectives of this section.
``(p) Definitions.--For the purposes of this section, the term
`Secretary' means--
``(1) the Secretary of the Interior, in the case of an
entity meeting the definition of a contract or grant school
under title XI of the Education Amendments of 1978; or
``(2) the Secretary of Education, in the case of any other
entity.
``SEC. 7117. <<NOTE: 20 USC 7427.>> STUDENT ELIGIBILITY FORMS.
``(a) In General.--The Secretary shall require that, as part of an
application for a grant under this subpart, each applicant shall
maintain a file, with respect to each Indian child for whom the local
educational agency provides a free public education, that contains a
form that sets forth information establishing the status of the child as
an Indian child eligible for assistance under this subpart, and that
otherwise meets the requirements of subsection (b).
``(b) Forms.--The form described in subsection (a) shall include--
``(1) either--
``(A)(i) the name of the tribe or band of Indians
(as defined in section 7151) with respect to which the
child claims membership;
``(ii) the enrollment number establishing the
membership of the child (if readily available); and
``(iii) the name and address of the organization
that maintains updated and accurate membership data for
such tribe or band of Indians; or
``(B) the name, the enrollment number (if readily
available), and the name and address of the organization
responsible for maintaining updated and accurate
membership data, of any parent or grandparent of the
child from whom the child claims eligibility under this
subpart, if the child is not a member of the tribe or
band of Indians (as so defined);
``(2) a statement of whether the tribe or band of Indians
(as so defined), with respect to which the child, or parent or
grandparent of the child, claims membership, is federally
recognized;
``(3) the name and address of the parent or legal guardian
of the child;
[[Page 115 STAT. 1917]]
``(4) a signature of the parent or legal guardian of the
child that verifies the accuracy of the information supplied;
and
``(5) any other information that the Secretary considers
necessary to provide an accurate program profile.
``(c) Statutory Construction.--Nothing in this section shall be
construed to affect a definition contained in section 7151.
``(d) Forms and Standards of Proof.--The forms and the standards of
proof (including the standard of good faith compliance) that were in use
during the 1985-86 academic year to establish the eligibility of a child
for entitlement under the Indian Elementary and Secondary School
Assistance Act shall be the forms and standards of proof used--
``(1) to establish eligibility under this subpart; and
``(2) to meet the requirements of subsection (a).
``(e) Documentation.--For purposes of determining whether a child is
eligible to be counted for the purpose of computing the amount of a
grant award under section 7113, the membership of the child, or any
parent or grandparent of the child, in a tribe or band of Indians (as so
defined) may be established by proof other than an enrollment number,
notwithstanding the availability of an enrollment number for a member of
such tribe or band. Nothing in subsection (b) shall be construed to
require the furnishing of an enrollment number.
``(f) Monitoring and Evaluation Review.--
``(1) In general.--
``(A) Review.--For each fiscal year, in order to
provide such information as is necessary to carry out
the responsibility of the Secretary to provide technical
assistance under this subpart, the Secretary shall
conduct a monitoring and evaluation review of a sampling
of the recipients of grants under this subpart. The
sampling conducted under this subparagraph shall take
into account the size of and the geographic location of
each local educational agency.
``(B) Exception.--A local educational agency may not
be held liable to the United States or be subject to any
penalty, by reason of the findings of an audit that
relates to the date of completion, or the date of
submission, of any forms used to establish, before April
28, 1988, the eligibility of a child for an entitlement
under the Indian Elementary and Secondary School
Assistance Act.
``(2) False information.--Any local educational agency that
provides false information in an application for a grant under
this subpart shall--
``(A) be ineligible to apply for any other grant
under this subpart; and
``(B) be liable to the United States for any funds
from the grant that have not been expended.
``(3) Excluded children.--A student who provides false
information for the form required under subsection (a) shall not
be counted for the purpose of computing the amount of a grant
under section 7113.
``(g) Tribal Grant and Contract Schools.--Notwithstanding any other
provision of this section, in calculating the amount of a grant under
this subpart to a tribal school that receives a grant or contract from
the Bureau of Indian Affairs, the Secretary shall use only one of the
following, as selected by the school:
[[Page 115 STAT. 1918]]
``(1) A count of the number of students in the schools
certified by the Bureau.
``(2) A count of the number of students for whom the school
has eligibility forms that comply with this section.
``(h) Timing of Child Counts.--For purposes of determining the
number of children to be counted in calculating the amount of a local
educational agency's grant under this subpart (other than in the case
described in subsection (g)(1)), the local educational agency shall--
``(1) establish a date on, or a period not longer than 31
consecutive days during, which the agency counts those children,
if that date or period occurs before the deadline established by
the Secretary for submitting an application under section 7114;
and
``(2) determine that each such child was enrolled, and
receiving a free public education, in a school of the agency on
that date or during that period, as the case may be.
``SEC. 7118. <<NOTE: 20 USC 7428.>> PAYMENTS.
``(a) In General.--Subject to subsections (b) and (c), the Secretary
shall pay to each local educational agency that submits an application
that is approved by the Secretary under this subpart the amount
determined under section 7113. The Secretary shall notify the local
educational agency of the amount of the payment not later than June 1 of
the year for which the Secretary makes the payment.
``(b) Payments Taken Into Account by the State.--The Secretary may
not make a grant under this subpart to a local educational agency for a
fiscal year if, for such fiscal year, the State in which the local
educational agency is located takes into consideration payments made
under this chapter in determining the eligibility of the local
educational agency for State aid, or the amount of the State aid, with
respect to the free public education of children during such fiscal year
or the preceding fiscal year.
``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
``(1) In general.--The Secretary may not pay a local
educational agency the full amount of a grant award determined
under section 7113 for any fiscal year unless the State
educational agency notifies the Secretary, and the Secretary
determines, that with respect to the provision of free public
education by the local educational agency for the preceding
fiscal year, the combined fiscal effort of the local educational
agency and the State, computed on either a per student or
aggregate expenditure basis, was not less than 90 percent of the
amount of the combined fiscal effort, computed on the same
basis, for the second preceding fiscal year.
``(2) Failure to maintain effort.--If, for the preceding
fiscal year, the Secretary determines that a local educational
agency and State failed to maintain the combined fiscal effort
for such agency at the level specified in paragraph (1), the
Secretary shall--
``(A) reduce the amount of the grant that would
otherwise be made to such agency under this subpart in
the exact proportion of the failure to maintain the
fiscal effort at such level; and
[[Page 115 STAT. 1919]]
``(B) not use the reduced amount of the agency and
State expenditures for the preceding year to determine
compliance with paragraph (1) for any succeeding fiscal
year, but shall use the amount of expenditures that
would have been required to comply with paragraph (1).
``(3) Waiver.--
``(A) In general.--The Secretary may waive the
requirement of paragraph (1) for a local educational
agency, for not more than 1 year at a time, if the
Secretary determines that the failure to comply with
such requirement is due to exceptional or uncontrollable
circumstances, such as a natural disaster or a
precipitous and unforeseen decline in the agency's
financial resources.
``(B) Future determinations.--The Secretary shall
not use the reduced amount of the agency's expenditures
for the fiscal year preceding the fiscal year for which
a waiver is granted to determine compliance with
paragraph (1) for any succeeding fiscal year, but shall
use the amount of expenditures that would have been
required to comply with paragraph (1) in the absence of
the waiver.
``(d) Reallocations.--The Secretary may reallocate, in a manner that
the Secretary determines will best carry out the purpose of this
subpart, any amounts that--
``(1) based on estimates made by local educational agencies
or other information, the Secretary determines will not be
needed by such agencies to carry out approved programs under
this subpart; or
``(2) otherwise become available for reallocation under this
subpart.
``SEC. 7119. <<NOTE: 20 USC 7429.>> STATE EDUCATIONAL AGENCY REVIEW.
``Before submitting an application to the Secretary under section
7114, a local educational agency shall submit the application to the
State educational agency, which may comment on such application. If the
State educational agency comments on the application, the agency shall
comment on all applications submitted by local educational agencies in
the State and shall provide those comments to the respective local
educational agencies, with an opportunity to respond.
``Subpart 2--Special Programs and Projects To Improve Educational
Opportunities for Indian Children
``SEC. 7121. <<NOTE: 20 USC 7441.>> IMPROVEMENT OF EDUCATIONAL
OPPORTUNITIES FOR INDIAN CHILDREN.
``(a) Purpose.--
``(1) In general.--It is the purpose of this section to
support projects to develop, test, and demonstrate the
effectiveness of services and programs to improve educational
opportunities and achievement of Indian children.
``(2) Coordination.--The Secretary shall take the necessary
actions to achieve the coordination of activities assisted under
this subpart with--
``(A) other programs funded under this Act; and
[[Page 115 STAT. 1920]]
``(B) other Federal programs operated for the
benefit of American Indian and Alaska Native children.
``(b) Eligible Entities.--In this section, the term `eligible
entity' means a State educational agency, local educational agency,
Indian tribe, Indian organization, federally supported elementary school
or secondary school for Indian students, Indian institution (including
an Indian institution of higher education), or a consortium of such
entities.
``(c) Grants Authorized.--
``(1) In general.--The Secretary shall award grants to
eligible entities to enable such entities to carry out
activities that meet the purpose of this section, including--
``(A) innovative programs related to the educational
needs of educationally disadvantaged children;
``(B) educational services that are not available to
such children in sufficient quantity or quality,
including remedial instruction, to raise the achievement
of Indian children in one or more of the core academic
subjects of English, mathematics, science, foreign
languages, art, history, and geography;
``(C) bilingual and bicultural programs and
projects;
``(D) special health and nutrition services, and
other related activities, that address the special
health, social, and psychological problems of Indian
children;
``(E) special compensatory and other programs and
projects designed to assist and encourage Indian
children to enter, remain in, or reenter school, and to
increase the rate of high school graduation for Indian
children;
``(F) comprehensive guidance, counseling, and
testing services;
``(G) early childhood and kindergarten programs,
including family-based preschool programs that emphasize
school readiness and parental skills, and the provision
of services to Indian children with disabilities;
``(H) partnership projects between local educational
agencies and institutions of higher education that allow
secondary school students to enroll in courses at the
postsecondary level to aid such students in the
transition from secondary to postsecondary education;
``(I) partnership projects between schools and local
businesses for career preparation programs designed to
provide Indian youth with the knowledge and skills such
youth need to make an effective transition from school
to a high-skill, high-wage career;
``(J) programs designed to encourage and assist
Indian students to work toward, and gain entrance into,
an institution of higher education;
``(K) family literacy services;
``(L) activities that recognize and support the
unique cultural and educational needs of Indian
children, and incorporate appropriately qualified tribal
elders and seniors; or
``(M) other services that meet the purpose described
in this section.
``(2) Professional development.--Professional development of
teaching professionals and paraprofessionals may be a part of
any program assisted under this section.
[[Page 115 STAT. 1921]]
``(d) Grant Requirements and Applications.--
``(1) Grant requirements.--
``(A) In general.--The Secretary may make multiyear
grants under subsection (c) for the planning,
development, pilot operation, or demonstration of any
activity described in subsection (c) for a period not to
exceed 5 years.
``(B) Priority.--In making multiyear grants
described in this paragraph, the Secretary shall give
priority to entities submitting applications that
present a plan for combining two or more of the
activities described in subsection (c) over a period of
more than 1 year.
``(C) Progress.--The Secretary shall make a grant
payment for a grant described in this paragraph to an
eligible entity after the initial year of the multiyear
grant only if the Secretary determines that the eligible
entity has made substantial progress in carrying out the
activities assisted under the grant in accordance with
the application submitted under paragraph (3) and any
subsequent modifications to such application.
``(2) Dissemination grants.--
``(A) In general.--In addition to awarding the
multiyear grants described in paragraph (1), the
Secretary may award grants under subsection (c) to
eligible entities for the dissemination of exemplary
materials or programs assisted under this section.
``(B) Determination.--The Secretary may award a
dissemination grant described in this paragraph if,
prior to awarding the grant, the Secretary determines
that the material or program to be disseminated--
``(i) has been adequately reviewed;
``(ii) has demonstrated educational merit; and
``(iii) can be replicated.
``(3) Application.--
``(A) In general.--Any eligible entity that desires
to receive a grant under this section shall submit an
application to the Secretary at such time and in such
manner as the Secretary may reasonably require.
``(B) Contents.--Each application submitted to the
Secretary under subparagraph (A), other than an
application for a dissemination grant under paragraph
(2), shall contain--
``(i) a description of how parents of Indian
children and representatives of Indian tribes have
been, and will be, involved in developing and
implementing the activities for which assistance
is sought;
``(ii) assurances that the applicant will
participate, at the request of the Secretary, in
any national evaluation of activities assisted
under this section;
``(iii) information demonstrating that the
proposed program for the activities is a
scientifically based research program, where
applicable, which may include a program that has
been modified to be culturally appropriate for
students who will be served;
``(iv) a description of how the applicant will
incorporate the proposed activities into the
ongoing school program involved once the grant
period is over; and
[[Page 115 STAT. 1922]]
``(v) such other assurances and information as
the Secretary may reasonably require.
``(e) Administrative Costs.--Not more than 5 percent of the funds
provided to a grantee under this subpart for any fiscal year may be used
for administrative purposes.
``SEC. 7122. <<NOTE: 20 USC 7442.>> PROFESSIONAL DEVELOPMENT FOR
TEACHERS AND EDUCATION PROFESSIONALS.
``(a) Purposes.--The purposes of this section are--
``(1) to increase the number of qualified Indian individuals
in teaching or other education professions that serve Indian
people;
``(2) to provide training to qualified Indian individuals to
enable such individuals to become teachers, administrators,
teacher aides, social workers, and ancillary educational
personnel; and
``(3) to improve the skills of qualified Indian individuals
who serve in the capacities described in paragraph (2).
``(b) Eligible Entities.--For the purpose of this section, the term
`eligible entity' means--
``(1) an institution of higher education, including an
Indian institution of higher education;
``(2) a State educational agency or local educational
agency, in consortium with an institution of higher education;
``(3) an Indian tribe or organization, in consortium with an
institution of higher education; and
``(4) a Bureau-funded school (as defined in section 1146 of
the Education Amendments of 1978).
``(c) Program Authorized.--The Secretary is authorized to award
grants to eligible entities having applications approved under this
section to enable those entities to carry out the activities described
in subsection (d).
``(d) Authorized Activities.--
``(1) In general.--Grant funds under this section shall be
used for activities to provide support and training for Indian
individuals in a manner consistent with the purposes of this
section. Such activities may include continuing programs,
symposia, workshops, conferences, and direct financial support,
and may include programs designed to train tribal elders and
seniors.
``(2) Special rules.--
``(A) Type of training.--For education personnel,
the training received pursuant to a grant under this
section may be inservice or preservice training.
``(B) Program.--For individuals who are being
trained to enter any field other than teaching, the
training received pursuant to a grant under this section
shall be in a program that results in a graduate degree.
``(e) Application.--Each eligible entity desiring a grant under this
section shall submit an application to the Secretary at such time, in
such manner, and accompanied by such information, as the Secretary may
reasonably require.
``(f) Special Rule.--In awarding grants under this section, the
Secretary--
``(1) shall consider the prior performance of the eligible
entity; and
[[Page 115 STAT. 1923]]
``(2) may not limit eligibility to receive a grant under
this section on the basis of--
``(A) the number of previous grants the Secretary
has awarded such entity; or
``(B) the length of any period during which such
entity received such grants.
``(g) Grant Period.--Each grant under this section shall be awarded
for a period of not more than 5 years.
``(h) Service Obligation.--
``(1) In general.--The Secretary shall require, by
regulation, that an individual who receives training pursuant to
a grant made under this section--
``(A) perform work--
``(i) related to the training received under
this section; and
``(ii) that benefits Indian people; or
``(B) repay all or a prorated part of the assistance
received.
``(2) Reporting.--The <<NOTE: Regulations.>> Secretary
shall establish, by regulation, a reporting procedure under
which a grant recipient under this section shall, not later than
12 months after the date of completion of the training, and
periodically thereafter, provide information concerning
compliance with the work requirement under paragraph (1).
``Subpart 3--National Activities
``SEC. 7131. <<NOTE: 20 USC 7451.>> NATIONAL RESEARCH ACTIVITIES.
``(a) Authorized Activities.--The Secretary may use funds made
available under section 7152(b) for each fiscal year to--
``(1) conduct research related to effective approaches for
the education of Indian children and adults;
``(2) evaluate federally assisted education programs from
which Indian children and adults may benefit;
``(3) collect and analyze data on the educational status and
needs of Indians; and
``(4) carry out other activities that are consistent with
the purpose of this part.
``(b) Eligibility.--The Secretary may carry out any of the
activities described in subsection (a) directly or through grants to, or
contracts or cooperative agreements with, Indian tribes, Indian
organizations, State educational agencies, local educational agencies,
institutions of higher education, including Indian institutions of
higher education, and other public and private agencies and
institutions.
``(c) Coordination.--Research activities supported under this
section--
``(1) shall be carried out in consultation with the Office
of Educational Research and Improvement to ensure that such
activities are coordinated with and enhance the research and
development activities supported by the Office; and
``(2) may include collaborative research activities that are
jointly funded and carried out by the Office of Indian Education
Programs and the Office of Educational Research and Improvement.
[[Page 115 STAT. 1924]]
``SEC. 7132. <<NOTE: 20 USC 7452.>> IN-SERVICE TRAINING FOR TEACHERS OF
INDIAN CHILDREN.
``(a) Grants Authorized.--In addition to the grants authorized by
section 7122(c), the Secretary may make grants to eligible consortia for
the provision of high quality in-service training. The Secretary may
make such a grant to--
``(1) a consortium of a tribal college and an institution of
higher education that awards a degree in education; or
``(2) a consortium of--
``(A) a tribal college;
``(B) an institution of higher education that awards
a degree in education; and
``(C) one or more elementary schools or secondary
schools operated by the Bureau of Indian Affairs, local
educational agencies serving Indian children, or tribal
educational agencies.
``(b) Use of Funds.--
``(1) In-service training.--A consortium that receives a
grant under subsection (a) shall use the grant funds only to
provide high quality in-service training to teachers, including
teachers who are not Indians, in schools of local educational
agencies with substantial numbers of Indian children enrolled in
their schools, in order to better meet the needs of those
children.
``(2) Components.--The training described in paragraph (1)
shall include such activities as preparing teachers to use the
best available scientifically based research practices and
learning strategies, and to make the most effective use of
curricula and materials, to respond to the unique needs of
Indian children in their classrooms.
``(c) Preference for Indian Applicants.--In applying section 7143 to
this section, the Secretary shall give a preference to any consortium
that includes one or more of the entities described in section 7143.
``SEC. 7133. <<NOTE: 20 USC 7453.>> FELLOWSHIPS FOR INDIAN STUDENTS.
``(a) Fellowships.--
``(1) Authority.--The Secretary is authorized to award
fellowships to Indian students to enable such students to study
in graduate and professional programs at institutions of higher
education.
``(2) Requirements.--The fellowships described in paragraph
(1) shall be awarded to Indian students to enable such students
to pursue a course of study--
``(A) of not more than 4 academic years; and
``(B) that leads--
``(i) toward a postbaccalaureate degree in
medicine, clinical psychology, psychology, law,
education, or a related field; or
``(ii) to an undergraduate or graduate degree
in engineering, business administration, natural
resources, or a related field.
``(b) Stipends.--The Secretary shall pay to Indian students awarded
fellowships under subsection (a) such stipends (including allowances for
subsistence of such students and dependents of such students) as the
Secretary determines to be consistent with prevailing practices under
comparable federally supported programs.
[[Page 115 STAT. 1925]]
``(c) Payments to Institutions in Lieu of Tuition.--The Secretary
shall pay to the institution of higher education at which such a
fellowship recipient is pursuing a course of study, in lieu of tuition
charged to such recipient, such amounts as the Secretary may determine
to be necessary to cover the cost of education provided to such
recipient.
``(d) Special Rules.--
``(1) In general.--If a fellowship awarded under subsection
(a) is vacated prior to the end of the period for which the
fellowship is awarded, the Secretary may award an additional
fellowship for the unexpired portion of the period of the first
fellowship.
``(2) Written notice.--Not <<NOTE: Deadline.>> later than
45 days before the commencement of an academic term, the
Secretary shall provide to each individual who is awarded a
fellowship under subsection (a) for such academic term written
notice of--
``(A) the amount of the funding for the fellowship;
and
``(B) any stipends or other payments that will be
made under this section to, or for the benefit of, the
individual for the academic term.
``(3) Priority.--Not more than 10 percent of the fellowships
awarded under subsection (a) shall be awarded, on a priority
basis, to persons receiving training in guidance counseling with
a specialty in the area of alcohol and substance abuse
counseling and education.
``(e) Service Obligation.--
``(1) In general.--The Secretary shall require, by
regulation, that an individual who receives financial assistance
under this section--
``(A) perform work--
``(i) related to the training for which the
individual receives the assistance under this
section; and
``(ii) that benefits Indian people; or
``(B) repay all or a prorated portion of such
assistance.
``(2) <<NOTE: Regulations.>> Reporting.--The Secretary
shall establish, by regulation, a reporting procedure under
which a recipient of assistance under this section shall, not
later than 12 months after the date of completion of the
training, and periodically thereafter, provide information
concerning the compliance of such recipient with the work
requirement described in paragraph (1).
``(f) Administration of Fellowships.--The Secretary may administer
the fellowships authorized under this section through a grant to, or
contract or cooperative agreement with, an Indian organization with
demonstrated qualifications to administer all facets of the program
assisted under this section.
``SEC. 7134. <<NOTE: 20 USC 7454.>> GIFTED AND TALENTED INDIAN
STUDENTS.
``(a) Program Authorized.--The Secretary is authorized to--
``(1) establish two centers for gifted and talented Indian
students at tribally controlled community colleges in accordance
with this section; and
``(2) support demonstration projects described in subsection
(c).
``(b) Eligible Entities.--The Secretary shall make grants, or enter
into contracts, for the activities described in subsection (a), to or
with--
[[Page 115 STAT. 1926]]
``(1) two tribally controlled community colleges that--
``(A) are eligible for funding under the Tribally
Controlled College or University Assistance Act of 1978;
and
``(B) are fully accredited; or
``(2) the American Indian Higher Education Consortium, if
the Secretary does not receive applications that the Secretary
determines to be approvable from two colleges that meet the
requirements of paragraph (1).
``(c) Use of Funds.--
``(1) In general.--Funds made available through the grants
made, or contracts entered into, by the Secretary under
subsection (b) shall be used for--
``(A) the establishment of centers described in
subsection (a); and
``(B) carrying out demonstration projects designed
to--
``(i) address the special needs of Indian
students in elementary schools and secondary
schools who are gifted and talented; and
``(ii) provide such support services to the
families of the students described in clause (i)
as are needed to enable such students to benefit
from the projects.
``(2) Subcontracts.--Each recipient of a grant or contract
under subsection (b) to carry out a demonstration project under
subsection (a) may enter into a contract with any other entity,
including the Children's Television Workshop, to carry out the
demonstration project.
``(3) Demonstration projects.--Demonstration projects
assisted under subsection (b) may include--
``(A) the identification of the special needs of
gifted and talented Indian students, particularly at the
elementary school level, giving attention to--
``(i) identifying the emotional and
psychosocial needs of such students; and
``(ii) providing such support services to the
families of such students as are needed to enable
such students to benefit from the projects;
``(B) the conduct of educational, psychosocial, and
developmental activities that the Secretary determines
hold a reasonable promise of resulting in substantial
progress toward meeting the educational needs of such
gifted and talented children, including--
``(i) demonstrating and exploring the use of
Indian languages and exposure to Indian cultural
traditions; and
``(ii) carrying out mentoring and
apprenticeship programs;
``(C) the provision of technical assistance and the
coordination of activities at schools that receive
grants under subsection (d) with respect to the
activities assisted under such grants, the evaluation of
programs assisted under such grants, or the
dissemination of such evaluations;
``(D) the use of public television in meeting the
special educational needs of such gifted and talented
children;
``(E) leadership programs designed to replicate
programs for such children throughout the United States,
[[Page 115 STAT. 1927]]
including disseminating information derived from the
demonstration projects conducted under subsection (a);
and
``(F) appropriate research, evaluation, and related
activities pertaining to the needs of such children and
to the provision of such support services to the
families of such children as are needed to enable such
children to benefit from the projects.
``(4) Application.--Each eligible entity desiring a grant or
contract under subsection (b) shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information, as the Secretary may reasonably require.
``(d) Additional Grants.--
``(1) In general.--The Secretary, in consultation with the
Secretary of the Interior, shall award 5 grants to schools
funded by the Bureau of Indian Affairs (hereafter referred to
individually in this section as a `Bureau school') for program
research and development and the development and dissemination
of curriculum and teacher training material, regarding--
``(A) gifted and talented students;
``(B) college preparatory studies (including
programs for Indian students with an interest in
pursuing teaching careers);
``(C) students with special culturally related
academic needs, including students with social, lingual,
and cultural needs; or
``(D) mathematics and science education.
``(2) Applications.--Each Bureau school desiring a grant
under this subsection shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information, as the Secretary may reasonably require.
``(3) Special rule.--Each application described in paragraph
(2) shall be developed, and each grant under this subsection
shall be administered, jointly by the supervisor of the Bureau
school and the local educational agency serving such school.
``(4) Requirements.--In awarding grants under paragraph (1),
the Secretary shall achieve a mixture of the programs described
in paragraph (1) that ensures that Indian students at all grade
levels and in all geographic areas of the United States are able
to participate in a program assisted under this subsection.
``(5) Grant period.--Subject to the availability of
appropriations, a grant awarded under paragraph (1) shall be
awarded for a 3-year period and may be renewed by the Secretary
for additional 3-year periods if the Secretary determines that
the performance of the grant recipient has been satisfactory.
``(6) Dissemination.--
``(A) Cooperative efforts.--The dissemination of any
materials developed from activities assisted under
paragraph (1) shall be carried out in cooperation with
entities that receive funds pursuant to subsection (b).
``(B) Report.--The Secretary shall prepare and
submit to the Secretary of the Interior and to Congress
a report concerning any results from activities
described in this subsection.
``(7) Evaluation costs.--
[[Page 115 STAT. 1928]]
``(A) Division.--The costs of evaluating any
activities assisted under paragraph (1) shall be divided
between the Bureau schools conducting such activities
and the recipients of grants or contracts under
subsection (b) who conduct demonstration projects under
subsection (a).
``(B) Grants and contracts.--If no funds are
provided under subsection (b) for--
``(i) the evaluation of activities assisted
under paragraph (1);
``(ii) technical assistance and coordination
with respect to such activities; or
``(iii) the dissemination of the evaluations
referred to in clause (i),
the Secretary shall make such grants, or enter into such
contracts, as are necessary to provide for the
evaluations, technical assistance, and coordination of
such activities, and the dissemination of the
evaluations.
``(e) Information Network.--The Secretary shall encourage each
recipient of a grant or contract under this section to work
cooperatively as part of a national network to ensure that the
information developed by the grant or contract recipient is readily
available to the entire educational community.
``SEC. 7135. <<NOTE: 20 USC 7455.>> GRANTS TO TRIBES FOR EDUCATION
ADMINISTRATIVE PLANNING AND DEVELOPMENT.
``(a) In General.--The Secretary may make grants to Indian tribes,
and tribal organizations approved by Indian tribes, to plan and develop
a centralized tribal administrative entity to--
``(1) coordinate all education programs operated by the
tribe or within the territorial jurisdiction of the tribe;
``(2) develop education codes for schools within the
territorial jurisdiction of the tribe;
``(3) provide support services and technical assistance to
schools serving children of the tribe; and
``(4) perform child-find screening services for the
preschool-aged children of the tribe to--
``(A) ensure placement in appropriate educational
facilities; and
``(B) coordinate the provision of any needed special
services for conditions such as disabilities and English
language skill deficiencies.
``(b) Period of Grant.--Each grant awarded under this section may be
awarded for a period of not more than 3 years. Such grant may be renewed
upon the termination of the initial period of the grant if the grant
recipient demonstrates to the satisfaction of the Secretary that
renewing the grant for an additional 3-year period is necessary to carry
out the objectives of the grant described in subsection (c)(2)(A).
``(c) Application for Grant.--
``(1) In general.--Each Indian tribe and tribal organization
desiring a grant under this section shall submit an application
to the Secretary at such time, in such manner, containing such
information, and consistent with such criteria, as the Secretary
may prescribe in regulations.
``(2) Contents.--Each application described in paragraph (1)
shall contain--
[[Page 115 STAT. 1929]]
``(A) a statement describing the activities to be
conducted, and the objectives to be achieved, under the
grant; and
``(B) a description of the method to be used for
evaluating the effectiveness of the activities for which
assistance is sought and for determining whether such
objectives are achieved.
``(3) Approval.--The Secretary may approve an application
submitted by a tribe or tribal organization pursuant to this
section only if the Secretary is satisfied that such
application, including any documentation submitted with the
application--
``(A) demonstrates that the applicant has consulted
with other education entities, if any, within the
territorial jurisdiction of the applicant who will be
affected by the activities to be conducted under the
grant;
``(B) provides for consultation with such other
education entities in the operation and evaluation of
the activities conducted under the grant; and
``(C) demonstrates that there will be adequate
resources provided under this section or from other
sources to complete the activities for which assistance
is sought, except that the availability of such other
resources shall not be a basis for disapproval of such
application.
``(d) Restriction.--A tribe may not receive funds under this section
if such tribe receives funds under section 1144 of the Education
Amendments of 1978.
``SEC. 7136. <<NOTE: 20 USC 7456.>> IMPROVEMENT OF EDUCATIONAL
OPPORTUNITIES FOR ADULT INDIANS.
``(a) In General.--The Secretary shall make grants to State
educational agencies, local educational agencies, and Indian tribes,
institutions, and organizations--
``(1) to support planning, pilot, and demonstration projects
that are designed to test and demonstrate the effectiveness of
programs for improving employment and educational opportunities
for adult Indians;
``(2) to assist in the establishment and operation of
programs that are designed to stimulate--
``(A) the provision of basic literacy opportunities
for all nonliterate Indian adults; and
``(B) the provision of opportunities to all Indian
adults to qualify for a secondary school diploma, or its
recognized equivalent, in the shortest period of time
feasible;
``(3) to support a major research and development program to
develop more innovative and effective techniques for achieving
literacy and secondary school equivalency for Indians;
``(4) to provide for basic surveys and evaluations to define
accurately the extent of the problems of illiteracy and lack of
secondary school completion among Indians; and
``(5) to encourage the dissemination of information and
materials relating to, and the evaluation of, the effectiveness
of education programs that may offer educational opportunities
to Indian adults.
``(b) Educational Services.--The Secretary may make grants to Indian
tribes, institutions, and organizations to develop and establish
educational services and programs specifically designed to improve
educational opportunities for Indian adults.
[[Page 115 STAT. 1930]]
``(c) Information and Evaluation.--The Secretary may make grants to,
and enter into contracts with, public agencies and institutions and
Indian tribes, institutions, and organizations, for--
``(1) the dissemination of information concerning
educational programs, services, and resources available to
Indian adults, including evaluations of the programs, services,
and resources; and
``(2) the evaluation of federally assisted programs in which
Indian adults may participate to determine the effectiveness of
the programs in achieving the purposes of the programs with
respect to Indian adults.
``(d) Applications.--
``(1) In general.--Each entity desiring a grant or contract
under this section shall submit to the Secretary an application
at such time, in such manner, containing such information, and
consistent with such criteria, as the Secretary may prescribe in
regulations.
``(2) Contents.--Each application described in paragraph (1)
shall contain--
``(A) a statement describing the activities to be
conducted and the objectives to be achieved under the
grant or contract; and
``(B) a description of the method to be used for
evaluating the effectiveness of the activities for which
assistance is sought and determining whether the
objectives of the grant or contract are achieved.
``(3) Approval.--The Secretary shall not approve an
application described in paragraph (1) unless the Secretary
determines that such application, including any documentation
submitted with the application, indicates that--
``(A) there has been adequate participation, by the
individuals to be served and the appropriate tribal
communities, in the planning and development of the
activities to be assisted; and
``(B) the individuals and tribal communities
referred to in subparagraph (A) will participate in the
operation and evaluation of the activities to be
assisted.
``(4) Priority.--In approving applications under paragraph
(1), the Secretary shall give priority to applications from
Indian educational agencies, organizations, and institutions.
``(e) Administrative Costs.--Not more than 5 percent of the funds
made available to an entity through a grant or contract made or entered
into under this section for a fiscal year may be used to pay for
administrative costs.
``Subpart 4--Federal Administration
``SEC. 7141. <<NOTE: 20 USC 7471.>> NATIONAL ADVISORY COUNCIL ON INDIAN
EDUCATION.
``(a) Membership.--There <<NOTE: Establishment.>> is established a
National Advisory Council on Indian Education (hereafter in this section
referred to as the `Council'), which shall--
``(1) consist of 15 Indian members, who shall be appointed
by the President from lists of nominees furnished, from time to
time, by Indian tribes and organizations; and
``(2) represent different geographic areas of the United
States.
``(b) Duties.--The Council shall--
[[Page 115 STAT. 1931]]
``(1) advise the Secretary concerning the funding and
administration (including the development of regulations and
administrative policies and practices) of any program, including
any program established under this part--
``(A) with respect to which the Secretary has
jurisdiction; and
``(B)(i) that includes Indian children or adults as
participants; or
``(ii) that may benefit Indian children or adults;
``(2) make recommendations to the Secretary for filling the
position of Director of Indian Education whenever a vacancy
occurs; and
``(3) <<NOTE: Deadline.>> submit to Congress, not later
than June 30 of each year, a report on the activities of the
Council, <<NOTE: Reports.>> including--
``(A) any recommendations that the Council considers
appropriate for the improvement of Federal education
programs that include Indian children or adults as
participants, or that may benefit Indian children or
adults; and
``(B) recommendations concerning the funding of any
program described in subparagraph (A).
``SEC. 7142. <<NOTE: 20 USC 7472.>> PEER REVIEW.
``The Secretary may use a peer review process to review applications
submitted to the Secretary under subpart 2 or subpart 3.
``SEC. 7143. <<NOTE: 20 USC 7473.>> PREFERENCE FOR INDIAN APPLICANTS.
``In making grants and entering into contracts or cooperative
agreements under subpart 2 or subpart 3, the Secretary shall give a
preference to Indian tribes, organizations, and institutions of higher
education under any program with respect to which Indian tribes,
organizations, and institutions are eligible to apply for grants,
contracts, or cooperative agreements.
``SEC. 7144. <<NOTE: 20 USC 7474.>> MINIMUM GRANT CRITERIA.
``The Secretary may not approve an application for a grant,
contract, or cooperative agreement under subpart 2 or subpart 3 unless
the application is for a grant, contract, or cooperative agreement that
is--
``(1) of sufficient size, scope, and quality to achieve the
purpose or objectives of such grant, contract, or cooperative
agreement; and
``(2) based on relevant research findings.
``Subpart 5--Definitions; Authorizations of Appropriations
``SEC. 7151. <<NOTE: 20 USC 7491.>> DEFINITIONS.
``For the purposes of this part:
``(1) Adult.--The term `adult' means an individual who--
``(A) has attained the age of 16 years; or
``(B) has attained an age that is greater than the
age of compulsory school attendance under an applicable
State law.
``(2) Free public education.--The term `free public
education' means education that is--
``(A) provided at public expense, under public
supervision and direction, and without tuition charge;
and
[[Page 115 STAT. 1932]]
``(B) provided as elementary or secondary education
in the applicable State or to preschool children.
``(3) Indian.--The term `Indian' means an individual who
is--
``(A) a member of an Indian tribe or band, as
membership is defined by the tribe or band, including--
``(i) any tribe or band terminated since 1940;
and
``(ii) any tribe or band recognized by the
State in which the tribe or band resides;
``(B) a descendant, in the first or second degree,
of an individual described in subparagraph (A);
``(C) considered by the Secretary of the Interior to
be an Indian for any purpose;
``(D) an Eskimo, Aleut, or other Alaska Native; or
``(E) a member of an organized Indian group that
received a grant under the Indian Education Act of 1988
as in effect the day preceding the date of enactment of
the Improving America's Schools Act of 1994.
``SEC. 7152. <<NOTE: 20 USC 7492.>> AUTHORIZATIONS OF APPROPRIATIONS.
``(a) Subpart 1.--For the purpose of carrying out subpart 1, there
are authorized to be appropriated $96,400,000 for fiscal year 2002 and
such sums as may be necessary for each of the 5 succeeding fiscal years.
``(b) Subparts 2 and 3.--For the purpose of carrying out subparts 2
and 3, there are authorized to be appropriated $24,000,000 for fiscal
year 2002 and such sums as may be necessary for each of the 5 succeeding
fiscal years.
``PART <<NOTE: Native Hawaiian Education Act.>> B--NATIVE HAWAIIAN
EDUCATION
``SEC. 7201. <<NOTE: 20 USC 7511.>> SHORT TITLE.
``This part may be cited as the `Native Hawaiian Education Act'.
``SEC. 7202. <<NOTE: 20 USC 7512.>> FINDINGS.
``Congress finds the following:
``(1) Native Hawaiians are a distinct and unique indigenous
people with a historical continuity to the original inhabitants
of the Hawaiian archipelago, whose society was organized as a
nation and internationally recognized as a nation by the United
States, Britain, France, and Japan, as evidenced by treaties
governing friendship, commerce, and navigation.
``(2) At the time of the arrival of the first nonindigenous
people in Hawaii in 1778, the Native Hawaiian people lived in a
highly organized, self-sufficient subsistence social system
based on a communal land tenure system with a sophisticated
language, culture, and religion.
``(3) A unified monarchal government of the Hawaiian Islands
was established in 1810 under Kamehameha I, the first King of
Hawaii.
``(4) From 1826 until 1893, the United States recognized the
sovereignty and independence of the Kingdom of Hawaii, which was
established in 1810 under Kamehameha I, extended full and
complete diplomatic recognition to the Kingdom of Hawaii, and
entered into treaties and conventions with the Kingdom of Hawaii
to govern friendship, commerce and navigation in 1826, 1842,
1849, 1875, and 1887.
[[Page 115 STAT. 1933]]
``(5) In 1893, the sovereign, independent, internationally
recognized, and indigenous government of Hawaii, the Kingdom of
Hawaii, was overthrown by a small group of non-Hawaiians,
including United States citizens, who were assisted in their
efforts by the United States Minister, a United States naval
representative, and armed naval forces of the United States.
Because of the participation of United States agents and
citizens in the overthrow of the Kingdom of Hawaii, in 1993 the
United States apologized to Native Hawaiians for the overthrow
and the deprivation of the rights of Native Hawaiians to self-
determination through Public Law 103-150 (107 Stat. 1510).
``(6) In 1898, the joint resolution entitled `Joint
Resolution to provide for annexing the Hawaiian Islands to the
United States', approved July 7, 1898 (30 Stat. 750), ceded
absolute title of all lands held by the Republic of Hawaii,
including the government and crown lands of the former Kingdom
of Hawaii, to the United States, but mandated that revenue
generated from the lands be used `solely for the benefit of the
inhabitants of the Hawaiian Islands for educational and other
public purposes'.
``(7) By 1919, the Native Hawaiian population had declined
from an estimated 1,000,000 in 1778 to an alarming 22,600, and
in recognition of this severe decline, Congress enacted the
Hawaiian Homes Commission Act, 1920 (42 Stat. 108), which
designated approximately 200,000 acres of ceded public lands for
homesteading by Native Hawaiians.
``(8) Through the enactment of the Hawaiian Homes Commission
Act, 1920, Congress affirmed the special relationship between
the United States and the Native Hawaiians, which was described
by then Secretary of the Interior Franklin K. Lane, who said:
`One thing that impressed me . . . was the fact that the natives
of the island who are our wards, I should say, and for whom in a
sense we are trustees, are falling off rapidly in numbers and
many of them are in poverty.'.
``(9) In 1938, Congress again acknowledged the unique status
of the Hawaiian people by including in the Act of June 20, 1938
(52 Stat. 781, chapter 530; 16 U.S.C. 391b, 391b-1, 392b, 392c,
396, 396a), a provision to lease lands within the National Parks
extension to Native Hawaiians and to permit fishing in the area
`only by native Hawaiian residents of said area or of adjacent
villages and by visitors under their guidance.'.
``(10) Under the Act entitled `An Act to provide for the
admission of the State of Hawaii into the Union', approved March
18, 1959 (73 Stat. 4), the United States transferred
responsibility for the administration of the Hawaiian Home Lands
to the State of Hawaii but reaffirmed the trust relationship
between the United States and the Hawaiian people by retaining
the exclusive power to enforce the trust, including the power to
approve land exchanges and amendments to such Act affecting the
rights of beneficiaries under such Act.
``(11) In 1959, under the Act entitled `An Act to provide
for the admission of the State of Hawaii into the Union', the
United States also ceded to the State of Hawaii title to the
public lands formerly held by the United States, but mandated
that such lands be held by the State `in public trust' and
[[Page 115 STAT. 1934]]
reaffirmed the special relationship that existed between the
United States and the Hawaiian people by retaining the legal
responsibility to enforce the public trust responsibility of the
State of Hawaii for the betterment of the conditions of Native
Hawaiians, as defined in section 201(a) of the Hawaiian Homes
Commission Act, 1920.
``(12) The United States has recognized and reaffirmed
that--
``(A) Native Hawaiians have a cultural, historic,
and land-based link to the indigenous people who
exercised sovereignty over the Hawaiian Islands, and
that group has never relinquished its claims to
sovereignty or its sovereign lands;
``(B) Congress does not extend services to Native
Hawaiians because of their race, but because of their
unique status as the indigenous people of a once
sovereign nation as to whom the United States has
established a trust relationship;
``(C) Congress has also delegated broad authority to
administer a portion of the Federal trust responsibility
to the State of Hawaii;
``(D) the political status of Native Hawaiians is
comparable to that of American Indians and Alaska
Natives; and
``(E) the aboriginal, indigenous people of the
United States have--
``(i) a continuing right to autonomy in their
internal affairs; and
``(ii) an ongoing right of self-determination
and self-governance that has never been
extinguished.
``(13) The political relationship between the United States
and the Native Hawaiian people has been recognized and
reaffirmed by the United States, as evidenced by the inclusion
of Native Hawaiians in--
``(A) the Native American Programs Act of 1974 (42
U.S.C. 2991 et seq.);
``(B) the American Indian Religious Freedom Act (42
U.S.C. 1996);
``(C) the National Museum of the American Indian Act
(20 U.S.C. 80q et seq.);
``(D) the Native American Graves Protection and
Repatriation Act (25 U.S.C. 3001 et seq.);
``(E) the National Historic Preservation Act (16
U.S.C. 470 et seq.);
``(F) the Native American Languages Act (25 U.S.C.
2901 et seq.);
``(G) the American Indian, Alaska Native, and Native
Hawaiian Culture and Art Development Act (20 U.S.C. 4401
et seq.);
``(H) the Workforce Investment Act of 1998 (29
U.S.C. 2801 et seq.); and
``(I) the Older Americans Act of 1965 (42 U.S.C.
3001 et seq.).
``(14) In 1981, Congress instructed the Office of Education
to submit to Congress a comprehensive report on Native Hawaiian
education. The report, entitled the `Native Hawaiian Educational
Assessment Project', was released in 1983 and
[[Page 115 STAT. 1935]]
documented that Native Hawaiians scored below parity with regard
to national norms on standardized achievement tests, were
disproportionately represented in many negative social and
physical statistics indicative of special educational needs, and
had educational needs that were related to their unique cultural
situation, such as different learning styles and low self-image.
``(15) In recognition of the educational needs of Native
Hawaiians, in 1988, Congress enacted title IV of the Augustus F.
Hawkins-Robert T. Stafford Elementary and Secondary School
Improvement Amendments of 1988 (102 Stat. 130) to authorize and
develop supplemental educational programs to address the unique
conditions of Native Hawaiians.
``(16) In 1993, the Kamehameha Schools Bishop Estate
released a 10-year update of findings of the Native Hawaiian
Educational Assessment Project, which found that despite the
successes of the programs established under title IV of the
Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary
School Improvement Amendments of 1988, many of the same
educational needs still existed for Native Hawaiians. Subsequent
reports by the Kamehameha Schools Bishop Estate and other
organizations have generally confirmed those findings. For
example--
``(A) educational risk factors continue to start
even before birth for many Native Hawaiian children,
including--
``(i) late or no prenatal care;
``(ii) high rates of births by Native Hawaiian
women who are unmarried; and
``(iii) high rates of births to teenage
parents;
``(B) Native Hawaiian students continue to begin
their school experience lagging behind other students in
terms of readiness factors such as vocabulary test
scores;
``(C) Native Hawaiian students continue to score
below national norms on standardized education
achievement tests at all grade levels;
``(D) both public and private schools continue to
show a pattern of lower percentages of Native Hawaiian
students in the uppermost achievement levels and in
gifted and talented programs;
``(E) Native Hawaiian students continue to be
overrepresented among students qualifying for special
education programs provided to students with learning
disabilities, mild mental retardation, emotional
impairment, and other such disabilities;
``(F) Native Hawaiians continue to be
underrepresented in institutions of higher education and
among adults who have completed four or more years of
college;
``(G) Native Hawaiians continue to be
disproportionately represented in many negative social
and physical statistics indicative of special
educational needs, as demonstrated by the fact that--
``(i) Native Hawaiian students are more likely
to be retained in grade level and to be
excessively absent in secondary school;
[[Page 115 STAT. 1936]]
``(ii) Native Hawaiian students have the
highest rates of drug and alcohol use in the State
of Hawaii; and
``(iii) Native Hawaiian children continue to
be disproportionately victimized by child abuse
and neglect; and
``(H) Native Hawaiians now comprise over 23 percent
of the students served by the State of Hawaii Department
of Education, and there are and will continue to be
geographically rural, isolated areas with a high Native
Hawaiian population density.
``(17) In the 1998 National Assessment of Educational
Progress, Hawaiian fourth-graders ranked 39th among groups of
students from 39 States in reading. Given that Hawaiian students
rank among the lowest groups of students nationally in reading,
and that Native Hawaiian students rank the lowest among Hawaiian
students in reading, it is imperative that greater focus be
placed on beginning reading and early education and literacy in
Hawaii.
``(18) The findings described in paragraphs (16) and (17)
are inconsistent with the high rates of literacy and integration
of traditional culture and Western education historically
achieved by Native Hawaiians through a Hawaiian language-based
public school system established in 1840 by Kamehameha III.
``(19) Following the overthrow of the Kingdom of Hawaii in
1893, Hawaiian medium schools were banned. After annexation,
throughout the territorial and statehood period of Hawaii, and
until 1986, use of the Hawaiian language as an instructional
medium in education in public schools was declared unlawful. The
declaration caused incalculable harm to a culture that placed a
very high value on the power of language, as exemplified in the
traditional saying: `I ka `olelo no ke ola; I ka `olelo no ka
make. In the language rests life; In the language rests death.'.
``(20) Despite the consequences of over 100 years of
nonindigenous influence, the Native Hawaiian people are
determined to preserve, develop, and transmit to future
generations their ancestral territory and their cultural
identity in accordance with their own spiritual and traditional
beliefs, customs, practices, language, and social institutions.
``(21) The State of Hawaii, in the constitution and statutes
of the State of Hawaii--
``(A) reaffirms and protects the unique right of the
Native Hawaiian people to practice and perpetuate their
culture and religious customs, beliefs, practices, and
language;
``(B) recognizes the traditional language of the
Native Hawaiian people as an official language of the
State of Hawaii, which may be used as the language of
instruction for all subjects and grades in the public
school system; and
``(C) promotes the study of the Hawaiian culture,
language, and history by providing a Hawaiian education
program and using community expertise as a suitable and
essential means to further the program.
[[Page 115 STAT. 1937]]
``SEC. 7203. <<NOTE: 20 USC 7513.>> PURPOSES.
``The purposes of this part are to--
``(1) authorize and develop innovative educational programs
to assist Native Hawaiians;
``(2) provide direction and guidance to appropriate Federal,
State, and local agencies to focus resources, including
resources made available under this part, on Native Hawaiian
education, and to provide periodic assessment and data
collection;
``(3) supplement and expand programs and authorities in the
area of education to further the purposes of this title; and
``(4) encourage the maximum participation of Native
Hawaiians in planning and management of Native Hawaiian
education programs.
``SEC. 7204. <<NOTE: 20 USC 7514.>> NATIVE HAWAIIAN EDUCATION COUNCIL
AND ISLAND COUNCILS.
``(a) Establishment of Native Hawaiian Education Council.--In order
to better effectuate the purposes of this part through the coordination
of educational and related services and programs available to Native
Hawaiians, including those programs receiving funding under this part,
the Secretary is authorized to establish a Native Hawaiian Education
Council (hereafter in this part referred to as the `Education Council').
``(b) Composition of Education Council.--The Education Council shall
consist of not more than 21 members, unless otherwise determined by a
majority of the council.
``(c) Conditions and Terms.--
``(1) Conditions.--At least 10 members of the Education
Council shall be Native Hawaiian education service providers and
10 members of the Education Council shall be Native Hawaiians or
Native Hawaiian education consumers. In addition, a
representative of the State of Hawaii Office of Hawaiian Affairs
shall serve as a member of the Education Council.
``(2) Appointments.--The members of the Education Council
shall be appointed by the Secretary based on recommendations
received from the Native Hawaiian community.
``(3) Terms.--Members of the Education Council shall serve
for staggered terms of 3 years, except as provided in paragraph
(4).
``(4) Council determinations.--Additional conditions and
terms relating to membership on the Education Council, including
term lengths and term renewals, shall be determined by a
majority of the Education Council.
``(d) Native Hawaiian Education Council Grant.--The Secretary shall
make a direct grant to the Education Council to carry out the following
activities:
``(1) Coordinate the educational and related services and
programs available to Native Hawaiians, including the programs
assisted under this part.
``(2) Assess the extent to which such services and programs
meet the needs of Native Hawaiians, and collect data on the
status of Native Hawaiian education.
``(3) Provide direction and guidance, through the issuance
of reports and recommendations, to appropriate Federal, State,
and local agencies in order to focus and improve the use of
resources, including resources made available under this part,
[[Page 115 STAT. 1938]]
relating to Native Hawaiian education, and serve, where
appropriate, in an advisory capacity.
``(4) Make direct grants, if such grants enable the
Education Council to carry out the duties of the Education
Council, as described in paragraphs (1) through (3).
``(e) Additional Duties of the Education Council.--
``(1) In general.--The Education Council shall provide
copies of any reports and recommendations issued by the
Education Council, including any information that the Education
Council provides to the Secretary pursuant to subsection (i), to
the Secretary, the Committee on Education and the Workforce of
the House of Representatives, and the Committee on Indian
Affairs of the Senate.
``(2) Annual report.--The Education Council shall prepare
and submit to the Secretary an annual report on the Education
Council's activities.
``(3) Island council support and assistance.--The Education
Council shall provide such administrative support and financial
assistance to the island councils established pursuant to
subsection (f) as the Secretary determines to be appropriate, in
a manner that supports the distinct needs of each island
council.
``(f) Establishment of Island Councils.--
``(1) In general.--In order to better effectuate the
purposes of this part and to ensure the adequate representation
of island and community interests within the Education Council,
the Secretary is authorized to facilitate the establishment of
Native Hawaiian education island councils (hereafter in this
part referred to as an `island council') for the following
islands:
``(A) Hawaii.
``(B) Maui.
``(C) Molokai.
``(D) Lanai.
``(E) Oahu.
``(F) Kauai.
``(G) Niihau.
``(2) Composition of island councils.--Each island council
shall consist of parents, students, and other community members
who have an interest in the education of Native Hawaiians, and
shall be representative of individuals concerned with the
educational needs of all age groups, from children in preschool
through adults. At least three-fourths of the members of each
island council shall be Native Hawaiians.
``(g) Administrative Provisions Relating to Education Council and
Island Councils.--The Education Council and each island council shall
meet at the call of the chairperson of the appropriate council, or upon
the request of the majority of the members of the appropriate council,
but in any event not less often than four times during each calendar
year. The provisions of the Federal Advisory Committee Act shall not
apply to the Education Council and each island council.
``(h) Compensation.--Members of the Education Council and each
island council shall not receive any compensation for service on the
Education Council and each island council, respectively.
``(i) <<NOTE: Deadline.>> Report.--Not later than 4 years after the
date of enactment of the No Child Left Behind Act of 2001, the Secretary
shall prepare and submit to the Committee on Education and the Workforce
[[Page 115 STAT. 1939]]
of the House of Representatives and the Committee on Indian Affairs of
the Senate a report that summarizes the annual reports of the Education
Council, describes the allocation and use of funds under this part, and
contains recommendations for changes in Federal, State, and local policy
to advance the purposes of this part.
``SEC. 7205. <<NOTE: 20 USC 7515.>> PROGRAM AUTHORIZED.
``(a) General Authority.--
``(1) Grants and contracts.--The Secretary is authorized to
make direct grants to, or enter into contracts with--
``(A) Native Hawaiian educational organizations;
``(B) Native Hawaiian community-based organizations;
``(C) public and private nonprofit organizations,
agencies, and institutions with experience in developing
or operating Native Hawaiian programs or programs of
instruction in the Native Hawaiian language; and
``(D) consortia of the organizations, agencies, and
institutions described in subparagraphs (A) through (C),
to carry out programs that meet the purposes of this part.
``(2) Priorities.--In awarding grants or contracts to carry
out activities described in paragraph (3), the Secretary shall
give priority to entities proposing projects that are designed
to address--
``(A) beginning reading and literacy among students
in kindergarten through third grade;
``(B) the needs of at-risk children and youth;
``(C) needs in fields or disciplines in which Native
Hawaiians are underemployed; and
``(D) the use of the Hawaiian language in
instruction.
``(3) Authorized activities.--Activities provided through
programs carried out under this part may include--
``(A) the development and maintenance of a statewide
Native Hawaiian early education and care system to
provide a continuum of services for Native Hawaiian
children from the prenatal period of the children
through age 5;
``(B) the operation of family-based education
centers that provide such services as--
``(i) programs for Native Hawaiian parents and
their infants from the prenatal period of the
infants through age 3;
``(ii) preschool programs for Native
Hawaiians; and
``(iii) research on, and development and
assessment of, family-based, early childhood, and
preschool programs for Native Hawaiians;
``(C) activities that enhance beginning reading and
literacy in either the Hawaiian or the English language
among Native Hawaiian students in kindergarten through
third grade and assistance in addressing the distinct
features of combined English and Hawaiian literacy for
Hawaiian speakers in fifth and sixth grade;
``(D) activities to meet the special needs of Native
Hawaiian students with disabilities, including--
``(i) the identification of such students and
their needs;
``(ii) the provision of support services to
the families of those students; and
[[Page 115 STAT. 1940]]
``(iii) other activities consistent with the
requirements of the Individuals with Disabilities
Education Act;
``(E) activities that address the special needs of
Native Hawaiian students who are gifted and talented,
including--
``(i) educational, psychological, and
developmental activities designed to assist in the
educational progress of those students; and
``(ii) activities that involve the parents of
those students in a manner designed to assist in
the students' educational progress;
``(F) the development of academic and vocational
curricula to address the needs of Native Hawaiian
children and adults, including curriculum materials in
the Hawaiian language and mathematics and science
curricula that incorporate Native Hawaiian tradition and
culture;
``(G) professional development activities for
educators, including--
``(i) the development of programs to prepare
prospective teachers to address the unique needs
of Native Hawaiian students within the context of
Native Hawaiian culture, language, and traditions;
``(ii) in-service programs to improve the
ability of teachers who teach in schools with
concentrations of Native Hawaiian students to meet
those students' unique needs; and
``(iii) the recruitment and preparation of
Native Hawaiians, and other individuals who live
in communities with a high concentration of Native
Hawaiians, to become teachers;
``(H) the operation of community-based learning
centers that address the needs of Native Hawaiian
families and communities through the coordination of
public and private programs and services, including--
``(i) preschool programs;
``(ii) after-school programs;
``(iii) vocational and adult education
programs; and
``(iv) programs that recognize and support the
unique cultural and educational needs of Native
Hawaiian children, and incorporate appropriately
qualified Native Hawaiian elders and seniors;
``(I) activities, including program co-location, to
enable Native Hawaiians to enter and complete programs
of postsecondary education, including--
``(i) provision of full or partial
scholarships for undergraduate or graduate study
that are awarded to students based on their
academic promise and financial need, with a
priority, at the graduate level, given to students
entering professions in which Native Hawaiians are
underrepresented;
``(ii) family literacy services;
``(iii) counseling and support services for
students receiving scholarship assistance;
``(iv) counseling and guidance for Native
Hawaiian secondary students who have the potential
to receive scholarships; and
[[Page 115 STAT. 1941]]
``(v) faculty development activities designed
to promote the matriculation of Native Hawaiian
students;
``(J) research and data collection activities to
determine the educational status and needs of Native
Hawaiian children and adults;
``(K) other research and evaluation activities
related to programs carried out under this part; and
``(L) other activities, consistent with the purposes
of this part, to meet the educational needs of Native
Hawaiian children and adults.
``(4) Special rule and conditions.--
``(A) Institutions outside hawaii.--The Secretary
shall not establish a policy under this section that
prevents a Native Hawaiian student enrolled at a 2- or
4-year degree granting institution of higher education
outside of the State of Hawaii from receiving a
scholarship pursuant to paragraph (3)(I).
``(B) Scholarship conditions.--The Secretary shall
establish conditions for receipt of a scholarship
awarded under paragraph (3)(I). The conditions shall
require that an individual seeking such a scholarship
enter into a contract to provide professional services,
either during the scholarship period or upon completion
of a program of postsecondary education, to the Native
Hawaiian community.
``(b) Administrative Costs.--Not more than 5 percent of funds
provided to a recipient of a grant or contract under subsection (a) for
any fiscal year may be used for administrative purposes.
``(c) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section and section 7204 such sums as may be
necessary for fiscal year 2002 and each of the 5 succeeding
fiscal years.
``(2) Reservation.--Of the funds appropriated under this
subsection, the Secretary shall reserve $500,000 for fiscal year
2002 and each of the 5 succeeding fiscal years to make a direct
grant to the Education Council to carry out section 7204.
``(3) Availability.--Funds appropriated under this
subsection shall remain available until expended.
``SEC. 7206. <<NOTE: 20 USC 7516.>> ADMINISTRATIVE PROVISIONS.
``(a) Application Required.--No grant may be made under this part,
and no contract may be entered into under this part, unless the entity
seeking the grant or contract submits an application to the Secretary at
such time, in such manner, and containing such information as the
Secretary may determine to be necessary to carry out the provisions of
this part.
``(b) Special Rule.--Each applicant for a grant or contract under
this part shall submit the application for comment to the local
educational agency serving students who will participate in the program
to be carried out under the grant or contract, and include those
comments, if any, with the application to the Secretary.
``SEC. 7207. <<NOTE: 20 USC 7517.>> DEFINITIONS.
``In this part:
[[Page 115 STAT. 1942]]
``(1) Native hawaiian.--The term `Native Hawaiian' means any
individual who is--
``(A) a citizen of the United States; and
``(B) a descendant of the aboriginal people who,
prior to 1778, occupied and exercised sovereignty in the
area that now comprises the State of Hawaii, as
evidenced by--
``(i) genealogical records;
``(ii) Kupuna (elders) or Kamaaina (long-term
community residents) verification; or
``(iii) certified birth records.
``(2) Native hawaiian community-based organization.--The
term `Native Hawaiian community-based organization' means any
organization that is composed primarily of Native Hawaiians from
a specific community and that assists in the social, cultural,
and educational development of Native Hawaiians in that
community.
``(3) Native hawaiian educational organization.--The term
`Native Hawaiian educational organization' means a private
nonprofit organization that--
``(A) serves the interests of Native Hawaiians;
``(B) has Native Hawaiians in substantive and
policymaking positions within the organization;
``(C) incorporates Native Hawaiian perspective,
values, language, culture, and traditions into the core
function of the organization;
``(D) has demonstrated expertise in the education of
Native Hawaiian youth; and
``(E) has demonstrated expertise in research and
program development.
``(4) Native hawaiian language.--The term `Native Hawaiian
language' means the single Native American language indigenous
to the original inhabitants of the State of Hawaii.
``(5) Native hawaiian organization.--The term `Native
Hawaiian organization' means a private nonprofit organization
that--
``(A) serves the interests of Native Hawaiians;
``(B) has Native Hawaiians in substantive and
policymaking positions within the organization; and
``(C) is recognized by the Governor of Hawaii for
the purpose of planning, conducting, or administering
programs (or portions of programs) for the benefit of
Native Hawaiians.
``(6) Office of hawaiian affairs.--The term `Office of
Hawaiian Affairs' means the Office of Hawaiian Affairs
established by the Constitution of the State of Hawaii.
``PART <<NOTE: Alaska Native Educational Equity, Support, and Assistance
Act.>> C--ALASKA NATIVE EDUCATION
``SEC. 7301. <<NOTE: 20 USC 7541.>> SHORT TITLE.
``This part may be cited as the `Alaska Native Educational Equity,
Support, and Assistance Act'.
``SEC. 7302. <<NOTE: 20 USC 7542.>> FINDINGS.
``Congress finds and declares the following:
[[Page 115 STAT. 1943]]
``(1) The attainment of educational success is critical to
the betterment of the conditions, long-term well-being, and
preservation of the culture of Alaska Natives.
``(2) It is the policy of the Federal Government to
encourage the maximum participation by Alaska Natives in the
planning and the management of Alaska Native education programs.
``(3) Alaska Native children enter and exit school with
serious educational handicaps.
``(4) The educational achievement of Alaska Native children
is far below national norms. Native performance on standardized
tests is low, Native student dropout rates are high, and Natives
are significantly underrepresented among holders of
baccalaureate degrees in the State of Alaska. As a result,
Native students are being denied their opportunity to become
full participants in society by grade school and high school
educations that are condemning an entire generation to an
underclass status and a life of limited choices.
``(5) The programs authorized in this part, combined with
expanded Head Start, infant learning, and early childhood
education programs, and parent education programs, are essential
if educational handicaps are to be overcome.
``(6) The sheer magnitude of the geographic barriers to be
overcome in delivering educational services in rural Alaska and
Alaska villages should be addressed through the development and
implementation of innovative, model programs in a variety of
areas.
``(7) Native children should be afforded the opportunity to
begin their formal education on a par with their non-Native
peers. The Federal Government should lend support to efforts
developed by and undertaken within the Alaska Native community
to improve educational opportunity for all students.
``SEC. 7303. <<NOTE: 20 USC 7543.>> PURPOSES.
``The purposes of this part are as follows:
``(1) To recognize the unique educational needs of Alaska
Natives.
``(2) To authorize the development of supplemental
educational programs to benefit Alaska Natives.
``(3) To supplement existing programs and authorities in the
area of education to further the purposes of this part.
``(4) To provide direction and guidance to appropriate
Federal, State and local agencies to focus resources, including
resources made available under this part, on meeting the
educational needs of Alaska Natives.
``SEC. 7304. <<NOTE: 20 USC 7544.>> PROGRAM AUTHORIZED.
``(a) General Authority.--
``(1) Grants and contracts.--The Secretary is authorized to
make grants to, or enter into contracts with, Alaska Native
organizations, educational entities with experience in
developing or operating Alaska Native programs or programs of
instruction conducted in Alaska Native languages, cultural and
community-based organizations with experience in developing or
operating programs to benefit Alaska Natives, and consortia of
organizations and entities described in this paragraph to carry
out programs that meet the purposes of this part.
``(2) Permissible activities.--Activities provided through
programs carried out under this part may include the following:
[[Page 115 STAT. 1944]]
``(A) The development and implementation of plans,
methods, and strategies to improve the education of
Alaska Natives.
``(B) The development of curricula and educational
programs that address the educational needs of Alaska
Native students, including the following:
``(i) Curriculum materials that reflect the
cultural diversity or the contributions of Alaska
Natives.
``(ii) Instructional programs that make use of
Native Alaskan languages.
``(iii) Networks that introduce successful
programs, materials, and techniques to urban and
rural schools.
``(C) Professional development activities for
educators, including the following:
``(i) Programs to prepare teachers to address
the cultural diversity and unique needs of Alaska
Native students.
``(ii) In-service programs to improve the
ability of teachers to meet the unique needs of
Alaska Native students.
``(iii) Recruitment and preparation of
teachers who are Alaska Native, reside in
communities with high concentrations of Alaska
Native students, or are likely to succeed as
teachers in isolated, rural communities and engage
in cross-cultural instruction in Alaska.
``(D) The development and operation of home
instruction programs for Alaska Native preschool
children, to ensure the active involvement of parents in
their children's education from the earliest ages.
``(E) Family literacy services.
``(F) The development and operation of student
enrichment programs in science and mathematics that--
``(i) are designed to prepare Alaska Native
students from rural areas, who are preparing to
enter secondary school, to excel in science and
math;
``(ii) provide appropriate support services to
the families of such students that are needed to
enable such students to benefit from the programs;
and
``(iii) may include activities that recognize
and support the unique cultural and educational
needs of Alaska Native children, and incorporate
appropriately qualified Alaska Native elders and
seniors.
``(G) Research and data collection activities to
determine the educational status and needs of Alaska
Native children and adults.
``(H) Other research and evaluation activities
related to programs carried out under this part.
``(I) Remedial and enrichment programs to assist
Alaska Native students in performing at a high level on
standardized tests.
``(J) Education and training of Alaska Native
students enrolled in a degree program that will lead to
certification or licensing as teachers.
``(K) Parenting education for parents and caregivers
of Alaska Native children to improve parenting and
caregiving skills (including skills relating to
discipline and
[[Page 115 STAT. 1945]]
cognitive development), including parenting education
provided through in-home visitation of new mothers.
``(L) Cultural education programs operated by the
Alaska Native Heritage Center and designed to share the
Alaska Native culture with students.
``(M) A cultural exchange program operated by the
Alaska Humanities Forum and designed to share Alaska
Native culture with urban students in a rural setting,
which shall be known as the Rose Cultural Exchange
Program.
``(N) Activities carried out through Even Start
programs carried out under subpart 3 of part B of title
I and Head Start programs carried out under the Head
Start Act, including the training of teachers for
programs described in this subparagraph.
``(O) Other early learning and preschool programs.
``(P) Dropout prevention programs such as the Cook
Inlet Tribal Council's Partners for Success program.
``(Q) An Alaska Initiative for Community Engagement
program.
``(R) Career preparation activities to enable Alaska
Native children and adults to prepare for meaningful
employment, including programs providing tech-prep,
mentoring, training, and apprenticeship activities.
``(S) Provision of operational support and
purchasing of equipment, to develop regional vocational
schools in rural areas of Alaska, including boarding
schools, for Alaska Native students in grades 9 through
12, or at higher levels of education, to provide the
students with necessary resources to prepare for skilled
employment opportunities.
``(T) Other activities, consistent with the purposes
of this part, to meet the educational needs of Alaska
Native children and adults.
``(3) Home instruction programs.--Home instruction programs
for Alaska Native preschool children carried out under paragraph
(2)(D) may include the following:
``(A) Programs for parents and their infants, from
the prenatal period of the infant through age 3.
``(B) Preschool programs.
``(C) Training, education, and support for parents
in such areas as reading readiness, observation, story
telling, and critical thinking.
``(b) Limitation on Administrative Costs.--Not more than 5 percent
of funds provided to a grantee under this section for any fiscal year
may be used for administrative purposes.
``(c) Priorities.--In awarding grants or contracts to carry out
activities described in subsection (a)(2), except for activities listed
in subsection (d)(2), the Secretary shall give priority to applications
from Alaska Native regional nonprofit organizations, or consortia that
include at least one Alaska Native regional nonprofit organization.
``(d) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section such sums as may be necessary for
fiscal year 2002 and each of the 5 succeeding fiscal years.
[[Page 115 STAT. 1946]]
``(2) Availability of funds.--Of the funds appropriated and
made available under this section for a fiscal year, the
Secretary shall make available--
``(A) not less than $1,000,000 to support activities
described in subsection (a)(2)(K);
``(B) not less than $1,000,000 to support activities
described in subsection (a)(2)(L);
``(C) not less than $1,000,000 to support activities
described in subsection (a)(2)(M);
``(D) not less than $2,000,000 to support activities
described in subsection (a)(2)(P); and
``(E) not less than $2,000,000 to support activities
described in subsection (a)(2)(Q).
``SEC. 7305. <<NOTE: 20 USC 7545.>> ADMINISTRATIVE PROVISIONS.
``(a) Application Required.--No grant may be made under this part,
and no contract may be entered into under this part, unless the entity
seeking the grant or contract submits an application to the Secretary in
such form, in such manner, and containing such information as the
Secretary may determine necessary to carry out the provisions of this
part.
``(b) Applications.--A State educational agency or local educational
agency may apply for an award under this part only as part of a
consortium involving an Alaska Native organization. The consortium may
include other eligible applicants.
``(c) Consultation Required.--Each applicant for an award under this
part shall provide for ongoing advice from and consultation with
representatives of the Alaska Native community.
``(d) Local Educational Agency Coordination.--Each applicant for an
award under this part shall inform each local educational agency serving
students who would participate in the program to be carried out under
the grant or contract about the application.
``SEC. 7306. <<NOTE: 20 USC 7546.>> DEFINITIONS.
``In this part:
``(1) Alaska native.--The term `Alaska Native' has the same
meaning as the term `Native' has in section 3(b) of the Alaska
Native Claims Settlement Act.
``(2) Alaska native organization.--The term `Alaska Native
organization' means a federally recognized tribe, consortium of
tribes, regional nonprofit Native association, and another
organization that--
``(A) has or commits to acquire expertise in the
education of Alaska Natives; and
``(B) has Alaska Natives in substantive and
policymaking positions within the organization.''.
SEC. 702. CONFORMING AMENDMENTS.
(a) Higher Education Act of 1965.--Section 317(b) of the Higher
Education Act of 1965 (20 U.S.C. 1059d(b)) is amended--
(1) in paragraph (1), by striking ``section 9308'' and
inserting ``section 7306''; and
(2) in paragraph (3), by striking ``section 9212'' and
inserting ``section 7207''.
(b) Public Law <<NOTE: 20 USC 2326.>> 88-210.--Section 116 of
Public Law 88-210 (as added by section 1 of Public Law 105-332 (112
Stat. 3076))
[[Page 115 STAT. 1947]]
is amended by striking ``section 9212 of the Native Hawaiian Education
Act (20 U.S.C. 7912)'' and inserting ``section 7207 of the Native
Hawaiian Education Act''.
(c) Carl D. Perkins Vocational and Technical Education Act of
1998.--Section 116(a)(5) of the Carl D. Perkins Vocational and Technical
Education Act of 1998 (20 U.S.C. 2326(a)(5)) is amended by striking
``section 9212'' and all that follows and inserting ``section 7207 of
the Native Hawaiian Education Act''.
(d) Museum and Library Services Act.--Section 261 of the Museum and
Library Services Act (20 U.S.C. 9161) is amended by striking ``section
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and
inserting ``section 7207 of the Native Hawaiian Education Act''.
(e) Act of April 16, 1934.--Section 5 of the Act of April 16, 1934
(commonly known as the ``Johnson-O'Malley Act'') (88 Stat. 2213; 25
U.S.C. 456) is amended by striking ``section 9104(c)(4)'' and inserting
``section 7114(c)(4)''.
(f) Native American Languages Act.--Section 103 of the Native
American Languages Act (25 U.S.C. 2902) is amended--
(1) in paragraph (2), by striking ``section 9161(4) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7881(4))'' and inserting ``section 7151(3) of the Elementary and
Secondary Education Act of 1965''; and
(2) in paragraph (3), by striking ``section 9212(1) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7912(1))'' and inserting ``section 7207 of the Elementary and
Secondary Education Act of 1965''.
(g) Workforce Investment Act of 1998.--Section 166(b)(3) of the
Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) is amended by
striking ``paragraphs (1) and (3), respectively, of section 9212 of the
Native Hawaiian Education Act (20 U.S.C. 7912)'' and inserting ``section
7207 of the Native Hawaiian Education Act''.
(h) Assets for Independence Act.--Section 404(11) of the Assets for
Independence Act (42 U.S.C. 604 note) is amended by striking ``section
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and
inserting ``section 7207 of the Native Hawaiian Education Act''.
SEC. 703. <<NOTE: 20 USC 7401 note.>> SAVINGS PROVISIONS.
Funds appropriated for parts A, B, and C of title IX of the
Elementary and Secondary Education Act of 1965 (as in effect on the day
before the date of enactment of this Act) shall be available for use
under parts A, B, and C, respectively, of title VII of such Act, as
added by this section.
TITLE VIII--IMPACT AID PROGRAM
SEC. 801. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
(a) Foundation Payments for Pre-1995 Recipients.--Section 8002(h)(1)
(20 U.S.C. 7702(h)(1)) is amended--
(1) in subparagraph (A), by striking ``and was eligible to
receive a payment under section 2 of the Act of September 30,
1950'' and inserting ``and that filed, or has been determined
pursuant to statute to have filed a timely application, and
[[Page 115 STAT. 1948]]
met, or has been determined pursuant to statute to meet, the
eligibility requirements of section 2(a)(1)(C) of the Act of
September 30, 1950''; and
(2) in subparagraph (B), by striking ``(or if the local
educational agency was not eligible to receive a payment under
such section 2 for fiscal year 1994'' and inserting ``(or if the
local educational agency did not meet, or has not been
determined pursuant to statute to meet, the eligibility
requirements of section 2(a)(1)(C) of the Act of September 30,
1950 for fiscal year 1994''.
(b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 U.S.C.
7702(h)(2)) is amended--
(1) in subparagraph (A), by adding at the end before the
period ``, or whose application under this section for fiscal
year 1995 was determined pursuant to statute to be timely filed
for purposes of payments for subsequent fiscal years''; and
(2) in subparagraph (B)(ii), by striking ``for each local
educational agency that received a payment under this section
for fiscal year 1995'' and inserting ``for each local
educational agency described in subparagraph (A)''.
(c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C.
7702(h)(4)(B)) is amended--
(1) by striking ``(in the same manner as percentage shares
are determined for local educational agencies under paragraph
(2)(B)(ii))'' and inserting ``(by dividing the maximum amount
that the agency is eligible to receive under subsection (b) by
the total of the maximum amounts for all such agencies)''; and
(2) by striking ``, except that for the purpose of
calculating a local educational agency's assessed value of the
Federal property'' and inserting ``, except that, for the
purpose of calculating a local educational agency's maximum
amount under subsection (b)''.
(d) Additional Assistance for Certain Local Educational Agencies
Impacted by Federal Property Acquisition.--Section 8002 (20 U.S.C. 7702)
is amended by striking subsection (j).
(e) Minimum Payment With Respect to Loss of Eligibility of Certain
Local Educational Agencies.--Section 8002 (20 U.S.C. 7702) is amended by
adding at the end the following:
``(n) Loss of Eligibility.--
``(1) In general.--Notwithstanding any other provision of
this section, the Secretary shall make a minimum payment to a
local educational agency described in paragraph (2), for the
first fiscal year that the agency loses eligibility for
assistance under this section as a result of property located
within the school district served by the agency failing to meet
the definition of Federal property under section
8013(5)(C)(iii), in an amount equal to 90 percent of the amount
received by the agency under this section for the preceding
year.
``(2) Local educational agency described.--A local
educational agency described in this paragraph is an agency
that--
``(A) was eligible for, and received, a payment
under this section for fiscal year 2002; and
``(B) beginning in fiscal year 2003 or a subsequent
fiscal year, is no longer eligible for payments under
this section as provided for in subsection (a)(1)(C) as
a result
[[Page 115 STAT. 1949]]
of the transfer of the Federal property involved to a
non-Federal entity.''.
(f) Application for Payment.--Notwithstanding any other provision of
law, the Secretary shall treat as timely filed an application under
section 8002 (20 U.S.C. 7702) from Academy School District 20, Colorado,
for a payment for fiscal year 1999, and shall process that application
from funds appropriated for that section for fiscal year 2001.
SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
(a) Eligibility for Certain Heavily Impacted Local Educational
Agencies.--
(1) In general.--Section 8003(b)(2)(C) (20 U.S.C.
7703(b)(2)(C)) is amended--
(A) in clauses (i) and (ii), by inserting after
``Federal military installation'' each place it appears
the following: ``(or if the agency is a qualified local
educational agency as described in clause (iv))''; and
(B) by adding at the end the following:
``(iv) Qualified local educational agency.--A
qualified local educational agency described in
this clause is an agency that meets the following
requirements:
``(I) The boundaries of the agency
are the same as island property
designated by the Secretary of the
Interior to be property that is held in
trust by the Federal Government.
``(II) The agency has no taxing
authority.
``(III) The agency received a
payment under paragraph (1) for fiscal
year 2001.''.
(2) <<NOTE: 20 USC 7703 note.>> Effective date.--The
Secretary shall consider an application for a payment under
section 8003(b)(2) for fiscal year 2002 from a qualified local
educational agency described in section 8003(b)(2)(C)(iv), as
added by paragraph (1), as meeting the requirements of section
8003(b)(2)(C)(iii), and shall provide a payment under section
8003(b)(2) for fiscal year 2002, if the agency submits to the
Secretary an application for payment under such section not
later than 30 days after the date of enactment of this Act.
(b) Applications for Payment.--
(1) Warner public schools, muskogee county, oklahoma.--
Notwithstanding any other provision of law, the Secretary of
Education shall treat as timely filed an application under
section 8003 (20 U.S.C. 7703) from Warner Public Schools,
Muskogee County, Oklahoma, for a payment for fiscal year 2002,
and shall process that application for payment, if the Secretary
has received the fiscal year 2002 application not later than 30
days after the date of enactment of this Act.
(2) Pine point school, school district 25, minnesota.--
Notwithstanding any other provision of law, the Secretary shall
treat as timely filed an application under section 8003 (20
U.S.C. 7703) from Pine Point School, School District 25,
Minnesota, for a payment for fiscal year 2002, and shall process
that application for payment, if the Secretary has received
[[Page 115 STAT. 1950]]
the fiscal year 2002 application not later than 30 days after
the date of enactment of this Act.
SEC. 803. CONSTRUCTION.
Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as follows:
``(b) School Facility Emergency and Modernization Grants
Authorized.--
``(1) In general.--From 60 percent of the amount
appropriated for each fiscal year under section 8014(e), the
Secretary--
``(A) shall award emergency grants in accordance
with this subsection to eligible local educational
agencies to enable the agencies to carry out emergency
repairs of school facilities; and
``(B) shall award modernization grants in accordance
with this subsection to eligible local educational
agencies to enable the agencies to carry out the
modernization of school facilities.
``(2) Priority.--In approving applications from local
educational agencies for emergency grants and modernization
grants under this subsection, the Secretary shall give priority
to applications in accordance with the following:
``(A) The Secretary shall first give priority to
applications for emergency grants from local educational
agencies that meet the requirements of paragraph (3)(A)
and, among such applications for emergency grants, shall
give priority to those applications of local educational
agencies based on the severity of the emergency, as
determined by the Secretary.
``(B) The Secretary shall next give priority to
applications for emergency grants from local educational
agencies that meet the requirements of subparagraph (C)
or (D) of paragraph (3) and, among such applications for
emergency grants, shall give priority to those
applications of local educational agencies based on the
severity of the emergency, as determined by the
Secretary.
``(C) The Secretary shall next give priority to
applications for modernization grants from local
educational agencies that meet the requirements of
paragraph (3)(B) and, among such applications for
modernization grants, shall give priority to those
applications of local educational agencies based on the
severity of the need for modernization, as determined by
the Secretary.
``(D) The Secretary shall next give priority to
applications for modernization grants from local
educational agencies that meet the requirements of
subparagraph (C) or (D) of paragraph (3) and, among such
applications for modernization grants, shall give
priority to those applications of local educational
agencies based on the severity of the need for
modernization, as determined by the Secretary.
``(3) Eligibility requirements.--
``(A) Emergency grants.--A local educational agency
is eligible to receive an emergency grant under
paragraph (2)(A) if--
[[Page 115 STAT. 1951]]
``(i) the agency (or in the case of a local
educational agency that does not have the
authority to tax or issue bonds, the agency's
fiscal agent)--
``(I) has no practical capacity to
issue bonds;
``(II) has minimal capacity to issue
bonds and is at not less than 75 percent
of the agency's limit of bonded
indebtedness; or
``(III) does not meet the
requirements of subclauses (I) and (II)
but is eligible to receive funds under
section 8003(b)(2) for the fiscal year;
and
``(ii) the agency is eligible to receive
assistance under subsection (a) for the fiscal
year and has a school facility emergency, as
determined by the Secretary, that poses a health
or safety hazard to the students and school
personnel assigned to the school facility.
``(B) Modernization grants.--A local educational
agency is eligible to receive a modernization grant
under paragraph (2)(C) if--
``(i) the agency is eligible to receive
assistance under this title for the fiscal year;
``(ii) the agency (or in the case of a local
educational agency that does not have the
authority to tax or issue bonds, the agency's
fiscal agent) meets the requirements of subclause
(I), (II), or (III) of subparagraph (A)(i); and
``(iii) the agency has facility needs
resulting from the presence of the Federal
Government, such as the enrollment of federally
connected children, the presence of tax-exempt
Federal property, or an increase in enrollment due
to the expansion of Federal activities, housing
privatization, or the acquisition of Federal
property.
``(C) Additional eligibility for emergency and
modernization grants.--(i) A local educational agency is
eligible to receive an emergency grant or a
modernization grant under subparagraph (B) or (D) of
paragraph (2), respectively, if the agency meets the
following requirements:
``(I) The agency receives a basic support
payment under section 8003(b) for the fiscal year
and the agency meets at least one of the following
requirements:
``(aa) The number of children
determined under section 8003(a)(1)(C)
for the agency for the preceding school
year constituted at least 40 percent of
the total student enrollment in the
schools of the agency during the
preceding school year.
``(bb) The number of children
determined under subparagraphs (B) and
(D)(i) of section 8003(a)(1) for the
agency for the preceding school year
constituted at least 40 percent of the
total student enrollment in the schools
of the agency during the preceding
school year.
``(II) The agency (or in the case of a local
educational agency that does not have the
authority to tax or issue bonds, the agency's
fiscal agent) is at
[[Page 115 STAT. 1952]]
not less than 75 percent of the agency's limit of
bonded indebtedness.
``(III) The agency has an assessed value of
real property per student that may be taxed for
school purposes that is less than the average of
the assessed value of real property per student
that may be taxed for school purposes in the State
in which the local educational agency is located.
``(ii) A local educational agency is also eligible
to receive a modernization grant under this subparagraph
if the agency is eligible to receive assistance under
section 8002 for the fiscal year and meets the
requirements of subclauses (II) and (III) of clause (i).
``(D) Special rule.--
``(i) In general.--Any school described in
clause (ii) that desires to receive an emergency
grant or a modernization grant under subparagraph
(B) or (D) of paragraph (2), respectively, shall,
except as provided in the following sentence,
submit an application in accordance with paragraph
(6), and shall otherwise be treated as a local
educational agency for the purpose of this
subsection. The school shall submit an application
for the grant to the local educational agency of
such school and the agency shall submit the
application on behalf of the school to the
Secretary.
``(ii) School described.--A school described
in this clause is a school that meets the
following requirements:
``(I) The school is located within
the geographic boundaries of a local
educational agency that does not meet
the applicable eligibility requirements
under subparagraph (A), (B), or (C) for
a grant under this subsection.
``(II) The school meets at least one
of the following requirements:
``(aa) The number of
children determined under
section 8003(a)(1)(C) for the
school for the preceding school
year constituted at least 40
percent of the total student
enrollment in the school during
the preceding school year.
``(bb) The number of
children determined under
subparagraphs (B) and (D)(i) of
section 8003(a)(1) for the
school for the preceding school
year constituted at least 40
percent of the total student
enrollment in the school during
the preceding school year.
``(III) The school is located within
the geographic boundaries of a local
educational agency that meets the
requirements of subclauses (II) and
(III) of subparagraph (C)(i).
``(E) Rule of construction.--For purposes of
subparagraph (A)(i), a local educational agency--
``(i) has no practical capacity to issue bonds
if the total assessed value of real property that
may be taxed for school purposes is less than
$25,000,000; and
[[Page 115 STAT. 1953]]
``(ii) has minimal capacity to issue bonds if
the total assessed value of real property that may
be taxed for school purposes is at least
$25,000,000 but not more than $50,000,000.
``(4) Award criteria.--In awarding emergency grants and
modernization grants under this subsection, the Secretary shall
consider the following factors:
``(A) The ability of the local educational agency to
respond to the emergency, or to pay for the
modernization project, as the case may be, as measured
by--
``(i) the agency's level of bonded
indebtedness;
``(ii) the assessed value of real property per
student that may be taxed for school purposes
compared to the average of the assessed value of
real property per student that may be taxed for
school purposes in the State in which the agency
is located;
``(iii) the agency's total tax rate for school
purposes (or, if applicable, for capital
expenditures) compared to the average total tax
rate for school purposes (or the average capital
expenditure tax rate, if applicable) in the State
in which the agency is located; and
``(iv) funds that are available to the agency,
from any other source, including subsection (a),
that may be used for capital expenditures.
``(B) The percentage of property in the agency that
is nontaxable due to the presence of the Federal
Government.
``(C) The number and percentages of children
described in subparagraphs (A), (B), (C), and (D) of
section 8003(a)(1) served in the school facility with
the emergency or served in the school facility proposed
for modernization, as the case may be.
``(D) In the case of an emergency grant, the
severity of the emergency, as measured by the threat
that the condition of the school facility poses to the
health, safety, and well-being of students.
``(E) In the case of a modernization grant--
``(i) the severity of the need for
modernization, as measured by such factors as--
``(I) overcrowding, as evidenced by
the use of portable classrooms, or the
potential for future overcrowding
because of increased enrollment; or
``(II) the agency's inability to
utilize technology or offer a curriculum
in accordance with contemporary State
standards due to the physical
limitations of the current school
facility; and
``(ii) the age of the school facility proposed
for modernization.
``(5) Other award provisions.--
``(A) General provisions.--
``(i) Limitations on amount of funds.--
``(I) In general.--The amount of
funds provided under an emergency grant
or a modernization grant awarded under
this subsection to a local educational
agency that meets the requirements of
subclause (II) or (III) of paragraph
(3)(A)(i) for purposes of eligibility
under subparagraph (A) or
[[Page 115 STAT. 1954]]
(B) of paragraph (3) or that meets the
requirements of clause (i) or (ii) of
paragraph (3)(C) for purposes of
eligibility under such paragraph (3)(C),
or to a school that is eligible under
paragraph (3)(D)--
``(aa) shall not exceed 50
percent of the total cost of the
project to be assisted under
this subsection; and
``(bb) shall not exceed
$4,000,000 during any 4-year
period.
``(II) In-kind contributions.--A
local educational agency may use in-kind
contributions to meet the matching
requirement of subclause (I)(aa).
``(ii) Prohibitions on use of funds.--A local
educational agency may not use funds provided
under an emergency grant or modernization grant
awarded under this subsection for--
``(I) a project for a school
facility for which the agency does not
have full title or other interest;
``(II) stadiums or other school
facilities that are primarily used for
athletic contests, exhibitions, or other
events for which admission is charged to
the general public; or
``(III) the acquisition of real
property.
``(iii) Supplement, not supplant.--A local
educational agency shall use funds provided under
an emergency grant or modernization grant awarded
under this subsection only to supplement the
amount of funds that would, in the absence of the
Federal funds provided under the grant, be made
available from non-Federal sources to carry out
emergency repairs of school facilities or to carry
out the modernization of school facilities, as the
case may be, and not to supplant such funds.
``(iv) Maintenance costs.--Nothing in this
subsection shall be construed to authorize the
payment of maintenance costs in connection with
any school facility modernized in whole or in part
with Federal funds provided under this subsection.
``(v) Environmental safeguards.--All projects
carried out with Federal funds provided under this
subsection shall comply with all relevant Federal,
State, and local environmental laws and
regulations.
``(vi) Carry-over of certain applications.--A
local educational agency that applies for an
emergency grant or a modernization grant under
this subsection for a fiscal year and does not
receive the grant for the fiscal year shall have
the application for the grant considered for the
following fiscal year, subject to the priority
requirements of paragraph (2) and the award
criteria requirements of paragraph (4).
``(B) Emergency grants; prohibition on use of
funds.--A local educational agency that is awarded an
emergency grant under this subsection may not use
amounts under the grant for the complete or partial
replacement of an existing school facility unless such
[[Page 115 STAT. 1955]]
replacement is less expensive or more cost-effective
than correcting the identified emergency.
``(6) Application.--A local educational agency that desires
to receive an emergency grant or a modernization grant under
this subsection shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information
as the Secretary may require. Each application shall contain the
following:
``(A) A description of how the local educational
agency meets the award criteria under paragraph (4),
including the information described in clauses (i)
through (iv) of paragraph (4)(A) and subparagraphs (B)
and (C) of paragraph (4).
``(B) In the case of an application for an emergency
grant--
``(i) a description of the school facility
deficiency that poses a health or safety hazard to
the occupants of the facility and a description of
how the deficiency will be repaired; and
``(ii) a signed statement from an appropriate
local official certifying that a deficiency in the
school facility threatens the health or safety of
the occupants of the facility or that prevents the
use of all or a portion of the building.
``(C) In the case of an application for a
modernization grant--
``(i) an explanation of the need for the
school facility modernization project;
``(ii) the date on which original construction
of the facility to be modernized was completed;
``(iii) a listing of the school facilities to
be modernized, including the number and percentage
of children determined under section 8003(a)(1) in
average daily attendance in each school facility;
and
``(iv) a description of the ownership of the
property on which the current school facility is
located or on which the planned school facility
will be located.
``(D) A description of the project for which a grant
under this subsection will be used, including a cost
estimate for the project.
``(E) A description of the interest in, or authority
over, the school facility involved, such as an ownership
interest or a lease arrangement.
``(F) Such other information and assurances as the
Secretary may reasonably require.
``(7) Report.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than January 1 of each year, the Secretary shall prepare
and submit to the appropriate congressional committees a
report that contains a justification for each grant
awarded under this subsection for the prior fiscal year.
``(B) Definition.--In this paragraph, the term
`appropriate congressional committees' means--
``(i) the Committee on Appropriations and the
Committee on Education and the Workforce of the
House of Representatives; and
[[Page 115 STAT. 1956]]
``(ii) the Committee on Appropriations and the
Committee on Health, Education, Labor, and
Pensions of the Senate.''.
SEC. 804. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.
Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amended by inserting
after ``section 8003(a)(2)(B)'' the following: ``and, with respect to a
local educational agency that receives a payment under section
8003(b)(2), the amount in excess of the amount that the agency would
receive if the agency were deemed to be an agency eligible to receive a
payment under section 8003(b)(1) and not section 8003(b)(2)''.
SEC. 805. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Section 8014 (20 U.S.C. 7714) is amended in
subsections (a), (b), (c), and (f) by striking ``three succeeding fiscal
years'' each place it appears and inserting ``seven succeeding fiscal
years''.
(b) Construction.--Section 8014(e) (20 U.S.C. 7714(e)) is amended by
striking ``for each of the three succeeding fiscal years'' and inserting
``for fiscal year 2001, $150,000,000 for fiscal year 2002, and such sums
as may be necessary for each of the five succeeding fiscal years''.
(c) Additional Assistance for Certain Local Educational Agencies
Impacted by Federal Property Acquisition.--Section 8014 (20 U.S.C. 7714)
is amended by striking subsection (g).
TITLE IX--GENERAL PROVISIONS
SEC. 901. GENERAL PROVISIONS.
Title IX (20 U.S.C. 7801 et seq.) is amended to read as follows:
``TITLE IX--GENERAL PROVISIONS
``PART A--DEFINITIONS
``SEC. 9101. <<NOTE: 20 USC 7801.>> DEFINITIONS.
``Except as otherwise provided, in this Act:
``(1) Average daily attendance.--
``(A) In general.--Except as provided otherwise by
State law or this paragraph, the term `average daily
attendance' means--
``(i) the aggregate number of days of
attendance of all students during a school year;
divided by
``(ii) the number of days school is in session
during that year.
``(B) Conversion.--The Secretary shall permit the
conversion of average daily membership (or other similar
data) to average daily attendance for local educational
agencies in States that provide State aid to local
educational agencies on the basis of average daily
membership (or other similar data).
``(C) Special rule.--If the local educational agency
in which a child resides makes a tuition or other
payment for the free public education of the child in a
school located
[[Page 115 STAT. 1957]]
in another school district, the Secretary shall, for the
purpose of this Act--
``(i) consider the child to be in attendance
at a school of the agency making the payment; and
``(ii) not consider the child to be in
attendance at a school of the agency receiving the
payment.
``(D) Children with disabilities.--If a local
educational agency makes a tuition payment to a private
school or to a public school of another local
educational agency for a child with a disability, as
defined in section 602 of the Individuals with
Disabilities Education Act, the Secretary shall, for the
purpose of this Act, consider the child to be in
attendance at a school of the agency making the payment.
``(2) Average per-pupil expenditure.--The term `average per-
pupil expenditure' means, in the case of a State or of the
United States--
``(A) without regard to the source of funds--
``(i) the aggregate current expenditures,
during the third fiscal year preceding the fiscal
year for which the determination is made (or, if
satisfactory data for that year are not available,
during the most recent preceding fiscal year for
which satisfactory data are available) of all
local educational agencies in the State or, in the
case of the United States, for all States (which,
for the purpose of this paragraph, means the 50
States and the District of Columbia); plus
``(ii) any direct current expenditures by the
State for the operation of those agencies; divided
by
``(B) the aggregate number of children in average
daily attendance to whom those agencies provided free
public education during that preceding year.
``(3) Beginning teacher.--The term `beginning teacher' means
a teacher in a public school who has been teaching less than a
total of three complete school years.
``(4) Child.--The term `child' means any person within the
age limits for which the State provides free public education.
``(5) Child with a disability.--The term `child with a
disability' has the same meaning given that term in section 602
of the Individuals with Disabilities Education Act.
``(6) Community-based organization.--The term `community-
based organization' means a public or private nonprofit
organization of demonstrated effectiveness that--
``(A) is representative of a community or
significant segments of a community; and
``(B) provides educational or related services to
individuals in the community.
``(7) Consolidated local application.--The term
`consolidated local application' means an application submitted
by a local educational agency pursuant to section 9305.
``(8) Consolidated local plan.--The term `consolidated local
plan' means a plan submitted by a local educational agency
pursuant to section 9305.
``(9) Consolidated state application.--The term
`consolidated State application' means an application submitted
by a State educational agency pursuant to section 9302.
[[Page 115 STAT. 1958]]
``(10) Consolidated state plan.--The term `consolidated
State plan' means a plan submitted by a State educational agency
pursuant to section 9302.
``(11) Core academic subjects.--The term `core academic
subjects' means English, reading or language arts, mathematics,
science, foreign languages, civics and government, economics,
arts, history, and geography.
``(12) County.--The term `county' means one of the divisions
of a State used by the Secretary of Commerce in compiling and
reporting data regarding counties.
``(13) Covered program.--The term `covered program' means
each of the programs authorized by--
``(A) part A of title I;
``(B) subpart 3 of part B of title I;
``(C) part C of title I;
``(D) part D of title I;
``(E) part F of title I;
``(F) part A of title II;
``(G) part D of title II;
``(H) part A of title III;
``(I) part A of title IV;
``(J) part B of title IV;
``(K) part A of title V; and
``(L) subpart 2 of part B of title VI.
``(14) Current expenditures.--The term `current
expenditures' means expenditures for free public education--
``(A) including expenditures for administration,
instruction, attendance and health services, pupil
transportation services, operation and maintenance of
plant, fixed charges, and net expenditures to cover
deficits for food services and student body activities;
but
``(B) not including expenditures for community
services, capital outlay, and debt service, or any
expenditures made from funds received under title I and
part A of title V.
``(15) Department.--The term `Department' means the
Department of Education.
``(16) Distance learning.--The term `distance learning'
means the transmission of educational or instructional
programming to geographically dispersed individuals and groups
via telecommunications.
``(17) Educational service agency.--The term `educational
service agency' means a regional public multiservice agency
authorized by State statute to develop, manage, and provide
services or programs to local educational agencies.
``(18) Elementary school.--The term `elementary school'
means a nonprofit institutional day or residential school,
including a public elementary charter school, that provides
elementary education, as determined under State law.
``(19) Exemplary teacher.--The term `exemplary teacher'
means a teacher who--
``(A) is a highly qualified teacher such as a master
teacher;
``(B) has been teaching for at least 5 years in a
public or private school or institution of higher
education;
``(C) is recommended to be an exemplary teacher by
administrators and other teachers who are knowledgeable
about the individual's performance;
[[Page 115 STAT. 1959]]
``(D) is currently teaching and based in a public
school; and
``(E) assists other teachers in improving
instructional strategies, improves the skills of other
teachers, performs teacher mentoring, develops
curricula, and offers other professional development.
``(20) Family literacy services.--The term `family literacy
services' means services provided to participants on a voluntary
basis that are of sufficient intensity in terms of hours, and of
sufficient duration, to make sustainable changes in a family,
and that integrate all of the following activities:
``(A) Interactive literacy activities between
parents and their children.
``(B) Training for parents regarding how to be the
primary teacher for their children and full partners in
the education of their children.
``(C) Parent literacy training that leads to
economic self-sufficiency.
``(D) An age-appropriate education to prepare
children for success in school and life experiences.
``(21) Free public education.--The term `free public
education' means education that is provided--
``(A) at public expense, under public supervision
and direction, and without tuition charge; and
``(B) as elementary school or secondary school
education as determined under applicable State law,
except that the term does not include any education
provided beyond grade 12.
``(22) Gifted and talented.--The term `gifted and talented',
when used with respect to students, children, or youth, means
students, children, or youth who give evidence of high
achievement capability in areas such as intellectual, creative,
artistic, or leadership capacity, or in specific academic
fields, and who need services or activities not ordinarily
provided by the school in order to fully develop those
capabilities.
``(23) Highly qualified.--The term `highly qualified'--
``(A) when used with respect to any public
elementary school or secondary school teacher teaching
in a State, means that--
``(i) the teacher has obtained full State
certification as a teacher (including
certification obtained through alternative routes
to certification) or passed the State teacher
licensing examination, and holds a license to
teach in such State, except that when used with
respect to any teacher teaching in a public
charter school, the term means that the teacher
meets the requirements set forth in the State's
public charter school law; and
``(ii) the teacher has not had certification
or licensure requirements waived on an emergency,
temporary, or provisional basis;
``(B) when used with respect to--
``(i) an elementary school teacher who is new
to the profession, means that the teacher--
``(I) holds at least a bachelor's
degree; and
``(II) has demonstrated, by passing
a rigorous State test, subject knowledge
and teaching skills
[[Page 115 STAT. 1960]]
in reading, writing, mathematics, and
other areas of the basic elementary
school curriculum (which may consist of
passing a State-required certification
or licensing test or tests in reading,
writing, mathematics, and other areas of
the basic elementary school curriculum);
or
``(ii) a middle or secondary school teacher
who is new to the profession, means that the
teacher holds at least a bachelor's degree and has
demonstrated a high level of competency in each of
the academic subjects in which the teacher teaches
by--
``(I) passing a rigorous State
academic subject test in each of the
academic subjects in which the teacher
teaches (which may consist of a passing
level of performance on a State-required
certification or licensing test or tests
in each of the academic subjects in
which the teacher teaches); or
``(II) successful completion, in
each of the academic subjects in which
the teacher teaches, of an academic
major, a graduate degree, coursework
equivalent to an undergraduate academic
major, or advanced certification or
credentialing; and
``(C) when used with respect to an elementary,
middle, or secondary school teacher who is not new to
the profession, means that the teacher holds at least a
bachelor's degree and--
``(i) has met the applicable standard in
clause (i) or (ii) of subparagraph (B), which
includes an option for a test; or
``(ii) demonstrates competence in all the
academic subjects in which the teacher teaches
based on a high objective uniform State standard
of evaluation that--
``(I) is set by the State for both
grade appropriate academic subject
matter knowledge and teaching skills;
``(II) is aligned with challenging
State academic content and student
academic achievement standards and
developed in consultation with core
content specialists, teachers,
principals, and school administrators;
``(III) provides objective, coherent
information about the teacher's
attainment of core content knowledge in
the academic subjects in which a teacher
teaches;
``(IV) is applied uniformly to all
teachers in the same academic subject
and the same grade level throughout the
State;
``(V) takes into consideration, but
not be based primarily on, the time the
teacher has been teaching in the
academic subject;
``(VI) is made available to the
public upon request; and
``(VII) may involve multiple,
objective measures of teacher
competency.
[[Page 115 STAT. 1961]]
``(24) Institution of higher education.--The term
`institution of higher education' has the meaning given that
term in section 101(a) of the Higher Education Act of 1965.
``(25) Limited english proficient.--The term `limited
English proficient', when used with respect to an individual,
means an individual--
``(A) who is aged 3 through 21;
``(B) who is enrolled or preparing to enroll in an
elementary school or secondary school;
``(C)(i) who was not born in the United States or
whose native language is a language other than English;
``(ii)(I) who is a Native American or Alaska Native,
or a native resident of the outlying areas; and
``(II) who comes from an environment where a
language other than English has had a significant impact
on the individual's level of English language
proficiency; or
``(iii) who is migratory, whose native language is a
language other than English, and who comes from an
environment where a language other than English is
dominant; and
``(D) whose difficulties in speaking, reading,
writing, or understanding the English language may be
sufficient to deny the individual--
``(i) the ability to meet the State's
proficient level of achievement on State
assessments described in section 1111(b)(3);
``(ii) the ability to successfully achieve in
classrooms where the language of instruction is
English; or
``(iii) the opportunity to participate fully
in society.
``(26) Local educational agency.--
``(A) In general.--The term `local educational
agency' means a public board of education or other
public authority legally constituted within a State for
either administrative control or direction of, or to
perform a service function for, public elementary
schools or secondary schools in a city, county,
township, school district, or other political
subdivision of a State, or of or for a combination of
school districts or counties that is recognized in a
State as an administrative agency for its public
elementary schools or secondary schools.
``(B) Administrative control and direction.--The
term includes any other public institution or agency
having administrative control and direction of a public
elementary school or secondary school.
``(C) BIA schools.--The term includes an elementary
school or secondary school funded by the Bureau of
Indian Affairs but only to the extent that including the
school makes the school eligible for programs for which
specific eligibility is not provided to the school in
another provision of law and the school does not have a
student population that is smaller than the student
population of the local educational agency receiving
assistance under this Act with the smallest student
population, except that the school shall not be subject
to the jurisdiction of any State educational agency
other than the Bureau of Indian Affairs.
[[Page 115 STAT. 1962]]
``(D) Educational service agencies.--The term
includes educational service agencies and consortia of
those agencies.
``(E) State educational agency.--The term includes
the State educational agency in a State in which the
State educational agency is the sole educational agency
for all public schools.
``(27) Mentoring.--The term `mentoring', except when used to
refer to teacher mentoring, means a process by which a
responsible adult, postsecondary student, or secondary school
student works with a child to provide a positive role model for
the child, to establish a supportive relationship with the
child, and to provide the child with academic assistance and
exposure to new experiences and examples of opportunity that
enhance the ability of the child to become a responsible adult.
``(28) Native american and native american language.--The
terms `Native American' and `Native American language' have the
same meaning given those terms in section 103 of the Native
American Languages Act of 1990.
``(29) Other staff.--The term `other staff' means pupil
services personnel, librarians, career guidance and counseling
personnel, education aides, and other instructional and
administrative personnel.
``(30) Outlying area.--The term `outlying area' means the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, and for the
purpose of section 1121(b) and any other discretionary grant
program under this Act, includes the freely associated states of
the Republic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau until an agreement for the
extension of United States education assistance under the
Compact of Free Association for each of the freely associated
states becomes effective after the date of enactment of the No
Child Left Behind Act of 2001.
``(31) Parent.--The term `parent' includes a legal guardian
or other person standing in loco parentis (such as a grandparent
or stepparent with whom the child lives, or a person who is
legally responsible for the child's welfare).
``(32) Parental involvement.--The term `parental
involvement' means the participation of parents in regular, two-
way, and meaningful communication involving student academic
learning and other school activities, including ensuring--
``(A) that parents play an integral role in
assisting their child's learning;
``(B) that parents are encouraged to be actively
involved in their child's education at school;
``(C) that parents are full partners in their
child's education and are included, as appropriate, in
decisionmaking and on advisory committees to assist in
the education of their child;
``(D) the carrying out of other activities, such as
those described in section 1118.
``(33) Poverty line.--The term `poverty line' means the
poverty line (as defined by the Office of Management and Budget
and revised annually in accordance with section 673(2) of the
Community Services Block Grant Act) applicable to a family of
the size involved.
[[Page 115 STAT. 1963]]
``(34) Professional development.--The term `professional
development'--
``(A) includes activities that--
``(i) improve and increase teachers' knowledge
of the academic subjects the teachers teach, and
enable teachers to become highly qualified;
``(ii) are an integral part of broad
schoolwide and districtwide educational
improvement plans;
``(iii) give teachers, principals, and
administrators the knowledge and skills to provide
students with the opportunity to meet challenging
State academic content standards and student
academic achievement standards;
``(iv) improve classroom management skills;
``(v)(I) are high quality, sustained,
intensive, and classroom-focused in order to have
a positive and lasting impact on classroom
instruction and the teacher's performance in the
classroom; and
``(II) are not 1-day or short-term workshops
or conferences;
``(vi) support the recruiting, hiring, and
training of highly qualified teachers, including
teachers who became highly qualified through State
and local alternative routes to certification;
``(vii) advance teacher understanding of
effective instructional strategies that are--
``(I) based on scientifically based
research (except that this subclause
shall not apply to activities carried
out under part D of title II); and
``(II) strategies for improving
student academic achievement or
substantially increasing the knowledge
and teaching skills of teachers; and
``(viii) are aligned with and directly related
to--
``(I) State academic content
standards, student academic achievement
standards, and assessments; and
``(II) the curricula and programs
tied to the standards described in
subclause (I) except that this subclause
shall not apply to activities described
in clauses (ii) and (iii) of section
2123(3)(B);
``(ix) are developed with extensive
participation of teachers, principals, parents,
and administrators of schools to be served under
this Act;
``(x) are designed to give teachers of limited
English proficient children, and other teachers
and instructional staff, the knowledge and skills
to provide instruction and appropriate language
and academic support services to those children,
including the appropriate use of curricula and
assessments;
``(xi) to the extent appropriate, provide
training for teachers and principals in the use of
technology so that technology and technology
applications are effectively used in the classroom
to improve teaching and learning in the curricula
and core academic subjects in which the teachers
teach;
[[Page 115 STAT. 1964]]
``(xii) as a whole, are regularly evaluated
for their impact on increased teacher
effectiveness and improved student academic
achievement, with the findings of the evaluations
used to improve the quality of professional
development;
``(xiii) provide instruction in methods of
teaching children with special needs;
``(xiv) include instruction in the use of data
and assessments to inform and instruct classroom
practice; and
``(xv) include instruction in ways that
teachers, principals, pupil services personnel,
and school administrators may work more
effectively with parents; and
``(B) may include activities that--
``(i) involve the forming of partnerships with
institutions of higher education to establish
school-based teacher training programs that
provide prospective teachers and beginning
teachers with an opportunity to work under the
guidance of experienced teachers and college
faculty;
``(ii) create programs to enable
paraprofessionals (assisting teachers employed by
a local educational agency receiving assistance
under part A of title I) to obtain the education
necessary for those paraprofessionals to become
certified and licensed teachers; and
``(iii) provide follow-up training to teachers
who have participated in activities described in
subparagraph (A) or another clause of this
subparagraph that are designed to ensure that the
knowledge and skills learned by the teachers are
implemented in the classroom.
``(35) Public telecommunications entity.--The term `public
telecommunications entity' has the meaning given that term in
section 397(12) of the Communications Act of 1934.
``(36) Pupil services personnel; pupil services.--
``(A) Pupil services personnel.--The term `pupil
services personnel' means school counselors, school
social workers, school psychologists, and other
qualified professional personnel involved in providing
assessment, diagnosis, counseling, educational,
therapeutic, and other necessary services (including
related services as that term is defined in section 602
of the Individuals with Disabilities Education Act) as
part of a comprehensive program to meet student needs.
``(B) Pupil services.--The term `pupil services'
means the services provided by pupil services personnel.
``(37) Scientifically based research.--The term
`scientifically based research'--
``(A) means research that involves the application
of rigorous, systematic, and objective procedures to
obtain reliable and valid knowledge relevant to
education activities and programs; and
``(B) includes research that--
``(i) employs systematic, empirical methods
that draw on observation or experiment;
[[Page 115 STAT. 1965]]
``(ii) involves rigorous data analyses that
are adequate to test the stated hypotheses and
justify the general conclusions drawn;
``(iii) relies on measurements or
observational methods that provide reliable and
valid data across evaluators and observers, across
multiple measurements and observations, and across
studies by the same or different investigators;
``(iv) is evaluated using experimental or
quasi-experimental designs in which individuals,
entities, programs, or activities are assigned to
different conditions and with appropriate controls
to evaluate the effects of the condition of
interest, with a preference for random-assignment
experiments, or other designs to the extent that
those designs contain within-condition or across-
condition controls;
``(v) ensures that experimental studies are
presented in sufficient detail and clarity to
allow for replication or, at a minimum, offer the
opportunity to build systematically on their
findings; and
``(vi) has been accepted by a peer-reviewed
journal or approved by a panel of independent
experts through a comparably rigorous, objective,
and scientific review.
``(38) Secondary school.--The term `secondary school' means
a nonprofit institutional day or residential school, including a
public secondary charter school, that provides secondary
education, as determined under State law, except that the term
does not include any education beyond grade 12.
``(39) Secretary.--The term `Secretary' means the Secretary
of Education.
State.--The term `State' means each of the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, and each
of the outlying areas.
``(41) State educational agency.--The term `State
educational agency' means the agency primarily responsible for
the State supervision of public elementary schools and secondary
schools.
``(42) Teacher mentoring.--The term `teacher mentoring'
means activities that--
``(A) consist of structured guidance and regular and
ongoing support for teachers, especially beginning
teachers, that--
``(i) are designed to help the teachers
continue to improve their practice of teaching and
to develop their instructional skills; and
part of an ongoing developmental induction
process--
``(I) involve the assistance of an
exemplary teacher and other appropriate
individuals from a school, local
educational agency, or institution of
higher education; and
``(II) may include coaching,
classroom observation, team teaching,
and reduced teaching loads; and
``(B) may include the establishment of a partnership
by a local educational agency with an institution of
higher
[[Page 115 STAT. 1966]]
education, another local educational agency, a teacher
organization, or another organization.
``(43) Technology.--The term `technology' means state-of-
the-art technology products and services.
``SEC. 9102. <<NOTE: 20 USC 7802.>> APPLICABILITY OF TITLE.
``Parts B, C, D, and E of this title do not apply to title VIII of
this Act.
``SEC. 9103. <<NOTE: 20 USC 7803.>> APPLICABILITY TO BUREAU OF INDIAN
AFFAIRS OPERATED SCHOOLS.
``For the purpose of any competitive program under this Act--
``(1) a consortium of schools operated by the Bureau of
Indian Affairs;
``(2) a school operated under a contract or grant with the
Bureau of Indian Affairs in consortium with another contract or
grant school or a tribal or community organization; or
``(3) a Bureau of Indian Affairs school in consortium with
an institution of higher education, a contract or grant school,
or a tribal or community organization,
shall be given the same consideration as a local educational agency.
``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS
``SEC. 9201. <<NOTE: 20 USC 7821.>> CONSOLIDATION OF STATE
ADMINISTRATIVE FUNDS FOR ELEMENTARY AND SECONDARY EDUCATION
PROGRAMS.
``(a) Consolidation of Administrative Funds.--
``(1) In general.--A State educational agency may
consolidate the amounts specifically made available to it for
State administration under one or more of the programs under
paragraph (2) if the State educational agency can demonstrate
that the majority of its resources are derived from non-Federal
sources.
``(2) Applicability.--This section applies to any program
under this Act under which funds are authorized to be used for
administration, and such other programs as the Secretary may
designate.
``(b) Use of funds.--
``(1) In general.--A State educational agency shall use the
amount available under this section for the administration of
the programs included in the consolidation under subsection (a).
``(2) Additional uses.--A State educational agency may also
use funds available under this section for administrative
activities designed to enhance the effective and coordinated use
of funds under programs included in the consolidation under
subsection (a), such as--
``(A) the coordination of those programs with other
Federal and non-Federal programs;
``(B) the establishment and operation of peer-review
mechanisms under this Act;
``(C) the administration of this title;
``(D) the dissemination of information regarding
model programs and practices;
``(E) technical assistance under any program under
this Act;
[[Page 115 STAT. 1967]]
``(F) State-level activities designed to carry out
this title;
``(G) training personnel engaged in audit and other
monitoring activities; and
``(H) implementation of the Cooperative Audit
Resolution and Oversight Initiative of the Department.
``(c) Records.--A State educational agency that consolidates
administrative funds under this section shall not be required to keep
separate records, by individual program, to account for costs relating
to the administration of programs included in the consolidation under
subsection (a).
``(d) Review.--To determine the effectiveness of State
administration under this section, the Secretary may periodically review
the performance of State educational agencies in using consolidated
administrative funds under this section and take such steps as the
Secretary finds appropriate to ensure the effectiveness of that
administration.
``(e) Unused Administrative Funds.--If a State educational agency
does not use all of the funds available to the agency under this section
for administration, the agency may use those funds during the applicable
period of availability as funds available under one or more programs
included in the consolidation under subsection (a).
``(f) Consolidation of Funds for Standards and Assessment
Development.--In order to develop challenging State academic standards
and assessments, a State educational agency may consolidate the amounts
described in subsection (a) for those purposes under title I.
``SEC. 9202. <<NOTE: 20 USC 7822.>> SINGLE LOCAL EDUCATIONAL AGENCY
STATES.
``A State educational agency that also serves as a local educational
agency shall, in its applications or plans under this Act, describe how
the agency will eliminate duplication in conducting administrative
functions.
``SEC. 9203. <<NOTE: 20 USC 7823.>> CONSOLIDATION OF FUNDS FOR LOCAL
ADMINISTRATION.
``(a) General Authority.--In accordance with regulations of the
Secretary and for any fiscal year, a local educational agency, with the
approval of its State educational agency, may consolidate and use for
the administration of one or more programs under this Act (or such other
programs as the Secretary shall designate) not more than the percentage,
established in each program, of the total available for the local
educational agency under those programs.
``(b) State Procedures.--Within 1 year after the date of enactment
of the No Child Left Behind Act of 2001, a State educational agency
shall, in collaboration with local educational agencies in the State,
establish procedures for responding to requests from local educational
agencies to consolidate administrative funds under subsection (a) and
for establishing limitations on the amount of funds under those programs
that may be used for administration on a consolidated basis.
``(c) Conditions.--A local educational agency that consolidates
administrative funds under this section for any fiscal year shall not
use any other funds under the programs included in the consolidation for
administration for that fiscal year.
``(d) Uses of Administrative Funds.--A local educational agency that
consolidates administrative funds under this section
[[Page 115 STAT. 1968]]
may use the consolidated funds for the administration of the programs
and for uses, at the school district and school levels, comparable to
those described in section 9201(b)(2).
``(e) Records.--A local educational agency that consolidates
administrative funds under this section shall not be required to keep
separate records, by individual program, to account for costs relating
to the administration of the programs included in the consolidation.
``SEC. 9204. <<NOTE: 20 USC 7824.>> CONSOLIDATED SET-ASIDE FOR
DEPARTMENT OF THE INTERIOR FUNDS.
``(a) General Authority.--
``(1) Transfer.--The Secretary shall transfer to the
Department of the Interior, as a consolidated amount for covered
programs, the Indian education programs under part A of title
VII, and the education for homeless children and youth program
under subtitle B of title VII of the McKinney-Vento Homeless
Assistance Act, the amounts allotted to the Department of the
Interior under those programs.
``(2) Agreement.--
``(A) In general.--The Secretary and the Secretary
of the Interior shall enter into an agreement,
consistent with the requirements of the programs
specified in paragraph (1), for the distribution and use
of those program funds under terms that the Secretary
determines best meet the purposes of those programs.
``(B) Contents.--The agreement shall--
``(i) set forth the plans of the Secretary of
the Interior for the use of the amount transferred
and the achievement measures to assess program
effectiveness, including measurable goals and
objectives; and
``(ii) be developed in consultation with
Indian tribes.
``(b) Administration.--The Department of the Interior may use not
more than 1.5 percent of the funds consolidated under this section for
its costs related to the administration of the funds transferred under
this section.
``PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS
AND APPLICATIONS
``SEC. 9301. <<NOTE: 20 USC 7841.>> PURPOSES.
``The purposes of this part are--
``(1) to improve teaching and learning by encouraging
greater cross-program coordination, planning, and service
delivery;
``(2) to provide greater flexibility to State and local
authorities through consolidated plans, applications, and
reporting; and
``(3) to enhance the integration of programs under this Act
with State and local programs.
``SEC. 9302. <<NOTE: 20 USC 7842.>> OPTIONAL CONSOLIDATED STATE PLANS
OR APPLICATIONS.
``(a) General Authority.--
[[Page 115 STAT. 1969]]
``(1) Simplification.--In order to simplify application
requirements and reduce the burden for State educational
agencies under this Act, the Secretary, in accordance with
subsection (b), shall establish procedures and criteria under
which, after consultation with the Governor, a State educational
agency may submit a consolidated State plan or a consolidated
State application meeting the requirements of this section for--
``(A) each of the covered programs in which the
State participates; and
``(B) such other programs as the Secretary may
designate.
``(2) Consolidated applications and plans.--After
consultation with the Governor, a State educational agency that
submits a consolidated State plan or a consolidated State
application under this section shall not be required to submit
separate State plans or applications under any of the programs
to which the consolidated State plan or consolidated State
application under this section applies.
``(b) Collaboration.--
``(1) In general.--In establishing criteria and procedures
under this section, the Secretary shall collaborate with State
educational agencies and, as appropriate, with other State
agencies, local educational agencies, public and private
nonprofit agencies, organizations, and institutions, private
schools, and representatives of parents, students, and teachers.
``(2) Contents.--Through the collaborative process described
in paragraph (1), the Secretary shall establish, for each
program under this Act to which this section applies, the
descriptions, information, assurances, and other material
required to be included in a consolidated State plan or
consolidated State application.
``(3) Necessary materials.--The Secretary shall require only
descriptions, information, assurances (including assurances of
compliance with applicable provisions regarding participation by
private school children and teachers), and other materials that
are absolutely necessary for the consideration of the
consolidated State plan or consolidated State application.
``SEC. 9303. <<NOTE: 20 USC 7843.>> CONSOLIDATED REPORTING.
``(a) In general.--In order to simplify reporting requirements and
reduce reporting burdens, the Secretary shall establish procedures and
criteria under which a State educational agency, in consultation with
the Governor of the State, may submit a consolidated State annual
report.
``(b) Contents.--The report shall contain information about the
programs included in the report, including the performance of the State
under those programs, and other matters as the Secretary determines are
necessary, such as monitoring activities.
``(c) Replacement.--The report shall replace separate individual
annual reports for the programs included in the consolidated State
annual report.
``SEC. 9304. <<NOTE: 20 USC 7844.>> GENERAL APPLICABILITY OF STATE
EDUCATIONAL AGENCY ASSURANCES.
``(a) Assurances.--A State educational agency, in consultation with
the Governor of the State, that submits a consolidated State plan or
consolidated State application under this Act, whether
[[Page 115 STAT. 1970]]
separately or under section 9302, shall have on file with the Secretary
a single set of assurances, applicable to each program for which the
plan or application is submitted, that provides that--
``(1) each such program will be administered in accordance
with all applicable statutes, regulations, program plans, and
applications;
``(2)(A) the control of funds provided under each such
program and title to property acquired with program funds will
be in a public agency, a nonprofit private agency, institution,
or organization, or an Indian tribe, if the law authorizing the
program provides for assistance to those entities; and
``(B) the public agency, nonprofit private agency,
institution, or organization, or Indian tribe will administer
those funds and property to the extent required by the
authorizing law;
``(3) the State will adopt and use proper methods of
administering each such program, including--
``(A) the enforcement of any obligations imposed by
law on agencies, institutions, organizations, and other
recipients responsible for carrying out each program;
``(B) the correction of deficiencies in program
operations that are identified through audits,
monitoring, or evaluation; and
``(C) the adoption of written procedures for the
receipt and resolution of complaints alleging violations
of law in the administration of the programs;
``(4) the State will cooperate in carrying out any
evaluation of each such program conducted by or for the
Secretary or other Federal officials;
``(5) the State will use such fiscal control and fund
accounting procedures as will ensure proper disbursement of, and
accounting for, Federal funds paid to the State under each such
program;
``(6) the State will--
``(A) make reports to the Secretary as may be
necessary to enable the Secretary to perform the
Secretary's duties under each such program; and
``(B) maintain such records, provide such
information to the Secretary, and afford such access to
the records as the Secretary may find necessary to carry
out the Secretary's duties; and
``(7) before the plan or application was submitted to the
Secretary, the State afforded a reasonable opportunity for
public comment on the plan or application and considered such
comment.
``(b) GEPA Provision.--Section 441 of the General Education
Provisions Act shall not apply to programs under this Act.
``SEC. 9305. <<NOTE: 20 USC 7845.>> CONSOLIDATED LOCAL PLANS OR
APPLICATIONS.
``(a) General Authority.--
``(1) Consolidated plan.--A local educational agency
receiving funds under more than one covered program may submit
plans or applications to the State educational agency under
those programs on a consolidated basis.
``(2) Availability to governor.--The State educational
agency shall make any consolidated local plans and applications
available to the Governor.
[[Page 115 STAT. 1971]]
``(b) Required Consolidated Plans or Applications.--A State
educational agency that has an approved consolidated State plan or
application under section 9302 may require local educational agencies in
the State receiving funds under more than one program included in the
consolidated State plan or consolidated State application to submit
consolidated local plans or applications under those programs, but may
not require those agencies to submit separate plans.
``(c) Collaboration.--A State educational agency, in consultation
with the Governor, shall collaborate with local educational agencies in
the State in establishing procedures for the submission of the
consolidated State plans or consolidated State applications under this
section.
``(d) Necessary Materials.--The State educational agency shall
require only descriptions, information, assurances, and other material
that are absolutely necessary for the consideration of the local
educational agency plan or application.
``SEC. 9306. <<NOTE: 20 USC 7846.>> OTHER GENERAL ASSURANCES.
``(a) Assurances.--Any applicant, other than a State educational
agency that submits a plan or application under this Act, whether
separately or pursuant to section 9305, shall have on file with the
State educational agency a single set of assurances, applicable to each
program for which a plan or application is submitted, that provides
that--
``(1) each such program will be administered in accordance
with all applicable statutes, regulations, program plans, and
applications;
``(2)(A) the control of funds provided under each such
program and title to property acquired with program funds will
be in a public agency or in a nonprofit private agency,
institution, organization, or Indian tribe, if the law
authorizing the program provides for assistance to those
entities; and
``(B) the public agency, nonprofit private agency,
institution, or organization, or Indian tribe will administer
the funds and property to the extent required by the authorizing
statutes;
``(3) the applicant will adopt and use proper methods of
administering each such program, including--
``(A) the enforcement of any obligations imposed by
law on agencies, institutions, organizations, and other
recipients responsible for carrying out each program;
and
``(B) the correction of deficiencies in program
operations that are identified through audits,
monitoring, or evaluation;
``(4) the applicant will cooperate in carrying out any
evaluation of each such program conducted by or for the State
educational agency, the Secretary, or other Federal officials;
``(5) the applicant will use such fiscal control and fund
accounting procedures as will ensure proper disbursement of, and
accounting for, Federal funds paid to the applicant under each
such program;
``(6) the applicant will--
``(A) <<NOTE: Reports.>> submit such reports to the
State educational agency (which shall make the reports
available to the Governor) and the Secretary as the
State educational agency and Secretary may require to
enable the State educational
[[Page 115 STAT. 1972]]
agency and the Secretary to perform their duties under
each such program; and
``(B) maintain such records, provide such
information, and afford such access to the records as
the State educational agency (after consultation with
the Governor) or the Secretary may reasonably require to
carry out the State educational agency's or the
Secretary's duties; and
``(7) before the application was submitted, the applicant
afforded a reasonable opportunity for public comment on the
application and considered such comment.
``(b) GEPA Provision.--Section 442 of the General Education
Provisions Act shall not apply to programs under this Act.
``PART D--WAIVERS
``SEC. 9401. <<NOTE: 20 USC 7861.>> WAIVERS OF STATUTORY AND REGULATORY
REQUIREMENTS.
``(a) In General.--Except as provided in subsection (c), the
Secretary may waive any statutory or regulatory requirement of this Act
for a State educational agency, local educational agency, Indian tribe,
or school through a local educational agency, that--
``(1) receives funds under a program authorized by this Act;
and
``(2) requests a waiver under subsection (b).
``(b) Request for Waiver.--
``(1) In general.--A State educational agency, local
educational agency, or Indian tribe that desires a waiver shall
submit a waiver request to the Secretary that--
``(A) identifies the Federal programs affected by
the requested waiver;
``(B) describes which Federal statutory or
regulatory requirements are to be waived and how the
waiving of those requirements will--
``(i) increase the quality of instruction for
students; and
``(ii) improve the academic achievement of
students;
``(C) describes, for each school year, specific,
measurable educational goals, in accordance with section
1111(b), for the State educational agency and for each
local educational agency, Indian tribe, or school that
would be affected by the waiver and the methods to be
used to measure annually such progress for meeting such
goals and outcomes;
``(D) explains how the waiver will assist the State
educational agency and each affected local educational
agency, Indian tribe, or school in reaching those goals;
and
``(E) describes how schools will continue to provide
assistance to the same populations served by programs
for which waivers are requested.
``(2) Additional information.--Such requests--
``(A) may provide for waivers of requirements
applicable to State educational agencies, local
educational agencies, Indian tribes, and schools; and
``(B) shall be developed and submitted--
[[Page 115 STAT. 1973]]
``(i)(I) by local educational agencies (on
behalf of those agencies and schools) to State
educational agencies; and
``(II) by State educational agencies (on
behalf of, and based on the requests of, local
educational agencies) to the Secretary; or
``(ii) by Indian tribes (on behalf of schools
operated by the tribes) to the Secretary.
``(3) General requirements.--
``(A) State educational agencies.--In the case of a
waiver request submitted by a State educational agency
acting on its own behalf, the State educational agency
shall--
``(i) provide all interested local educational
agencies in the State with notice and a reasonable
opportunity to comment on the request;
``(ii) submit the comments to the Secretary;
and
``(iii) provide notice and information to the
public regarding the waiver request in the manner
in which the applying agency customarily provides
similar notices and information to the public.
``(B) Local educational agencies.--In the case of a
waiver request submitted by a local educational agency
that receives funds under this Act--
``(i) the request shall be reviewed by the
State educational agency and be accompanied by the
comments, if any, of the State educational agency;
and
``(ii) notice and information regarding the
waiver request shall be provided to the public by
the agency requesting the waiver in the manner in
which that agency customarily provides similar
notices and information to the public.
``(c) Restrictions.--The Secretary shall not waive under this
section any statutory or regulatory requirements relating to--
``(1) the allocation or distribution of funds to States,
local educational agencies, or other recipients of funds under
this Act;
``(2) maintenance of effort;
``(3) comparability of services;
``(4) use of Federal funds to supplement, not supplant, non-
Federal funds;
``(5) equitable participation of private school students and
teachers;
``(6) parental participation and involvement;
``(7) applicable civil rights requirements;
``(8) the requirement for a charter school under subpart 1
of part B of title V;
``(9) the prohibitions regarding--
``(A) State aid in section 9522;
``(B) use of funds for religious worship or
instruction in section 9505; and
``(C) activities in section 9526; or
``(10) the selection of a school attendance area or school
under subsections (a) and (b) of section 1113, except that the
Secretary may grant a waiver to allow a school attendance area
or school to participate in activities under part A of title I
if the percentage of children from low-income families in
[[Page 115 STAT. 1974]]
the school attendance area or who attend the school is not more
than 10 percentage points below the lowest percentage of those
children for any school attendance area or school of the local
educational agency that meets the requirements of subsections
(a) and (b) of section 1113.
``(d) Duration and Extension of Waiver.--
``(1) In general.--Except as provided in paragraph (2), a
waiver approved by the Secretary under this section may be for a
period not to exceed 4 years.
``(2) Extension.--The Secretary may extend the period
described in paragraph (1) if the Secretary determines that--
``(A) the waiver has been effective in enabling the
State or affected recipient to carry out the activities
for which the waiver was requested and the waiver has
contributed to improved student achievement; and
`(B) the extension is in the public interest.
``(e) Reports.--
``(1) Local waiver.--A local educational agency that
receives a waiver under this section shall, at the end of the
second year for which a waiver is received under this section
and each subsequent year, submit a report to the State
educational agency that--
``(A) describes the uses of the waiver by the agency
or by schools;
``(B) describes how schools continued to provide
assistance to the same populations served by the
programs for which waivers were granted; and
``(C) evaluates the progress of the agency and of
schools in improving the quality of instruction or the
academic achievement of students.
``(2) State waiver.--A State educational agency that
receives reports required under paragraph (1) shall annually
submit a report to the Secretary that is based on those reports
and contains such information as the Secretary may require.
``(3) Indian tribe waiver.--An Indian tribe that receives a
waiver under this section shall annually submit a report to the
Secretary that--
``(A) describes the uses of the waiver by schools
operated by the tribe; and
``(B) evaluates the progress of those schools in
improving the quality of instruction or the academic
achievement of students.
``(4) Report to congress.--Beginning in fiscal year 2002 and
for each subsequent year, the Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor,
and Pensions of the Senate a report--
``(A) summarizing the uses of waivers by State
educational agencies, local educational agencies, Indian
tribes, and schools; and
``(B) describing whether the waivers--
``(i) increased the quality of instruction to
students; or
``(ii) improved the academic achievement of
students.
``(f) Termination of Waivers.--The Secretary shall terminate a
waiver under this section if the Secretary determines, after notice
[[Page 115 STAT. 1975]]
and an opportunity for a hearing, that the performance of the State or
other recipient affected by the waiver has been inadequate to justify a
continuation of the waiver or if the waiver is no longer necessary to
achieve its original purposes.
``(g) <<NOTE: Federal Register, publication.>> Publication.--A
notice of the Secretary's decision to grant each waiver under subsection
(a) shall be published in the Federal Register and the Secretary shall
provide for the dissemination of the notice to State educational
agencies, interested parties, including educators, parents, students,
advocacy and civil rights organizations, and the public.
``PART E--UNIFORM PROVISIONS
``Subpart 1--Private Schools
``SEC. 9501. <<NOTE: 20 USC 7881.>> PARTICIPATION BY PRIVATE SCHOOL
CHILDREN AND TEACHERS.
``(a) Private School Participation.--
``(1) In general.--Except as otherwise provided in this Act,
to the extent consistent with the number of eligible children in
areas served by a State educational agency, local educational
agency, educational service agency, consortium of those
agencies, or another entity receiving financial assistance under
a program specified in subsection (b), who are enrolled in
private elementary schools and secondary schools in areas served
by such agency, consortium, or entity, the agency, consortium,
or entity shall, after timely and meaningful consultation with
appropriate private school officials provide to those children
and their teachers or other educational personnel, on an
equitable basis, special educational services or other benefits
that address their needs under the program.
``(2) Secular, neutral, and nonideological services or
benefits.--Educational services or other benefits, including
materials and equipment, provided under this section, shall be
secular, neutral, and nonideological.
``(3) Special rule.--Educational services and other benefits
provided under this section for private school children,
teachers, and other educational personnel shall be equitable in
comparison to services and other benefits for public school
children, teachers, and other educational personnel
participating in the program and shall be provided in a timely
manner.
``(4) Expenditures.--Expenditures for educational services
and other benefits provided under this section for eligible
private school children, their teachers, and other educational
personnel serving those children shall be equal, taking into
account the number and educational needs of the children to be
served, to the expenditures for participating public school
children.
``(5) Provision of services.--An agency, consortium, or
entity described in subsection (a)(1) of this section may
provide those services directly or through contracts with public
and private agencies, organizations, and institutions.
``(b) Applicability.--
``(1) In general.--This section applies to programs under--
``(A) subparts 1 and 3 of part B of title I;
``(B) part C of title I;
``(C) part A of title II, to the extent provided in
paragraph (3);
[[Page 115 STAT. 1976]]
``(D) part B of title II;
``(E) part D of title II;
``(F) part A of title III;
``(G) part A of title IV; and
``(H) part B of title IV.
``(2) Definition.--For the purpose of this section, the term
`eligible children' means children eligible for services under a
program described in paragraph (1).
``(3) Application.--(A) Except as provided in subparagraph
(B), this subpart, including subsection (a)(4), applies to funds
awarded to a local educational agency under part A of title II
only to the extent that the local educational agency uses funds
under that part to provide professional development to teachers
and others.
``(B) Subject to subparagraph (A), the share of the local
educational agency's subgrant under part A of title II that is
used for professional development and subject to a determination
of equitable expenditures under subsection (a)(4) shall not be
less than the aggregate share of that agency's awards that were
used for professional development for fiscal year 2001 under
section 2203(1)(B) (as such section was in effect on the day
preceding the date of enactment of the No Child Left Behind Act
of 2001) and section 306 of the Department of Education
Appropriations Act, 2001.
``(c) Consultation.--
``(1) In general.--To ensure timely and meaningful
consultation, a State educational agency, local educational
agency, educational service agency, consortium of those
agencies, or entity shall consult with appropriate private
school officials during the design and development of the
programs under this Act, on issues such as--
``(A) how the children's needs will be identified;
``(B) what services will be offered;
``(C) how, where, and by whom the services will be
provided;
``(D) how the services will be assessed and how the
results of the assessment will be used to improve those
services;
``(E) the size and scope of the equitable services
to be provided to the eligible private school children,
teachers, and other educational personnel and the amount
of funds available for those services; and
``(F) how and when the agency, consortium, or entity
will make decisions about the delivery of services,
including a thorough consideration and analysis of the
views of the private school officials on the provision
of contract services through potential third-party
providers.
``(2) Disagreement.--If the agency, consortium, or entity
disagrees with the views of the private school officials on the
provision of services through a contract, the agency,
consortium, or entity shall provide to the private school
officials a written explanation of the reasons why the local
educational agency has chosen not to use a contractor.
``(3) Timing.--The consultation required by paragraph (1)
shall occur before the agency, consortium, or entity makes any
decision that affects the opportunities of eligible private
school children, teachers, and other educational personnel to
[[Page 115 STAT. 1977]]
participate in programs under this Act, and shall continue
throughout the implementation and assessment of activities under
this section.
``(4) Discussion required.--The consultation required by
paragraph (1) shall include a discussion of service delivery
mechanisms that the agency, consortium, or entity could use to
provide equitable services to eligible private school children,
teachers, administrators, and other staff.
``(d) Public Control of Funds.--
``(1) In general.--The control of funds used to provide
services under this section, and title to materials, equipment,
and property purchased with those funds, shall be in a public
agency for the uses and purposes provided in this Act, and a
public agency shall administer the funds and property.
``(2) Provision of services.--
``(A) In general.--The provision of services under
this section shall be provided--
``(i) by employees of a public agency; or
``(ii) through contract by the public agency
with an individual, association, agency,
organization, or other entity.
``(B) Independence; public agency.--In the provision
of those services, the employee, person, association,
agency, organization, or other entity shall be
independent of the private school and of any religious
organization, and the employment or contract shall be
under the control and supervision of the public agency.
``(C) Commingling of funds prohibited.--Funds used
to provide services under this section shall not be
commingled with non-Federal funds.
``SEC. 9502. <<NOTE: 20 USC 7882.>> STANDARDS FOR BY-PASS.
``(a) In General.--If, by reason of any provision of law, a State
educational agency, local educational agency, educational service
agency, consortium of those agencies, or other entity is prohibited from
providing for the participation in programs of children enrolled in, or
teachers or other educational personnel from, private elementary schools
and secondary schools, on an equitable basis, or if the Secretary
determines that the agency, consortium, or entity has substantially
failed or is unwilling to provide for that participation, as required by
section 9501, the Secretary shall--
``(1) waive the requirements of that section for the agency,
consortium, or entity; and
``(2) arrange for the provision of equitable services to
those children, teachers, or other educational personnel through
arrangements that shall be subject to the requirements of this
section and of sections 9501, 9503, and 9504.
``(b) Determination.--In making the determination under subsection
(a), the Secretary shall consider one or more factors, including the
quality, size, scope, and location of the program, and the opportunity
of private school children, teachers, and other educational personnel to
participate in the program.
``SEC. 9503. <<NOTE: 20 USC 7883.>> COMPLAINT PROCESS FOR PARTICIPATION
OF PRIVATE SCHOOL CHILDREN.
``(a) Procedures for Complaints.--The Secretary shall develop and
implement written procedures for receiving, investigating, and resolving
complaints from parents, teachers, or other
[[Page 115 STAT. 1978]]
individuals and organizations concerning violations of section 9501 by a
State educational agency, local educational agency, educational service
agency, consortium of those agencies, or entity. The individual or
organization shall submit the complaint to the State educational agency
for a written resolution by the State educational agency within a
reasonable period of time.
``(b) Appeals <<NOTE: Deadline.>> to Secretary.--The resolution may
be appealed by an interested party to the Secretary not later than 30
days after the State educational agency resolves the complaint or fails
to resolve the complaint within a reasonable period of time. The appeal
shall be accompanied by a copy of the State educational agency's
resolution, and a complete statement of the reasons supporting the
appeal. <<NOTE: Deadline.>> The Secretary shall investigate and resolve
the appeal not later than 120 days after receipt of the appeal.
``SEC. 9504. <<NOTE: 20 USC 7884.>> BY-PASS DETERMINATION PROCESS.
``(a) Review.--
``(1) In general.--
``(A) Written objections.--The Secretary shall not
take any final action under section 9502 until the State
educational agency, local educational agency,
educational service agency, consortium of those
agencies, or entity affected by the action has had an
opportunity, for not less than 45 days after receiving
written notice thereof, to submit written objections and
to appear before the Secretary to show cause why that
action should not be taken.
``(B) Prior to reduction.--Pending final resolution
of any investigation or complaint that could result in a
determination under this section, the Secretary may
withhold from the allocation of the affected State
educational agency or local educational agency the
amount estimated by the Secretary to be necessary to pay
the cost of those services.
``(2) Petition for review.--
``(A) Petition.--If the affected agency, consortium,
or entity is dissatisfied with the Secretary's final
action after a proceeding under paragraph (1), the
agency, consortium, or entity may, within 60 days after
notice of that action, file with the United States court
of appeals for the circuit in which the State is located
a petition for review of that action.
``(B) Transmission.--A copy of the petition shall be
forthwith transmitted by the clerk of the court to the
Secretary.
``(C) Filing.--The Secretary, upon receipt of the
copy of the petition, shall file in the court the record
of the proceedings on which the Secretary based the
action, as provided in section 2112 of title 28, United
States Code.
``(3) Findings of fact.--
``(A) In general.--The findings of fact by the
Secretary, if supported by substantial evidence, shall
be conclusive, but the court, for good cause shown, may
remand the case to the Secretary to take further
evidence and the Secretary may then make new or modified
findings of fact and may modify the Secretary's previous
action, and shall file in the court the record of the
further proceedings.
[[Page 115 STAT. 1979]]
``(B) New or modified findings.--Any new or modified
findings of fact shall likewise be conclusive if
supported by substantial evidence.
``(4) Jurisdiction.--
``(A) In general.--Upon the filing of a petition,
the court shall have jurisdiction to affirm the action
of the Secretary or to set the action aside, in whole or
in part.
``(B) Judgment.--The judgment of the court shall be
subject to review by the Supreme Court of the United
States upon certiorari or certification as provided in
section 1254 of title 28, United States Code.
``(b) Determination.--Any determination by the Secretary under this
section shall continue in effect until the Secretary determines, in
consultation with that agency, consortium, or entity and representatives
of the affected private school children, teachers, or other educational
personnel, that there will no longer be any failure or inability on the
part of the agency, consortium, or entity to meet the applicable
requirements of section 9501 or any other provision of this Act.
``(c) Payment From State Allotment.--When the Secretary arranges for
services pursuant to this section, the Secretary shall, after
consultation with the appropriate public and private school officials,
pay the cost of those services, including the administrative costs of
arranging for those services, from the appropriate allocation or
allocations under this Act.
``(d) Prior Determination.--Any by-pass determination by the
Secretary under this Act as in effect on the day preceding the date of
enactment of the No Child Left Behind Act of 2001 shall remain in effect
to the extent the Secretary determines that that determination is
consistent with the purpose of this section.
``SEC. 9505. <<NOTE: 20 USC 7885.>> PROHIBITION AGAINST FUNDS FOR
RELIGIOUS WORSHIP OR INSTRUCTION.
``Nothing contained in this Act shall be construed to authorize the
making of any payment under this Act for religious worship or
instruction.
``SEC. 9506. <<NOTE: 20 USC 7886.>> PRIVATE, RELIGIOUS, AND HOME
SCHOOLS.
``(a) Applicability to Nonrecipient Private Schools.--Nothing in
this Act shall be construed to affect any private school that does not
receive funds or services under this Act, nor shall any student who
attends a private school that does not receive funds or services under
this Act be required to participate in any assessment referenced in this
Act.
``(b) Applicability to Home Schools.--Nothing in this Act shall be
construed to affect a home school, whether or not a home school is
treated as a home school or a private school under State law, nor shall
any student schooled at home be required to participate in any
assessment referenced in this Act.
``(c) Rule of Construction on Prohibition of Federal Control Over
Nonpublic Schools.--Nothing in this Act shall be construed to permit,
allow, encourage, or authorize any Federal control over any aspect of
any private, religious, or home school, whether or not a home school is
treated as a private school or home school under State law. This section
shall not be construed to bar private, religious, or home schools from
participation in programs or services under this Act.
[[Page 115 STAT. 1980]]
``(d) Rule of Construction on State and Local Educational Agency
Mandates.--Nothing in this Act shall be construed to require any State
educational agency or local educational agency that receives funds under
this Act to mandate, direct, or control the curriculum of a private or
home school, regardless or whether or not a home school is treated as a
private school under state law, nor shall any funds under this Act be
used for this purpose.
``Subpart 2--Other Provisions
``SEC. 9521. <<NOTE: 20 USC 7901.>> MAINTENANCE OF EFFORT.
``(a) In General.--A local educational agency may receive funds
under a covered program for any fiscal year only if the State
educational agency finds that either the combined fiscal effort per
student or the aggregate expenditures of the agency and the State with
respect to the provision of free public education by the agency for the
preceding fiscal year was not less than 90 percent of the combined
fiscal effort or aggregate expenditures for the second preceding fiscal
year.
``(b) Reduction in Case of Failure To Meet.--
``(1) In general.--The State educational agency shall reduce
the amount of the allocation of funds under a covered program in
any fiscal year in the exact proportion by which a local
educational agency fails to meet the requirement of subsection
(a) of this section by falling below 90 percent of both the
combined fiscal effort per student and aggregate expenditures
(using the measure most favorable to the local agency).
``(2) Special rule.--No such lesser amount shall be used for
computing the effort required under subsection (a) of this
section for subsequent years.
``(c) Waiver.--The Secretary may waive the requirements of this
section if the Secretary determines that a waiver would be equitable due
to--
``(1) exceptional or uncontrollable circumstances, such as a
natural disaster; or
``(2) a precipitous decline in the financial resources of
the local educational agency.
``SEC. 9522. <<NOTE: 20 USC 7902.>> PROHIBITION REGARDING STATE AID.
``A State shall not take into consideration payments under this Act
(other than under title VIII) in determining the eligibility of any
local educational agency in that State for State aid, or the amount of
State aid, with respect to free public education of children.
``SEC. 9523. <<NOTE: 20 USC 7903.>> PRIVACY OF ASSESSMENT RESULTS.
``Any results from an individual assessment referred to in this Act
of a student that become part of the education records of the student
shall have the protections provided in section 444 of the General
Education Provisions Act.
``SEC. 9524. <<NOTE: 20 USC 7904.>> SCHOOL PRAYER.
``(a) Guidance.--The <<NOTE: Deadline.>> Secretary shall provide
and revise guidance, not later than September 1, 2002, and of every
second year thereafter, to State educational agencies, local educational
agencies, and the public on constitutionally protected prayer in public
[[Page 115 STAT. 1981]]
elementary schools and secondary schools, including making the guidance
available on the Internet. The guidance shall be reviewed, prior to
distribution, by the Office of Legal Counsel of the Department of
Justice for verification that the guidance represents the current state
of the law concerning constitutionally protected prayer in public
elementary schools and secondary schools.
``(b) Certification.--As a condition of receiving funds under this
Act, a local educational agency shall certify in writing to the State
educational agency involved that no policy of the local educational
agency prevents, or otherwise denies participation in, constitutionally
protected prayer in public elementary schools and secondary schools, as
detailed in the guidance required under subsection (a). The
certification shall be provided by October 1 of each year. The State
educational agency shall report to the Secretary by November 1 of each
year a list of those local educational agencies that have not filed the
certification or against which complaints have been made to the State
educational agency that the local educational agencies are not in
compliance with this section.
``(c) Enforcement.--The Secretary is authorized and directed to
effectuate subsection (b) by issuing, and securing compliance with,
rules or orders with respect to a local educational agency that fails to
certify, or is found to have certified in bad faith, that no policy of
the local educational agency prevents, or otherwise denies participation
in, constitutionally protected prayer in public elementary schools and
secondary schools.
``SEC. 9525. <<NOTE: Boy Scouts of America Equal Access Act. 20 USC
7905.>> EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.
``(a) Short Title.--This section may be cited as the `Boy Scouts of
America Equal Access Act'.
``(b) In General.--
``(1) Equal access.--Notwithstanding any other provision of
law, no public elementary school, public secondary school, local
educational agency, or State educational agency that has a
designated open forum or a limited public forum and that
receives funds made available through the Department shall deny
equal access or a fair opportunity to meet to, or discriminate
against, any group officially affiliated with the Boy Scouts of
America, or any other youth group listed in title 36 of the
United States Code (as a patriotic society), that wishes to
conduct a meeting within that designated open forum or limited
public forum, including denying such access or opportunity or
discriminating for reasons based on the membership or leadership
criteria or oath of allegiance to God and country of the Boy
Scouts of America or of the youth group listed in title 36 of
the United States Code (as a patriotic society).
``(2) Voluntary sponsorship.--Nothing in this section shall
be construed to require any school, agency, or a school served
by an agency to sponsor any group officially affiliated with the
Boy Scouts of America, or any other youth group listed in title
36 of the United States Code (as a patriotic society).
``(c) Termination of Assistance and Other Action.--
``(1) Departmental action.--The Secretary is authorized and
directed to effectuate subsection (b) by issuing and securing
compliance with rules or orders with respect to a public
elementary school, public secondary school, local educational
agency, or State educational agency that receives funds made
[[Page 115 STAT. 1982]]
available through the Department and that denies equal access,
or a fair opportunity to meet, or discriminates, as described in
subsection (b).
``(2) Procedure.--The Secretary shall issue and secure
compliance with the rules or orders, under paragraph (1),
through the Office for Civil Rights and in a manner consistent
with the procedure used by a Federal department or agency under
section 602 of the Civil Rights Act of 1964. If the public
school or agency does not comply with the rules or orders, then
notwithstanding any other provision of law, no funds made
available through the Department shall be provided to a school
that fails to comply with such rules or orders or to any agency
or school served by an agency that fails to comply with such
rules or orders.
``(3) Judicial review.--Any action taken by the Secretary
under paragraph (1) shall be subject to the judicial review
described in section 603 of the Civil Rights Act of 1964. Any
person aggrieved by the action may obtain that judicial review
in the manner, and to the extent, provided in section 603 of
such Act.
``(d) Definition and Rule.--
``(1) Definition.--In this section, the term `youth group'
means any group or organization intended to serve young people
under the age of 21.
``(2) Rule.--For the purpose of this section, an elementary
school or secondary school has a limited public forum whenever
the school involved grants an offering to, or opportunity for,
one or more outside youth or community groups to meet on school
premises or in school facilities before or after the hours
during which attendance at the school is compulsory.
``SEC. 9526. <<NOTE: 20 USC 7906.>> GENERAL PROHIBITIONS.
``(a) Prohibition.--None of the funds authorized under this Act
shall be used--
``(1) to develop or distribute materials, or operate
programs or courses of instruction directed at youth, that are
designed to promote or encourage sexual activity, whether
homosexual or heterosexual;
``(2) to distribute or to aid in the distribution by any
organization of legally obscene materials to minors on school
grounds;
``(3) to provide sex education or HIV-prevention education
in schools unless that instruction is age appropriate and
includes the health benefits of abstinence; or
``(4) to operate a program of contraceptive distribution in
schools.
``(b) Local Control.--Nothing in this section shall be construed
to--
``(1) authorize an officer or employee of the Federal
Government to mandate, direct, review, or control a State, local
educational agency, or school's instructional content,
curriculum, and related activities;
``(2) limit the application of the General Education
Provisions Act;
``(3) require the distribution of scientifically or
medically false or inaccurate materials or to prohibit the
distribution of scientifically or medically true or accurate
materials; or
[[Page 115 STAT. 1983]]
``(4) create any legally enforceable right.
``SEC. 9527. <<NOTE: 20 USC 7907.>> PROHIBITIONS ON FEDERAL GOVERNMENT
AND USE OF FEDERAL FUNDS.
``(a) General Prohibition.--Nothing in this Act shall be construed
to authorize an officer or employee of the Federal Government to
mandate, direct, or control a State, local educational agency, or
school's curriculum, program of instruction, or allocation of State or
local resources, or mandate a State or any subdivision thereof to spend
any funds or incur any costs not paid for under this Act.
``(b) Prohibition on Endorsement of Curriculum.--Notwithstanding any
other prohibition of Federal law, no funds provided to the Department
under this Act may be used by the Department to endorse, approve, or
sanction any curriculum designed to be used in an elementary school or
secondary school.
``(c) Prohibition on Requiring Federal Approval or Certification of
Standards.--
``(1) In general.--Notwithstanding any other provision of
Federal law, no State shall be required to have academic content
or student academic achievement standards approved or certified
by the Federal Government, in order to receive assistance under
this Act.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to affect requirements under title I or part
A of title VI.
``(d) Rule of Construction on Building Standards.--Nothing in this
Act shall be construed to mandate national school building standards for
a State, local educational agency, or school.
``SEC. 9528. <<NOTE: 20 USC 7908.>> ARMED FORCES RECRUITER ACCESS TO
STUDENTS AND STUDENT RECRUITING INFORMATION.
``(a) Policy.--
``(1) Access to student recruiting information.--
Notwithstanding section 444(a)(5)(B) of the General Education
Provisions Act and except as provided in paragraph (2), each
local educational agency receiving assistance under this Act
shall provide, on a request made by military recruiters or an
institution of higher education, access to secondary school
students names, addresses, and telephone listings.
``(2) Consent.--A secondary school student or the parent of
the student may request that the student's name, address, and
telephone listing described in paragraph (1) not be released
without prior written parental consent, and the local
educational agency or private school shall notify parents of the
option to make a request and shall comply with any request.
``(3) Same access to students.--Each local educational
agency receiving assistance under this Act shall provide
military recruiters the same access to secondary school students
as is provided generally to post secondary educational
institutions or to prospective employers of those students.
``(b) <<NOTE: Deadline.>> Notification.--The Secretary, in
consultation with the Secretary of Defense, shall, not later than 120
days after the date of enactment of the No Child Left Behind Act of
2001, notify principals, school administrators, and other educators
about the requirements of this section.
``(c) Exception.--The requirements of this section do not apply to a
private secondary school that maintains a religious objection
[[Page 115 STAT. 1984]]
to service in the Armed Forces if the objection is verifiable through
the corporate or other organizational documents or materials of that
school.
``(d) Special Rule.--A local educational agency prohibited by
Connecticut State law (either explicitly by statute or through statutory
interpretation by the State Supreme Court or State Attorney General)
from providing military recruiters with information or access as
required by this section shall have until May 31, 2002, to comply with
that requirement.
``SEC. 9529. <<NOTE: 20 USC 7909.>> PROHIBITION ON FEDERALLY SPONSORED
TESTING.
``(a) General Prohibition.--Notwithstanding any other provision of
Federal law and except as provided in subsection (b), no funds provided
under this Act to the Secretary or to the recipient of any award may be
used to develop, pilot test, field test, implement, administer, or
distribute any federally sponsored national test in reading,
mathematics, or any other subject, unless specifically and explicitly
authorized by law.
``(b) Exceptions.--Subsection (a) shall not apply to international
comparative assessments developed under the authority of section
404(a)(6) of the National Education Statistics Act of 1994 and
administered to only a representative sample of pupils in the United
States and in foreign nations.
``SEC. 9530. <<NOTE: 20 USC 7910.>> LIMITATIONS ON NATIONAL TESTING OR
CERTIFICATION FOR TEACHERS.
``(a) Mandatory National Testing or Certification of Teachers.--
Notwithstanding any other provision of this Act or any other provision
of law, no funds available to the Department or otherwise available
under this Act may be used for any purpose relating to a mandatory
nationwide test or certification of teachers or education
paraprofessionals, including any planning, development, implementation,
or administration of such test or certification.
``(b) Prohibition on Withholding Funds.--The Secretary is prohibited
from withholding funds from any State educational agency or local
educational agency if the State educational agency or local educational
agency fails to adopt a specific method of teacher or paraprofessional
certification.
``SEC. 9531. <<NOTE: 20 USC 7911.>> PROHIBITION ON NATIONWIDE DATABASE.
``Nothing in this Act (other than section 1308(b)) shall be
construed to authorize the development of a nationwide database of
personally identifiable information on individuals involved in studies
or other collections of data under this Act.
``SEC. 9532. <<NOTE: 20 USC 7912.>> UNSAFE SCHOOL CHOICE OPTION.
``(a) Unsafe School Choice Policy.--Each State receiving funds under
this Act shall establish and implement a statewide policy requiring that
a student attending a persistently dangerous public elementary school or
secondary school, as determined by the State in consultation with a
representative sample of local educational agencies, or who becomes a
victim of a violent criminal offense, as determined by State law, while
in or on the grounds of a public elementary school or secondary school
that the student attends, be allowed to attend a safe public elementary
school or secondary school within the local educational agency,
including a public charter school.
[[Page 115 STAT. 1985]]
``(b) Certification.--As a condition of receiving funds under this
Act, a State shall certify in writing to the Secretary that the State is
in compliance with this section.
``SEC. 9533. <<NOTE: 20 USC 7913.>> PROHIBITION ON DISCRIMINATION.
``Nothing in this Act shall be construed to require, authorize, or
permit, the Secretary, or a State educational agency, local educational
agency, or school to grant to a student, or deny or impose upon a
student, any financial or educational benefit or burden, in violation of
the fifth or 14th amendments to the Constitution or other law relating
to discrimination in the provision of federally funded programs or
activities.
``SEC. 9534. <<NOTE: 20 USC 7914.>> CIVIL RIGHTS.
``(a) In General.--Nothing in this Act shall be construed to permit
discrimination on the basis of race, color, religion, sex (except as
otherwise permitted under title IX of the Education Amendments of 1972),
national origin, or disability in any program funded under this Act.
``(b) Rule of Construction.--Nothing in this Act shall be construed
to require the disruption of services to a child or the displacement of
a child enrolled in or participating in a program administered by an
eligible entity, as defined in section 1116 of title I and part B of
title V, at the commencement of the entity's participation in a grant
under section 1116 of title I or part B of title V.
``SEC. 9535. <<NOTE: 20 USC 7915.>> RULEMAKING.
``The Secretary shall issue regulations under this Act only to the
extent that such regulations are necessary to ensure that there is
compliance with the specific requirements and assurances required by
this Act.
``SEC. 9536. <<NOTE: 20 USC 7916.>> SEVERABILITY.
``If any provision of this Act is held invalid, the remainder of
this Act shall be unaffected thereby.
``PART F--EVALUATIONS
``SEC. 9601. <<NOTE: 20 USC 7941.>> EVALUATIONS.
``(a) Reservation of Funds.--Except as provided in subsections (b)
and (c), the Secretary may reserve not more than 0.5 percent of the
amount appropriated to carry out each categorical program and
demonstration project authorized under this Act--
``(1) to conduct--
``(A) comprehensive evaluations of the program or
project; and
``(B) studies of the effectiveness of the program or
project and its administrative impact on schools and
local educational agencies;
``(2) to evaluate the aggregate short- and long-term effects
and cost efficiencies across Federal programs assisted or
authorized under this Act and related Federal preschool,
elementary, and secondary programs under any other Federal law;
and
``(3) to increase the usefulness of evaluations of grant
recipients in order to ensure the continuous progress of the
program or project by improving the quality, timeliness,
efficiency, and
[[Page 115 STAT. 1986]]
use of information relating to performance under the program or
project.
``(b) Titles I and III Excluded.--The Secretary may not reserve
under subsection (a) funds appropriated to carry out any program
authorized under title I or title III.
``(c) Evaluation Activities Authorized Elsewhere.--If, under any
other provision of this Act (other than title I), funds are authorized
to be reserved or used for evaluation activities with respect to a
program or project, the Secretary may not reserve additional funds under
this section for the evaluation of that program or project.''.
TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES
PART A--REPEALS
SEC. 1011. REPEALS.
The following provisions of law are repealed:
(1) Part G of title XV of the Higher Education Amendments of
1992 (20 U.S.C. 1070a-11 note), relating to the Advanced
Placement fee payment program.
(2) Part B of title VIII of the Higher Education Amendments
of 1998 (20 U.S.C. 1070a-11 note), relating to the Advanced
Placement incentive program.
(3) Part F of the General Education Provisions Act (20
U.S.C. 1235 et seq.), relating to Ready to Learn Television.
(4) The following provisions of the Goals 2000: Educate
America Act (20 U.S.C. 5801 et seq.):
(A) Parts A and C of title II (20 U.S.C. 5821 et
seq., 5871), relating to the National Education Goals
Panel.
(B) Title VI (20 U.S.C. 5951), relating to the
International Education Program.
(5) The following provisions of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.):
(A) Titles X through XII (20 U.S.C. 8001 et seq.).
(B) Sections 13001 and 13002 (20 U.S.C. 8601, 8602).
(C) Title XIV (20 U.S.C. 8801 et seq.).
(6) The Troops-to-Teachers Program Act of 1999 (20 U.S.C.
9301 et seq.).
SEC. 1012. CONFORMING CLERICAL AND TECHNICAL AMENDMENTS.
The table of contents in section 1(b) of the Goals 2000: Educate
America Act (20 U.S.C. 5801 note) is amended by striking the items
relating to the following provisions:
(1) Parts A and C of title II (including the items relating
to sections within those parts).
(2) Sections 231, 232, 234, and 235.
(3) Titles III through VI (including the items relating to
sections within those titles).
[[Page 115 STAT. 1987]]
PART B--REDESIGNATIONS
SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.
(a) In <<NOTE: 20 USC 6053-6053d.>> General.--Part A of title XIII
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8621 et
seq.) is transferred to and redesignated as part K of the Educational
Research, Development, Dissemination, and Improvement Act of 1994.
(b) <<NOTE: 20 USC 6053-6053d.>> Sections.--Sections 13101 through
13105 of such part are redesignated as sections 1001 through 1005,
respectively.
(c) Defined <<NOTE: 20 USC 6053e.>> Terms.--Part K of the
Educational Research, Development, Dissemination, and Improvement Act of
1994 (as transferred and redesignated by this section) is amended by
adding at the end the following new section:
``SEC. 1006. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1022. NATIONAL DIFFUSION NETWORK.
(a) In <<NOTE: 20 USC 6054, 6054a.>> General.--Part B of title XIII
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8651 et
seq.) is transferred to and redesignated as part L of the Educational
Research, Development, Dissemination, and Improvement Act of 1994.
(b) Sections.--Sections <<NOTE: 20 USC 6054, 6054a.>> 13201 and
13102 of such part are redesignated as sections 1011 and 1012,
respectively.
(c) Defined <<NOTE: 20 USC 6054b.>> Terms.--Part L of the
Educational Research, Development, Dissemination, and Improvement Act of
1994 (as transferred and redesignated by this section) is amended by
adding at the end the following new section:
``SEC. 1013. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1023. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION
CONSORTIA.
(a) In <<NOTE: 20 USC 6055-6055g.>> General.--Part C of title XIII
of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8671 et
seq.) is transferred to and redesignated as part M of the Educational
Research, Development, Dissemination, and Improvement Act of 1994.
(b) Sections.--Sections <<NOTE: 20 USC 6055-6055g.>> 13301 through
13108 of such part are redesignated as sections 1021 through 1028,
respectively.
(c) Defined <<NOTE: 20 USC 6055h.>> Terms.--Part M of the
Educational Research, Development, Dissemination, and Improvement Act of
1994 (as transferred and redesignated by this section) is amended by
adding at the end the following new section:
``SEC. 1029. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1024. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.
(a) In <<NOTE: 20 USC 6056.>> General.--Part D of title XIII of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8701) is
transferred
[[Page 115 STAT. 1988]]
to and redesignated as part N of the Educational Research, Development,
Dissemination, and Improvement Act of 1994.
(b) <<NOTE: 20 USC 6056.>> Sections.--Section 13401 of such part is
redesignated as section 1031.
(c) Defined <<NOTE: 20 USC 6056a.>> Terms.--Part N of the
Educational Research, Development, Dissemination, and Improvement Act of
1994 (as transferred and redesignated by this section) is amended by
adding at the end the following new section:
``SEC. 1032. DEFINED TERMS.
``In this part, the definitions of terms defined in section 9101 of
the Elementary and Secondary Education Act of 1965 shall apply.''.
SEC. 1025. CONFORMING AMENDMENTS.
(a) Parts K Through M.--Parts K through M of the Educational
Research, Development, Dissemination, and Improvement Act of 1994 (as
transferred and redesignated by sections 1021 through 1024 of this Act)
are amended as follows:
(1) Insert ``of such Act'' in--
(A) section <<NOTE: 20 USC 6053a.>> 1002(a)(1)(A),
after ``title I''; and
(B) section 1002(a)(1)(B), after ``section 1114''.
(2) Insert ``of the Elementary and Secondary Education Act
of 1965 (as such Act was in effect on the day before the date of
enactment of the No Child Left Behind Act of 2001)'' in--
(A) sections <<NOTE: 20 USC 6053, 6054.>>
1001(a)(2)(A) and 1011(e)(1), after ``title I'';
(B) sections 1002(b)(1) and section 1011(g)(3)(A),
after ``section 1114''; and
(C) in section 1011(e)(3), after ``title III''.
(3) In section 1011(a)(1), strike ``(hereafter referred to
in this Act as `NDN')''.
(4) In <<NOTE: 20 USC 6055f.>> subsections (c) and (g)(1)
of section 1011 and in section 1027(1)(E), strike ``of the
Educational Research, Development, Dissemination, and
Improvement Act of 1994''.
(5) In subsections (a)(2)(A) and (d) of section 1011, strike
``part A'' and insert ``part K''.
(6) In sections 1002(a)(4) and 1011(e)(3), strike ``part C''
and insert ``part M''.
(7) In section 1002(a), strike ``section 13101(a)'' and
insert ``section 1001(a)''.
(8) In <<NOTE: 20 USC 6053b.>> section 1003(b)(1), strike
``section 13102'' and insert ``section 1002''.
(9) In section <<NOTE: 20 USC 6053c.>> 1004(b)(1), strike
``section 13105'' and insert ``section 1005''.
(10) In sections 1002(a)(7) and 1003(b)(2), strike ``section
13201'' and insert ``section 1011''.
(11) In section <<NOTE: 20 USC 6055a.>> 1022(2) and (3),
strike ``section 13301(a)(1)'' and insert ``section
1021(a)(1)''.
(12) In section 1027(4), strike ``section 13301'' and insert
``section 1021''.
(13) <<NOTE: 20 USC 6055d.>> In subsections (a) and (b) of
section 1025, strike ``section 13303'' and insert ``section
1023''.
(14) In the text preceding paragraph (1) of section 1022,
strike ``section 13304'' and insert ``section 1024''.
(15) In section <<NOTE: 20 USC 6055.>> 1021(a)(3), strike
``section 13308'' and insert ``section 1028''.
[[Page 115 STAT. 1989]]
(16) <<NOTE: 20 USC 6053b, 6054.>> In sections 1003(b)(2)
and 1011(f)(4), strike ``section 13401'' and insert ``section
1031''.
(17) Strike ``this Act'' and insert ``the Elementary and
Secondary Education Act of 1965 (as such Act was in effect on
the day before the date of enactment of the No Child Left Behind
Act of 2001)'' in--
(A) section <<NOTE: 20 USC 6053.>> 1001(a)(1) (the
first occurrence only);
(B) paragraphs (1) through (3) of section 1001(c);
(C) paragraphs <<NOTE: 20 USC 6053a.>> (1), (2),
(6), and (8) of section 1002(a);
(D) section 1011(e); and
(E) section <<NOTE: 20 USC 6056.>> 1031(2).
(18) In paragraphs <<NOTE: 20 USC 6053c.>> (1) and (2) of
section 1004(b), strike ``this Act'' and insert ``the Elementary
and Secondary Education Act of 1965''.
(19) In section 1001(a)(1) (the second occurrence only) and
in section 1002(a)(1)(C), strike ``this Act'' and insert ``such
Act''.
(20) Section 1011 is amended--
(A) in subsection (a)(1), by striking ``In order to
implement the purposes of this title, the'' and
inserting ``The''; and
(B) in subsection (f)(5), by striking ``to achieve
the purposes of this title''.
(21) <<NOTE: 20 USC 6055a.>> In section 1022(1), strike ``,
the Eisenhower National Clearinghouse for Science and
Mathematics Education established under section 2102(b)''.
(22) In section <<NOTE: 20 USC 6055e.>> 1026(a), strike
``section 14701'' and insert ``section 9601''.
(b) Title XIII Heading.--The Elementary and Secondary Education Act
of 1965 is amended by striking the heading of title XIII.
PART <<NOTE: McKinney-Vento Homeless Education Assistance Improvements
Act of 2001.>> C--HOMELESS EDUCATION
SEC. 1031. <<NOTE: 42 USC 11301 note.>> SHORT TITLE.
This part may be cited as the ``McKinney-Vento Homeless Education
Assistance Improvements Act of 2001''.
SEC. 1032. EDUCATION FOR HOMELESS CHILDREN AND YOUTHS.
Subtitle B of title VII of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11431 et seq.) is amended to read as follows:
``Subtitle B--Education for Homeless Children and Youths
``SEC. 721. <<NOTE: 42 USC 11431.>> STATEMENT OF POLICY.
``The following is the policy of the Congress:
``(1) Each State educational agency shall ensure that each
child of a homeless individual and each homeless youth has equal
access to the same free, appropriate public education, including
a public preschool education, as provided to other children and
youths.
``(2) In any State that has a compulsory residency
requirement as a component of the State's compulsory school
attendance laws or other laws, regulations, practices, or
policies that may act as a barrier to the enrollment,
attendance, or success in school of homeless children and
youths, the State will review and undertake steps to revise such
laws, regulations, practices,
[[Page 115 STAT. 1990]]
or policies to ensure that homeless children and youths are
afforded the same free, appropriate public education as provided
to other children and youths.
``(3) Homelessness alone is not sufficient reason to
separate students from the mainstream school environment.
``(4) Homeless children and youths should have access to the
education and other services that such children and youths need
to ensure that such children and youths have an opportunity to
meet the same challenging State student academic achievement
standards to which all students are held.
``SEC. 722. <<NOTE: 42 USC 11432.>> GRANTS FOR STATE AND LOCAL
ACTIVITIES FOR THE EDUCATION OF HOMELESS CHILDREN AND
YOUTHS.
``(a) General Authority.--The Secretary is authorized to make grants
to States in accordance with the provisions of this section to enable
such States to carry out the activities described in subsections (d)
through (g).
``(b) Application.--No State may receive a grant under this section
unless the State educational agency submits an application to the
Secretary at such time, in such manner, and containing or accompanied by
such information as the Secretary may reasonably require.
``(c) Allocation and Reservations.--
``(1) Allocation.--(A) Subject to subparagraph (B), the
Secretary is authorized to allot to each State an amount that
bears the same ratio to the amount appropriated for such year
under section 726 that remains after the Secretary reserves
funds under paragraph (2) and uses funds to carry out section
724(d) and (h), as the amount allocated under section 1122 of
the Elementary and Secondary Education Act of 1965 to the State
for that year bears to the total amount allocated under section
1122 of such Act to all States for that year, except that no
State shall receive less than the greater of--
``(i) $150,000;
``(ii) one-fourth of 1 percent of the amount
appropriated under section 726 for that year; or
``(iii) the amount such State received under this
section for fiscal year 2001.
``(B) If there are insufficient funds in a fiscal year to
allot to each State the minimum amount under subparagraph (A),
the Secretary shall ratably reduce the allotments to all States
based on the proportionate share that each State received under
this subsection for the preceding fiscal year.
``(2) Reservations.--(A) The Secretary is authorized to
reserve 0.1 percent of the amount appropriated for each fiscal
year under section 726 to be allocated by the Secretary among
the United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands, according to their
respective need for assistance under this subtitle, as
determined by the Secretary.
``(B)(i) The Secretary shall transfer 1 percent of the
amount appropriated for each fiscal year under section 726 to
the Department of the Interior for programs for Indian students
served by schools funded by the Secretary of the Interior,
[[Page 115 STAT. 1991]]
as determined under the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450 et seq.), that are consistent with
the purposes of the programs described in this subtitle.
``(ii) The Secretary and the Secretary of the Interior shall
enter into an agreement, consistent with the requirements of
this subtitle, for the distribution and use of the funds
described in clause (i) under terms that the Secretary
determines best meet the purposes of the programs described in
this subtitle. Such agreement shall set forth the plans of the
Secretary of the Interior for the use of the amounts
transferred, including appropriate goals, objectives, and
milestones.
``(3) State defined.--For purposes of this subsection, the
term `State' does not include the United States Virgin Islands,
Guam, American Samoa, or the Commonwealth of the Northern
Mariana Islands.
``(d) Activities.--Grants under this section shall be used for the
following:
``(1) To carry out the policies set forth in section 721 in
the State.
``(2) To provide activities for, and services to, homeless
children, including preschool-aged homeless children, and youths
that enable such children and youths to enroll in, attend, and
succeed in school, or, if appropriate, in preschool programs.
``(3) To establish or designate an Office of Coordinator for
Education of Homeless Children and Youths in the State
educational agency in accordance with subsection (f).
``(4) To prepare and carry out the State plan described in
subsection (g).
``(5) To develop and implement professional development
programs for school personnel to heighten their awareness of,
and capacity to respond to, specific problems in the education
of homeless children and youths.
``(e) State and Local Subgrants.--
``(1) Minimum disbursements by states.--From the sums made
available each year to carry out this subtitle, the State
educational agency shall distribute not less than 75 percent in
subgrants to local educational agencies for the purposes of
carrying out section 723, except that States funded at the
minimum level set forth in subsection (c)(1) shall distribute
not less than 50 percent in subgrants to local educational
agencies for the purposes of carrying out section 723.
``(2) Use by state educational agency.--A State educational
agency may use funds made available for State use under this
subtitle to conduct activities under subsection (f) directly or
through grants or contracts.
``(3) Prohibition on segregating homeless students.--
``(A) In general.--Except as provided in
subparagraph (B) and section 723(a)(2)(B)(ii), in
providing a free public education to a homeless child or
youth, no State receiving funds under this subtitle
shall segregate such child or youth in a separate
school, or in a separate program within a school, based
on such child's or youth's status as homeless.
``(B) Exception.--Notwithstanding subparagraph (A),
paragraphs (1)(J)(i) and (3) of subsection (g), section
723(a)(2), and any other provision of this subtitle
relating to the placement of homeless children or youths
in schools,
[[Page 115 STAT. 1992]]
a State that has a separate school for homeless children
or youths that was operated in fiscal year 2000 in a
covered county shall be eligible to receive funds under
this subtitle for programs carried out in such school
if--
``(i) the school meets the requirements of
subparagraph (C);
``(ii) any local educational agency serving a
school that the homeless children and youths
enrolled in the separate school are eligible to
attend meets the requirements of subparagraph (E);
and
``(iii) the State is otherwise eligible to
receive funds under this subtitle.
``(C) School requirements.--For the State to be
eligible under subparagraph (B) to receive funds under
this subtitle, the school described in such subparagraph
shall--
``(i) provide written notice, at the time any
child or youth seeks enrollment in such school,
and at least twice annually while the child or
youth is enrolled in such school, to the parent or
guardian of the child or youth (or, in the case of
an unaccompanied youth, the youth) that--
``(I) shall be signed by the parent
or guardian (or, in the case of an
unaccompanied youth, the youth);
``(II) sets forth the general rights
provided under this subtitle;
``(III) specifically states--
``(aa) the choice of schools
homeless children and youths are
eligible to attend, as provided
in subsection (g)(3)(A);
``(bb) that no homeless
child or youth is required to
attend a separate school for
homeless children or youths;
``(cc) that homeless
children and youths shall be
provided comparable services
described in subsection (g)(4),
including transportation
services, educational services,
and meals through school meals
programs; and
``(dd) that homeless
children and youths should not
be stigmatized by school
personnel; and
``(IV) provides contact information
for the local liaison for homeless
children and youths and the State
Coordinator for Education of Homeless
Children and Youths;
``(ii)(I) provide assistance to the parent or
guardian of each homeless child or youth (or, in
the case of an unaccompanied youth, the youth) to
exercise the right to attend the parent's or
guardian's (or youth's) choice of schools, as
provided in subsection (g)(3)(A); and
``(II) coordinate with the local educational
agency with jurisdiction for the school selected
by the parent or guardian (or youth), to provide
transportation and other necessary services;
[[Page 115 STAT. 1993]]
``(iii) ensure that the parent or guardian
(or, in the case of an unaccompanied youth, the
youth) shall receive the information required by
this subparagraph in a manner and form
understandable to such parent or guardian (or
youth), including, if necessary and to the extent
feasible, in the native language of such parent or
guardian (or youth); and
``(iv) demonstrate in the school's application
for funds under this subtitle that such school--
``(I) is complying with clauses (i)
and (ii); and
``(II) is meeting (as of the date of
submission of the application) the same
Federal and State standards,
regulations, and mandates as other
public schools in the State (such as
complying with sections 1111 and 1116 of
the Elementary and Secondary Education
Act of 1965 and providing a full range
of education and related services,
including services applicable to
students with disabilities).
``(D) School ineligibility.--A separate school
described in subparagraph (B) that fails to meet the
standards, regulations, and mandates described in
subparagraph (C)(iv)(II) shall not be eligible to
receive funds under this subtitle for programs carried
out in such school after the first date of such failure.
``(E) Local educational agency requirements.--For
the State to be eligible to receive the funds described
in subparagraph (B), the local educational agency
described in subparagraph (B)(ii) shall--
``(i) implement a coordinated system for
ensuring that homeless children and youths--
``(I) are advised of the choice of
schools provided in subsection
(g)(3)(A);
``(II) are immediately enrolled, in
accordance with subsection (g)(3)(C), in
the school selected under subsection
(g)(3)(A); and
``(III) are promptly provided
necessary services described in
subsection (g)(4), including
transportation, to allow homeless
children and youths to exercise their
choices of schools under subsection
(g)(3)(A);
``(ii) document that written notice has been
provided--
``(I) in accordance with
subparagraph (C)(i) for each child or
youth enrolled in a separate school
under subparagraph (B); and
``(II) in accordance with subsection
(g)(6)(A)(v);
``(iii) prohibit schools within the agency's
jurisdiction from referring homeless children or
youths to, or requiring homeless children and
youths to enroll in or attend, a separate school
described in subparagraph (B);
``(iv) identify and remove any barriers that
exist in schools within the agency's jurisdiction
that may have contributed to the creation or
existence of separate schools described in
subparagraph (B); and
[[Page 115 STAT. 1994]]
``(v) not use funds received under this
subtitle to establish--
``(I) new or additional separate
schools for homeless children or youths;
or
``(II) new or additional sites for
separate schools for homeless children
or youths, other than the sites occupied
by the schools described in subparagraph
(B) in fiscal year 2000.
``(F) Report.--
``(i) Preparation.--The Secretary shall
prepare a report on the separate schools and local
educational agencies described in subparagraph (B)
that receive funds under this subtitle in
accordance with this paragraph. The report shall
contain, at a minimum, information on--
``(I) compliance with all
requirements of this paragraph;
``(II) barriers to school access in
the school districts served by the local
educational agencies; and
``(III) the progress the separate
schools are making in integrating
homeless children and youths into the
mainstream school environment, including
the average length of student enrollment
in such schools.
``(ii) Compliance with information requests.--
For purposes of enabling the Secretary to prepare
the report, the separate schools and local
educational agencies shall cooperate with the
Secretary and the State Coordinator for Education
of Homeless Children and Youths established in the
State under subsection (d)(3), and shall comply
with any requests for information by the Secretary
and State Coordinator for such State.
``(iii) <<NOTE: Deadline.>> Submission.--Not
later than 2 years after the date of enactment of
the McKinney-Vento Homeless Education Assistance
Improvements Act of 2001, the Secretary shall
submit the report described in clause (i) to--
``(I) the President;
``(II) the Committee on Education
and the Workforce of the House of
Representatives; and
``(III) the Committee on Health,
Education, Labor, and Pensions of the
Senate.
``(G) Definition.--For purposes of this paragraph,
the term `covered county' means--
``(i) San Joaquin County, California;
``(ii) Orange County, California;
``(iii) San Diego County, California; and
``(iv) Maricopa County, Arizona.
``(f) Functions of the Office of Coordinator.--The Coordinator for
Education of Homeless Children and Youths established in each State
shall--
``(1) gather reliable, valid, and comprehensive information
on the nature and extent of the problems homeless children and
youths have in gaining access to public preschool programs and
to public elementary schools and secondary schools, the
difficulties in identifying the special needs of such children
[[Page 115 STAT. 1995]]
and youths, any progress made by the State educational agency
and local educational agencies in the State in addressing such
problems and difficulties, and the success of the programs under
this subtitle in allowing homeless children and youths to enroll
in, attend, and succeed in, school;
``(2) develop and carry out the State plan described in
subsection (g);
``(3) collect and transmit to the Secretary, at such time
and in such manner as the Secretary may require, a report
containing such information as the Secretary determines is
necessary to assess the educational needs of homeless children
and youths within the State;
``(4) facilitate coordination between the State educational
agency, the State social services agency, and other agencies
(including agencies providing mental health services) to provide
services to homeless children, including preschool-aged homeless
children, and youths, and to families of such children and
youths;
``(5) in order to improve the provision of comprehensive
education and related services to homeless children and youths
and their families, coordinate and collaborate with--
``(A) educators, including child development and
preschool program personnel;
``(B) providers of services to homeless and runaway
children and youths and homeless families (including
domestic violence agencies, shelter operators,
transitional housing facilities, runaway and homeless
youth centers, and transitional living programs for
homeless youths);
``(C) local educational agency liaisons designated
under subsection (g)(1)(J)(ii) for homeless children and
youths; and
``(D) community organizations and groups
representing homeless children and youths and their
families; and
``(6) provide technical assistance to local educational
agencies in coordination with local educational agency liaisons
designated under subsection (g)(1)(J)(ii), to ensure that local
educational agencies comply with the requirements of section
722(e)(3) and paragraphs (3) through (7) of subsection (g).
``(g) State Plan.--
``(1) In general.--Each State shall submit to the Secretary
a plan to provide for the education of homeless children and
youths within the State. Such plan shall include the following:
``(A) A description of how such children and youths
are (or will be) given the opportunity to meet the same
challenging State academic achievement standards all
students are expected to meet.
``(B) A description of the procedures the State
educational agency will use to identify such children
and youths in the State and to assess their special
needs.
``(C) A description of procedures for the prompt
resolution of disputes regarding the educational
placement of homeless children and youths.
``(D) A description of programs for school personnel
(including principals, attendance officers, teachers,
enrollment personnel, and pupil services personnel) to
heighten the awareness of such personnel of the specific
needs of runaway and homeless youths.
[[Page 115 STAT. 1996]]
``(E) A description of procedures that ensure that
homeless children and youths who meet the relevant
eligibility criteria are able to participate in Federal,
State, or local food programs.
``(F) A description of procedures that ensure that--
``(i) homeless children have equal access to
the same public preschool programs, administered
by the State agency, as provided to other children
in the State;
``(ii) homeless youths and youths separated
from the public schools are identified and
accorded equal access to appropriate secondary
education and support services; and
``(iii) homeless children and youths who meet
the relevant eligibility criteria are able to
participate in Federal, State, or local before-
and after-school care programs.
``(G) Strategies to address problems identified in
the report provided to the Secretary under subsection
(f)(3).
``(H) Strategies to address other problems with
respect to the education of homeless children and
youths, including problems resulting from enrollment
delays that are caused by--
``(i) immunization and medical records
requirements;
``(ii) residency requirements;
``(iii) lack of birth certificates, school
records, or other documentation;
``(iv) guardianship issues; or
``(v) uniform or dress code requirements.
``(I) A demonstration that the State educational
agency and local educational agencies in the State have
developed, and shall review and revise, policies to
remove barriers to the enrollment and retention of
homeless children and youths in schools in the State.
``(J) Assurances that--
``(i) the State educational agency and local
educational agencies in the State will adopt
policies and practices to ensure that homeless
children and youths are not stigmatized or
segregated on the basis of their status as
homeless;
``(ii) local educational agencies will
designate an appropriate staff person, who may
also be a coordinator for other Federal programs,
as a local educational agency liaison for homeless
children and youths, to carry out the duties
described in paragraph (6)(A); and
``(iii) the State and its local educational
agencies will adopt policies and practices to
ensure that transportation is provided, at the
request of the parent or guardian (or in the case
of an unaccompanied youth, the liaison), to and
from the school of origin, as determined in
paragraph (3)(A), in accordance with the
following, as applicable:
``(I) If the homeless child or youth
continues to live in the area served by
the local educational agency in which
the school of origin is located,
[[Page 115 STAT. 1997]]
the child's or youth's transportation to
and from the school of origin shall be
provided or arranged by the local
educational agency in which the school
of origin is located.
``(II) If the homeless child's or
youth's living arrangements in the area
served by the local educational agency
of origin terminate and the child or
youth, though continuing his or her
education in the school of origin,
begins living in an area served by
another local educational agency, the
local educational agency of origin and
the local educational agency in which
the homeless child or youth is living
shall agree upon a method to apportion
the responsibility and costs for
providing the child with transportation
to and from the school of origin. If the
local educational agencies are unable to
agree upon such method, the
responsibility and costs for
transportation shall be shared equally.
``(2) Compliance.--
``(A) In general.--Each plan adopted under this
subsection shall also describe how the State will ensure
that local educational agencies in the State will comply
with the requirements of paragraphs (3) through (7).
``(B) Coordination.--Such plan shall indicate what
technical assistance the State will furnish to local
educational agencies and how compliance efforts will be
coordinated with the local educational agency liaisons
designated under paragraph (1)(J)(ii).
``(3) Local educational agency requirements.--
``(A) In general.--The local educational agency
serving each child or youth to be assisted under this
subtitle shall, according to the child's or youth's best
interest--
``(i) continue the child's or youth's
education in the school of origin for the duration
of homelessness--
``(I) in any case in which a family
becomes homeless between academic years
or during an academic year; or
``(II) for the remainder of the
academic year, if the child or youth
becomes permanently housed during an
academic year; or
``(ii) enroll the child or youth in any public
school that nonhomeless students who live in the
attendance area in which the child or youth is
actually living are eligible to attend.
``(B) Best interest.--In determining the best
interest of the child or youth under subparagraph (A),
the local educational agency shall--
``(i) to the extent feasible, keep a homeless
child or youth in the school of origin, except
when doing so is contrary to the wishes of the
child's or youth's parent or guardian;
``(ii) provide a written explanation,
including a statement regarding the right to
appeal under subparagraph (E), to the homeless
child's or youth's parent or guardian, if the
local educational agency sends such child or youth
to a school other than the school of
[[Page 115 STAT. 1998]]
origin or a school requested by the parent or
guardian; and
``(iii) in the case of an unaccompanied youth,
ensure that the homeless liaison designated under
paragraph (1)(J)(ii) assists in placement or
enrollment decisions under this subparagraph,
considers the views of such unaccompanied youth,
and provides notice to such youth of the right to
appeal under subparagraph (E).
``(C) Enrollment.--(i) The school selected in
accordance with this paragraph shall immediately enroll
the homeless child or youth, even if the child or youth
is unable to produce records normally required for
enrollment, such as previous academic records, medical
records, proof of residency, or other documentation.
``(ii) The enrolling school shall immediately
contact the school last attended by the child or youth
to obtain relevant academic and other records.
``(iii) If the child or youth needs to obtain
immunizations, or immunization or medical records, the
enrolling school shall immediately refer the parent or
guardian of the child or youth to the local educational
agency liaison designated under paragraph (1)(J)(ii),
who shall assist in obtaining necessary immunizations,
or immunization or medical records, in accordance with
subparagraph (D).
``(D) Records.--Any record ordinarily kept by the
school, including immunization or medical records,
academic records, birth certificates, guardianship
records, and evaluations for special services or
programs, regarding each homeless child or youth shall
be maintained--
``(i) so that the records are available, in a
timely fashion, when a child or youth enters a new
school or school district; and
``(ii) in a manner consistent with section 444
of the General Education Provisions Act (20 U.S.C.
1232g).
``(E) Enrollment disputes.--If a dispute arises over
school selection or enrollment in a school--
``(i) the child or youth shall be immediately
admitted to the school in which enrollment is
sought, pending resolution of the dispute;
``(ii) the parent or guardian of the child or
youth shall be provided with a written explanation
of the school's decision regarding school
selection or enrollment, including the rights of
the parent, guardian, or youth to appeal the
decision;
``(iii) the child, youth, parent, or guardian
shall be referred to the local educational agency
liaison designated under paragraph (1)(J)(ii), who
shall carry out the dispute resolution process as
described in paragraph (1)(C) as expeditiously as
possible after receiving notice of the dispute;
and
``(iv) in the case of an unaccompanied youth,
the homeless liaison shall ensure that the youth
is immediately enrolled in school pending
resolution of the dispute.
[[Page 115 STAT. 1999]]
``(F) Placement choice.--The choice regarding
placement shall be made regardless of whether the child
or youth lives with the homeless parents or has been
temporarily placed elsewhere.
``(G) School of origin defined.--In this paragraph,
the term `school of origin' means the school that the
child or youth attended when permanently housed or the
school in which the child or youth was last enrolled.
``(H) Contact information.--Nothing in this subtitle
shall prohibit a local educational agency from requiring
a parent or guardian of a homeless child to submit
contact information.
``(4) Comparable services.--Each homeless child or youth to
be assisted under this subtitle shall be provided services
comparable to services offered to other students in the school
selected under paragraph (3), including the following:
``(A) Transportation services.
``(B) Educational services for which the child or
youth meets the eligibility criteria, such as services
provided under title I of the Elementary and Secondary
Education Act of 1965 or similar State or local
programs, educational programs for children with
disabilities, and educational programs for students with
limited English proficiency.
``(C) Programs in vocational and technical
education.
``(D) Programs for gifted and talented students.
``(E) School nutrition programs.
``(5) Coordination.--
``(A) In general.--Each local educational agency
serving homeless children and youths that receives
assistance under this subtitle shall coordinate--
``(i) the provision of services under this
subtitle with local social services agencies and
other agencies or programs providing services to
homeless children and youths and their families,
including services and programs funded under the
Runaway and Homeless Youth Act (42 U.S.C. 5701 et
seq.); and
``(ii) with other local educational agencies
on interdistrict issues, such as transportation or
transfer of school records.
``(B) Housing assistance.--If applicable, each State
educational agency and local educational agency that
receives assistance under this subtitle shall coordinate
with State and local housing agencies responsible for
developing the comprehensive housing affordability
strategy described in section 105 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12705) to minimize educational disruption for children
and youths who become homeless.
``(C) Coordination purpose.--The coordination
required under subparagraphs (A) and (B) shall be
designed to--
``(i) ensure that homeless children and youths
have access and reasonable proximity to available
education and related support services; and
``(ii) raise the awareness of school personnel
and service providers of the effects of short-term
stays in a shelter and other challenges associated
with homelessness.
[[Page 115 STAT. 2000]]
``(6) Local educational agency liaison.--
``(A) Duties.--Each local educational agency liaison
for homeless children and youths, designated under
paragraph (1)(J)(ii), shall ensure that--
``(i) homeless children and youths are
identified by school personnel and through
coordination activities with other entities and
agencies;
``(ii) homeless children and youths enroll in,
and have a full and equal opportunity to succeed
in, schools of that local educational agency;
``(iii) homeless families, children, and
youths receive educational services for which such
families, children, and youths are eligible,
including Head Start and Even Start programs and
preschool programs administered by the local
educational agency, and referrals to health care
services, dental services, mental health services,
and other appropriate services;
``(iv) the parents or guardians of homeless
children and youths are informed of the
educational and related opportunities available to
their children and are provided with meaningful
opportunities to participate in the education of
their children;
``(v) public notice of the educational rights
of homeless children and youths is disseminated
where such children and youths receive services
under this Act, such as schools, family shelters,
and soup kitchens;
``(vi) enrollment disputes are mediated in
accordance with paragraph (3)(E); and
``(vii) the parent or guardian of a homeless
child or youth, and any unaccompanied youth, is
fully informed of all transportation services,
including transportation to the school of origin,
as described in paragraph (1)(J)(iii), and is
assisted in accessing transportation to the school
that is selected under paragraph (3)(A).
``(B) Notice.--State coordinators established under
subsection (d)(3) and local educational agencies shall
inform school personnel, service providers, and
advocates working with homeless families of the duties
of the local educational agency liaisons.
``(C) Local and state coordination.--Local
educational agency liaisons for homeless children and
youths shall, as a part of their duties, coordinate and
collaborate with State coordinators and community and
school personnel responsible for the provision of
education and related services to homeless children and
youths.
``(7) Review and revisions.--
``(A) In general.--Each State educational agency and
local educational agency that receives assistance under
this subtitle shall review and revise any policies that
may act as barriers to the enrollment of homeless
children and youths in schools that are selected under
paragraph (3).
``(B) Consideration.--In reviewing and revising such
policies, consideration shall be given to issues
concerning transportation, immunization, residency,
birth certificates, school records and other
documentation, and guardianship.
[[Page 115 STAT. 2001]]
``(C) Special attention.--Special attention shall be
given to ensuring the enrollment and attendance of
homeless children and youths who are not currently
attending school.
``SEC. 723. <<NOTE: 42 USC 11433.>> LOCAL EDUCATIONAL AGENCY SUBGRANTS
FOR THE EDUCATION OF HOMELESS CHILDREN AND YOUTHS.
``(a) General Authority.--
``(1) In general.--The State educational agency shall, in
accordance with section 722(e), and from amounts made available
to such agency under section 726, make subgrants to local
educational agencies for the purpose of facilitating the
enrollment, attendance, and success in school of homeless
children and youths.
``(2) Services.--
``(A) In general.--Services under paragraph (1)--
``(i) may be provided through programs on
school grounds or at other facilities;
``(ii) shall, to the maximum extent
practicable, be provided through existing programs
and mechanisms that integrate homeless children
and youths with nonhomeless children and youths;
and
``(iii) shall be designed to expand or improve
services provided as part of a school's regular
academic program, but not to replace such services
provided under such program.
``(B) Services on school grounds.--If services under
paragraph (1) are provided on school grounds, schools--
``(i) may use funds under this subtitle to
provide the same services to other children and
youths who are determined by the local educational
agency to be at risk of failing in, or dropping
out of, school, subject to the requirements of
clause (ii); and
``(ii) except as otherwise provided in section
722(e)(3)(B), shall not provide services in
settings within a school that segregate homeless
children and youths from other children and
youths, except as necessary for short periods of
time--
``(I) for health and safety
emergencies; or
``(II) to provide temporary,
special, and supplementary services to
meet the unique needs of homeless
children and youths.
``(3) Requirement.--Services provided under this section
shall not replace the regular academic program and shall be
designed to expand upon or improve services provided as part of
the school's regular academic program.
``(b) Application.--A local educational agency that desires to
receive a subgrant under this section shall submit an application to the
State educational agency at such time, in such manner, and containing or
accompanied by such information as the State educational agency may
reasonably require. Such application shall include the following:
``(1) An assessment of the educational and related needs of
homeless children and youths in the area served by such agency
(which may be undertaken as part of needs assessments for other
disadvantaged groups).
[[Page 115 STAT. 2002]]
``(2) A description of the services and programs for which
assistance is sought to address the needs identified in
paragraph (1).
``(3) An assurance that the local educational agency's
combined fiscal effort per student, or the aggregate
expenditures of that agency and the State with respect to the
provision of free public education by such agency for the fiscal
year preceding the fiscal year for which the determination is
made, was not less than 90 percent of such combined fiscal
effort or aggregate expenditures for the second fiscal year
preceding the fiscal year for which the determination is made.
``(4) An assurance that the applicant complies with, or will
use requested funds to comply with, paragraphs (3) through (7)
of section 722(g).
``(5) A description of policies and procedures, consistent
with section 722(e)(3), that the agency will implement to ensure
that activities carried out by the agency will not isolate or
stigmatize homeless children and youths.
``(c) Awards.--
``(1) In general.--The State educational agency shall, in
accordance with the requirements of this subtitle and from
amounts made available to it under section 726, make competitive
subgrants to local educational agencies that submit applications
under subsection (b). Such subgrants shall be awarded on the
basis of the need of such agencies for assistance under this
subtitle and the quality of the applications submitted.
``(2) Need.--In determining need under paragraph (1), the
State educational agency may consider the number of homeless
children and youths enrolled in preschool, elementary, and
secondary schools within the area served by the local
educational agency, and shall consider the needs of such
children and youths and the ability of the local educational
agency to meet such needs. The State educational agency may also
consider the following:
``(A) The extent to which the proposed use of funds
will facilitate the enrollment, retention, and
educational success of homeless children and youths.
``(B) The extent to which the application--
``(i) reflects coordination with other local
and State agencies that serve homeless children
and youths; and
``(ii) describes how the applicant will meet
the requirements of section 722(g)(3).
``(C) The extent to which the applicant exhibits in
the application and in current practice a commitment to
education for all homeless children and youths.
``(D) Such other criteria as the State agency
determines appropriate.
``(3) Quality.--In determining the quality of applications
under paragraph (1), the State educational agency shall consider
the following:
``(A) The applicant's needs assessment under
subsection (b)(1) and the likelihood that the program
presented in the application will meet such needs.
``(B) The types, intensity, and coordination of the
services to be provided under the program.
``(C) The involvement of parents or guardians of
homeless children or youths in the education of their
children.
[[Page 115 STAT. 2003]]
``(D) The extent to which homeless children and
youths will be integrated within the regular education
program.
``(E) The quality of the applicant's evaluation plan
for the program.
``(F) The extent to which services provided under
this subtitle will be coordinated with other services
available to homeless children and youths and their
families.
``(G) Such other measures as the State educational
agency considers indicative of a high-quality program,
such as the extent to which the local educational agency
will provide case management or related services to
unaccompanied youths.
``(4) Duration of grants.--Grants awarded under this section
shall be for terms not to exceed 3 years.
``(d) Authorized Activities.--A local educational agency may use
funds awarded under this section for activities that carry out the
purpose of this subtitle, including the following:
``(1) The provision of tutoring, supplemental instruction,
and enriched educational services that are linked to the
achievement of the same challenging State academic content
standards and challenging State student academic achievement
standards the State establishes for other children and youths.
``(2) The provision of expedited evaluations of the
strengths and needs of homeless children and youths, including
needs and eligibility for programs and services (such as
educational programs for gifted and talented students, children
with disabilities, and students with limited English
proficiency, services provided under title I of the Elementary
and Secondary Education Act of 1965 or similar State or local
programs, programs in vocational and technical education, and
school nutrition programs).
``(3) Professional development and other activities for
educators and pupil services personnel that are designed to
heighten the understanding and sensitivity of such personnel to
the needs of homeless children and youths, the rights of such
children and youths under this subtitle, and the specific
educational needs of runaway and homeless youths.
``(4) The provision of referral services to homeless
children and youths for medical, dental, mental, and other
health services.
``(5) The provision of assistance to defray the excess cost
of transportation for students under section 722(g)(4)(A), not
otherwise provided through Federal, State, or local funding,
where necessary to enable students to attend the school selected
under section 722(g)(3).
``(6) The provision of developmentally appropriate early
childhood education programs, not otherwise provided through
Federal, State, or local funding, for preschool-aged homeless
children.
``(7) The provision of services and assistance to attract,
engage, and retain homeless children and youths, and
unaccompanied youths, in public school programs and services
provided to nonhomeless children and youths.
``(8) The provision for homeless children and youths of
before- and after-school, mentoring, and summer programs in
which a teacher or other qualified individual provides tutoring,
homework assistance, and supervision of educational activities.
[[Page 115 STAT. 2004]]
``(9) If necessary, the payment of fees and other costs
associated with tracking, obtaining, and transferring records
necessary to enroll homeless children and youths in school,
including birth certificates, immunization or medical records,
academic records, guardianship records, and evaluations for
special programs or services.
``(10) The provision of education and training to the
parents of homeless children and youths about the rights of, and
resources available to, such children and youths.
``(11) The development of coordination between schools and
agencies providing services to homeless children and youths, as
described in section 722(g)(5).
``(12) The provision of pupil services (including violence
prevention counseling) and referrals for such services.
``(13) Activities to address the particular needs of
homeless children and youths that may arise from domestic
violence.
``(14) The adaptation of space and purchase of supplies for
any nonschool facilities made available under subsection (a)(2)
to provide services under this subsection.
``(15) The provision of school supplies, including those
supplies to be distributed at shelters or temporary housing
facilities, or other appropriate locations.
``(16) The provision of other extraordinary or emergency
assistance needed to enable homeless children and youths to
attend school.
``SEC. 724. <<NOTE: 42 USC 11434.>> SECRETARIAL RESPONSIBILITIES.
``(a) Review of State Plans.--In reviewing the State plan submitted
by a State educational agency under section 722(g), the Secretary shall
use a peer review process and shall evaluate whether State laws,
policies, and practices described in such plan adequately address the
problems of homeless children and youths relating to access to education
and placement as described in such plan.
``(b) Technical Assistance.--The Secretary shall provide support and
technical assistance to a State educational agency to assist such agency
in carrying out its responsibilities under this subtitle, if requested
by the State educational agency.
``(c) Notice.--The Secretary shall, before the next school year that
begins after the date of enactment of the McKinney-Vento Homeless
Education Assistance Improvements Act of 2001, create and disseminate
nationwide a public notice of the educational rights of homeless
children and youths and disseminate such notice to other Federal
agencies, programs, and grantees, including Head Start grantees, Health
Care for the Homeless grantees, Emergency Food and Shelter grantees, and
homeless assistance programs administered by the Department of Housing
and Urban Development.
``(d) Evaluation and Dissemination.--The Secretary shall conduct
evaluation and dissemination activities of programs designed to meet the
educational needs of homeless elementary and secondary school students,
and may use funds appropriated under section 726 to conduct such
activities.
``(e) Submission and Distribution.--The Secretary shall require
applications for grants under this subtitle to be submitted to the
Secretary not later than the expiration of the 60-day period beginning
on the date that funds are available for purposes of
[[Page 115 STAT. 2005]]
making such grants and shall make such grants not later than the
expiration of the 120-day period beginning on such date.
``(f) Determination by Secretary.--The Secretary, based on the
information received from the States and information gathered by the
Secretary under subsection (h), shall determine the extent to which
State educational agencies are ensuring that each homeless child and
homeless youth has access to a free appropriate public education, as
described in section 721(1).
``(g) <<NOTE: Federal Register, publication. Deadline.>>
Guidelines.--The Secretary shall develop, issue, and publish in the
Federal Register, not later than 60 days after the date of enactment of
the McKinney-Vento Homeless Education Assistance Improvements Act of
2001, school enrollment guidelines for States with respect to homeless
children and youths. The guidelines shall describe--
``(1) successful ways in which a State may assist local
educational agencies to immediately enroll homeless children and
youths in school; and
``(2) how a State can review the State's requirements
regarding immunization and medical or school records and make
such revisions to the requirements as are appropriate and
necessary in order to enroll homeless children and youths in
school immediately.
``(h) Information.--
``(1) In general.--From funds appropriated under section
726, the Secretary shall, directly or through grants, contracts,
or cooperative agreements, periodically collect and disseminate
data and information regarding--
``(A) the number and location of homeless children
and youths;
``(B) the education and related services such
children and youths receive;
``(C) the extent to which the needs of homeless
children and youths are being met; and
``(D) such other data and information as the
Secretary determines to be necessary and relevant to
carry out this subtitle.
``(2) Coordination.--The Secretary shall coordinate such
collection and dissemination with other agencies and entities
that receive assistance and administer programs under this
subtitle.
``(i) <<NOTE: Deadline.>> Report.--Not later than 4 years after the
date of enactment of the McKinney-Vento Homeless Education Assistance
Improvements Act of 2001, the Secretary shall prepare and submit to the
President and the Committee on Education and the Workforce of the House
of Representatives and the Committee on Health, Education, Labor, and
Pensions of the Senate a report on the status of education of homeless
children and youths, which shall include information on--
``(1) the education of homeless children and youths; and
``(2) the actions of the Secretary and the effectiveness of
the programs supported under this subtitle.
``SEC. 725. <<NOTE: 42 USC 11434a.>> DEFINITIONS.
``For purposes of this subtitle:
``(1) The terms `enroll' and `enrollment' include attending
classes and participating fully in school activities.
``(2) The term `homeless children and youths'--
[[Page 115 STAT. 2006]]
``(A) means individuals who lack a fixed, regular,
and adequate nighttime residence (within the meaning of
section 103(a)(1)); and
``(B) includes--
``(i) children and youths who are sharing the
housing of other persons due to loss of housing,
economic hardship, or a similar reason; are living
in motels, hotels, trailer parks, or camping
grounds due to the lack of alternative adequate
accommodations; are living in emergency or
transitional shelters; are abandoned in hospitals;
or are awaiting foster care placement;
``(ii) children and youths who have a primary
nighttime residence that is a public or private
place not designed for or ordinarily used as a
regular sleeping accommodation for human beings
(within the meaning of section 103(a)(2)(C));
``(iii) children and youths who are living in
cars, parks, public spaces, abandoned buildings,
substandard housing, bus or train stations, or
similar settings; and
``(iv) migratory children (as such term is
defined in section 1309 of the Elementary and
Secondary Education Act of 1965) who qualify as
homeless for the purposes of this subtitle because
the children are living in circumstances described
in clauses (i) through (iii).
``(3) The terms `local educational agency' and `State
educational agency' have the meanings given such terms in
section 9101 of the Elementary and Secondary Education Act of
1965.
``(4) The term `Secretary' means the Secretary of Education.
``(5) The term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
``(6) The term `unaccompanied youth' includes a youth not in
the physical custody of a parent or guardian.
``SEC. 726. <<NOTE: 42 USC 11435.>> AUTHORIZATION OF APPROPRIATIONS.
``For the purpose of carrying out this subtitle, there are
authorized to be appropriated $70,000,000 for fiscal year 2002 and such
sums as may be necessary for each of fiscal years 2003 through 2007.''.
SEC. 1033. CONFORMING AMENDMENT.
The table of contents of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11301 note) is amended so that the items relating to subtitle
B of title VII read as follows:
``Subtitle B--Education for Homeless Children and Youths
``Sec. 721. Statement of policy.
``Sec. 722. Grants for State and local activities for the education of
homeless children and youths.
``Sec. 723. Local educational agency subgrants for the education of
homeless children and youths.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.
SEC. 1034. <<NOTE: 42 USC 11301 note.>> TECHNICAL AMENDMENT.
(a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 11301)
is amended by striking ``Section 1 of'' and inserting ``Section 101
of''.
[[Page 115 STAT. 2007]]
(b) <<NOTE: 42 USC 11301 note.>> Effective Date.--The amendment
made by subsection (a) shall be deemed to be effective on the date of
enactment of Public Law 106-400.
PART <<NOTE: Native American Education Improvement Act of 2001.>> D--
NATIVE AMERICAN EDUCATION IMPROVEMENT
SEC. 1041. <<NOTE: 25 USC 2000 note.>> SHORT TITLE.
This part may be cited as the ``Native American Education
Improvement Act of 2001''.
SEC. 1042. <<NOTE: 25 USC 2022-2026.>> AMENDMENTS TO THE EDUCATION
AMENDMENTS OF 1978.
Part B of title XI of the Education Amendments of 1978 (25 U.S.C.
2001 et seq.) is amended to read as follows:
``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS
``SEC. 1120. <<NOTE: 25 USC 2000.>> DECLARATION OF POLICY.
``Congress declares that the Federal Government has the sole
responsibility for the operation and financial support of the Bureau of
Indian Affairs funded school system that it has established on or near
Indian reservations and Indian trust lands throughout the Nation for
Indian children. It is the policy of the United States to fulfill the
Federal Government's unique and continuing trust relationship with and
responsibility to the Indian people for the education of Indian children
and for the operation and financial support of the Bureau of Indian
Affairs-funded school system to work in full cooperation with tribes
toward the goal of ensuring that the programs of the Bureau of Indian
Affairs-funded school system are of the highest quality and provide for
the basic elementary and secondary educational needs of Indian children,
including meeting the unique educational and cultural needs of those
children.
``SEC. 1121. <<NOTE: 25 USC 2001.>> ACCREDITATION FOR THE BASIC
EDUCATION OF INDIAN CHILDREN IN BUREAU OF INDIAN AFFAIRS
SCHOOLS.
``(a) Purpose; Declarations of Purpose.--
``(1) Purpose.--The purpose of the accreditation required
under this section shall be to ensure that Indian students being
served by a school funded by the Bureau of Indian Affairs are
provided with educational opportunities that equal or exceed
those for all other students in the United States.
``(2) Declarations of purpose.--Local school boards for
schools operated by the Bureau of Indian Affairs, in cooperation
and consultation with the appropriate tribal governing bodies
and their communities, are encouraged to adopt declarations of
purpose for education for their communities, taking into account
the implications of such declarations on education in their
communities and for their schools. In adopting such declarations
of purpose, the school boards shall consider the effect the
declarations may have on the motivation of students and
faculties.
``(b) Accreditation.--
``(1) Deadline.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 24 months after the date of enactment of the Native
American Education
[[Page 115 STAT. 2008]]
Improvement Act of 2001, each Bureau-funded school
shall, to the extent that necessary funds are provided,
be a candidate for accreditation or be accredited--
``(i) by a tribal accrediting body, if the
accreditation standards of the tribal accrediting
body have been accepted by formal action of the
tribal governing body and such accreditation is
acknowledged by a generally recognized State
certification or regional accrediting agency;
``(ii) by a regional accreditation agency;
``(iii) by State accreditation standards for
the State in which the Bureau-funded school is
located; or
``(iv) in the case of a Bureau-funded school
that is located on a reservation that is located
in more than one State, in accordance with the
State accreditation standards of one State as
selected by the tribal government.
``(B) <<NOTE: Deadline.>> Feasibility study.--Not
later than 12 months after the date of enactment of the
Native American Education Improvement Act of 2001, the
Secretary of the Interior and the Secretary of Education
shall, in consultation with Indian tribes, Indian
education organizations, and accrediting agencies,
develop and submit to the appropriate committees of
Congress a report on the desirability and feasibility of
establishing a tribal accreditation agency that would--
``(i) review and acknowledge the accreditation
standards for Bureau-funded schools; and
``(ii) establish accreditation procedures to
facilitate the application, review of the
standards and review processes, and recognition of
qualified and credible tribal departments of
education as accrediting bodies serving tribal
schools.
``(2) Determination of accreditation to be applied.--The
accreditation type applied for each school shall be determined
by the tribal governing body, or the school board, if authorized
by the tribal governing body.
``(3) Assistance to school boards.--
``(A) In general.--The Secretary, through contracts
and grants, shall provide technical and financial
assistance to Bureau-funded schools, to the extent that
necessary amounts are made available, to enable such
schools to obtain the accreditation required under this
subsection, if the school boards request that such
assistance, in part or in whole, be provided.
``(B) Entities through which assistance may be
provided.--The Secretary may provide such assistance
directly or through the Department of Education, an
institution of higher education, a private not-for-
profit organization or for-profit organization, an
educational service agency, or another entity with
demonstrated experience in assisting schools in
obtaining accreditation.
``(4) Application of current standards during
accreditation.--A Bureau-funded school that is seeking
accreditation shall remain subject to the standards issued under
section 1121 of the Education Amendments of 1978 and in effect
on the day before the date of enactment of the Native American
[[Page 115 STAT. 2009]]
Education Improvement Act of 2001 until such time as the school
is accredited, except that if any of such standards are in
conflict with the standards of the accrediting agency, the
standards of such agency shall apply in such case.
``(5) <<NOTE: Deadline.>> Annual report on unaccredited
schools.--Not later than 90 days after the end of each school
year, the Secretary shall prepare and submit to the Committee on
Appropriations, the Committee on Education and the Workforce,
and the Committee on Resources of the House of Representatives
and the Committee on Appropriations, the Committee on Indian
Affairs, and the Committee on Health, Education, Labor, and
Pensions of the Senate, a report concerning unaccredited Bureau-
funded schools that--
``(A) identifies those Bureau-funded schools that
fail to be accredited or to be candidates for
accreditation within the period provided for in
paragraph (1);
``(B) with respect to each Bureau-funded school
identified under subparagraph (A), identifies the
reasons that each such school is not accredited or a
candidate for accreditation, as determined by the
appropriate accreditation agency, and a description of
any possible way in which to remedy such
nonaccreditation; and
``(C) with respect to each Bureau-funded school for
which the reported reasons for the lack of accreditation
under subparagraph (B) are a result of the school's
inadequate basic resources, contains information and
funding requests for the full funding needed to provide
such schools with accreditation, such funds if provided
shall be applied to such unaccredited school under this
paragraph.
``(6) Opportunity to review and present evidence.--
``(A) In general.--Prior to including a Bureau-
funded school in an annual report required under
paragraph (5), the Secretary shall--
``(i) ensure that the school has exhausted all
administrative remedies provided by the
accreditation agency; and
``(ii) provide the school with an opportunity
to review the data on which such inclusion is
based.
``(B) Provision of additional information.--If the
school board of a school that the Secretary has proposed
for inclusion in an annual report under paragraph (5)
believes that such inclusion is in error, the school
board may provide to the Secretary such information as
the board believes is in conflict with the information
and conclusions of the Secretary with respect to the
determination to include the school in such annual
report. The Secretary shall consider such information
provided by the school board before making a final
determination concerning the inclusion of the school in
any such report.
``(C) <<NOTE: Deadline.>> Publication of
accreditation status.--Not later than 30 days after
making an initial determination to include a school in
an annual report under paragraph (5), the Secretary
shall make public the final determination on the
accreditation status of the school.
``(7) School plan.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 120 days after the date on which a school is
included in an annual report
[[Page 115 STAT. 2010]]
under paragraph (5), the school shall develop a school
plan, in consultation with interested parties including
parents, school staff, the school board, and other
outside experts (if appropriate), that shall be
submitted to the Secretary for approval. The school plan
shall cover a 3-year period and shall--
``(i) incorporate strategies that address the
specific issues that caused the school to fail to
be accredited or fail to be a candidate for
accreditation;
``(ii) incorporate policies and practices
concerning the school that have the greatest
likelihood of ensuring that the school will obtain
accreditation during the 3-year period beginning
on the date on which the plan is implemented;
``(iii) contain an assurance that the school
will reserve the necessary funds, from the funds
described in paragraph (3), for each fiscal year
for the purpose of obtaining accreditation;
``(iv) specify how the funds described in
clause (iii) will be used to obtain accreditation;
``(v) establish specific annual, objective
goals for measuring continuous and significant
progress made by the school in a manner that will
ensure the accreditation of the school within the
3-year period described in clause (ii);
``(vi) identify how the school will provide
written notification about the lack of
accreditation to the parents of each student
enrolled in such school, in a format and, to the
extent practicable, in a language the parents can
understand; and
``(vii) specify the responsibilities of the
school board and any assistance to be provided by
the Secretary under paragraph (3).
``(B) Implementation.--A school shall implement the
school plan under subparagraph (A) expeditiously, but in
no event later than the beginning of the school year
following the school year in which the school was
included in the annual report under paragraph (5) so
long as the necessary resources have been provided to
the school.
``(C) <<NOTE: Deadline.>> Review of plan.--Not
later than 45 days after receiving a school plan, the
Secretary shall--
``(i) establish a peer-review process to
assist with the review of the plan; and
``(ii) promptly review the school plan, work
with the school as necessary, and approve the
school plan if the plan meets the requirements of
this paragraph.
``(8) Corrective action.--
``(A) Definition.--In this subsection, the term
`corrective action' means any action that--
``(i) substantially and directly responds to--
``(I) the failure of a school to
achieve accreditation; and
``(II) any underlying staffing,
curriculum, or other programmatic
problem in the school that contributed
to the lack of accreditation; and
``(ii) is designed to increase substantially
the likelihood that the school will be accredited.
[[Page 115 STAT. 2011]]
``(B) Waiver.--The Secretary shall grant a waiver
which shall exempt a school from any or all of the
requirements of this paragraph and paragraph (7) (though
such school shall be required to comply with the
standards contained in part 36 of title 25, Code of
Federal Register, as in effect on the date of enactment
of the Native American Education Improvement Act of
2001) if the school--
``(i) is identified in the report described in
paragraph (5)(C); and
``(ii) fails to be accredited for reasons that
are beyond the control of the school board, as
determined by the Secretary, including, but not
limited to--
``(I) a significant decline in
financial resources;
``(II) the poor condition of
facilities, vehicles, or other property;
and
``(III) a natural disaster.
``(C) Duties of secretary.--After providing
assistance to a school under paragraph (3), the
Secretary shall--
``(i) annually review the progress of the
school under the applicable school plan to
determine whether the school is meeting, or making
adequate progress toward achieving the goals
described in paragraph (7)(A)(v) with respect to
reaccreditation or becoming a candidate for
accreditation;
``(ii) except as provided in subparagraph (B),
continue to provide assistance while implementing
the school's plan, and, if determined appropriate
by the Secretary, take corrective action with
respect to the school if it fails to be accredited
at the end of the third full year immediately
following the date that the school's plan was
first in effect under paragraph (7);
``(iii) provide all students enrolled in a
school that is eligible for a corrective action
determination by the Secretary under clause (ii)
with the option to transfer to another public or
Bureau-funded school, including a public charter
school, that is accredited;
``(iv) promptly notify the parents of children
enrolled in a school that is eligible for a
corrective action determination by the Secretary
under clause (ii) of the option to transfer their
child to another public or Bureau-funded school;
and
``(v) provide, or pay for the provision of,
transportation for each student described in
clause (iii) to the school described in clause
(iii) to which the student elects to be
transferred to the extent funds are available, as
determined by the tribal governing body.
``(D) Failure of school plan of bureau-operated
school.--With respect to a Bureau-operated school that
fails to be accredited at the end of the third full year
immediately following the date that the school's plan
was first in effect under paragraph (7), the Secretary
may take one or more of the following corrective
actions:
``(i) Institute and fully implement actions
suggested by the accrediting agency.
[[Page 115 STAT. 2012]]
``(ii) Consult with the tribe involved to
determine the causes for the lack of accreditation
including potential staffing and administrative
changes that are or may be necessary.
``(iii) Set aside a certain amount of funds
that may only be used by the school to obtain
accreditation.
``(iv)(I) Provide the tribe with a 60-day
period during which to determine whether the tribe
desires to operate the school as a contract or
grant school before meeting the accreditation
requirements in section 5207(c) of the Tribally
Controlled Schools Act of 1988 at the beginning of
the next school year following the determination
to take corrective action. If the tribe agrees to
operate the school as a contract or grant school,
the tribe shall prepare a plan, pursuant to
paragraph (7), for approval by the Secretary in
accordance with paragraph (7), to achieve
accreditation.
``(II) If the tribe declines to assume control
of the school, the Secretary, in consultation with
the tribe, may contract with an outside entity,
consistent with applicable law, or appoint a
receiver or trustee to operate and administer the
affairs of the school until the school is
accredited. The outside entity, receiver, or
trustee shall prepare a plan, pursuant to
paragraph (7), for approval by the Secretary in
accordance with paragraph (7).
``(III) Upon accreditation of the school, the
Secretary shall allow the tribe to continue to
operate the school as a grant or contract school,
or if the school is being controlled by an outside
entity, provide the tribe with the option to
assume operation of the school as a contract
school, in accordance with the Indian Self-
Determination Act, or as a grant school in
accordance with the Tribally Controlled Schools
Act of 1988, at the beginning of the school year
following the school year in which the school
obtains accreditation. If the tribe declines, the
Secretary may allow the outside entity, receiver,
or trustee to continue the operation of the school
or reassume control of the school.
``(E) Failure of school plan of contract or grant
school.--
``(i) Corrective action.--With respect to a
contract or grant school that fails to be
accredited at the end of the third full year
immediately following the date that the school's
plan was first in effect under paragraph (7), the
Secretary may take one or more of the corrective
actions described in subparagraph (D)(i) and
(D)(ii). The Secretary shall implement such
corrective action for at least 1 year prior to
taking any action described under clause (ii).
``(ii) Outside entity.--If the corrective
action described in clause (i) does not result in
accreditation of the school, the Secretary, in
conjunction with the tribal governing body, may
contract with an outside entity to operate the
school in order to achieve accreditation of the
school within 2 school years. Prior to entering
into such a contract, the Secretary shall
[[Page 115 STAT. 2013]]
develop a proposal for such operation which shall
include, at a minimum, the following elements:
``(I) The identification of one or
more outside entities each of which has
demonstrated to the Secretary its
ability to develop a satisfactory plan
for achieving accreditation and its
willingness and availability to
undertake such a plan.
``(II) A plan for implementing
operation of the school by such an
outside entity, including the
methodology for oversight and evaluation
of the performance of the outside entity
by the Secretary and the tribe.
``(iii) Proposal amendments.--The tribal
governing body shall have 60 days to amend the
plan developed pursuant to clause (ii), including
identifying another outside entity to operate the
school. <<NOTE: Deadline.>> The Secretary shall
reach agreement with the tribal governing body on
the proposal and any such amendments to the plan
not later than 30 days after the expiration of the
60-day period described in the preceding sentence.
After the approval of the proposal and any
amendments, the Secretary, with continuing
consultation with such tribal governing body,
shall implement the proposal.
``(iv) Accreditation.--Upon accreditation of
the school, the tribe shall have the option to
assume the operation and administration of the
school as a contract school after complying with
the Indian Self-Determination Act, or as a grant
school, after complying with the Tribally
Controlled Schools Act of 1988, at the beginning
of the school year following the year in which the
school obtains accreditation.
``(v) Retrocede.--Nothing in this subparagraph
shall limit a tribe's right to retrocede operation
of a school to the Secretary pursuant to section
105(e) of the Indian Self-Determination Act (with
respect to a contract school) or section 5204(f)
of the Tribally Controlled Schools Act of 1988
(with respect to a grant school).
``(vi) Consistent.--The provisions of this
subparagraph shall be construed to be consistent
with the provisions of the Tribally Controlled
Schools Act of 1988 and the Indian Self-
Determination Act as in effect on the day before
the date of enactment of the Native American
Education Improvement Act of 2001, and shall not
be construed as expanding the authority of the
Secretary under any other law.
``(F) Hearing.--With respect to a school that is
operated pursuant to a grant, or a school that is
operated under a contract under the Indian Self-
Determination Act, prior to implementing any corrective
action under this paragraph, the Secretary shall provide
notice and an opportunity for a hearing to the affected
school pursuant to section 5207 of the Tribally
Controlled Schools Act of 1988.
``(9) Statutory construction.--Nothing in this section shall
be construed to alter or otherwise affect the rights, remedies,
and procedures afforded to school employees under
[[Page 115 STAT. 2014]]
applicable law (including applicable regulations or court
orders) or under the terms of any collective bargaining
agreement, memorandum of understanding, or other agreement
between such employees and their employers.
``(10) Fiscal control and fund accounting standards.--The
Bureau shall, either directly or through contract with an Indian
organization, establish a consistent system of reporting
standards for fiscal control and fund accounting for all
contract and grant schools. Such standards shall provide data
comparable to those used by Bureau-operated schools.
``(c) Annual Plan.--
``(1) In general.--Except as provided in subsection (b), the
Secretary shall implement the standards in effect under this
section on the day before the date of enactment of the Native
American Education Improvement Act of 2001.
``(2) Plan.--On an annual basis, the Secretary shall submit
to the appropriate committees of Congress, all Bureau-funded
schools, and the tribal governing bodies of such schools a
detailed plan to ensure that all Bureau-funded schools are
accredited, or if such schools are in the process of obtaining
accreditation that such schools meet the Bureau standards in
effect on the day before the date of enactment of the Native
American Education Improvement Act of 2001 to the extent that
such standards do not conflict with the standards of the
accrediting agency. Such plan shall include detailed information
on the status of each school's educational program in relation
to the applicable standards, specific cost estimates for meeting
such standards at each school, and specific timelines for
bringing each school up to the level required by such standards.
``(d) Closure or Consolidation of Schools.--
``(1) In general.--Except as specifically required by law--
``(A) no Bureau-funded school or dormitory operated
on or after January 1, 1992, may be closed,
consolidated, or transferred to another authority; and
``(B) no program of such a school may be
substantially curtailed except in accordance with the
requirements of this subsection.
``(2) Exceptions.--This subsection (other than this
paragraph) shall not apply--
``(A) in those cases in which the tribal governing
body for a school, or the local school board concerned
(if designated by the tribal governing body to act under
this paragraph), requests the closure, consolidation, or
substantial curtailment; or
``(B) if a temporary closure, consolidation, or
substantial curtailment is required by facility
conditions that constitute an immediate hazard to health
and safety.
``(3) Regulations.--The Secretary shall, by regulation,
promulgate standards and procedures for the closure, transfer to
another authority, consolidation, or substantial curtailment of
Bureau schools, in accordance with the requirements of this
subsection.
``(4) Notice.--
``(A) In general.--In a case in which closure,
transfer to another authority, consolidation, or
substantial curtailment of a school is under active
consideration or review by any division of the Bureau or
the Department of the
[[Page 115 STAT. 2015]]
Interior, the affected tribe, tribal governing body, and
designated local school board will be notified
immediately in writing, kept fully and currently
informed, and afforded an opportunity to comment with
respect to such consideration or review.
``(B) Decision to <<NOTE: Notification. Deadline.>>
close.--If a formal decision is made to close, transfer
to another authority, consolidate, or substantially
curtail a school, the affected tribe, tribal governing
body, and designated school board shall be notified not
later than 180 days before the end of the school year
preceding the proposed closure date.
``(C) Copies.--Copies of any such notices and
information shall be--
``(i) submitted promptly to the appropriate
committees of Congress; and
``(ii) <<NOTE: Federal Register,
publication.>> published in the Federal Register.
``(5) Report.--The Secretary shall submit to the appropriate
committees of Congress, the affected tribe, and the designated
school board, a report describing the process of the active
consideration or review referred to in paragraph (4) that
includes--
``(A) a study of the impact of such action on the
student population;
``(B) a description of those students with
particular educational and social needs;
``(C) recommendations to ensure that alternative
services are available to such students; and
``(D) a description of the consultation conducted
between the potential service provider, current service
provider, parents, tribal representatives and the tribe
or tribes involved, and the Director of the Office of
Indian Education Programs within the Bureau regarding
such students.
``(6) Limitation on certain actions.--No irrevocable action
may be taken in furtherance of any such proposed school closure,
transfer to another authority, consolidation, or substantial
curtailment (including any action which would prejudice the
personnel or programs of such school) prior to the end of the
first full academic year after such report is made.
``(7) Tribal governing body approval required for certain
actions.--The Secretary may, with the approval of the tribal
governing body, terminate, contract, transfer to any other
authority, consolidate, or substantially curtail the operation
or facilities of--
``(A) any Bureau-funded school that is operated on
or after January 1, 1999;
``(B) any program of such a school that is operated
on or after January 1, 1999; or
``(C) any school board of a school operated under a
grant under the Tribally Controlled Schools Act of 1988.
``(e) Application for Contracts or Grants for Non-Bureau-Funded
Schools or Expansion of Bureau-Funded Schools.--
``(1) Review by secretary.--
``(A) Consideration of factors.--
``(i) In general.--The Secretary shall
consider only the factors described in
subparagraph (B) in reviewing--
[[Page 115 STAT. 2016]]
``(I) applications from any tribe
for the awarding of a contract or grant
for a school that is not a Bureau-funded
school; and
``(II) applications from any tribe
or school board of any Bureau-funded
school for--
``(aa) a school which is not
a Bureau-funded school; or
``(bb) the expansion of a
Bureau-funded school which would
increase the amount of funds
received by the Indian tribe or
school board under section 1127.
``(ii) No denial based on geographic
proximity.--With respect to applications described
in this subparagraph, the Secretary shall give
consideration to all factors described in
subparagraph (B), but no such application shall be
denied based primarily upon the geographic
proximity of comparable public education.
``(B) Factors.--With respect to applications
described in subparagraph (A), the Secretary shall
consider the following factors relating to the program
and services that are the subject of the application:
``(i) The adequacy of the facilities or the
potential to obtain or provide adequate
facilities.
``(ii) Geographic and demographic factors in
the affected areas.
``(iii) The adequacy of the applicant's
program plans or, in the case of a Bureau-funded
school, of projected needs analysis done either by
the tribe or the Bureau.
``(iv) Geographic proximity of comparable
public education.
``(v) The stated needs of all affected
parties, including students, families, tribal
governments at both the central and local levels,
and school organizations.
``(vi) Adequacy and comparability of programs
already available.
``(vii) Consistency of available programs with
tribal educational codes or tribal legislation on
education.
``(viii) The history and success of those
services for the proposed population to be served,
as determined from all factors, including
standardized examination performance.
``(2) Determination on application.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 180 days after the date on which an application
described in paragraph (1)(A) is submitted to the
Secretary, the Secretary shall make a determination of
whether to approve the application.
``(B) Failure to make determination.--If the
Secretary fails to make a determination with respect to
an application by the date described in subparagraph
(A), the application shall be deemed to have been
approved by the Secretary.
``(3) Requirements for applications.--
``(A) In general.--Notwithstanding paragraph (2)(B),
an application described in paragraph (1)(A) may be
approved by the Secretary only if--
[[Page 115 STAT. 2017]]
``(i) the application has been approved by the
tribal governing body of the students served by
(or to be served by) the school or program that is
the subject of the application; and
``(ii) written evidence of such approval is
submitted with the application.
``(B) Included information.--Each application
described in paragraph (1)(A) shall include information
concerning each of the factors described in paragraph
(1)(B).
``(4) Denial of applications.--If the Secretary denies an
application described in paragraph (1)(A), the Secretary shall--
``(A) <<NOTE: Deadline.>> state the objections to
the application in writing to the applicant not later
than 180 days after the date the application is
submitted to the Secretary;
``(B) provide assistance to the applicant to
overcome the stated objections;
``(C) provide to the applicant a hearing on the
record regarding the denial, under the same rules and
regulations as apply under the Indian Self-Determination
and Education Assistance Act; and
``(D) provide to the applicant a notice of the
applicant's appeals rights and an opportunity to appeal
the decision resulting from the hearing under
subparagraph (D).
``(5) Effective date of a subject application.--
``(A) In general.--Except as otherwise provided in
this paragraph, an action that is the subject of any
application described in paragraph (1)(A) that is
approved by the Secretary shall become effective--
``(i) at the beginning of the academic year
following the fiscal year in which the application
is approved; or
``(ii) at an earlier date determined by the
Secretary.
``(B) Applications deemed approved.--If an
application is deemed to have been approved by the
Secretary under paragraph (2)(B), the action that is the
subject of the application shall become effective--
``(i) on the date that is 18 months after the
date on which the application is submitted to the
Secretary; or
``(ii) at an earlier date determined by the
Secretary.
``(6) Statutory construction.--Nothing in this section or
any other provision of law, shall be construed to preclude the
expansion of grades and related facilities at a Bureau-funded
school, if such expansion is paid for with non-Bureau funds.
Subject to the availability of appropriated funds the Secretary
is authorized to provide the necessary funds needed to
supplement the cost of operations and maintenance of such
expansion.
``(f) Joint Administration.--Administrative, transportation, and
program cost funds received by Bureau-funded schools, and any program
from the Department of Education or any other Federal agency for the
purpose of providing education or related services, and other funds
received for such education and related services from nonfederally
funded programs, shall be apportioned and the funds shall be retained at
the school.
[[Page 115 STAT. 2018]]
``(g) General Use of Funds.--Funds received by Bureau-funded schools
from the Bureau of Indian Affairs, and under any program from the
Department of Education or any other Federal agency, for the purpose of
providing education or related services may be used for schoolwide
projects to improve the educational program for all Indian students.
``(h) Study on Adequacy of Funds and Formulas.--
``(1) Study.--The Comptroller General of the United States
shall conduct a study to determine the adequacy of funding, and
formulas used by the Bureau to determine funding, for programs
operated by Bureau-funded schools, taking into account unique
circumstances applicable to Bureau-funded schools. The study
shall analyze existing information gathered and contained in
germane studies that have been conducted or are currently being
conducted with regard to Bureau-funded schools.
``(2) Action.--Upon completion of the study, the Secretary
of the Interior shall take such action as necessary to ensure
distribution of the findings of the study to all affected Indian
tribes, local school boards, and associations of local school
boards.
``SEC. 1122. <<NOTE: 25 USC 2002.>> NATIONAL CRITERIA FOR HOME-LIVING
SITUATIONS.
``(a) Revision of Standards.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Education, Indian organizations and tribes, and
Bureau-funded schools, shall revise the national standards for
home-living (dormitory) situations to include such factors as
heating, lighting, cooling, adult-child ratios, needs for
counselors (including special needs related to off-reservation
home-living (dormitory) situations), therapeutic programs,
space, and privacy.
``(2) Implementation.--Such standards shall be implemented
in Bureau-operated schools, and shall serve as minimum standards
for contract or grant schools.
``(3) Revision after establishment.--Once established, any
revisions of such standards shall be developed according to the
requirements established under section 1137.
``(b) Implementation.--The Secretary shall implement the revised
standards established under this section immediately upon completion of
the standards.
``(c) Plan.--
``(1) <<NOTE: Federal Register, publication.>> In
general.--The Secretary shall submit to the appropriate
committees of Congress, the tribes, and the affected schools,
and publish in the Federal Register, a detailed plan to bring
all Bureau-funded schools that provide home-living (dormitory)
situations up to the standards established under this section.
``(2) Components of plan.--The plan described in paragraph
(1) shall include--
``(A) a statement of the relative needs of each
Bureau-funded home-living (dormitory) school;
``(B) projected future needs of each Bureau-funded
home-living (dormitory) school;
``(C) detailed information on the status of each
school in relation to the standards established under
this section;
[[Page 115 STAT. 2019]]
``(D) specific cost estimates for meeting each
standard for each such school;
``(E) aggregate cost estimates for bringing all such
schools into compliance with the criteria established
under this section; and
``(F) specific timelines for bringing each school
into compliance with such standards.
``(d) Waiver.--
``(1) In general.--A tribal governing body or local school
board may, in accordance with this subsection, waive the
standards established under this section for a school described
in subsection (a).
``(2) Inappropriate standards.--
``(A) In general.--A tribal governing body, or the
local school board so designated by the tribal governing
body, may waive, in whole or in part, the standards
established under this section if such standards are
determined by such body or board to be inappropriate for
the needs of students from that tribe.
``(B) Alternative <<NOTE: Deadline.>> standards.--
The tribal governing body or school board involved
shall, not later than 60 days after providing a waiver
under subparagraph (A) for a school, submit to the
Director a proposal for alternative standards that take
into account the specific needs of the tribe's children.
Such alternative standards shall be established by the
Director for the school involved unless specifically
rejected by the Director for good cause and in writing
provided to the affected tribes or local school board.
``(e) Closure for Failure To Meet Standards Prohibited.--No school
in operation on or before July 1, 1999 (regardless of compliance or
noncompliance with the standards established under this section), may be
closed, transferred to another authority, or consolidated, and no
program of such a school may be substantially curtailed, because the
school failed to meet such standards.
``SEC. 1123. <<NOTE: 25 USC 2003.>> CODIFICATION OF REGULATIONS.
``(a) Part 32 of Title 25, Code of Federal Regulations.--The
provisions of part 32 of title 25, Code of Federal Regulations, as in
effect on January 1, 1987, are incorporated into this Act and shall be
treated as though such provisions are set forth in this subsection. Such
provisions may be altered only by means of an Act of Congress. To the
extent that such provisions of part 32 do not conform with this Act or
any statutory provision of law enacted before November 1, 1978, the
provisions of this Act and the provisions of such other statutory law
shall govern.
``(b) Definition of Regulation.--In this section, the term
`regulation' means any rule, regulation, guideline, interpretation,
order, or requirement of general applicability prescribed by any officer
or employee of the executive branch.
``SEC. 1124. <<NOTE: 25 USC 2004.>> SCHOOL BOUNDARIES.
``(a) Establishment <<NOTE: Regulations.>> by Secretary.--The
Secretary shall establish, by regulation, separate geographical
attendance areas for each Bureau-funded school.
``(b) Establishment by Tribal Body.--In any case where there is more
than one Bureau-funded school located on an Indian reservation, at the
direction of the tribal governing body, the relevant school boards of
the Bureau-funded schools on the reservation may,
[[Page 115 STAT. 2020]]
by mutual consent, establish the relevant attendance areas for such
schools, subject to the approval of the tribal governing body. Any such
boundaries so established shall be accepted by the Secretary.
``(c) Boundary Revisions.--
``(1) Notice.--On or after July 1, 2001, no geographical
attendance area shall be revised or established with respect to
any Bureau-funded school unless the tribal governing body or the
local school board concerned (if so designated by the tribal
governing body) has been afforded--
``(A) at least 6 months notice of the intention of
the Bureau to revise or establish such attendance area;
and
``(B) the opportunity to propose alternative
boundaries.
``(2) Revision process.--Any tribe may petition the
Secretary for revision of existing attendance area boundaries.
The Secretary shall accept such proposed alternative or revised
boundaries unless the Secretary finds, after consultation with
the affected tribe or tribes, that such revised boundaries do
not reflect the needs of the Indian students to be served or do
not provide adequate stability to all of the affected programs.
The Secretary shall <<NOTE: Federal Register, publication.>>
cause such revisions to be published in the Federal Register.
``(3) Tribal resolution determination.--Nothing in this
section shall deny a tribal governing body the authority, on a
continuing basis, to adopt a tribal resolution allowing parents
the choice of the Bureau-funded school their children may
attend, regardless of the attendance boundaries established
under this section.
``(d) Funding Restrictions.--
``(1) In general.--The Secretary shall not deny funding to a
Bureau-funded school for any eligible Indian student attending
the school solely because that student's home or domicile is
outside of the geographical attendance area established for that
school under this section.
``(2) Transportation.--No funding shall be made available
without tribal authorization to enable a school to provide
transportation for any student to or from the school and a
location outside the approved attendance area of the school.
``(e) Reservation as Boundary.--When there is only one Bureau-funded
program located on an Indian reservation--
``(1) the attendance area for the program shall be the
boundaries (established by treaty, agreement, legislation, court
decisions, or executive decisions and as accepted by the tribe)
of the reservation served; and
``(2) those students residing near the reservation shall
also receive services from such program.
``(f) Off-Reservation Home-Living (Dormitory) Schools.--
``(1) In general.--Notwithstanding any geographical
attendance areas, attendance at off-reservation home-living
(dormitory) schools shall include students requiring special
emphasis programs to be implemented at each off-reservation
home-living (dormitory) school.
``(2) Coordination.--Such attendance shall be coordinated
between education line officers, the family, and the referring
and receiving programs.
[[Page 115 STAT. 2021]]
``SEC. 1125. <<NOTE: 25 USC 2005.>> FACILITIES CONSTRUCTION.
``(a) National Survey of Facilities Conditions.--
``(1) In <<NOTE: Deadline.>> general.--Not later than 12
months after the date of enactment of the Native American
Education Improvement Act of 2001, the General Accounting Office
shall compile, collect, and secure the data that are needed to
prepare a national survey of the physical conditions of all
Bureau-funded school facilities.
``(2) Data and methodologies.--In preparing the national
survey required under paragraph (1), the General Accounting
Office shall use the following data and methodologies:
``(A) The existing Department of Defense formula for
determining the condition and adequacy of Department of
Defense facilities.
``(B) Data related to conditions of Bureau-funded
schools that has previously been compiled, collected, or
secured from whatever source derived so long as the data
are accurate, relevant, timely, and necessary to the
survey.
``(C) The methodologies of the American Institute of
Architects, or other accredited and reputable
architecture or engineering associations.
``(3) Consultations.--
``(A) In general.--In carrying out the survey
required under paragraph (1), the General Accounting
Office shall, to the maximum extent practicable, consult
(and if necessary contract) with national, regional, and
tribal Indian education organizations to ensure that a
complete and accurate national survey is achieved.
``(B) Requests for information.--All Bureau-funded
schools shall comply with reasonable requests for
information by the General Accounting Office and shall
respond to such requests in a timely fashion.
``(4) <<NOTE: Deadline.>> Submission.--Not later than 2
years after the date of enactment of the Native American
Education Improvement Act of 2001, the General Accounting Office
shall submit the results of the national survey conducted under
paragraph (1) to the Committee on Indian Affairs, the Committee
on Health, Education, Labor, and Pensions, and the Committee on
Appropriations of the Senate and the Committee on Resources, the
Committee on Education and the Workforce, and the Committee on
Appropriations of the House of Representatives and to the
Secretary. The Secretary shall submit the results of the
national survey to school boards of Bureau-funded schools and
their respective tribes.
``(5) Negotiated rulemaking committee.--
``(A) <<NOTE: Deadline.>> In general.--Not later
than 6 months after the date on which the submission is
made under paragraph (4), the Secretary shall establish
a negotiated rulemaking committee pursuant to section
1138(b)(3). The negotiated rulemaking committee shall
prepare and submit to the Secretary the following:
``(i) A catalog of the condition of school
facilities at all Bureau-funded schools that--
``(I) incorporates the findings from
the General Accounting Office study
evaluating and comparing school systems
of the Department of Defense and the
Bureau of Indian Affairs;
[[Page 115 STAT. 2022]]
``(II) rates such facilities with
respect to the rate of deterioration and
useful life of structures and major
systems;
``(III) establishes a routine
maintenance schedule for each facility;
``(IV) identifies the complementary
educational facilities that do not exist
but that are needed; and
``(V) makes projections on the
amount of funds needed to keep each
school viable, consistent with the
accreditation standards required
pursuant to this Act.
``(ii) A school replacement and new
construction report that determines replacement
and new construction need, and a formula for the
equitable distribution of funds to address such
need, for Bureau-funded schools. Such formula
shall utilize necessary factors in determining an
equitable distribution of funds, including--
``(I) the size of school;
``(II) school enrollment;
``(III) the age of the school;
``(IV) the condition of the school;
``(V) environmental factors at the
school; and
``(VI) school isolation.
``(iii) A renovation repairs report that
determines renovation need (major and minor), and
a formula for the equitable distribution of funds
to address such need, for Bureau-funded schools.
Such report shall identify needed repairs or
renovations with respect to a facility, or a part
of a facility, or the grounds of the facility, to
remedy a need based on disabilities access or
health and safety changes to a facility. The
formula developed shall utilize necessary factors
in determining an equitable distribution of funds,
including the factors described in clause (ii).
``(B) <<NOTE: Deadline.>> Submission of reports.--
Not later than 24 months after the negotiated rulemaking
committee is established under subparagraph (A), the
reports described in clauses (ii) and (iii) of
subparagraph (A) shall be submitted to the committees of
Congress referred to in paragraph (4), the national and
regional Indian education organizations, and to all
school boards of Bureau-funded schools and their
respective tribes.
``(6) Facilities information systems support database.--The
Secretary shall develop a Facilities Information Systems Support
Database to maintain and update the information contained in the
reports under clauses (ii) and (iii) of paragraph (5)(A) and the
information contained in the survey conducted under paragraph
(1). The system shall be updated every 3 years by the Bureau of
Indian Affairs and monitored by General Accounting Office, and
shall be made available to school boards of Bureau-funded
schools and their respective tribes, and Congress.
``(b) Compliance With Health and Safety Standards.--
``(1) In general.--The Secretary shall immediately begin to
bring all schools, dormitories, and other Indian education-
[[Page 115 STAT. 2023]]
related facilities operated by the Bureau or under contract or
grant with the Bureau, into compliance with--
``(A) all applicable tribal, Federal, or State
health and safety standards, whichever provides greater
protection (except that the tribal standards to be
applied shall be no greater than any otherwise
applicable Federal or State standards);
``(B) section 504 of the Rehabilitation Act of 1973;
and
``(C) the Americans with Disabilities Act of 1990.
``(2) No termination required.--Nothing in this subsection
requires termination of the operations of any facility that--
``(A) does not comply with the provisions and
standards described in paragraph (1); and
``(B) is in use on the date of enactment of the
Native American Education Improvement Act of 2001.
``(c) Compliance Plan.--At the time that the annual budget request
for Bureau educational services is presented, the Secretary shall submit
to the appropriate committees of Congress a detailed plan to bring all
facilities covered under subsection (a) into compliance with the
standards referred to in that subsection that includes--
``(1) detailed information on the status of each facility's
compliance with such standards;
``(2) specific cost estimates for meeting such standards at
each school; and
``(3) specific timelines for bringing each school into
compliance with such standards.
``(d) Construction Priorities.--
``(1) System <<NOTE: Federal Register, publication.>> to
establish priorities.--On an annual basis, the Secretary shall
submit to the appropriate committees of Congress and cause to be
published in the Federal Register, the system used to establish
priorities for replacement and construction projects for Bureau-
funded schools and home-living schools, including boarding
schools and dormitories. <<NOTE: Federal Register,
publication.>> At the time any budget request for education is
presented, the Secretary shall publish in the Federal Register
and submit with the budget request the current list of all
Bureau-funded school construction priorities.
``(2) Long-term construction and replacement list.--In
addition to the plan submitted under subsection (c), the
Secretary shall--
``(A) not later than 18 months after the date of
enactment of the Native American Education Improvement
Act of 2001, establish a long-term construction and
replacement list for all Bureau-funded schools;
``(B) using the list prepared under subparagraph
(A), propose a list for the orderly replacement of all
Bureau-funded education-related facilities over a period
of 40 years to enable planning and scheduling of budget
requests;
``(C) <<NOTE: Federal Register, publication.>>
cause the list prepared under subparagraph (B) to be
published in the Federal Register and allow a period of
not less than 120 days for public comment;
``(D) make such revisions to the list prepared under
subparagraph (B) as are appropriate based on the
comments received; and
[[Page 115 STAT. 2024]]
``(E) <<NOTE: Federal Register, publication.>>
cause the final list to be published in the Federal
Register.
``(3) Effect on other list.--Nothing in this section shall
interfere with or change in any way the construction priority
list as it existed on the day before the date of enactment of
the Native American Education Improvement Act of 2001.
``(e) Hazardous Condition at Bureau-Funded School.--
``(1) Closure, consolidation, or curtailment.--
``(A) In general.--A Bureau-funded school may be
closed or consolidated, or the programs of a Bureau-
funded school may be substantially curtailed, by reason
of facility conditions that constitute an immediate
hazard to health and safety only if a health and safety
officer of the Bureau and an individual designated at
the beginning of the school year by the tribe involved
under subparagraph (B) determine that such conditions
exist at a facility of the Bureau-funded school.
``(B) Designation of individual by tribe.--To be
designated by a tribe for purposes of subparagraph (A),
an individual shall--
``(i) be a licensed or certified facilities
safety inspector;
``(ii) have demonstrated experience in the
inspection of facilities for health and safety
purposes with respect to occupancy; or
``(iii) have a significant educational
background in the health and safety of facilities
with respect to occupancy.
``(C) Inspection.--After making a determination
described in subparagraph (A), the Bureau health and
safety officer and the individual designated by the
tribe shall conduct an inspection of the conditions of
such facility in order to determine whether conditions
at such facility constitute an immediate hazard to
health and safety. <<NOTE: Deadline.>> Such inspection
shall be completed as expeditiously as practicable, but
not later than 20 days after the date on which the
action described in subparagraph (A) is taken.
``(D) Failure to concur.--If the Bureau health and
safety officer, and the individual designated by the
tribe, conducting the inspection of a facility required
under subparagraph (C) do not concur that conditions at
the facility constitute an immediate hazard to health
and safety, such officer and individual shall
immediately notify the tribal governing body and provide
written information related to their determinations.
``(E) Consideration by tribal governing body.--Not
later than 10 days after a tribal governing body
receives notice under subparagraph (D), the tribal
governing body shall consider all information relating
to the determinations of the Bureau health and safety
officer and the individual designated by the tribe and
make a determination regarding the closure,
consolidation, or curtailment involved.
``(F) Agreement to close, consolidate, or curtail.--
[[Page 115 STAT. 2025]]
``(i) In general.--If the Bureau health and
safety officer and the individual designated by
the tribe conducting the inspection of a facility
required under subparagraph (C), concur that
conditions at the facility constitute an immediate
hazard to health and safety, or if the tribal
governing body makes such a determination under
subparagraph (E), the facility involved shall be
closed immediately.
``(ii) Reopening of facility if no immediate
hazard found to exist.--If the Bureau health and
safety officer or the individual designated by the
tribe conducting the inspection of a facility
required under subparagraph (C) determines that
conditions at the facility do not constitute an
immediate hazard to health and safety, any
consolidation or curtailment that was made under
this paragraph shall immediately cease and any
school closed by reason of conditions at the
facility shall be reopened immediately.
``(G) General <<NOTE: Deadline.>> closure report.--
If a Bureau-funded school is temporarily closed or
consolidated or the programs of a Bureau-funded school
are temporarily substantially curtailed under this
subsection and the Secretary determines that the
closure, consolidation, or curtailment will exceed 1
year, the Secretary shall submit to the appropriate
committees of Congress, the affected tribe, and the
local school board, not later than 90 days after the
date on which the closure, consolidation, or curtailment
was initiated, a report that specifies--
``(i) the reasons for such temporary action;
``(ii) the actions the Secretary is taking to
eliminate the conditions that constitute the
hazard;
``(iii) an estimated date by which the actions
described in clause (ii) will be concluded; and
``(iv) a plan for providing alternate
education services for students enrolled at the
school that is to be closed.
``(2) Nonapplication of certain standards for temporary
facility use.--
``(A) Classroom activities.--The Secretary shall
permit the local school board to temporarily utilize
facilities adjacent to the school, or satellite
facilities, if such facilities are suitable for
conducting classroom activities. In permitting the use
of facilities under the preceding sentence, the
Secretary may waive applicable minor standards under
section 1121 relating to such facilities (such as the
required number of exit lights or configuration of
restrooms) so long as such waivers do not result in the
creation of an environment that constitutes an immediate
and substantial threat to the health, safety, and life
of students and staff.
``(B) Administrative activities.--The provisions of
subparagraph (A) shall apply with respect to
administrative personnel if the facilities involved are
suitable for activities performed by such personnel.
``(C) Temporary.--In this paragraph, the term
`temporary' means--
``(i) with respect to a school that is to be
closed for not more than 1 year, 3 months or less;
and
[[Page 115 STAT. 2026]]
``(ii) with respect to a school that is to be
closed for not less than 1 year, a time period
determined appropriate by the Bureau.
``(3) Treatment of closure.--Any closure of a Bureau-funded
school under this subsection for a period that exceeds 30 days
but is less than 1 year, shall be treated by the Bureau as an
emergency facility improvement and repair project.
``(4) Use of funds.--With respect to a Bureau-funded school
that is closed under this subsection, the tribal governing body,
or the designated local school board of each Bureau-funded
school, involved may authorize the use of funds allocated
pursuant to section 1127, to abate the hazardous conditions
without further action by Congress.
``(f) Funding Requirement.--
``(1) Distribution of funds.--Beginning with the first
fiscal year following the date of enactment of the Native
American Education Improvement Act of 2001, all funds
appropriated to the budget accounts for the operations and
maintenance of Bureau-funded schools shall be distributed by
formula to the schools. No funds from these accounts may be
retained or segregated by the Bureau to pay for administrative
or other costs of any facilities branch or office, at any level
of the Bureau.
``(2) Requirements for certain uses.--No funds shall be
withheld from the distribution to the budget of any school
operated under contract or grant by the Bureau for maintenance
or any other facilities or road-related purpose, unless such
school has consented, as a modification to the contract or in
writing for grants schools, to the withholding of such funds,
including the amount thereof, the purpose for which the funds
will be used, and the timeline for the services to be provided.
The school may, at the end of any fiscal year, cancel an
agreement under this paragraph upon giving the Bureau 30 days
notice of its intent to do so.
``(g) No Reduction in Federal Funding.--Nothing in this section
shall diminish any Federal funding due to the receipt by the school of
funding for facilities improvement or construction from a State or any
other source.
``SEC. 1126. <<NOTE: 25 USC 2006.>> BUREAU OF INDIAN AFFAIRS EDUCATION
FUNCTIONS.
``(a) Formulation and Establishment of Policy and Procedure;
Supervision of Programs and Expenditures.--The Secretary shall vest in
the Assistant Secretary for Indian Affairs all functions with respect to
formulation and establishment of policy and procedure and supervision of
programs and expenditures of Federal funds for the purpose of Indian
education administered by the Bureau. The Assistant Secretary shall
carry out such functions through the Director of the Office of Indian
Education Programs.
``(b) Direction and Supervision of Personnel Operations.--
``(1) In <<NOTE: Deadline.>> general.--Not later than 180
days after the date of enactment of the Native American
Education Improvement Act of 2001, the Director of the Office
shall direct and supervise the operations of all personnel
directly and substantially involved in the provision of
education program services by the Bureau, including school or
institution custodial or maintenance personnel, and personnel
responsible for contracting,
[[Page 115 STAT. 2027]]
procurement, and finance functions connected with school
operation programs.
``(2) <<NOTE: Deadline.>> Transfers.--The Assistant
Secretary for Indian Affairs shall, not later than 180 days
after the date of enactment of the Native American Education
Improvement Act of 2001, coordinate the transfer of functions
relating to procurements for, contracts of, operation of, and
maintenance of schools and other support functions to the
Director.
``(c) Inherent Federal Function.--For purposes of this Act, all
functions relating to education that are located at the Area or Agency
level and performed by an education line officer shall be subject to
contract under the Indian Self-Determination and Education Assistance
Act, unless determined by the Secretary to be inherently Federal
functions as defined in section 1141(12).
``(d) Evaluation of Programs; Services and Support Functions;
Technical and Coordinating Assistance.--Education personnel who are
under the direction and supervision of the Director of the Office of
Indian Education Programs in accordance with subsection (b)(1) shall--
``(1) monitor and evaluate Bureau education programs;
``(2) provide all services and support functions for
education programs with respect to personnel matters involving
staffing actions and functions; and
``(3) provide technical and coordinating assistance in areas
such as procurement, contracting, budgeting, personnel,
curriculum, and operation and maintenance of school facilities.
``(e) Construction, Improvement, Operation, and Maintenance of
Facilities.--
``(1) Plan for construction.--The Assistant Secretary shall
submit as part of the annual budget a plan--
``(A) for school facilities to be constructed under
section 1125(c);
``(B) for establishing priorities among projects and
for the improvement and repair of educational
facilities, which together shall form the basis for the
distribution of appropriated funds; and
``(C) for capital improvements to be made over the 5
succeeding years.
``(2) Program for operation and maintenance.--
``(A) Establishment.--The Assistant Secretary shall
establish a program, including the distribution of
appropriated funds, for the operation and maintenance of
education facilities. Such program shall include--
``(i) a method of computing the amount
necessary for each educational facility;
``(ii) similar treatment of all Bureau-funded
schools;
``(iii) a notice of an allocation of
appropriated funds from the Director of the Office
of Indian Education Programs directly to the
education line officers and appropriate school
officials;
``(iv) a method for determining the need for,
and priority of, facilities repair and maintenance
projects, both major and minor (to be determined,
through the conduct by the Assistant Secretary, of
a series of meetings at the agency and area level
with representatives of the Bureau-funded schools
in those areas and
[[Page 115 STAT. 2028]]
agencies to receive comment on the lists and
prioritization of such projects); and
``(v) a system for the conduct of routine
preventive maintenance.
``(B) Local supervisors.--The appropriate education
line officers shall make arrangements for the
maintenance of education facilities with the local
supervisors of the Bureau maintenance personnel. The
local supervisors of Bureau maintenance personnel shall
take appropriate action to implement the decisions made
by the appropriate education line officers, except that
no funds under this chapter may be authorized for
expenditure unless such appropriate education line
officer is assured that the necessary maintenance has
been, or will be, provided in a reasonable manner.
``(3) Implementation.--This subsection shall be implemented
as soon as practicable after the date of enactment of the Native
American Education Improvement Act of 2001.
``(f) Acceptance of Gifts and Bequests.--
``(1) Guidelines.--Notwithstanding any other provision of
law, the Director of the Office shall promulgate guidelines for
the establishment and administration of mechanisms for the
acceptance of gifts and bequests for the use and benefit of
particular schools or designated Bureau-operated education
programs, including, in appropriate cases, the establishment and
administration of trust funds.
``(2) Monitoring and reports.--Except as provided in
paragraph (3), in a case in which a Bureau-operated education
program is the beneficiary of such a gift or bequest, the
Director shall--
``(A) make provisions for monitoring use of the gift
or bequest; and
``(B) submit a report to the appropriate committees
of Congress that describes the amount and terms of such
gift or bequest, the manner in which such gift or
bequest shall be used, and any results achieved by such
use.
``(3) Exception.--The requirements of paragraph (2) shall
not apply in the case of a gift or bequest that is valued at
$5,000 or less.
``(g) Definition of Functions.--For the purpose of this section, the
term `functions' includes powers and duties.
``SEC. 1127. <<NOTE: 25 USC 2007.>> ALLOTMENT FORMULA.
``(a) Factors Considered; Revision To Reflect Standards.--
``(1) Formula.--The <<NOTE: Regulations.>> Secretary shall
establish, by regulation adopted in accordance with section
1137, a formula for determining the minimum annual amount of
funds necessary to sustain each Bureau-funded school. In
establishing such formula, the Secretary shall consider--
``(A) the number of eligible Indian students served
and total student population of the school;
``(B) special cost factors, such as--
``(i) the isolation of the school;
``(ii) the need for special staffing,
transportation, or educational programs;
``(iii) food and housing costs;
[[Page 115 STAT. 2029]]
``(iv) maintenance and repair costs associated
with the physical condition of the educational
facilities;
``(v) special transportation and other costs
of isolated and small schools;
``(vi) the costs of home-living (dormitory)
arrangements, where determined necessary by a
tribal governing body or designated school board;
``(vii) costs associated with greater lengths
of service by education personnel;
``(viii) the costs of therapeutic programs for
students requiring such programs; and
``(ix) special costs for gifted and talented
students;
``(C) the cost of providing academic services which
are at least equivalent to those provided by public
schools in the State in which the school is located;
``(D) whether the available funding will enable the
school involved to comply with the accreditation
standards applicable to the school under section 1121;
and
``(E) such other relevant factors as the Secretary
determines are appropriate.
``(2) Revision of formula.--
``(A) In general.--Upon the establishment of the
standards required in section 1122, the Secretary shall
revise the formula established under this subsection to
reflect the cost of funding such standards.
``(B) <<NOTE: Deadline.>> Review of formula.--Not
later than January 1, 2003, the Secretary shall review
the formula established under this section and shall
take such steps as are necessary to increase the
availability of counseling and therapeutic programs for
students in off-reservation home-living (dormitory)
schools and other Bureau-operated residential
facilities.
``(C) Review of standards.--Concurrent with such
action, the Secretary shall review the standards
established under section 1122 to be certain that
adequate provision is made for parental notification
regarding, and consent for, such counseling and
therapeutic programs.
``(b) Pro Rata Allotment.--Notwithstanding any other provision of
law, Federal funds appropriated for the general local operation of
Bureau-funded schools shall be allotted pro rata in accordance with the
formula established under subsection (a).
``(c) Annual Adjustment; Reservation of Amount for School Board
Activities.--
``(1) Annual adjustment.--For fiscal year 2003, and for each
subsequent fiscal year, the Secretary shall adjust the formula
established under subsection (a) to ensure that the formula does
the following:
``(A) Uses a weighted unit of 1.2 for each eligible
Indian student enrolled in the seventh and eighth grades
of the school in considering the number of eligible
Indian students served by the school.
``(B) Considers a school with an enrollment of less
than 50 eligible Indian students as having an average
daily attendance of 50 eligible Indian students for
purposes of implementing the adjustment factor for small
schools.
``(C) Takes into account the provision of
residential services on less than a 9-month basis at a
school when
[[Page 115 STAT. 2030]]
the school board and supervisor of the school determine
that a less than 9-month basis will be implemented for
the school year involved.
``(D) Uses a weighted unit of 2.0 for each eligible
Indian student that--
``(i) is gifted and talented; and
``(ii) is enrolled in the school on a full-
time basis,
in considering the number of eligible Indian students
served by the school.
``(E) Uses a weighted unit of 0.25 for each eligible
Indian student who is enrolled in a year-long credit
course in an Indian or Native language as part of the
regular curriculum of a school, in considering the
number of eligible Indian students served by such
school. The adjustment required under this subparagraph
shall be used for such school after--
``(i) the certification of the Indian or
Native language curriculum by the school board of
such school to the Secretary, together with an
estimate of the number of full-time students
expected to be enrolled in the curriculum in the
second school year for which the certification is
made; and
(ii) the funds appropriated for allotment
under this section are designated by the
appropriations Act appropriating such funds as the
amount necessary to implement such adjustment at
such school without reducing allotments made under
this section to any school by virtue of such
adjustment.
``(2) Reservation of amount.--
``(A) In general.--From the funds allotted in
accordance with the formula established under subsection
(a) for each Bureau school, the local school board of
such school may reserve an amount which does not exceed
the greater of--
``(i) $8,000; or
``(ii) the lesser of--
``(I) $15,000; or
``(II) 1 percent of such allotted
funds,
for school board activities for such school, including
(notwithstanding any other provision of law) meeting
expenses and the cost of membership in, and support of,
organizations engaged in activities on behalf of Indian
education.
``(B) Training.--
``(i) In general.--Each local school board,
and any agency school board that serves as a local
school board for any grant or contract school,
shall ensure that each individual who is a new
member of the school board receives, within 1 year
after the individual becomes a member of the
school board, 40 hours of training relevant to
that individual's service on the board.
``(ii) Types of training.--Such training may
include training concerning legal issues
pertaining to Bureau-funded schools, legal issues
pertaining to school boards, ethics, and other
topics determined to be appropriate by the school
board.
[[Page 115 STAT. 2031]]
``(iii) Recommendation.--The training
described in this subparagraph shall not be
required, but is recommended, for a tribal
governing body that serves in the capacity of a
school board.
``(d) Reservation of Amount for Emergencies.--
``(1) In general.--The Secretary shall reserve from the
funds available for distribution for each fiscal year under this
section an amount that, in the aggregate, equals 1 percent of
the funds available for such purpose for that fiscal year, to be
used, at the discretion of the Director of the Office of Indian
Education Programs, to meet emergencies and unforeseen
contingencies affecting the education programs funded under this
section.
``(2) Use of funds.--Funds reserved under this subsection
may be expended only for education services or programs,
including emergency repairs of educational facilities, at a
schoolsite (as defined by section 5204(c)(2) of the Tribally
Controlled Schools Act of 1988).
``(3) Availability of funds.--Funds reserved under this
subsection shall remain available without fiscal year limitation
until expended. However, the aggregate amount available from all
fiscal years may not exceed 1 percent of the current year funds.
``(4) Report.--When the Secretary makes funds available
under this subsection, the Secretary shall report such action to
the appropriate committees of Congress within the annual budget
submission.
``(e) Supplemental Appropriations.--Supplemental appropriations
enacted to meet increased pay costs attributable to school level
personnel shall be distributed under this section.
``(f) Eligible Indian Student Defined.--In this section, the term
`eligible Indian student' means a student who--
``(1) is a member of, or is at least one-fourth degree
Indian blood descendant of a member of, a tribe that is eligible
for the special programs and services provided by the United
States through the Bureau to Indians because of their status as
Indians;
``(2) resides on or near a reservation or meets the criteria
for attendance at a Bureau off-reservation home-living school;
and
``(3) is enrolled in a Bureau-funded school.
``(g) Tuition.--
``(1) In general.--No eligible Indian student or a student
attending a Bureau school under paragraph (2)(C) may be charged
tuition for attendance at a Bureau school or contract or grant
school.
``(2) Attendance of non-indian students at bureau schools.--
The Secretary may permit the attendance at a Bureau school of a
student who is not an eligible Indian student if--
``(A) the Secretary determines that the student's
attendance will not adversely affect the school's
program for eligible Indian students because of cost,
overcrowding, or violation of standards or
accreditation;
``(B) the school board consents;
[[Page 115 STAT. 2032]]
``(C) the student is a dependent of a Bureau, Indian
Health Service, or tribal government employee who lives
on or near the school site; or
``(D) tuition is paid for the student that is not
more than the tuition charged by the nearest public
school district for out-of-district students and shall
be in addition to the school's allocation under this
section.
``(3) Attendance of non-indian students at contract and
grant schools.--The school board of a contract or grant school
may permit students who are not eligible Indian students under
this subsection to attend its contract school or grant school.
Any tuition collected for those students shall be in addition to
funding received under this section.
``(h) Funds Available Without Fiscal Year Limitation.--
Notwithstanding any other provision of law, at the election of the
school board of a Bureau school made at any time during the fiscal year,
a portion equal to not more than 15 percent of the funds allocated with
respect to a school under this section for any fiscal year shall remain
available to the school for expenditure without fiscal year limitation.
The Assistant Secretary shall take such steps as are necessary to
implement this subsection.
``(i) Students at Richfield Dormitory, Richfield, Utah.--
``(1) In general.--Tuition for the instruction of each out-
of-State Indian student in a home-living situation at the
Richfield dormitory in Richfield, Utah, who attends Sevier
County high schools in Richfield, Utah, for an academic year,
shall be paid from Indian school equalization program funds
authorized in this section and section 1129, at a rate not to
exceed the weighted amount provided for under subsection (b) for
a student for that year.
``(2) No administrative cost funds.--No additional
administrative cost funds shall be provided under this part to
pay for administrative costs relating to the instruction of the
students.
``SEC. 1128. <<NOTE: 25 USC 2008.>> ADMINISTRATIVE COST GRANTS.
``(a) Definitions.--In this section:
``(1) Administrative cost.--
``(A) In general.--The term `administrative cost'
means the cost of necessary administrative functions
which--
``(i) the tribe or tribal organization incurs
as a result of operating a tribal elementary or
secondary educational program;
``(ii) are not customarily paid by comparable
Bureau-operated programs out of direct program
funds; and
``(iii) are either--
``(I) normally provided for
comparable Bureau programs by Federal
officials using resources other than
Bureau direct program funds; or
``(II) are otherwise required of
tribal self-determination program
operators by law or prudent management
practice.
``(B) Inclusions.--The term `administrative cost'
may include--
[[Page 115 STAT. 2033]]
``(i) contract or grant (or other agreement)
administration;
``(ii) executive, policy, and corporate
leadership and decisionmaking;
``(iii) program planning, development, and
management;
``(iv) fiscal, personnel, property, and
procurement management;
``(v) related office services and record
keeping; and
``(vi) costs of necessary insurance, auditing,
legal, safety and security services.
``(2) Bureau elementary and secondary functions.--The term
`Bureau elementary and secondary functions' means--
``(A) all functions funded at Bureau schools by the
Office;
``(B) all programs--
``(i) funds for which are appropriated to
other agencies of the Federal Government; and
``(ii) which are administered for the benefit
of Indians through Bureau schools; and
``(C) all operation, maintenance, and repair funds
for facilities and Government quarters used in the
operation or support of elementary and secondary
education functions for the benefit of Indians, from
whatever source derived.
``(3) Direct cost base.--
``(A) In general.--Except as otherwise provided in
subparagraph (B), the direct cost base of a tribe or
tribal organization for the fiscal year is the aggregate
direct cost program funding for all tribal elementary or
secondary educational programs operated by the tribe or
tribal organization during--
``(i) the second fiscal year preceding such
fiscal year; or
``(ii) if such programs have not been operated
by the tribe or tribal organization during the 2
preceding fiscal years, the first fiscal year
preceding such fiscal year.
``(B) Functions not previously operated.--In the
case of Bureau elementary or secondary education
functions which have not previously been operated by a
tribe or tribal organization under contract, grant, or
agreement with the Bureau, the direct cost base for the
initial year shall be the projected aggregate direct
cost program funding for all Bureau elementary and
secondary functions to be operated by the tribe or
tribal organization during that fiscal year.
``(4) Maximum base rate.--The term `maximum base rate' means
50 percent.
``(5) Minimum base rate.--The term `minimum base rate' means
11 percent.
``(6) Standard direct cost base.--The term `standard direct
cost base' means $600,000.
``(7) Tribal elementary or secondary educational programs.--
The term `tribal elementary or secondary educational programs'
means all Bureau elementary and secondary functions, together
with any other Bureau programs or portions
[[Page 115 STAT. 2034]]
of programs (excluding funds for social services that are
appropriated to agencies other than the Bureau and are funded
through the Bureau, funds for major subcontracts, construction,
and other major capital expenditures, and unexpended funds
carried over from prior years) which share common administrative
cost functions, that are operated directly by a tribe or tribal
organization under a contract, grant, or agreement with the
Bureau.
``(b) Grants; Effect Upon Appropriated Amounts.--
``(1) Grants.--Subject to the availability of funds, the
Secretary shall provide grants to each tribe or tribal
organization operating a contract school or grant school in the
amount determined under this section with respect to the tribe
or tribal organization for the purpose of paying the
administrative and indirect costs incurred in operating contract
or grant schools, provided that no school operated as a stand-
alone institution shall receive less than $200,000 per year for
these purposes, in order to--
``(A) enable tribes and tribal organizations
operating such schools, without reducing direct program
services to the beneficiaries of the program, to provide
all related administrative overhead services and
operations necessary to meet the requirements of law and
prudent management practice; and
``(B) carry out other necessary support functions
which would otherwise be provided by the Secretary or
other Federal officers or employees, from resources
other than direct program funds, in support of
comparable Bureau-operated programs.
``(2) Effect upon appropriated amounts.--Amounts
appropriated to fund the grants provided under this section
shall be in addition to, and shall not reduce, the amounts
appropriated for the program being administered by the contract
or grant school.
``(c) Determination of Grant Amount.--
``(1) In general.--The amount of the grant provided to each
tribe or tribal organization under this section for each fiscal
year shall be determined by applying the administrative cost
percentage rate of the tribe or tribal organization to the
aggregate of the Bureau elementary and secondary functions
operated by the tribe or tribal organization for which funds are
received from or through the Bureau.
``(2) Direct cost base funds.--The Secretary shall--
``(A) reduce the amount of the grant determined
under paragraph (1) to the extent that payments for
administrative costs are actually received by an Indian
tribe or tribal organization under any Federal education
program included in the direct cost base of the tribe or
tribal organization; and
``(B) take such actions as may be necessary to be
reimbursed by any other department or agency of the
Federal Government for the portion of grants made under
this section for the costs of administering any program
for Indians that is funded by appropriations made to
such other department or agency.
``(d) Administrative Cost Percentage Rate.--
[[Page 115 STAT. 2035]]
``(1) In general.--For purposes of this section, the
administrative cost percentage rate for a contract or grant
school for a fiscal year is equal to the percentage determined
by dividing--
``(A) the sum of--
``(i) the amount equal to--
``(I) the direct cost base of the
tribe or tribal organization for the
fiscal year, multiplied by
``(II) the minimum base rate; plus
``(ii) the amount equal to--
``(I) the standard direct cost base;
multiplied by
``(II) the maximum base rate; by
``(B) the sum of--
``(i) the direct cost base of the tribe or
tribal organization for the fiscal year; plus
``(ii) the standard direct cost base.
``(2) Rounding.--The administrative cost percentage rate
shall be determined to the \1/100\ of a decimal point.
``(3) Applicability.--The administrative cost percentage
rate determined under this subsection shall not apply to other
programs operated by the tribe or tribal organization.
``(e) Combining Funds.--
``(1) In general.--Funds received by a tribe or contract or
grant school as grants under this section for tribal elementary
or secondary educational programs may be combined by the tribe
or contract or grant school into a single administrative cost
account without the necessity of maintaining separate funding
source accounting.
``(2) Indirect cost funds.--Indirect cost funds for programs
at the school which share common administrative services with
tribal elementary or secondary educational programs may be
included in the administrative cost account described in
paragraph (1).
``(f) Availability of Funds.--Funds received as grants under this
section with respect to tribal elementary or secondary education
programs shall remain available to the contract or grant school without
fiscal year limitation and without diminishing the amount of any grants
otherwise payable to the school under this section for any fiscal year
beginning after the fiscal year for which the grant is provided.
``(g) Treatment of Funds.--Funds received as grants under this
section for Bureau-funded programs operated by a tribe or tribal
organization under a contract or agreement shall not be taken into
consideration for purposes of indirect cost underrecovery and
overrecovery determinations by any Federal agency for any other funds,
from whatever source derived.
``(h) Treatment of Entity Operating Other Programs.--In applying
this section and section 106 of the Indian Self-Determination and
Education Assistance Act with respect to an Indian tribe or tribal
organization that--
``(1) receives funds under this section for administrative
costs incurred in operating a contract or grant school or a
school operated under the Tribally Controlled Schools Act of
1988; and
``(2) operates one or more other programs under a contract
or grant provided under the Indian Self-Determination and
Education Assistance Act,
[[Page 115 STAT. 2036]]
the Secretary shall ensure that the Indian tribe or tribal organization
is provided with the full amount of the administrative costs that are
associated with operating the contract or grant school, and of the
indirect costs, that are associated with all of such other programs,
except that funds appropriated for implementation of this section shall
be used only to supply the amount of the grant required to be provided
by this section.
``(i) Studies for Determination of Factors Affecting Costs; Base
Rates Limits; Standard Direct Cost Base; Report to Congress.--
``(1) Studies.--Not <<NOTE: Deadline.>> later than 120 days
after the date of enactment of the Native American Education
Improvement Act of 2001, the Director of the Office of Indian
Education Programs shall--
``(A) conduct such studies as may be needed to
establish an empirical basis for determining relevant
factors substantially affecting required administrative
costs of tribal elementary and secondary education
programs, using the formula set forth in subsection (c);
and
``(B) conduct a study to determine--
``(i) a maximum base rate which ensures that the
amount of the grants provided under this section will
provide adequate (but not excessive) funding of the
administrative costs of the smallest tribal elementary
or secondary educational programs;
``(ii) a minimum base rate which ensures that the
amount of the grants provided under this section will
provide adequate (but not excessive) funding of the
administrative costs of the largest tribal elementary or
secondary educational programs; and
``(iii) a standard direct cost base which is the
aggregate direct cost funding level for which the
percentage determined under subsection (d) will--
``(I) be equal to the median between the
maximum base rate and the minimum base rate; and
``(II) ensure that the amount of the grants
provided under this section will provide adequate
(but not excessive) funding of the administrative
costs of tribal elementary or secondary
educational programs closest to the size of the
program.
``(2) Guidelines.--The studies required under paragraph (1)
shall--
``(A) be conducted in full consultation (in
accordance with section 1131) with--
``(i) the tribes and tribal organizations that
are affected by the application of the formula set
forth in subsection (c); and
``(ii) all national and regional Indian
organizations of which such tribes and tribal
organizations are typically members;
``(B) be conducted onsite with a representative
statistical sample of the tribal elementary or secondary
educational programs under a contract entered into with
a nationally reputable public accounting and business
consulting firm;
[[Page 115 STAT. 2037]]
``(C) take into account the availability of skilled
labor commodities, business and automatic data
processing services, related Indian preference and
Indian control of education requirements, and any other
market factors found to substantially affect the
administrative costs and efficiency of each such tribal
elementary or secondary educational program studied in
order to ensure that all required administrative
activities can reasonably be delivered in a cost
effective manner for each such program, given an
administrative cost allowance generated by the values,
percentages, or other factors found in the studies to be
relevant in such formula;
``(D) identify, and quantify in terms of percentages
of direct program costs, any general factors arising
from geographic isolation, or numbers of programs
administered, independent of program size factors used
to compute a base administrative cost percentage in such
formula; and
``(E) identify any other incremental cost factors
substantially affecting the costs of required
administrative cost functions at any of the tribal
elementary or secondary educational programs studied and
determine whether the factors are of general
applicability to other such programs, and (if so) how
the factors may effectively be incorporated into such
formula.
``(3) Consultation with inspector general.--In carrying out
the studies required under this subsection, the Director shall
obtain the input of, and afford an opportunity to participate
to, the Inspector General of the Department of the Interior.
``(4) Consideration of delivery of administrative
services.--Determinations described in paragraph (2)(C) shall be
based on what is practicable at each location studied, given
prudent management practice, irrespective of whether required
administrative services were actually or fully delivered at
these sites, or whether other services were delivered instead,
during the period of the study.
``(5) Report.--Upon completion of the studies conducted
under paragraph (1), the Director shall submit to Congress a
report on the findings of the studies, together with
determinations based upon such studies that would affect the
definitions set forth under subsection (e) that are used in the
formula set forth in subsection (c).
``(6) Projection of costs.--The Secretary shall include in
the Bureau's justification for each appropriations request
beginning in the first fiscal year after the completion of the
studies conducted under paragraph (1), a projection of the
overall costs associated with the formula set forth in
subsection (c) for all tribal elementary or secondary education
programs which the Secretary expects to be funded in the fiscal
year for which the appropriations are sought.
``(7) Determination of program size.--For purposes of this
subsection, the size of tribal elementary or secondary
educational programs is determined by the aggregate direct cost
program funding level for all Bureau-funded programs which share
common administrative cost functions.
``(j) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section such sums as may be necessary.
[[Page 115 STAT. 2038]]
``(2) Reductions.--If the total amount of funds necessary to
provide grants to tribes and tribal organizations in the amounts
determined under subsection (c) for a fiscal year exceeds the
amount of funds appropriated to carry out this section for such
fiscal year, the Secretary shall reduce the amount of each grant
determined under subsection (c) for such fiscal year by an
amount that bears the same relationship to such excess as the
amount of such grants determined under subsection (c) bears to
the total of all grants determined under subsection (c) section
for all tribes and tribal organizations for such fiscal year.
``(k) Applicability to Schools Operating Under Tribally Controlled
Schools Act of 1988.--The provisions of this section shall apply to
schools operating under the Tribally Controlled Schools Act of 1988.
``(l) Administrative Cost Grant Budget Requests.--
``(1) In general.--Beginning with President's annual budget
request under section 1105 of title 31, United States Code for
fiscal year 2002, and with respect to each succeeding budget
request, at the discretion of the Secretary, the Secretary shall
submit to the appropriate committees of Congress information and
funding requests for the full funding of administrative costs
grants required to be paid under this section.
``(2) Requirements.--
``(A) Funding for new conversions to contract or
grant school operations.--With respect to a budget
request under paragraph (1), the amount required to
provide full funding for an administrative cost grant
for each tribe or tribal organization expected to begin
operation of a Bureau-funded school as contract or grant
school in the academic year funded by such annual budget
request, the amount so required shall not be less than
10 percent of the amount required for subparagraph (B).
``(B) Funding for continuing contract and grant
school operations.--With respect to a budget request
under paragraph (1), the amount required to provide full
funding for an administrative cost grant for each tribe
or tribal organization operating a contract or grant
school at the time the annual budget request is
submitted, which amount shall include the amount of
funds required to provide full funding for an
administrative cost grant for each tribe or tribal
organization which began operation of a contract or
grant school with administrative cost grant funds
supplied from the amount described in subparagraph (A).
``SEC. 1129. <<NOTE: 25 USC 2009.>> DIVISION OF BUDGET ANALYSIS.
``(a) <<NOTE: Deadline.>> Establishment.--Not later than 1 year
after the date of enactment of the Native American Education Improvement
Act of 2001, the Secretary shall establish within the Office of Indian
Education Programs a Division of Budget Analysis (hereafter in this
section referred to as the `Division'). Such Division shall be under the
direct supervision and control of the Director of the Office.
``(b) Functions.--In consultation with the tribal governing bodies
and tribal school boards, the Director of the Office, through
[[Page 115 STAT. 2039]]
the Division, shall conduct studies, surveys, or other activities to
gather demographic information on Bureau-funded schools and project the
amount necessary to provide Indian students in such schools the
educational program set forth in this part.
``(c) Annual <<NOTE: Deadline.>> Reports.--Not later than the date
on which the Assistant Secretary for Indian Affairs makes the annual
budget submission, for each fiscal year after the date of enactment of
the Native American Education Improvement Act of 2001, the Director of
the Office shall submit to the appropriate committees of Congress
(including the Appropriations committees), all Bureau-funded schools,
and the tribal governing bodies of such schools, a report that
contains--
``(1) projections, based upon the information gathered
pursuant to subsection (b) and any other relevant information,
of amounts necessary to provide Indian students in Bureau-funded
schools the educational program set forth in this part;
``(2) a description of the methods and formulas used to
calculate the amounts projected pursuant to paragraph (1); and
``(3) such other information as the Director of the Office
considers appropriate.
``(d) Use of Reports.--The Director of the Office and the Assistant
Secretary for Indian Affairs shall use the annual report required by
subsection (c) when preparing annual budget submissions.
``SEC. 1130. <<NOTE: 25 USC 2010.>> UNIFORM DIRECT FUNDING AND SUPPORT.
``(a) Establishment of System and Forward Funding.--
``(1) In <<NOTE: Regulations.>> general.--The Secretary
shall establish, by regulation adopted in accordance with
section 1136, a system for the direct funding and support of all
Bureau-funded schools. Such system shall allot funds in
accordance with section 1127. All amounts appropriated for
distribution in accordance with this section shall be made
available in accordance with paragraph (2).
``(2) Timing for use of funds.--
``(A) Availability.--For the purposes of affording
adequate notice of funding available pursuant to the
allotments made under section 1127 and the allotments of
funds for operation and maintenance of facilities,
amounts appropriated in an appropriations Act for any
fiscal year for such allotments--
``(i) shall become available for obligation by
the affected schools on July 1 of the fiscal year
for which such allotments are appropriated without
further action by the Secretary; and
``(ii) shall remain available for obligation
through the succeeding fiscal year.
``(B) Publications.--The Secretary shall, on the
basis of the amounts appropriated as described in this
paragraph--
``(i) <<NOTE: Deadline.>> publish, not later
than July 1 of the fiscal year for which the
amounts are appropriated, information indicating
the amount of the allotments to be made to each
affected school under section 1127, of 80 percent
of such appropriated amounts; and
[[Page 115 STAT. 2040]]
``(ii) <<NOTE: Deadline.>> publish, not later
than September 30 of such fiscal year, information
indicating the amount of the allotments to be made
under section 1127, from the remaining 20 percent
of such appropriated amounts, adjusted to reflect
the actual student attendance.
``(C) Overpayments.--Any overpayments made to tribal
schools shall be returned to the Secretary not later
than 30 days after the final determination that the
school was overpaid pursuant to this section.
``(3) Limitation.--
``(A) Expenditures.--Notwithstanding any other
provision of law (including a regulation), the
supervisor of a Bureau-operated school may expend an
aggregate of not more than $50,000 of the amount
allotted to the school under section 1127 to acquire
materials, supplies, equipment, operation services,
maintenance services, and other services for the school,
and amounts received as operations and maintenance
funds, funds received from the Department of Education,
or funds received from other Federal sources, without
competitive bidding if--
``(i) the cost for any single item acquired
does not exceed $15,000;
``(ii) the school board approves the
acquisition;
``(iii) the supervisor certifies that the cost
is fair and reasonable;
``(iv) the documents relating to the
acquisition executed by the supervisor of the
school or other school staff cite this paragraph
as authority for the acquisition; and
``(v) the acquisition transaction is
documented in a journal maintained at the school
that clearly identifies when the transaction
occurred, the item that was acquired and from
whom, the price paid, the quantities acquired, and
any other information the supervisor or the school
board considers to be relevant.
``(B) <<NOTE: Deadline.>> Notice.--Not later than 6
months after the date of enactment of the Native
American Education Improvement Act of 2001, the
Secretary shall send notice of the provisions of this
paragraph to each supervisor of a Bureau school and
associated school board chairperson, the education line
officer of each agency and area, and the Bureau division
in charge of procurement, at both the local and national
levels.
``(C) Application and guidelines.--The Director of
the Office shall be responsible for--
``(i) determining the application of this
paragraph, including the authorization of specific
individuals to carry out this paragraph;
``(ii) ensuring that there is at least one
such individual at each Bureau facility; and
``(iii) the provision of guidelines on the use
of this paragraph and adequate training on such
guidelines.
``(4) Effect of sequestration order.--If a sequestration
order issued under the Balanced Budget and Emergency Deficit
Control Act of 1985 reduces the amount of funds available for
allotment under section 1127 for any fiscal year by more
[[Page 115 STAT. 2041]]
than 7 percent of the amount of funds available for allotment
under such section during the preceding fiscal year--
``(A) to fund allotments under section 1127, the
Secretary, notwithstanding any other law, may use--
``(i) funds appropriated for the operation of
any Bureau-funded school that is closed or
consolidated; and
``(ii) funds appropriated for any program that
has been curtailed at any Bureau school; and
``(B) the Secretary may waive the application of the
provisions of section 1121(h) with respect to the
closure or consolidation of a school, or the curtailment
of a program at a school, during such fiscal year if the
funds described in clauses (i) and (ii) of subparagraph
(A) with respect to such school are used to fund
allotments made under section 1127 for such fiscal year.
``(b) Local Financial Plans for Expenditure of Funds.--
``(1) Plan required.--Each Bureau-operated school that
receives an allotment under section 1127 shall prepare a local
financial plan that specifies the manner in which the school
will expend the funds made available under the allotment and
ensures that the school will meet the accreditation requirements
or standards for the school pursuant to section 1121.
``(2) Requirement.--A local financial plan under paragraph
(1) shall comply with all applicable Federal and tribal laws.
``(3) Preparation and revision.--
``(A) In general.--The financial plan for a school
under subparagraph (A) shall be prepared by the
supervisor of the school in active consultation with the
local school board for the school.
``(B) Authority of school board.--The local school
board for each school shall have the authority to
ratify, reject, or amend such financial plan and, at the
initiative of the local school board or in response to
the supervisor of the school, to revise such financial
plan to meet needs not foreseen at the time of
preparation of the financial plan.
``(4) Role of supervisor.--The supervisor of the school--
``(A) shall implement the decisions of the school
board relating to the financial plan under paragraph
(1);
``(B) shall provide the appropriate local union
representative of the education employees of the school
with copies of proposed financial plans relating to the
school and all modifications and proposed modifications
to the plans, and at the same time submit such copies to
the local school board; and
``(C) may appeal any such action of the local school
board to the appropriate education line officer of the
Bureau agency by filing a written statement describing
the action and the reasons the supervisor believes such
action should be overturned.
``(5) Statements.--
``(A) In general.--A copy of each statement filed
under paragraph (4)(C) shall be submitted to the local
school board and such board shall be afforded an
opportunity to respond, in writing, to such appeal.
[[Page 115 STAT. 2042]]
``(B) Overturned actions.--After reviewing such
written appeal and response, the appropriate education
line officer may, for good cause, overturn the action of
the local school board.
``(C) Transmission of determination.--The
appropriate education line officer shall transmit the
determination of such appeal in the form of a written
opinion to such board and to such supervisor identifying
the reasons for overturning such action.
``(c) Tribal Division of Education, Self-Determination Grant and
Contract Funds.--The Secretary may approve applications for funding
tribal divisions of education and developing tribal codes of education,
from funds made available pursuant to section 103(a) of the Indian Self-
Determination and Education Assistance Act.
``(d) Technical Assistance and Training.--In carrying out this
section, a local school board may request technical assistance and
training from the Secretary, and the Secretary shall, to the maximum
extent practicable, provide those services and make appropriate
provisions in the budget of the Office for the provision of those
services.
``(e) Summer Program of Academic and Support Services.--
``(1) Plan.--
``(A) In general.--A financial plan under subsection
(b) for a school may include, at the discretion of the
local administrator and the school board of such school,
a provision for a summer program of academic and support
services for students of the school.
``(B) Prevention activities.--Any such program may
include activities related to the prevention of alcohol
and substance abuse.
``(C) Summer use.--The Assistant Secretary for
Indian Affairs shall provide for the use of any such
school facility during any summer in which such use is
requested.
``(2) Use of other funds.--Notwithstanding any other
provision of law, funds authorized under the Act of April 16,
1934, and this Act may be used to augment the services provided
in each summer program at the option, and under the control, of
the tribe or Indian controlled school receiving such funds.
``(3) Technical assistance and program coordination.--The
Assistant Secretary for Indian Affairs, acting through the
Director of the Office, shall--
``(A) provide technical assistance and coordination
for any program described in paragraph (1); and
``(B) to the extent practicable, encourage the
coordination of such programs with any other summer
programs that might benefit Indian youth, regardless of
the funding source or administrative entity of any such
program.
``(f) Cooperative Agreements.--
``(1) Implementation.--
``(A) In general.--From funds allotted to a Bureau
school under section 1127, the Secretary shall, if
specifically requested by the appropriate tribal
governing body, implement a cooperative agreement that
is entered into between the tribe, the Bureau, the local
school board, and a local
[[Page 115 STAT. 2043]]
public school district that meets the requirements of
paragraph (2) and involves the school.
``(B) Terms.--The tribe, the Bureau, the school
board, and the local public school district shall
determine the terms of an agreement entered into under
subparagraph (A).
``(2) Coordination provisions.--An agreement under paragraph
(1) may, with respect to the Bureau school and schools in the
school district involved, encompass coordination of all or any
part of the following:
``(A) The academic program and curriculum, unless
the Bureau school is accredited by a State or regional
accrediting entity and would not continue to be so
accredited if the agreement encompassed the program and
curriculum.
``(B) Support services, including procurement and
facilities maintenance.
``(C) Transportation.
``(3) Equal benefit and burden.--
``(A) In general.--Each agreement entered into under
paragraph (1) shall confer a benefit upon the Bureau
school commensurate with the burden assumed by the
school.
``(B) Limitation.--Subparagraph (A) shall not be
construed to require equal expenditures, or an exchange
of similar services, by the Bureau school and schools in
the school district.
``(g) Product or Result of Student Projects.--Notwithstanding any
other provision of law, in a case in which there is agreement on action
between the superintendent and the school board of a Bureau-funded
school, the product or result of a project conducted in whole or in
major part by a student may be given to that student upon the completion
of such project.
``(h) Matching Fund Requirements.--
``(1) Not considered federal funds.--Notwithstanding any
other provision of law, funds received by a Bureau-funded school
under this title for education-related activities (not including
funds for construction, maintenance, and facilities improvement
or repair) shall not be considered Federal funds for the
purposes of a matching funds requirement for any Federal
program.
``(2) Limitation.--In considering an application from a
Bureau-funded school for participation in a program or project
that requires matching funds, the entity administering such
program or project or awarding such grant shall not give
positive or negative weight to such application based solely on
the provisions of paragraph (1).
``SEC. 1131. <<NOTE: 25 USC 2011.>> POLICY FOR INDIAN CONTROL OF INDIAN
EDUCATION.
``(a) Facilitation of Indian Control.--It shall be the policy of the
United States acting through the Secretary, in carrying out the
functions of the Bureau, to facilitate Indian control of Indian affairs
in all matters relating to education.
``(b) Consultation With Tribes.--
``(1) In general.--All actions under this Act shall be done
with active consultation with tribes. The United States acting
through the Secretary and tribes shall work in a government-
[[Page 115 STAT. 2044]]
to-government relationship to ensure quality education for all
tribal members.
``(2) Requirements.--
``(A) Definition of consultation.--In this
subsection, the term `consultation' means a process
involving the open discussion and joint deliberation of
all options with respect to potential issues or changes
between the Bureau and all interested parties.
``(B) Discussion and joint deliberation.--During
discussions and joint deliberations, interested parties
(including tribes and school officials) shall be given
an opportunity--
``(i) to present issues (including proposals
regarding changes in current practices or
programs) that will be considered for future
action by the Secretary; and
``(ii) to participate and discuss the options
presented, or to present alternatives, with the
views and concerns of the interested parties given
effect unless the Secretary determines, from
information available from or presented by the
interested parties during one or more of the
discussions and deliberations, that there is a
substantial reason for another course of action.
``(C) Explanation by secretary.--The Secretary shall
submit to any Member of Congress, within 18 days of the
receipt of a written request by such Member, a written
explanation of any decision made by the Secretary which
is not consistent with the views of the interested
parties described in subparagraph (B).
``SEC. 1132. <<NOTE: 25 USC 2012.>> INDIAN EDUCATION PERSONNEL.
``(a) In General.--Chapter 51, subchapter III of chapter 53, and
chapter 63 of title 5, United States Code, relating to classification,
pay and leave, respectively, and the sections of such title relating to
the appointment, promotion, hours of work, and removal of civil service
employees, shall not apply to educators or to education positions (as
defined in subsection (p)).
``(b) <<NOTE: Deadline.>> Regulations.--Not later than 60 days
after the date of enactment of the Native American Education Improvement
Act of 2001, the Secretary shall prescribe regulations to carry out this
section. Such regulations shall provide for--
``(1) the establishment of education positions;
``(2) the establishment of qualifications for educators and
education personnel;
``(3) the fixing of basic compensation for educators and
education positions;
``(4) the appointment of educators;
``(5) the discharge of educators;
``(6) the entitlement of educators to compensation;
``(7) the payment of compensation to educators;
``(8) the conditions of employment of educators;
``(9) the leave system for educators;
``(10) the annual leave and sick leave for educators;
``(11) the length of the school year applicable to education
positions described in subsection (a); and
``(12) such additional matters as may be appropriate.
``(c) Qualifications of Educators.--
[[Page 115 STAT. 2045]]
``(1) Requirements.--In prescribing regulations to govern
the qualifications of educators, the Secretary shall require
that--
``(A) lists of qualified and interviewed applicants
for education positions be maintained in each agency and
area office of the Bureau from among individuals who
have applied at the agency or area level for an
education position or who have applied at the national
level and have indicated in such application an interest
in working in certain areas or agencies;
``(B) a local school board shall have the authority
to waive on a case-by-case basis, any formal education
or degree qualifications established by regulation
pursuant to subsection (b)(2), in order for a tribal
member to be hired in an education position to teach
courses on tribal culture and language and that subject
to subsection (e)(2), a determination by a school board
that such a person be hired shall be instituted by the
supervisor of the school involved; and
``(C) that it shall not be a prerequisite to the
employment of an individual in an education position at
the local level that--
``(i) such individual's name appear on a list
maintained pursuant to subparagraph (A); or
``(ii) such individual have applied at the
national level for an education position.
``(2) Exception for certain temporary employment.--The
Secretary may authorize the temporary employment in an education
position of an individual who has not met the certification
standards established pursuant to regulations if the Secretary
determines that failure to do so would result in that position
remaining vacant.
``(d) Hiring of Educators.--
``(1) Requirements.--In prescribing regulations to govern
the appointment of educators, the Secretary shall require--
``(A)(i)(I) that educators employed in a Bureau
school (other than the supervisor of the school) shall
be hired by the supervisor of the school; and
``(II) in a case in which there are no qualified
applicants available to fill a vacancy at a Bureau
school, the supervisor may consult a list maintained
pursuant to subsection (c)(1)(A);
``(ii) each supervisor of a Bureau school shall be
hired by the education line officer of the agency office
of the Bureau for the jurisdiction in which the school
is located;
``(iii) each educator employed in an agency office
of the Bureau shall be hired by the superintendent for
education of the agency office; and
``(iv) each education line officer and educator
employed in the office of the Director of the Office
shall be hired by the Director;
``(B)(i) before an individual is employed in an
education position in a Bureau school by the supervisor
of the school (or, with respect to the position of
supervisor, by the appropriate agency education line
officer), the local school board for the school shall be
consulted; and
[[Page 115 STAT. 2046]]
``(ii) that a determination by such school board, as
evidenced by school board records, that such individual
should or should not be so employed shall be instituted
by the supervisor (or with respect to the position of
supervisor, by the superintendent for education of the
agency office);
``(C)(i) before an individual is employed in an
education position in an agency or area office of the
Bureau, the appropriate agency school board shall be
consulted; and
``(ii) a determination by such school board, as
evidenced by school board records, that such individual
should or should not be employed shall be instituted by
the superintendent for education of the agency office;
and
``(D) all employment decisions or actions be in
compliance with all applicable Federal, State, and
tribal laws.
``(2) Information regarding application at national level.--
``(A) In general.--Any individual who applies at the
local level for an education position shall state on
such individual's application whether or not such
individual has applied at the national level for an
education position in the Bureau.
``(B) Determination of accuracy.--If such individual
is employed at the local level, such individual's name
shall be immediately forwarded to the Secretary, who
shall, as soon as practicable but in no event in more
than 30 days, ascertain the accuracy of the statement
made by such individual pursuant to subparagraph (A).
``(C) False statements.--Notwithstanding subsection
(e), if the individual's statement is found to have been
false, such individual, at the Secretary's discretion,
may be disciplined or discharged.
``(D) Conditional appointment for national
provision.--If the individual has applied at the
national level for an education position in the Bureau,
the appointment of such individual at the local level
shall be conditional for a period of 90 days, during
which period the Secretary may appoint a more qualified
individual (as determined by the Secretary) from the
list maintained at the national level pursuant to
subsection (c)(1)(A)(ii) to the position to which such
individual was appointed.
``(3) Statutory construction.--Except as expressly provided,
nothing in this section shall be construed as conferring upon
local school boards authority over, or control of, educators at
Bureau-funded schools or the authority to issue management
decisions.
``(4) Appeals.--
``(A) By supervisor.--
``(i) In general.--The supervisor of a school
may appeal to the appropriate agency education
line officer any determination by the local school
board for the school that an individual be
employed, or not be employed, in an education
position in the school (other than that of
supervisor) by filing a written statement
describing the determination and the reasons the
supervisor believes such determination should be
overturned.
[[Page 115 STAT. 2047]]
``(ii) Action by board.--A copy of such
statement shall be submitted to the local school
board and such board shall be afforded an
opportunity to respond, in writing, to such
appeal.
``(iii) Overturning of determination.--After
reviewing such written appeal and response, the
education line officer may, for good cause,
overturn the determination of the local school
board.
``(iv) Transmission of determination.--The
education line officer shall transmit the
determination of such appeal in the form of a
written opinion to such board and to such
supervisor identifying the reasons for overturning
such determination.
``(B) By education line officer.--
``(i) In general.--The education line officer
of an agency office of the Bureau may appeal to
the Director of the Office any determination by
the local school board for the school that an
individual be employed, or not be employed, as the
supervisor of a school by filing a written
statement describing the determination and the
reasons the supervisor believes such determination
should be overturned.
``(ii) Action by board.--A copy of such
statement shall be submitted to the local school
board and such board shall be afforded an
opportunity to respond, in writing, to such
appeal.
``(iii) Overturning of determination.--After
reviewing such written appeal and response, the
Director may, for good cause, overturn the
determination of the local school board.
``(iv) Transmission of determination.--The
Director shall transmit the determination of such
appeal in the form of a written opinion to such
board and to such education line officer
identifying the reasons for overturning such
determination.
``(5) Other appeals.--
``(A) In general.--The education line officer of an
agency office of the Bureau may appeal to the Director
of the Office any determination by the agency school
board that an individual be employed, or not be
employed, in an education position in such agency office
by filing a written statement describing the
determination and the reasons the supervisor believes
such determination should be overturned.
``(B) Action by board.--A copy of such statement
shall be submitted to the agency school board and such
board shall be afforded an opportunity to respond, in
writing, to such appeal.
``(C) Overturning of determination.--After reviewing
such written appeal and response, the Director may, for
good cause, overturn the determination of the agency
school board.
``(D) Transmission of determination.--The Director
shall transmit the determination of such appeal in the
form of a written opinion to such board and to such
education line officer identifying the reasons for
overturning such determination.
[[Page 115 STAT. 2048]]
``(e) Discharge and Conditions of Employment of Educators.--
``(1) Regulations.--In promulgating regulations to govern
the discharge and conditions of employment of educators, the
Secretary shall require--
``(A) that procedures shall be established for the
rapid and equitable resolution of grievances of
educators;
``(B) that no educator may be discharged without
notice of the reasons for the discharge and an
opportunity for a hearing under procedures that comport
with the requirements of due process; and
``(C) <<NOTE: Deadline.>> that each educator
employed in a Bureau school shall be notified 30 days
prior to the end of an academic year whether the
employment contract of the individual will be renewed
for the following year.
``(2) Procedures for discharge.--
``(A) Determinations.--
``(i) In general.--Except as provided in
clause (iii), the supervisor of a Bureau school
may discharge (subject to procedures established
under paragraph (1)(B)) for cause (as determined
under regulations prescribed by the Secretary) any
educator employed in such school.
``(ii) Notification of board.--On giving
notice to an educator of the supervisor's
intention to discharge the educator, the
supervisor shall immediately notify the local
school board of the proposed discharge.
``(iii) Determination by board.--If the local
school board determines that such educator shall
not be discharged, that determination shall be
followed by the supervisor.
``(B) Appeals.--
``(i) In general.--The supervisor shall have
the right to appeal to the education line officer
of the appropriate agency office of the Bureau a
determination by a local school board under
subparagraph (A)(iii), as evidenced by school
board records, not to discharge an educator.
``(ii) Decision of agency education line
officer.--Upon hearing such an appeal, the agency
education line officer may, for good cause, issue
a decision overturning the determination of the
local school board with respect to the employment
of such individual.
``(iii) Form of decision.--The education line
officer shall make the decision in writing and
submit the decision to the local school board.
``(3) Recommendations of school boards for discharge.--Each
local school board for a Bureau school shall have the right--
``(A) to recommend to the supervisor that an
educator employed in the school be discharged; and
``(B) to recommend to the education line officer of
the appropriate agency office of the Bureau and to the
Director of the Office, that the supervisor of the
school be discharged.
``(f) Applicability of Indian Preference Laws.--
[[Page 115 STAT. 2049]]
``(1) Applicability.--
``(A) In general.--Notwithstanding any provision of
the Indian preference laws, such laws shall not apply in
the case of any personnel action carried out under this
section with respect to an applicant or employee not
entitled to an Indian preference if each tribal
organization concerned--
``(i) grants a written waiver of the
application of those laws with respect to the
personnel action; and
``(ii) states that the waiver is necessary.
``(B) No effect on responsibility of bureau.--This
paragraph shall not be construed to relieve the
responsibility of the Bureau to issue timely and
adequate announcements and advertisements concerning any
such personnel action if such action is intended to fill
a vacancy (no matter how such vacancy is created).
``(2) Definitions.--In this subsection:
``(A) Indian preference laws.--
``(i) In general.--The term `Indian preference
laws' means section 12 of the Act of June 18, 1934
(48 Stat. 986, chapter 576) or any other provision
of law granting a preference to Indians in
promotions and other personnel actions.
``(ii) Exclusion.--The term `Indian preference
laws' does not include section 7(b) of the Indian
Self-Determination and Education Assistance Act.
``(B) Tribal organization.--The term `tribal
organization' means--
``(i) the recognized governing body of any
Indian tribe, band, nation, pueblo, or other
organized community, including a Native village
(as defined in section 3(c) of the Alaska Native
Claims Settlement Act); or
``(ii) in connection with any personnel action
referred to in this subsection, any local school
board to which the governing body has delegated
the authority to grant a waiver under this
subsection with respect to a personnel action.
``(g) Compensation or Annual Salary.--
``(1) In general.--
``(A) Compensation for educators and education
positions.--Except as otherwise provided in this
section, the Secretary shall establish the compensation
or annual salary rate for educators and education
positions--
``(i) at rates in effect under the General
Schedule for individuals with comparable
qualifications, and holding comparable positions,
to whom chapter 51 of title 5, United States Code,
is applicable; or
``(ii) on the basis of the Federal Wage System
schedule in effect for the locality involved, and
for the comparable positions, at the rates of
compensation in effect for the senior executive
service.
``(B) Compensation or salary for teachers and
counselors.--
``(i) In general.--The Secretary shall
establish the rate of compensation, or annual
salary rate, for the positions of teachers and
counselors (including dormitory counselors and
home-living counselors) at the
[[Page 115 STAT. 2050]]
rate of compensation applicable (on the date of
enactment of the Native American Education
Improvement Act of 2001 and thereafter) for
comparable positions in the overseas schools under
the Defense Department Overseas Teachers Pay and
Personnel Practices Act.
``(ii) Essential provisions.--The Secretary
shall allow the local school boards involved
authority to implement only the aspects of the
Defense Department Overseas Teachers Pay and
Personnel Practices Act pay provisions that are
considered essential for recruitment and retention
of teachers and counselors. Implementation of such
provisions shall not be construed to require the
implementation of that entire Act.
``(C) Rates for new hires.--
``(i) In general.--Beginning with the first
fiscal year following the date of enactment of the
Native American Education Improvement Act of 2001,
each local school board of a Bureau school may
establish a rate of compensation or annual salary
rate described in clause (ii) for teachers and
counselors (including academic counselors) who are
new hires at the school and who had not worked at
the school, as of the first day of such fiscal
year.
``(ii) Consistent rates.--The rates
established under clause (i) shall be consistent
with the rates paid for individuals in the same
positions, with the same tenure and training, as
the teachers and counselors, in any other school
within whose boundaries the Bureau school is
located.
``(iii) Decreases.--In a case in which the
establishment of rates under clause (i) causes a
reduction in compensation at a school from the
rate of compensation that was in effect for the
first fiscal year following the date of enactment
of the Native American Education Improvement Act
of 2001, the new rates of compensation may be
applied to the compensation of employees of the
school who worked at the school as of such date of
enactment by applying those rates at each contract
renewal for the employees so that the reduction
takes effect in three equal installments.
``(iv) Increases.--In a case in which adoption
of rates under clause (i) leads to an increase in
the payment of compensation from that which was in
effect for the fiscal year following the date of
enactment of the Native American Education
Improvement Act of 2001, the school board may make
such rates applicable at the next contract renewal
such that--
``(I) the increase occurs in its
entirety; or
``(II) the increase is applied in
three equal installments.
``(D) Use of regulations; continued employment of
certain educators.--The establishment of rates of basic
compensation and annual salary rates under subparagraphs
(B) and (C) shall not--
``(i) preclude the use of regulations and
procedures used by the Bureau prior to April 28,
1988, in making
[[Page 115 STAT. 2051]]
determinations regarding promotions and
advancements through levels of pay that are based
on the merit, education, experience, or tenure of
the educator; or
``(ii) affect the continued employment or
compensation of an educator who was employed in an
education position on October 31, 1979, and who
did not make an election under subsection (p) as
in effect on January 1, 1990.
``(2) Post differential rates.--
``(A) In general.--The Secretary may pay a post
differential rate, not to exceed 25 percent of the rate
of compensation, for educators or education positions,
on the basis of conditions of environment or work that
warrant additional pay, as a recruitment and retention
incentive.
``(B) Supervisor's authority.--
``(i) In general.--Except as provided in
clause (ii), on the request of the supervisor and
the local school board of a Bureau school, the
Secretary shall grant the supervisor of the school
authorization to provide one or more post
differential rates under subparagraph (A).
``(ii) Exception.--The Secretary shall
disapprove, or approve with a modification, a
request for authorization to provide a post
differential rate if the Secretary determines for
clear and convincing reasons (and advises the
board in writing of those reasons) that the rate
should be disapproved or decreased because the
disparity of compensation between the appropriate
educators or positions in the Bureau school, and
the comparable educators or positions at the
nearest public school, is--
``(I)(aa) at least 5 percent; or
``(bb) less than 5 percent; and
``(II) does not affect the
recruitment or retention of employees at
the school.
``(iii) Approval of requests.--A request made
under clause (i) shall be considered to be
approved at the end of the 60th day after the
request is received in the Central Office of the
Bureau unless before that time the request is
approved, approved with a modification, or
disapproved by the Secretary.
``(iv) Discontinuation of or decrease in
rates.--The Secretary or the supervisor of a
Bureau school may discontinue or decrease a post
differential rate provided for under this
paragraph at the beginning of an academic year
if--
``(I) the local school board
requests that such differential be
discontinued or decreased; or
``(II) the Secretary or the
supervisor, respectively, determines for
clear and convincing reasons (and
advises the board in writing of those
reasons) that there is no disparity of
compensation that would affect the
recruitment or retention of employees at
the school after the differential is
discontinued or decreased.
[[Page 115 STAT. 2052]]
``(v) Reports.--On or before February 1 of
each year, the Secretary shall submit to Congress
a report describing the requests and approvals of
authorization made under this paragraph during the
previous year and listing the positions receiving
post differential rates under contracts entered
into under those authorizations.
``(h) Liquidation of Remaining Leave Upon Termination.--Upon
termination of employment with the Bureau, any annual leave remaining to
the credit of an individual covered by this section shall be liquidated
in accordance with sections 5551(a) and 6306 of title 5, United States
Code, except that leave earned or accrued under regulations promulgated
pursuant to subsection (b)(10) shall not be so liquidated.
``(i) Transfer of Remaining Sick Leave Upon Transfer, Promotion, or
Reemployment.--In the case of any educator who is transferred, promoted,
or reappointed, without break in service, to a position in the Federal
Government under a different leave system, any remaining leave to the
credit of such person earned or credited under the regulations
promulgated pursuant to subsection (b)(10) shall be transferred to such
person's credit in the employing agency on an adjusted basis in
accordance with regulations which shall be promulgated by the Office of
Personnel Management.
``(j) Ineligibility for Employment of Voluntarily Terminated
Educators.--An educator who voluntarily terminates employment with the
Bureau before the expiration of the existing employment contract between
such educator and the Bureau shall not be eligible to be employed in
another education position in the Bureau during the remainder of the
term of such contract.
``(k) Dual Compensation.--In the case of any educator employed in an
education position described in subsection (l)(1)(A) who--
``(1) is employed at the close of a school year;
``(2) agrees in writing to serve in such position for the
next school year; and
``(3) is employed in another position during the recess
period immediately preceding such next school year, or during
such recess period receives additional compensation referred to
in section 5533 of title 5, United States Code, relating to dual
compensation,
shall not apply to such educator by reason of any such employment during
a recess period for any receipt of additional compensation.
``(l) Voluntary Services.--
``(1) In general.--Notwithstanding section 1342 of title 31,
United States Code, the Secretary may, subject to the approval
of the local school board concerned, accept voluntary services
on behalf of Bureau schools.
``(2) Federal employee protection.--Nothing in this part
requires Federal employees to work without compensation or
allows the use of volunteer services to displace or replace
Federal employees.
``(3) Federal status.--An individual providing volunteer
services under this section is a Federal employee only for
purposes of chapter 81 of title 5, United States Code, and
chapter 171 of title 28, United States Code.
``(m) Proration of Pay.--
[[Page 115 STAT. 2053]]
``(1) Election of employee.--
``(A) In general.--Notwithstanding any other
provision of law, including laws relating to dual
compensation, the Secretary, at the election of the
employee, shall prorate the salary of an employee
employed in an education position for the academic
school year over the entire 12-month period.
``(B) Election.--Each educator employed for the
academic school year shall annually elect to be paid on
a 12-month basis or for those months while school is in
session.
``(C) No loss of pay or benefits.--No educator shall
suffer a loss of pay or benefits, including benefits
under unemployment or other Federal or federally
assisted programs, because of such election.
``(2) Change of election.--During the course of such year
the employee may change election once.
``(3) Lump sum payment.--That portion of the employee's pay
which would be paid between academic school years may be paid in
a lump sum at the election of the employee.
``(4) Nonapplicability.--This subsection applies to those
individuals employed under the provisions of section 1132 of
this title or title 5, United States Code.
``(5) Definitions.--For purposes of this subsection, the
terms `educator' and `education position' have the meanings
contained in paragraphs (1) and (2) of subsection (o).
``(n) Extracurricular Activities.--
``(1) Stipend.--
``(A) In general.--Notwithstanding any other
provision of law, the Secretary may provide, for each
Bureau area, a stipend in lieu of overtime premium pay
or compensatory time off.
``(B) Provision to employees.--Any employee of the
Bureau who performs additional activities to provide
services to students or otherwise support the school's
academic and social programs may elect to be compensated
for all such work on the basis of the stipend.
``(C) Nature of stipend.--Such stipend shall be paid
as a supplement to the employee's base pay.
``(2) Election not to receive stipend.--If an employee
elects not to be compensated through the stipend established by
this subsection, the appropriate provisions of title 5, United
States Code, shall apply.
``(3) Applicability of subsection.--This subsection applies
to all Bureau employees, regardless of whether the employee is
employed under section 1132 of this title or title 5, United
States Code.
``(o) Definitions.--In this section:
``(1) Education position.--The term `education position'
means a position in the Bureau the duties and responsibilities
of which--
``(A)(i) are performed on a school year basis
principally in a Bureau school; and
``(ii) involve--
``(I) classroom or other instruction or the
supervision or direction of classroom or other
instruction;
[[Page 115 STAT. 2054]]
``(II) any activity (other than teaching)
which requires academic credits in educational
theory and practice equal to the academic credits
in educational theory and practice required for a
bachelor's degree in education from an accredited
institution of higher education;
``(III) any activity in or related to the
field of education notwithstanding that academic
credits in educational theory and practice are not
a formal requirement for the conduct of such
activity; or
``(IV) support services at, or associated
with, the site of the school; or
``(B) are performed at the agency level of the
Bureau and involve the implementation of education-
related programs other than the position for agency
superintendent for education.
``(2) Educator.--The term `educator' means an individual
whose services are required, or who is employed, in an education
position.
``(p) Covered Individuals; Election.--This section shall apply with
respect to any educator hired after November 1, 1979 (and to any
educator who elected for coverage under that provision after November 1,
1979) and to the position in which such individual is employed. The
enactment of this section shall not affect the continued employment of
an individual employed on October 31, 1979, in an education position, or
such person's right to receive the compensation attached to such
position.
``(q) Furlough Without Consent.--
``(1) In general.--An educator who was employed in an
education position on October 31, 1979, who was eligible to make
an election under subsection (p) at that time, and who did not
make the election under such subsection, may not be placed on
furlough (within the meaning of section 7511(a)(5) of title 5,
United States Code, without the consent of such educator for an
aggregate of more than 4 weeks within the same calendar year,
unless--
``(A) the supervisor, with the approval of the local
school board (or of the education line officer upon
appeal under paragraph (2)), of the Bureau school at
which such educator provides services determines that a
longer period of furlough is necessary due to an
insufficient amount of funds available for personnel
compensation at such school, as determined under the
financial plan process as determined under section
1129(b); and
``(B) all educators (other than principals and
clerical employees) providing services at such Bureau
school are placed on furloughs of equal length, except
that the supervisor, with the approval of the local
school board (or of the agency education line officer
upon appeal under paragraph (2)), may continue one or
more educators in pay status if--
``(i) such educators are needed to operate
summer programs, attend summer training sessions,
or participate in special activities including
curriculum development committees; and
[[Page 115 STAT. 2055]]
``(ii) such educators are selected based upon
such educator's qualifications after public notice
of the minimum qualifications reasonably necessary
and without discrimination as to supervisory,
nonsupervisory, or other status of the educators
who apply.
``(2) Appeals.--The supervisor of a Bureau school may appeal
to the appropriate agency education line officer any refusal by
the local school board to approve any determination of the
supervisor that is described in paragraph (1)(A) by filing a
written statement describing the determination and the reasons
the supervisor believes such determination should be approved. A
copy of such statement shall be submitted to the local school
board and such board shall be afforded an opportunity to
respond, in writing, to such appeal. After reviewing such
written appeal and response, the education line officer may, for
good cause, approve the determination of the supervisor. The
educational line officer shall transmit the determination of
such appeal in the form of a written opinion to such local
school board and to the supervisor identifying the reasons for
approving such determination.
``(r) Stipends.--The Secretary is authorized to provide annual
stipends to teachers who become certified by the National Board of
Professional Teaching Standards, the National Council on Teacher
Quality, or other nationally recognized certification or credentialing
organizations.
``SEC. 1133. <<NOTE: 25 USC 2013.>> COMPUTERIZED MANAGEMENT INFORMATION
SYSTEM.
``(a) In <<NOTE: Deadline.>> General.--Not later than 12 months
after the date of enactment of the Native American Education Improvement
Act of 2001, the Secretary shall update the computerized management
information system within the Office. The information to be updated
shall include information regarding--
``(1) student enrollment;
``(2) curricula;
``(3) staffing;
``(4) facilities;
``(5) community demographics;
``(6) student assessment information;
``(7) information on the administrative and program costs
attributable to each Bureau program, divided into discrete
elements;
``(8) relevant reports;
``(9) personnel records;
``(10) finance and payroll; and
``(11) such other items as the Secretary determines to be
appropriate.
``(b) Implementation <<NOTE: Deadline.>> of System.--Not later than
July 1, 2003, the Secretary shall complete the implementation of the
updated computerized management information system at each Bureau field
office and Bureau-funded school.
``SEC. 1134. <<NOTE: 25 USC 2014.>> RECRUITMENT OF INDIAN EDUCATORS.
``The Secretary shall institute a policy for the recruitment of
qualified Indian educators and a detailed plan to promote employees from
within the Bureau. Such plan shall include opportunities for acquiring
work experience prior to actual work assignment.
[[Page 115 STAT. 2056]]
``SEC. 1135. <<NOTE: 25 USC 2015.>> ANNUAL REPORT; AUDITS.
``(a) Annual Reports.--The Secretary shall submit to each
appropriate committee of Congress, all Bureau-funded schools, and the
tribal governing bodies of such schools, a detailed annual report on the
state of education within the Bureau, and any problems encountered in
Indian education during the period covered by the report, that
includes--
``(1) suggestions for the improvement of the Bureau
educational system and for increasing tribal or local Indian
control of such system; and
``(2) information on the status of tribally controlled
community colleges.
``(b) Budget Request.--The annual budget request for the education
programs of the Bureau, as submitted as part of the President's next
annual budget request under section 1105 of title 31, United States
Code, shall include the plans required by sections 1121(c), 1122(c), and
1124(c).
``(c) Financial and Compliance Audits.--The Inspector General of the
Department of the Interior shall establish a system to ensure that
financial and compliance audits, based upon the extent to which a school
described in subsection (a) has complied with the local financial plan
under section 1130, are conducted of each Bureau-operated school at
least once every 3 years.
``(d) Administrative Evaluation of Schools.--The Director shall, at
least once every 3 to 5 years, conduct a comprehensive evaluation of
Bureau-operated schools. Such evaluation shall be in addition to any
other program review or evaluation that may be required under Federal
law.
``SEC. 1136. <<NOTE: 25 USC 2016.>> RIGHTS OF INDIAN STUDENTS.
``The <<NOTE: Regulations.>> Secretary shall prescribe such rules
and regulations as are necessary to ensure the constitutional and civil
rights of Indian students attending Bureau-funded schools, including
such students' rights to--
``(1) privacy under the laws of the United States;
``(2) freedom of religion and expression; and
``(3) due process in connection with disciplinary actions,
suspensions, and expulsions.
``SEC. 1137. <<NOTE: 25 USC 2017.>> REGULATIONS.
``(a) Promulgation.--
``(1) In general.--The Secretary may promulgate only such
regulations--
``(A) as are necessary to ensure compliance with the
specific provisions of this part; and
``(B) as the Secretary is authorized to promulgate
pursuant to section 5211 of the Tribally Controlled
Schools Act of 1988 (25 U.S.C. 2510).
``(2) Publication.--In promulgating the regulations, the
Secretary shall--
``(A) <<NOTE: Federal Register, publication.>>
publish proposed regulations in the Federal Register;
and
``(B) <<NOTE: Deadline.>> provide a period of not
less than 120 days for public comment and consultation
on the regulations.
``(3) Citation.--The regulations shall contain, immediately
following each regulatory section, a citation to any statutory
[[Page 115 STAT. 2057]]
provision providing authority to promulgate such regulatory
section.
``(b) Miscellaneous.--The provisions of this Act shall supersede any
conflicting provisions of law (including any conflicting regulations) in
effect on the day before the date of enactment of this Act and the
Secretary is authorized to repeal any regulation inconsistent with the
provisions of this Act.
``SEC. 1138. <<NOTE: 25 USC 2018.>> REGIONAL MEETINGS AND NEGOTIATED
RULEMAKING.
``(a) Regional Meetings.--Prior to publishing any proposed
regulations under subsection (b)(1), and prior to establishing the
negotiated rulemaking committee under subsection (b)(3), the Secretary
shall convene regional meetings to consult with personnel of the Office
of Indian Education Programs, educators at Bureau schools, and tribal
officials, parents, teachers, administrators, and school board members
of tribes served by Bureau-funded schools to provide guidance to the
Secretary on the content of regulations authorized to be promulgated
under this part and the Tribally Controlled Schools Act of 1988.
``(b) Negotiated Rulemaking.--
``(1) <<NOTE: Federal Register, publication.>> In
general.--Notwithstanding sections 563(a) and 565(a) of title 5,
United States Code, the Secretary shall promulgate regulations
authorized under subsection (a) and under the Tribally
Controlled Schools Act of 1988, in accordance with the
negotiated rulemaking procedures provided for under subchapter
III of chapter 5 of title 5, United States Code, and shall
publish final regulations in the Federal Register.
``(2) Notification to congress.--If draft regulations
implementing this part and the Tribally Controlled Schools Act
of 1988 are not promulgated in final form within 18 months after
the date of enactment of the Native American Education
Improvement Act of 2001, the Secretary shall notify the
appropriate committees of Congress of which draft regulations
were not promulgated in final form by the deadline and the
reason such final regulations were not promulgated.
``(3) Rulemaking committee.--The Secretary shall establish a
negotiated rulemaking committee to carry out this subsection. In
establishing such committee, the Secretary shall--
``(A) apply the procedures provided for under
subchapter III of chapter 5 of title 5, United States
Code, in a manner that reflects the unique government-
to-government relationship between Indian tribes and the
United States;
``(B) ensure that the membership of the committee
includes only representatives of the Federal Government
and of tribes served by Bureau-funded schools;
``(C) select the tribal representatives of the
committee from among individuals nominated by the
representatives of the tribal and tribally operated
schools;
``(D) ensure, to the maximum extent possible, that
the tribal representative membership on the committee
reflects the proportionate share of students from tribes
served by the Bureau-funded school system; and
``(E) comply with the Federal Advisory Committee Act
(5 U.S.C. App.).
[[Page 115 STAT. 2058]]
``(4) Special rule.--The Secretary shall carry out this
section using the general administrative funds of the Department
of the Interior. In accordance with subchapter III of chapter 5
of title 5, United States Code, and section 7(d) of the Federal
Advisory Committee Act, payment of costs associated with
negotiated rulemaking shall include the reasonable expenses of
committee members.
``(c) Application of Section.--
``(1) Supremacy of provisions.--The provisions of this
section shall supersede any conflicting regulations in effect on
the day before the date of enactment of this part, and the
Secretary may repeal any regulation that is inconsistent with
the provisions of this part.
``(2) Modifications.--The Secretary may modify regulations
promulgated under this section or the Tribally Controlled
Schools Act of 1988, only in accordance with this section.
``SEC. 1139. <<NOTE: 25 USC 2019.>> EARLY CHILDHOOD DEVELOPMENT
PROGRAM.
``(a) In General.--The Secretary shall provide grants to tribes,
tribal organizations, and consortia of tribes and tribal organizations
to fund early childhood development programs that are operated by such
tribes, organizations, or consortia.
``(b) Amount of Grants.--
``(1) In general.--The total amount of the grants provided
under subsection (a) with respect to each tribe, tribal
organization, or consortium of tribes or tribal organizations
for each fiscal year shall be equal to the amount which bears
the same relationship to the total amount appropriated under the
authority of subsection (g) for such fiscal year (less amounts
provided under subsection (f)) as--
``(A) the total number of children under 6 years of
age who are members of--
``(i) such tribe;
``(ii) the tribe that authorized such tribal
organization; or
``(iii) any tribe that--
``(I) is a member of such
consortium; or
``(II) authorizes any tribal
organization that is a member of such
consortium; bears to
``(B) the total number of all children under 6 years
of age who are members of any tribe that--
``(i) is eligible to receive funds under
subsection (a);
``(ii) is a member of a consortium that is
eligible to receive such funds; or
``(iii) authorizes a tribal organization that
is eligible to receive such funds.
``(2) Limitation.--No grant may be provided under subsection
(a)--
``(A) to any tribe that has less than 500 members;
``(B) to any tribal organization which is
authorized--
``(i) by only one tribe that has less than 500
members; or
``(ii) by one or more tribes that have a
combined total membership of less than 500
members; or
[[Page 115 STAT. 2059]]
``(C) to any consortium composed of tribes, or
tribal organizations authorized by tribes, that have a
combined total tribal membership of less than 500
members.
``(c) Application.--
``(1) In general.--A grant may be provided under subsection
(a) to a tribe, tribal organization, or consortium of tribes and
tribal organizations only if the tribe, organization, or
consortium submits to the Secretary an application for the grant
at such time and in such form as the Secretary shall prescribe.
``(2) Contents.--Applications submitted under paragraph (1)
shall set forth the early childhood development program that the
applicant desires to operate.
``(d) Requirement of Programs Funded.--The early childhood
development programs that are funded by grants provided under subsection
(a)--
``(1) shall coordinate existing programs and may provide
services that meet identified needs of parents and children
under 6 years of age which are not being met by existing
programs, including--
``(A) prenatal care;
``(B) nutrition education;
``(C) health education and screening;
``(D) family literacy services;
``(E) educational testing; and
``(F) other educational services;
``(2) may include instruction in the language, art, and
culture of the tribe; and
``(3) shall provide for periodic assessment of the program.
``(e) Coordination of Family Literacy Programs.--Family literacy
programs operated under this section and other family literacy programs
operated by the Bureau of Indian Affairs shall be coordinated with
family literacy programs for Indian children under part B of title I of
the Elementary and Secondary Education Act of 1965 in order to avoid
duplication and to encourage the dissemination of information on quality
family literacy programs serving Indians.
``(f) Administrative Costs.--The Secretary shall, out of funds
appropriated under subsection (g), include in the grants provided under
subsection (a) amounts for administrative costs incurred by the tribe,
tribal organization, or consortium of tribes in establishing and
maintaining the early childhood development program.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary.
``SEC. 1140. <<NOTE: 25 USC 2020.>> TRIBAL DEPARTMENTS OR DIVISIONS OF
EDUCATION.
``(a) In General.--Subject to the availability of appropriations,
the Secretary shall make grants and provide technical assistance to
tribes for the development and operation of tribal departments or
divisions of education for the purpose of planning and coordinating all
educational programs of the tribe.
``(b) Applications.--For a tribe to be eligible to receive a grant
under this section, the governing body of the tribe shall submit an
application to the Secretary at such time, in such manner, and
containing such information as the Secretary may require.
[[Page 115 STAT. 2060]]
``(c) Diversity.--The Secretary shall award grants under this
section in a manner that fosters geographic and population diversity.
``(d) Use.--Tribes that receive grants under this section shall use
the funds made available through the grants--
``(1) to facilitate tribal control in all matters relating
to the education of Indian children on reservations (and on
former Indian reservations in Oklahoma);
``(2) to provide for the development of coordinated
educational programs (including all preschool, elementary,
secondary, and higher or vocational educational programs funded
by tribal, Federal, or other sources) on reservations (and on
former Indian reservations in Oklahoma) by encouraging tribal
administrative support of all Bureau-funded educational programs
as well as encouraging tribal cooperation and coordination with
entities carrying out all educational programs receiving
financial support from other Federal agencies, State agencies,
or private entities; and
``(3) to provide for the development and enforcement of
tribal educational codes, including tribal educational policies
and tribal standards applicable to curriculum, personnel,
students, facilities, and support programs.
``(e) Priorities.--In making grants under this section, the
Secretary shall give priority to any application that--
``(1) includes--
``(A) assurances that the applicant serves three or
more separate Bureau-funded schools; and
``(B) assurances from the applicant that the tribal
department of education to be funded under this section
will provide coordinating services and technical
assistance to all of such schools;
``(2) includes assurances that all education programs for
which funds are provided by such a contract or grant will be
monitored and audited, by or through the tribal department of
education, to ensure that the programs meet the requirements of
law; and
``(3) provides a plan and schedule that--
``(A) provides for--
``(i) the assumption, by the tribal department
of education, of all assets and functions of the
Bureau agency office associated with the tribe, to
the extent the assets and functions relate to
education; and
``(ii) the termination by the Bureau of such
functions and office at the time of such
assumption; and
``(B) provides that the assumption shall occur over
the term of the grant made under this section, except
that, when mutually agreeable to the tribal governing
body and the Assistant Secretary, the period in which
such assumption is to occur may be modified, reduced, or
extended after the initial year of the grant.
``(f) Time Period of Grant.--Subject to the availability of
appropriated funds, a grant provided under this section shall be
provided for a period of 3 years. If the performance of the grant
recipient is satisfactory to the Secretary, the grant may be renewed for
additional 3-year terms.
``(g) Terms, Conditions, or Requirements.--A tribe that receives a
grant under this section shall comply with regulations
[[Page 115 STAT. 2061]]
relating to grants made under section 103(a) of the Indian Self-
Determination and Education Assistance Act that are in effect on the
date that the tribal governing body submits the application for the
grant under subsection (b). The Secretary shall not impose any terms,
conditions, or requirements on the provision of grants under this
section that are not specified in this section.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $2,000,000.
``SEC. 1141. <<NOTE: 25 USC 2021.>> DEFINITIONS.
``For the purposes of this part, unless otherwise specified:
``(1) Agency school board.--The term `agency school board'
means a body--
``(A) the members of which are appointed by all of
the school boards of the schools located within an
agency, including schools operated under contract or
grant; and
``(B) the number of such members is determined by
the Secretary, in consultation with the affected tribes;
except that, in agencies serving a single school, the school
board of such school shall fulfill these duties, and in agencies
having schools or a school operated under contract or grant, one
such member at least shall be from such a school.
``(2) Bureau.--The term `Bureau' means the Bureau of Indian
Affairs of the Department of the Interior.
``(3) Bureau-funded school.--The term `Bureau-funded school'
means--
``(A) a Bureau school;
``(B) a contract or grant school; or
``(C) a school for which assistance is provided
under the Tribally Controlled Schools Act of 1988.
``(4) Bureau school.--The term `Bureau school' means a
Bureau-operated elementary or secondary day or boarding school
or a Bureau-operated dormitory for students attending a school
other than a Bureau school.
``(5) Complementary educational facilities.--The term
`complementary educational facilities' means educational program
functional spaces such as libraries, gymnasiums, and cafeterias.
``(6) Contract or grant school.--The term `contract or grant
school' means an elementary school, secondary school, or
dormitory that receives financial assistance for its operation
under a contract, grant, or agreement with the Bureau under
section 102, 103(a), or 208 of the Indian Self-Determination and
Education Assistance Act, or under the Tribally Controlled
Schools Act of 1988.
``(7) Director.--The term `Director' means the Director of
the Office of Indian Education Programs.
``(8) Education line officer.--The term `education line
officer' means a member of the education personnel under the
supervision of the Director of the Office, whether located in a
central, area, or agency office.
``(9) Family literacy services.--The term `family literacy
services' has the meaning given that term in section 8101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
``(10) Financial plan.--The term `financial plan' means a
plan of services provided by each Bureau school.
[[Page 115 STAT. 2062]]
``(11) Indian organization.--The term `Indian organization'
means any group, association, partnership, corporation, or other
legal entity owned or controlled by a federally recognized
Indian tribe or tribes, or a majority of whose members are
members of federally recognized tribes.
``(12) Inherently federal functions.--The term `inherently
Federal functions' means functions and responsibilities which,
under section 1126(c), are noncontractable, including--
``(A) the allocation and obligation of Federal funds
and determinations as to the amounts of expenditures;
``(B) the administration of Federal personnel laws
for Federal employees;
``(C) the administration of Federal contracting and
grant laws, including the monitoring and auditing of
contracts and grants in order to maintain the continuing
trust, programmatic, and fiscal responsibilities of the
Secretary;
``(D) the conducting of administrative hearings and
deciding of administrative appeals;
``(E) the determination of the Secretary's views and
recommendations concerning administrative appeals or
litigation and the representation of the Secretary in
administrative appeals and litigation;
``(F) the issuance of Federal regulations and
policies as well as any documents published in the
Federal Register;
``(G) reporting to Congress and the President;
``(H) the formulation of the Secretary's and the
President's policies and their budgetary and legislative
recommendations and views; and
``(I) the nondelegable statutory duties of the
Secretary relating to trust resources.
``(13) Local educational agency.--The term `local
educational agency' means a board of education or other legally
constituted local school authority having administrative control
and direction of free public education in a county, township, or
independent or other school district located within a State, and
includes any State agency that directly operates and maintains
facilities for providing free public education.
``(14) Local school board.--The term `local school board',
when used with respect to a Bureau school, means a body chosen
in accordance with the laws of the tribe to be served or, in the
absence of such laws, elected by the parents of the Indian
children attending the school, except that, for a school serving
a substantial number of students from different tribes--
``(A) the members of the body shall be appointed by
the tribal governing bodies of the tribes affected; and
``(B) the number of such members shall be determined
by the Secretary in consultation with the affected
tribes.
``(15) Office.--The term `Office' means the Office of Indian
Education Programs within the Bureau.
``(16) Regulation.--
``(A) In general.--The term `regulation' means any
part of a statement of general or particular
applicability of the Secretary designed to carry out,
interpret, or prescribe law or policy in carrying out
this Act.
``(B) Rule of construction.--Nothing in subparagraph
(A) or any other provision of this title shall be
[[Page 115 STAT. 2063]]
construed to prohibit the Secretary from issuing
guidance, internal directives, or other documents
similar to the documents found in the Indian Affairs
Manual of the Bureau of Indian Affairs.
``(17) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(18) Supervisor.--The term `supervisor' means the
individual in the position of ultimate authority at a Bureau
school.
``(19) Tribal governing body.--The term `tribal governing
body' means, with respect to any school, the tribal governing
body, or tribal governing bodies, that represent at least 90
percent of the students served by such school.
``(20) Tribe.--The term `tribe' means any Indian tribe,
band, nation, or other organized group or community, including
an Alaska Native Regional Corporation or Village Corporation (as
defined in or established pursuant to the Alaska Native Claims
Settlement Act), which is recognized as eligible for the special
programs and services provided by the United States to Indians
because of their status as Indians.''.
SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.
The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et seq.)
is amended by striking sections 5202 through 5212 and inserting the
following new sections:
``SEC. 5202. <<NOTE: 25 USC 2501.>> DECLARATION OF POLICY.
``(a) Recognition.--Congress recognizes that the Indian Self-
Determination and Education Assistance Act, which was a product of the
legitimate aspirations and a recognition of the inherent authority of
Indian nations, was and is a crucial positive step toward tribal and
community control and that the United States has an obligation to assure
maximum Indian participation in the direction of educational services so
as to render the persons administering such services and the services
themselves more responsive to the needs and desires of Indian
communities.
``(b) Commitment.--Congress declares its commitment to the
maintenance of the Federal Government's unique and continuing trust
relationship with and responsibility to the Indian people for the
education of Indian children through the establishment of a meaningful
Indian self-determination policy for education that will deter further
perpetuation of Federal bureaucratic domination of programs.
``(c) National Goal.--Congress declares that a national goal of the
United States is to provide the resources, processes, and structure that
will enable tribes and local communities to obtain the quantity and
quality of educational services and opportunities that will permit
Indian children--
``(1) to compete and excel in areas of their choice; and
``(2) to achieve the measure of self-determination essential
to their social and economic well-being.
``(d) Educational Needs.--Congress affirms--
``(1) true self-determination in any society of people is
dependent upon an educational process that will ensure the
development of qualified people to fulfill meaningful leadership
roles;
``(2) that Indian people have special and unique educational
needs, including the need for programs to meet the linguistic
and cultural aspirations of Indian tribes and communities; and
[[Page 115 STAT. 2064]]
``(3) that those needs may best be met through a grant
process.
``(e) Federal Relations.--Congress declares a commitment to the
policies described in this section and support, to the full extent of
congressional responsibility, for Federal relations with the Indian
nations.
``(f) Termination.--Congress repudiates and rejects House Concurrent
Resolution 108 of the 83d Congress and any policy of unilateral
termination of Federal relations with any Indian nation.
``SEC. 5203. <<NOTE: 25 USC 2502.>> GRANTS AUTHORIZED.
``(a) In General.--
``(1) Eligibility.--The Secretary shall provide grants to
Indian tribes, and tribal organizations that--
``(A) operate contract schools under title XI of the
Education Amendments of 1978 and notify the Secretary of
their election to operate the schools with assistance
under this part rather than continuing the schools as
contract schools;
``(B) operate other tribally controlled schools
eligible for assistance under this part and submit
applications (which are approved by their tribal
governing bodies) to the Secretary for such grants; or
``(C) elect to assume operation of Bureau-funded
schools with the assistance under this part and submit
applications (which are approved by their tribal
governing bodies) to the Secretary for such grants.
``(2) Deposit of funds.--Grants provided under this part
shall be deposited into the general operating fund of the
tribally controlled school with respect to which the grant is
made.
``(3) Use of funds.--
``(A) In general.--Except as otherwise provided in
this paragraph, grants provided under this part shall be
used to defray, at the discretion of the school board of
the tribally controlled school with respect to which the
grant is provided, any expenditures for education
related activities for which any funds that compose the
grant may be used under the laws described in section
5205(a), including expenditures for--
``(i) school operations, academic,
educational, residential, guidance and counseling,
and administrative purposes; and
``(ii) support services for the school,
including transportation.
``(B) Exception.--Grants provided under this part
may, at the discretion of the school board of the
tribally controlled school with respect to which such
grant is provided, be used to defray operations and
maintenance expenditures for the school if any funds for
the operation and maintenance of the school are
allocated to the school under the provisions of any of
the laws described in section 5205(a).
``(b) Limitations.--
``(1) One grant per tribe or organization per fiscal year.--
Not more than one grant may be provided under this
[[Page 115 STAT. 2065]]
part with respect to any Indian tribe or tribal organization for
any fiscal year.
``(2) Nonsectarian use.--Funds provided under any grant made
under this part may not be used in connection with religious
worship or sectarian instruction.
``(3) Administrative costs limitation.--Funds provided under
any grant under this part may not be expended for administrative
costs (as defined in section 1128(h)(1) of the Education
Amendments of 1978) in excess of the amount generated for such
costs under section 1128 of such Act.
``(c) Limitation on Transfer of Funds Among School Sites.--
``(1) In general.--In the case of a grantee that operates
schools at more than one school site, the grantee may expend at
any school site operated by the grantee not more than the lesser
of--
``(A) 10 percent of the funds allocated for another
school site under section 1128 of the Education
Amendments of 1978; or
``(B) $400,000 of the funds allocated for another
school site.
``(2) Definition of school site.--For purposes of this
subsection, the term `school site' means the physical location
and the facilities of an elementary or secondary educational or
residential program operated by, or under contract or grant
with, the Bureau for which a discreet student count is
identified under the funding formula established under section
1127 of the Education Amendments of 1978.
``(d) No Requirement To Accept Grants.--Nothing in this part may be
construed--
``(1) to require a tribe or tribal organization to apply for
or accept; or
``(2) to allow any person to coerce any tribe or tribal
organization to apply for, or accept,
a grant under this part to plan, conduct, and administer all of, or any
portion of, any Bureau program. Such applications and the timing of such
applications shall be strictly voluntary. Nothing in this part may be
construed as allowing or requiring any grant with any entity other than
the entity to which the grant is provided.
``(e) No Effect on Federal Responsibility.--Grants provided under
this part shall not terminate, modify, suspend, or reduce the
responsibility of the Federal Government to provide a program.
``(f) Retrocession.--
``(1) In general.--Whenever a tribal governing body requests
retrocession of any program for which assistance is provided
under this part, such retrocession shall become effective upon a
date specified by the Secretary that is not later than 120 days
after the date on which the tribal governing body requests the
retrocession. A later date may be specified if mutually agreed
upon by the Secretary and the tribal governing body. If such a
program is retroceded, the Secretary shall provide to any Indian
tribe served by such program at least the same quantity and
quality of services that would have been provided under such
program at the level of funding provided under this part prior
to the retrocession.
``(2) Status after retrocession.--The tribe requesting
retrocession shall specify whether the retrocession is to status
[[Page 115 STAT. 2066]]
as a Bureau-operated school or as a school operated under
contract under the Indian Self-Determination and Education
Assistance Act.
``(3) Transfer of equipment and materials.--Except as
otherwise determined by the Secretary, the tribe or tribal
organization operating the program to be retroceded must
transfer to the Secretary (or to the tribe or tribal
organization which will operate the program as a contract
school) the existing equipment and materials which were
acquired--
``(A) with assistance under this part; or
``(B) upon assumption of operation of the program
under this part, if the school was a Bureau-funded
school under title XI of the Education Amendments of
1978 before receiving assistance under this part.
``(g) Prohibition of Termination for Administrative Convenience.--
Grants provided under this part may not be terminated, modified,
suspended, or reduced solely for the convenience of the administering
agency.
``SEC. 5204. <<NOTE: 25 USC 2503.>> COMPOSITION OF GRANTS.
``(a) In General.--The grant provided under this part to an Indian
tribe or tribal organization for any fiscal year shall consist of--
``(1) the total amount of funds allocated for such fiscal
year under sections 1127 and 1128 of the Education Amendments of
1978 with respect to the tribally controlled schools eligible
for assistance under this part which are operated by such Indian
tribe or tribal organization, including, but not limited to,
funds provided under such sections, or under any other provision
of law, for transportation costs;
``(2) to the extent requested by such Indian tribe or tribal
organization, the total amount of funds provided from operations
and maintenance accounts and, notwithstanding section 105 of the
Indian Self-Determination Act, or any other provision of law,
other facilities accounts for such schools for such fiscal year
(including but not limited to those referenced under section
1126(d) of the Education Amendments of 1978 or any other law);
and
``(3) the total amount of funds that are allocated to such
schools for such fiscal year under--
``(A) title I of the Elementary and Secondary
Education Act of 1965;
``(B) the Individuals with Disabilities Education
Act; and
``(C) any other Federal education law, that are
allocated to such schools for such fiscal year.
``(b) Special Rules.--
``(1) In general.--
``(A) Applicability of certain laws.--Funds
allocated to a tribally controlled school by reason of
paragraph (1) or (2) of subsection (a) shall be subject
to the provisions of this part and shall not be subject
to any additional restriction, priority, or limitation
that is imposed by the Bureau with respect to funds
provided under--
``(i) title I of the Elementary and Secondary
Education Act of 1965;
[[Page 115 STAT. 2067]]
``(ii) the Individuals with Disabilities
Education Act; or
``(iii) any Federal education law other than
title XI of the Education Amendments of 1978.
``(B) Applicability of bureau provisions.--Indian
tribes and tribal organizations to which grants are
provided under this part, and tribally controlled
schools for which such grants are provided, shall not be
subject to any requirements, obligations, restrictions,
or limitations imposed by the Bureau that would
otherwise apply solely by reason of the receipt of funds
provided under any law referred to in clause (i), (ii),
or (iii) of subparagraph (A).
``(2) Schools considered contract schools.--Tribally
controlled schools for which grants are provided under this part
shall be treated as contract schools for the purposes of
allocation of funds under sections 1126(e), 1127, and 1128 of
the Education Amendments of 1978.
``(3) Schools considered bureau schools.--Tribally
controlled schools for which grants are provided under this
chapter shall be treated as Bureau schools for the purposes of
allocation of funds provided under--
``(A) title I of the Elementary and Secondary
Education Act of 1965;
``(B) the Individuals with Disabilities Education
Act; and
``(C) any other Federal education law, that are
distributed through the Bureau.
``(4) Accounts; use of certain funds.--
``(A) Separate account.--
``(i) In general.--Notwithstanding section
5204(a)(2), with respect to funds from facilities
improvement and repair, alteration and renovation
(major or minor), health and safety, or new
construction accounts included in the grant
provided under section 5204(a), the grant
recipient shall maintain a separate account for
such funds.
``(ii) Submission of accounting.--At the end
of the period designated for the work covered by
the funds received, the grant recipient shall
submit to the Secretary a separate accounting of
the work done and the funds expended.
``(iii) Use of funds.--Funds received from
those accounts may only be used for the purpose
for which the funds were appropriated and for the
work encompassed by the application or submission
for which the funds were received.
``(iv) Completion of project.--Upon completion
of a project for which a separate account is
established under this paragraph, the portion of
the grant related to such project may be closed
out upon agreement by the grantee and the
Secretary.
``(B) Requirements for projects.--
``(i) Regulatory requirements.--With respect
to a grant to a tribally controlled school under
this part for new construction or facilities
improvements and repair in excess of $100,000,
such grant shall be subject to the Administrative
and Audit Requirements and
[[Page 115 STAT. 2068]]
Cost Principles for Assistance Programs contained
in part 12 of title 43, Code of Federal
Regulations.
``(ii) Exception.--Notwithstanding clause (i),
grants described in such clause shall not be
subject to section 12.61 of title 43, Code of
Federal Regulations. The Secretary and the grantee
shall negotiate and determine a schedule of
payments for the work to be performed.
``(iii) Applications.--In considering
applications for a grant described in clause (i),
the Secretary shall consider whether the Indian
tribe or tribal organization involved would be
deficient in ensuring that the construction
projects under the proposed grant conform to
applicable building standards and codes and
Federal, tribal, or State health and safety
standards as required under section 1124 of the
Education Amendments of 1978 (25 U.S.C. 2005(a))
with respect to organizational and financial
management capabilities.
``(iv) Disputes.--Any disputes between the
Secretary and any grantee concerning a grant
described in clause (i) shall be subject to the
dispute provisions contained in section 5209(e).
``(C) New construction.--Notwithstanding
subparagraph (A), a school receiving a grant under this
part for facilities improvement and repair may use such
grant funds for new construction if the tribal governing
body or tribal organization that submits the application
for the grant provides funding for the new construction
equal to at least 25 percent of the total cost of such
new construction.
``(D) Period.--In a case in which the appropriations
measure under which the funds described in subparagraph
(A) are made available or the application submitted for
the funds does not stipulate a period for the work
covered by the funds, the Secretary and the grant
recipient shall consult and determine such a period
prior to the transfer of the funds. A period so
determined may be extended upon mutual agreement of the
Secretary and the grant recipient.
``(5) Enforcement of request to include funds.--
``(A) In general.--If the Secretary fails to carry
out a request filed by an Indian tribe or tribal
organization to include in such tribe or organization's
grant under this part the funds described in subsection
(a)(2) within 180 days after the filing of the request,
the Secretary shall--
``(i) be deemed to have approved such request;
and
``(ii) immediately upon the expiration of such
180-day period amend the grant accordingly.
``(B) Rights.--A tribe or organization described in
subparagraph (A) may enforce its rights under subsection
(a)(2) and this paragraph, including rights relating to
any denial or failure to act on such tribe's or
organization's request, pursuant to the dispute
authority described in section 5209(e).
``SEC. 5205. <<NOTE: 25 USC 2504.>> ELIGIBILITY FOR GRANTS.
``(a) Rules.--
[[Page 115 STAT. 2069]]
``(1) In general.--A tribally controlled school is eligible
for assistance under this part if the school--
``(A) on April 28, 1988, was a contract school under
title XI of the Education Amendments of 1978 and the
tribe or tribal organization operating the school
submits to the Secretary a written notice of election to
receive a grant under this part;
``(B) was a Bureau-operated school under title XI of
the Education Amendments of 1978 and has met the
requirements of subsection (b);
``(C) is a school for which the Bureau has not
provided funds, but which has met the requirements of
subsection (c); or
``(D) is a school with respect to which an election
has been made under paragraph (2) and which has met the
requirements of subsection (b).
``(2) New schools.--Any application which has been submitted
under the Indian Self-Determination and Education Assistance Act
by an Indian tribe for a school which is not in operation on the
date of enactment of the Native American Education Improvement
Act of 2001 shall be reviewed under the guidelines and
regulations for applications submitted under the Indian Self-
Determination and Education Assistance Act that were in effect
at the time the application was submitted, unless the Indian
tribe or tribal organization elects to have the application
reviewed under the provisions of subsection (b).
``(b) Additional Requirements for Bureau-Funded Schools and Certain
Electing Schools.--
``(1) Bureau-funded schools.--A school that was a Bureau-
funded school under title XI of the Education Amendments of 1978
on the date of enactment of the Native American Education
Improvement Act of 2001 and any school with respect to which an
election is made under subsection (a)(2), meets the requirements
of this subsection if--
``(A) the Indian tribe or tribal organization that
operates, or desires to operate, the school submits to
the Secretary an application requesting that the
Secretary--
``(i) transfer operation of the school to the
Indian tribe or tribal organization, if the Indian
tribe or tribal organization is not already
operating the school; and
``(ii) make a determination as to whether the
school is eligible for assistance under this part;
and
``(B) the Secretary makes a determination that the
school is eligible for assistance under this part.
``(2) Certain electing schools.--
``(A) In general.--By not later than the date that
is 120 days after the date on which an application is
submitted to the Secretary under paragraph (1)(A), the
Secretary shall determine--
``(i) in the case of a school which is not
being operated by the Indian tribe or tribal
organization, whether to transfer operation of the
school to the Indian tribe or tribal organization;
and
``(ii) whether the school is eligible for
assistance under this part.
[[Page 115 STAT. 2070]]
``(B) Other determinations.--In considering
applications submitted under paragraph (1)(A), the
Secretary--
``(i) shall transfer operation of the school
to the Indian tribe or tribal organization, if the
tribe or tribal organization is not already
operating the school; and
``(ii) shall determine that the school is
eligible for assistance under this part, unless
the Secretary finds by clear and convincing
evidence that the services to be provided by the
Indian tribe or tribal organization will be
deleterious to the welfare of the Indians served
by the school.
``(C) Considerations.--In considering applications
submitted under paragraph (1)(A), the Secretary shall
consider whether the Indian tribe or tribal organization
would be deficient in operating the school with respect
to--
``(i) equipment;
``(ii) bookkeeping and accounting procedures;
``(iii) ability to adequately manage a school;
or
``(iv) adequately trained personnel.
``(c) Additional Requirements for a School Which Is Not a Bureau-
Funded School.--
``(1) In general.--A school which is not a Bureau-funded
school under title XI of the Education Amendments of 1978 meets
the requirements of this subsection if--
``(A) the Indian tribe or tribal organization that
operates, or desires to operate, the school submits to
the Secretary an application requesting a determination
by the Secretary as to whether the school is eligible
for assistance under this part; and
``(B) the Secretary makes a determination that a
school is eligible for assistance under this part.
``(2) Deadline for determination by secretary.--
``(A) In general.--By not later than the date that
is 180 days after the date on which an application is
submitted to the Secretary under paragraph (1)(A), the
Secretary shall determine whether the school is eligible
for assistance under this part.
``(B) Considerations.--In making the determination
under subparagraph (A), the Secretary shall give equal
consideration to each of the following factors:
``(i) With respect to the applicant's
proposal--
``(I) the adequacy of facilities or
the potential to obtain or provide
adequate facilities;
``(II) geographic and demographic
factors in the affected areas;
``(III) adequacy of the applicant's
program plans;
``(IV) geographic proximity of
comparable public education; and
``(V) the needs as expressed by all
affected parties, including but not
limited to students, families, tribal
governments at both the central and
local levels, and school organizations.
``(ii) With respect to all education services
already available--
``(I) geographic and demographic
factors in the affected areas;
[[Page 115 STAT. 2071]]
``(II) adequacy and comparability of
programs already available;
``(III) consistency of available
programs with tribal education codes or
tribal legislation on education; and
``(IV) the history and success of
these services for the proposed
population to be served, as determined
from all factors including, if relevant,
standardized examination performance.
``(C) Geographic proximity.--The Secretary may not
make a determination under this paragraph that is
primarily based upon the geographic proximity of
comparable public education.
``(D) Other information.--Applications submitted
under paragraph (1)(A) shall include information on the
factors described in subparagraph (B)(i), but the
applicant may also provide the Secretary such
information relative to the factors described in
subparagraph (B)(ii) as the applicant considers
appropriate.
``(E) Deadline.--If the Secretary fails to make a
determination under subparagraph (A) with respect to an
application within 180 days after the date on which the
Secretary received the application, the Secretary shall
be treated as having made a determination that the
tribally controlled school is eligible for assistance
under the title and the grant shall become effective 18
months after the date on which the Secretary received
the application, or on an earlier date, at the
Secretary's discretion.
``(d) Filing of Applications and Reports.--
``(1) In general.--All applications and reports submitted to
the Secretary under this part, and any amendments to such
applications or reports, shall be filed with the education line
officer designated by the Director of the Office of Indian
Education Programs of the Bureau of Indian Affairs. The date on
which such filing occurs shall, for purposes of this part, be
treated as the date on which the application or amendment was
submitted to the Secretary.
``(2) Supporting documentation.--Any application that is
submitted under this chapter shall be accompanied by a document
indicating the action taken by the tribal governing body in
authorizing such application.
``(e) Effective Date for Approved Applications.--Except as provided
by subsection (c)(2)(E), a grant provided under this part, and any
transfer of the operation of a Bureau school made under subsection (b),
shall become effective beginning the academic year succeeding the fiscal
year in which the application for the grant or transfer is made, or at
an earlier date determined by the Secretary.
``(f) Denial of Applications.--
``(1) In general.--Whenever the Secretary refuses to approve
a grant under this chapter, to transfer operation of a Bureau
school under subsection (b), or determines that a school is not
eligible for assistance under this part, the Secretary shall--
``(A) state the objections in writing to the tribe
or tribal organization within the allotted time;
[[Page 115 STAT. 2072]]
``(B) provide assistance to the tribe or tribal
organization to overcome all stated objections;
``(C) at the request of the tribe or tribal
organization, provide the tribe or tribal organization a
hearing on the record under the same rules and
regulations that apply under the Indian Self-
Determination and Education Assistance Act; and
``(D) provide an opportunity to appeal the objection
raised.
``(2) Timeline for reconsideration of amended
applications.--The Secretary shall reconsider any amended
application submitted under this part within 60 days after the
amended application is submitted to the Secretary.
``(g) Report.--The Bureau shall submit an annual report to the
Congress on all applications received, and actions taken (including the
costs associated with such actions), under this section at the same time
that the President is required to submit to Congress the budget under
section 1105 of title 31, United States Code.
``SEC. 5206. <<NOTE: 25 USC 2505.>> DURATION OF ELIGIBILITY
DETERMINATION.
``(a) In General.--If the Secretary determines that a tribally
controlled school is eligible for assistance under this part, the
eligibility determination shall remain in effect until the determination
is revoked by the Secretary, and the requirements of subsection (b) or
(c) of section 5205, if applicable, shall be considered to have been met
with respect to such school until the eligibility determination is
revoked by the Secretary.
``(b) Annual Reports.--
``(1) In general.--Each recipient of a grant provided under
this part shall complete an annual report which shall be limited
to--
``(A) an annual financial statement reporting
revenue and expenditures as defined by the cost
accounting established by the grantee;
``(B) an annual financial audit conducted pursuant
to the standards of the Single Audit Act of 1984;
``(C) a biennial compliance audit of the procurement
of personal property during the period for which the
report is being prepared that shall be in compliance
with written procurement standards that are developed by
the local school board;
``(D) an annual submission to the Secretary of the
number of students served and a brief description of
programs offered under the grant; and
``(E) a program evaluation conducted by an impartial
evaluation review team, to be based on the standards
established for purposes of subsection (c)(1)(A)(ii).
``(2) Evaluation review teams.--Where appropriate, other
tribally controlled schools and representatives of tribally
controlled community colleges shall make up members of the
evaluation review teams.
``(3) Evaluations.--In the case of a school which is
accredited, evaluations will be conducted at intervals under the
terms of accreditation.
``(4) Submission of report.--
[[Page 115 STAT. 2073]]
``(A) To tribal governing body.--Upon completion of
the report required under paragraph (1), the recipient
of the grant shall send (via first class mail, return
receipt requested) a copy of such annual report to the
tribal governing body (as defined in section 1132(f) of
the Education Amendments of 1978) of the tribally
controlled school.
``(B) <<NOTE: Deadline.>> To secretary.--Not later
than 30 days after receiving written confirmation that
the tribal governing body has received the report sent
pursuant to subparagraph (A), the recipient of the grant
shall send a copy of the report to the Secretary.
``(c) Revocation of Eligibility.--
``(1) Determination of eligibility for assistance.--The
Secretary shall not revoke a determination that a school is
eligible for assistance under this part if--
``(A) the Indian tribe or tribal organization
submits the reports required under subsection (b) with
respect to the school; and
``(B) at least one of the following clauses applies
with respect to the school:
``(i) The school is certified or accredited by
a State or regional accrediting association or is
a candidate in good standing for such
accreditation under the rules of the State or
regional accrediting association, showing that
credits achieved by the students within the
education programs are, or will be, accepted at
grade level by a State certified or regionally
accredited institution.
``(ii) The Secretary determines that there is
a reasonable expectation that the certification or
accreditation described in clause (i), or
candidacy in good standing for such certification
or accreditation, will be achieved by the school
within 3 years. The school seeking accreditation
shall remain under the standards of the Bureau in
effect on the date of enactment of the Native
American Education Improvement Act of 2001 until
such time as the school is accredited, except that
if the Bureau standards are in conflict with the
standards of the accrediting agency, the standards
of such agency shall apply in such case.
``(iii) The school is accredited by a tribal
department of education if such accreditation is
accepted by a generally recognized regional or
State accreditation agency.
``(iv)(I) With respect to a school that lacks
accreditation, or that is not a candidate for
accreditation, based on circumstances that are not
beyond the control of the school board, every 3
years an impartial evaluator agreed upon by the
Secretary and the grant recipient conducts
evaluations of the school, and the school receives
a positive assessment under such evaluations. The
evaluations are conducted under standards adopted
by a contractor under a contract for the school
entered into under the Indian Self-Determination
and Education Assistance Act (or revisions of such
standards agreed to by the Secretary and the
[[Page 115 STAT. 2074]]
grant recipient) prior to the date of enactment of
the Native American Education Improvement Act of
2001.
``(II) If the Secretary and a grant recipient
other than a tribal governing body fail to agree
on such an evaluator, the tribal governing body
shall choose the evaluator or perform the
evaluation. If the Secretary and a grant recipient
that is a tribal governing body fail to agree on
such an evaluator, subclause (I) shall not apply.
``(III) A positive assessment by an impartial
evaluator under this clause shall not affect the
revocation of a determination of eligibility by
the Secretary where such revocation is based on
circumstances that were within the control of the
school board.
``(2) Notice requirements for revocation.--The Secretary
shall not revoke a determination that a school is eligible for
assistance under this part, or reassume control of a school that
was a Bureau school prior to approval of an application
submitted under section 5206(b)(1)(A) until the Secretary--
``(A) provides notice to the tribally controlled
school and the tribal governing body (within the meaning
of section 1141 of the Education Amendments of 1978) of
the tribally controlled school which states--
``(i) the specific deficiencies that led to
the revocation or resumption determination; and
``(ii) the actions that are needed to remedy
such deficiencies; and
``(B) affords such authority an opportunity to
effect the remedial actions.
``(3) Technical assistance.--The Secretary shall provide
such technical assistance to enable the school and governing
body to carry out such remedial actions.
``(4) Hearing and appeal.--In addition to notice and
technical assistance under this subsection, the Secretary shall
provide to the school and governing body--
``(A) at the request of the school or governing
body, a hearing on the record regarding the revocation
or reassumption determination, to be conducted under the
rules and regulations described in section
5206(f)(1)(C); and
``(B) an opportunity to appeal the decision
resulting from the hearing.
``(d) Applicability of Section Pursuant to Election Under Section
5208(b).--With respect to a tribally controlled school that receives
assistance under this part pursuant to an election made under section
5208(b)--
``(1) subsection (b) of this section shall apply; and
``(2) the Secretary may not revoke eligibility for
assistance under this part except in conformance with subsection
(c) of this section.
``SEC. 5207. <<NOTE: 25 USC 2506.>> PAYMENT OF GRANTS; INVESTMENT OF
FUNDS.
``(a) Payments.--
``(1) In general.--Except as otherwise provided in this
subsection, the Secretary shall make payments to grantees under
this part in two payments, of which--
``(A) the first payment shall be made not later than
July 1 of each year in an amount equal to 80 percent
[[Page 115 STAT. 2075]]
of the amount which the grantee was entitled to receive
during the preceding academic year; and
``(B) the second payment, consisting of the
remainder to which the grantee is entitled for the
academic year, shall be made not later than December 1
of each year.
``(2) <<NOTE: Deadline.>> Excess funding.--In a case in
which the amount provided to a grant recipient under paragraph
(1)(A) is in excess of the amount that the recipient is entitled
to receive for the academic year involved, the recipient shall
return to the Secretary such excess amount not later than 30
days after the final determination that the school was overpaid
pursuant to this section. The amount returned to the Secretary
under this paragraph shall be distributed equally to all schools
in the system.
``(3) Newly funded schools.--For any school for which no
payment under this part was made from Bureau funds in the
preceding academic year, full payment of the amount computed for
the first academic year of eligibility under this part shall be
made not later than December 1 of the academic year.
``(4) Late funding.--With regard to funds for grantees that
become available for obligation on October 1 of the fiscal year
for which such funds are appropriated, the Secretary shall make
payments to grantees not later than December 1 of the fiscal
year.
``(5) Applicability of certain title 31 provisions.--The
provisions of chapter 39 of title 31, United States Code, shall
apply to the payments required to be made by paragraphs (1),
(3), and (4).
``(6) Restrictions.--Paragraphs (1), (3), and (4) shall be
subject to any restriction on amounts of payments under this
part that are imposed by a continuing resolution or other Act
appropriating the funds involved.
``(b) Investment of Funds.--
``(1) Treatment of interest and investment income.--
Notwithstanding any other provision of law, any interest or
investment income that accrues to any funds provided under this
part after such funds are paid to the Indian tribe or tribal
organization and before such funds are expended for the purpose
for which such funds were provided under this part shall be the
property of the Indian tribe or tribal organization and shall
not be taken into account by any officer or employee of the
Federal Government in determining whether to provide assistance,
or the amount of assistance, under any provision of Federal law.
Such interest income shall be spent on behalf of the school.
``(2) Permissible investments.--Funds provided under this
part may be invested by the Indian tribe or tribal organization
before such funds are expended for the purposes of this part so
long as such funds are--
``(A) invested by the Indian tribe or tribal
organization only in obligations of the United States,
or in obligations or securities that are guaranteed or
insured by the United States, or mutual (or other) funds
registered with the Securities and Exchange Commission
and which only invest in obligations of the United
States, or securities that are guaranteed or insured by
the United States; or
[[Page 115 STAT. 2076]]
``(B) deposited only into accounts that are insure
by and agency or instrumentality of the United States,
or are fully collateralized to ensure protection of the
funds, even in the event of a bank failure.
``(c) Recoveries.--For the purposes of underrecovery and
overrecovery determinations by any Federal agency for any other funds,
from whatever source derived, funds received under this part shall not
be taken into consideration.
``SEC. 5208. <<NOTE: 25 USC 2507.>> APPLICATION WITH RESPECT TO INDIAN
SELF-DETERMINATION AND EDUCATION ASSISTANCE ACT.
``(a) Certain Provisions To Apply to Grants.--The following
provisions of the Indian Self-Determination and Education Assistance Act
(and any subsequent revisions thereto or renumbering thereof), shall
apply to grants provided under this part:
``(1) Section 5(f) (relating to single agency audit).
``(2) Section 6 (relating to criminal activities;
penalties).
``(3) Section 7 (relating to wage and labor standards).
``(4) Section 104 (relating to retention of Federal employee
coverage).
``(5) Section 105(f) (relating to Federal property).
``(6) Section 105(k) (relating to access to Federal sources
of supply).
``(7) Section 105(l) (relating to lease of facility used for
administration and delivery of services).
``(8) Section 106(f) (relating to limitation on remedies
relating to cost allowances).
``(9) Section 106(j) (relating to use of funds for matching
or cost participation requirements).
``(10) Section 106(k) (relating to allowable uses of funds).
``(11) Section 108(c) (Model Agreements provisions (1)(a)(5)
(relating to limitations of costs), (1)(a)(7) (relating to
records and monitoring), (1)(a)(8) (relating to property), and
(a)(1)(9) (relating to availability of funds).
``(12) Section 109 (relating to reassumption).
``(13) Section 111 (relating to sovereign immunity and
trusteeship rights unaffected).
``(b) Election for Grant in Lieu of Contract.--
``(1) In general.--Contractors for activities to which this
part applies who have entered into a contract under the Indian
Self-Determination and Education Assistance Act that is in
effect on the date of enactment of the Native American Education
Improvement Act of 2001 may, by giving notice to the Secretary,
elect to have the provisions of this part apply to such activity
in lieu of such contract.
``(2) Effective date of election.--Any election made under
paragraph (1) shall take effect on the first day of July
immediately following the date of such election.
``(3) Exception.--In any case in which the first day of July
immediately following the date of an election under paragraph
(1) is less than 60 days after such election, such election
shall not take effect until the first day of July of year
following the year in which the election is made.
``(c) No Duplication.--No funds may be provided under any contract
entered into under the Indian Self-Determination and Education
Assistance Act to pay any expenses incurred in providing
[[Page 115 STAT. 2077]]
any program or services if a grant has been made under this part to pay
such expenses.
``(d) Transfers and Carryovers.--
``(1) Buildings, equipment, supplies, materials.--A tribe or
tribal organization assuming the operation of--
``(A) a Bureau school with assistance under this
part shall be entitled to the transfer or use of
buildings, equipment, supplies, and materials to the
same extent as if it were contracting under the Indian
Self-Determination and Education Assistance Act; or
``(B) a contract school with assistance under this
part shall be entitled to the transfer or use of
buildings, equipment, supplies, and materials that were
used in the operation of the contract school to the same
extent as if it were contracting under the Indian Self-
Determination and Education Assistance Act.
``(2) Funds.--Any tribe or tribal organization which assumes
operation of a Bureau school with assistance under this part and
any tribe or tribal organization which elects to operate a
school with assistance under this part rather that to continue
as a contract school shall be entitled to any funds which would
carryover from the previous fiscal year as if such school were
operated as a contract school.
``(3) Funding for school improvement.--Any tribe or tribal
organization that assumes operation of a Bureau school or a
contract school with assistance under this part shall be
eligible for funding for the improvement, alteration,
replacement, and repair of facilities to the same extent as a
Bureau school.
``(e) Exceptions, Problems, and Disputes.--Any exception or problem
cited in an audit conducted pursuant to section 5206(b)(1), any dispute
regarding a grant authorized to be made pursuant to this part or any
amendment to such grant, and any dispute involving an administrative
cost grant under section 1128 of the Education Amendments of 1978 shall
be administered under the provisions governing such exceptions,
problems, or disputes in the case of contracts under the Indian Self-
Determination and Education Assistance Act. The Equal Access to Justice
Act shall apply to administrative appeals filed after September 8, 1988,
by grantees regarding a grant under this part, including an
administrative cost grant.
``SEC. 5209. <<NOTE: 25 USC 2508.>> ROLE OF THE DIRECTOR.
``Applications for grants under this part, and all application
modifications, shall be reviewed and approved by personnel under the
direction and control of the Director of the Office of Indian Education
Programs. Required reports shall be submitted to education personnel
under the direction and control of the Director of such Office.
``SEC. 5210. <<NOTE: 25 USC 2509.>> REGULATIONS.
``The Secretary is authorized to issue regulations relating to the
discharge of duties specifically assigned to the Secretary in this part.
For all other matters relating to the details of planning, developing,
implementing, and evaluating grants under this part, the Secretary shall
not issue regulations.
[[Page 115 STAT. 2078]]
``SEC. 5211. <<NOTE: 25 USC 2510.>> THE TRIBALLY CONTROLLED GRANT
SCHOOL ENDOWMENT PROGRAM.
``(a) In General.--
``(1) Establishment.--Each school receiving a grant under
this part may establish, at a federally insured financial
institution, a trust fund for the purposes of this section.
``(2) Deposits and use.--The school may provide--
``(A) for deposit into the trust fund, only funds
from non-Federal sources, except that the interest on
funds received from grants provided under this part may
be used for that purpose;
``(B) for deposit into the trust fund, any earnings
on funds deposited in the fund; and
``(C) for the sole use of the school any noncash,
in-kind contributions of real or personal property,
which may at any time be used, sold, or otherwise
disposed of.
``(b) Interest.--Interest from the fund established under subsection
(a) may periodically be withdrawn and used, at the discretion of the
school, to defray any expenses associated with the operation of the
school consistent with the purposes of this Act.
``SEC. 5212. <<NOTE: 25 USC 2511.>> DEFINITIONS.
``In this part:
``(1) Bureau.--The term `Bureau' means the Bureau of Indian
Affairs of the Department of the Interior.
``(2) Eligible indian student.--The term `eligible Indian
student' has the meaning given such term in section 1127(f) of
the Education Amendments of 1978.
``(3) Indian.--The term `Indian' means a member of an Indian
tribe, and includes individuals who are eligible for membership
in a tribe, and the child or grandchild of such an individual.
``(4) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including an Alaska Native Village Corporation or
Regional Corporation (as defined in or established pursuant to
the Alaska Native Claims Settlement Act), which is recognized as
eligible for the special programs and services provided by the
United States to Indians because of their status as Indians.
``(5) Local educational agency.--The term `local educational
agency' means a public board of education or other public
authority legally constituted within a State for either
administrative control or direction of, or to perform a service
function for, public elementary schools or secondary schools in
a city, county, township, school district, or other political
subdivision of a State or such combination of school districts
or counties as are recognized in a State as an administrative
agency for the State's public elementary schools or secondary
schools. Such term includes any other public institution or
agency having administrative control and direction of a public
elementary school or secondary school.
``(6) Secretary.--The term `Secretary' means the Secretary
of the Interior.
``(7) Tribal governing body.--The term `tribal governing
body' means, with respect to any school that receives assistance
[[Page 115 STAT. 2079]]
under this Act, the recognized governing body of the Indian
tribe involved.
``(8) Tribal organization.--
``(A) In general.--The term `tribal organization'
means--
``(i) the recognized governing body of any
Indian tribe; or
``(ii) any legally established organization of
Indians that--
``(I) is controlled, sanctioned, or
chartered by such governing body or is
democratically elected by the adult
members of the Indian community to be
served by such organization; and
``(II) includes the maximum
participation of Indians in all phases
of the organization's activities.
``(B) Authorization.--In any case in which a grant
is provided under this part to an organization to
provide services through a tribally controlled school
benefiting more than one Indian tribe, the approval of
the governing bodies of Indian tribes representing 80
percent of the students attending the tribally
controlled school shall be considered a sufficient
tribal authorization for such grant.
``(9) Tribally controlled school.--The term `tribally
controlled school' means a school that--
``(A) is operated by an Indian tribe or a tribal
organization, enrolling students in kindergarten through
grade 12, including a preschool;
``(B) is not a local educational agency; and
``(C) is not directly administered by the Bureau of
Indian Affairs.''.
SEC. 1044. LEASE PAYMENTS BY THE OJIBWA INDIAN SCHOOL.
(a) In General.--Notwithstanding the Tribally Controlled Schools Act
of 1988 (25 U.S.C. 2501 et seq.), or the regulations promulgated under
such Act, the Ojibwa Indian School located in Belcourt, North Dakota,
may use amounts received under such Act to enter into, and make payments
under, a lease described in subsection (b).
(b) Lease.--A lease described in this subsection is a lease that--
(1) is entered into by the Ojibwa Indian School for the use
of facilities owned by St. Ann's Catholic Church located in
Belcourt, North Dakota;
(2) is entered into in the 2001-2002 school year, or any
other school year in which the Ojibwa Indian School will use
such facilities for school purposes;
(3) requires lease payments in an amount determined
appropriate by an independent lease appraiser that is selected
by the parties to the lease, except that such amount may not
exceed the maximum amount per square foot that is being paid by
the Bureau of Indian Affairs for other similarly situated Indian
schools under the Indian Self-Determination and Education
Assistance Act (Public Law 93-638); and
(4) contains a waiver of the right of St. Ann's Catholic
Church to bring an action against the Ojibwa Indian School,
[[Page 115 STAT. 2080]]
the Turtle Mountain Band of Chippewa, or the Federal Government
for the recovery of any amounts remaining unpaid under leases
entered into prior to the date of enactment of this Act.
(c) Method of Funding.--Amounts shall be made available by the
Bureau of Indian Affairs to make lease payments under this section in
the same manner as amounts are made available to make payments under
leases entered into by Indian schools under the Indian Self-
Determination and Education Assistance Act (Public Law 93-638).
(d) Operation and Maintenance Funding.--The Bureau of Indian Affairs
shall provide funding for the operation and maintenance of the
facilities and property used by the Ojibwa Indian School under the lease
entered into under subsection (a) so long as such facilities and
property are being used by the School for educational purposes.
SEC. 1045. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.
Section 5404(a) of the Augustus F. Hawkins-Robert T. Stafford
Elementary and Secondary School Improvement Amendments of 1988 (25
U.S.C. 13d-2(a)) is amended--
(1) by striking the matter preceding paragraph (1) and
inserting the following:
``(a) In General.--The Secretary of the Interior shall not
disqualify from continued receipt of general assistance payments from
the Bureau of Indian Affairs an otherwise eligible Indian for whom the
Bureau is making or may make general assistance payments (or exclude
such an individual from continued consideration in determining the
amount of general assistance payments for a household) because the
individual is enrolled (and is making satisfactory progress toward
completion of a program or training that can reasonably be expected to
lead to gainful employment) for at least half-time study or training
in--''; and
(2) by striking paragraph (4), and inserting the following:
``(4) other programs or training approved by the Secretary
or by tribal education, employment or training programs.''.
PART E--HIGHER EDUCATION ACT OF 1965
SEC. 1051. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.
Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et
seq.) is amended--
(1) by striking the title heading and inserting the
following:
``TITLE II--TEACHER QUALITY ENHANCEMENT
``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
PARTNERSHIPS'';
(2) <<NOTE: 20 USC 1021-1030.>> by striking ``this title''
each place it appears and inserting ``this part''; and
(3) by adding at the end the following:
[[Page 115 STAT. 2081]]
``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY
``SEC. 221. <<NOTE: 20 USC 1041.>> PURPOSE AND PROGRAM AUTHORITY.
``(a) Purpose.--It is the purpose of this part to assist consortia
of public and private entities--
``(1) to carry out programs that prepare prospective
teachers to use advanced technology to prepare all students to
meet challenging State and local academic content and student
academic achievement standards; and
``(2) to improve the ability of institutions of higher
education to carry out such programs.
``(b) Program Authority.--
``(1) In <<NOTE: Grants. Contracts.>> general.--The
Secretary is authorized to award grants to eligible applicants,
or enter into contracts or cooperative agreements with eligible
applicants, on a competitive basis in order to pay for the
Federal share of the cost of projects to develop or redesign
teacher preparation programs to enable prospective teachers to
use advanced technology effectively in their classrooms.
``(2) Period of awards.--The Secretary may award grants, or
enter into contracts or cooperative agreements, under this part
for periods that are not more than 5 years in duration.
``SEC. 222. <<NOTE: 20 USC 1042.>> ELIGIBILITY.
``(a) Eligible Applicants.--In order to receive a grant or enter
into a contract or cooperative agreement under this part, an applicant
shall be a consortium that includes the following:
``(1) At least one institution of higher education that
awards baccalaureate degrees and prepares teachers for their
initial entry into teaching.
``(2) At least one State educational agency or local
educational agency.
``(3) One or more of the following entities:
``(A) An institution of higher education (other than
the institution described in paragraph (1)).
``(B) A school or department of education at an
institution of higher education.
``(C) A school or college of arts and sciences (as
defined in section 201(b)) at an institution of higher
education.
``(D) A professional association, foundation,
museum, library, for-profit business, public or private
nonprofit organization, community-based organization, or
other entity, with the capacity to contribute to the
technology-related reform of teacher preparation
programs.
``(b) Application Requirements.--In order to receive a grant or
enter into a contract or cooperative agreement under this part, an
eligible applicant shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may require. Such application shall include the following:
``(1) A description of the proposed project, including how
the project would--
``(A) ensure that individuals participating in the
project would be prepared to use advanced technology to
prepare
[[Page 115 STAT. 2082]]
all students, including groups of students who are
underrepresented in technology-related fields and groups
of students who are economically disadvantaged, to meet
challenging State and local academic content and student
academic achievement standards; and
``(B) improve the ability of at least one
participating institution of higher education described
in section 222(a)(1) to ensure such preparation.
``(2) A demonstration of--
``(A) the commitment, including the financial
commitment, of each of the members of the consortium for
the proposed project; and
``(B) the active support of the leadership of each
organization that is a member of the consortium for the
proposed project.
``(3) A description of how each member of the consortium
will participate in project activities.
``(4) A description of how the proposed project will be
continued after Federal funds are no longer awarded under this
part for the project.
``(5) A plan for the evaluation of the project, which shall
include benchmarks to monitor progress toward specific project
objectives.
``(c) Matching Requirements.--
``(1) In general.--The Federal share of the cost of any
project funded under this part shall not exceed 50 percent.
Except as provided in paragraph (2), the non-Federal share of
the cost of such project may be provided in cash or in kind,
fairly evaluated, including services.
``(2) Acquisition of equipment.--Not more than 10 percent of
the funds awarded for a project under this part may be used to
acquire equipment, networking capabilities, or infrastructure,
and the non-Federal share of the cost of any such acquisition
shall be provided in cash.
``SEC. 223. <<NOTE: 20 USC 1043.>> USE OF FUNDS.
``(a) Required Uses.--A consortium that receives a grant or enters
into a contract or cooperative agreement under this part shall use funds
made available under this part for--
``(1) a project creating one or more programs that prepare
prospective teachers to use advanced technology to prepare all
students, including groups of students who are underrepresented
in technology-related fields and groups of students who are
economically disadvantaged, to meet challenging State and local
academic content and student academic achievement standards; and
``(2) evaluating the effectiveness of the project.
``(b) Permissible Uses.--The consortium may use funds made available
under this part for a project, described in the application submitted by
the consortium under this part, that carries out the purpose of this
part, such as the following:
``(1) Developing and implementing high-quality teacher
preparation programs that enable educators--
``(A) to learn the full range of resources that can
be accessed through the use of technology;
``(B) to integrate a variety of technologies into
curricula and instruction in order to expand students'
knowledge;
[[Page 115 STAT. 2083]]
``(C) to evaluate educational technologies and their
potential for use in instruction;
``(D) to help students develop their technical
skills; and
``(E) to use technology to collect, manage, and
analyze data to improve teaching and decisionmaking.
``(2) Developing alternative teacher development paths that
provide elementary schools and secondary schools with well-
prepared, technology-proficient educators.
``(3) Developing achievement-based standards and assessments
aligned with the standards to measure the capacity of
prospective teachers to use technology effectively in their
classrooms.
``(4) Providing technical assistance to entities carrying
out other teacher preparation programs.
``(5) Developing and disseminating resources and information
in order to assist institutions of higher education to prepare
teachers to use technology effectively in their classrooms.
``(6) Subject to section 222(c)(2), acquiring technology
equipment, networking capabilities, infrastructure, software,
and digital curricula to carry out the project.
``SEC. 224. <<NOTE: 20 USC 1044.>> AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
such sums as may be necessary for each of fiscal years 2002 and 2003.''.
SEC. 1052. <<NOTE: 20 USC 6301 note.>> CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act or the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), in the
case of a person or entity that was awarded a grant, relating to
preparing tomorrow's teachers to use technology, that was made pursuant
to section 3122 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6832) prior to the date of enactment of this Act, the
Secretary of Education shall continue to provide funds in accordance
with the terms of such award until the date on which the award period
terminates.
PART F--GENERAL EDUCATION PROVISIONS ACT
SEC. 1061. STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, AND
ADMINISTRATION OF CERTAIN PHYSICAL EXAMINATIONS TO MINORS.
Section 445(b) of the General Education Provisions Act (20 U.S.C.
1232h(b)) is amended--
(1) by striking paragraphs (1) through (7) and inserting the
following new paragraphs:
``(1) political affiliations or beliefs of the student or
the student's parent;
``(2) mental or psychological problems of the student or the
student's family;
``(3) sex behavior or attitudes;
``(4) illegal, anti-social, self-incriminating, or demeaning
behavior;
``(5) critical appraisals of other individuals with whom
respondents have close family relationships;
[[Page 115 STAT. 2084]]
``(6) legally recognized privileged or analogous
relationships, such as those of lawyers, physicians, and
ministers;
``(7) religious practices, affiliations, or beliefs of the
student or student's parent; or
``(8) income (other than that required by law to determine
eligibility for participation in a program or for receiving
financial assistance under such program),'';
(2) by redesignating subsections (c) through (e) as
subsections (d) through (f), respectively; and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Development of Local Policies Concerning Student Privacy,
Parental Access to Information, and Administration of Certain Physical
Examinations to Minors.--
``(1) Development and Adoption of Local Policies.--Except as
provided in subsections (a) and (b), a local educational agency
that receives funds under any applicable program shall develop
and adopt policies, in consultation with parents, regarding the
following:
``(A)(i) The right of a parent of a student to
inspect, upon the request of the parent, a survey
created by a third party before the survey is
administered or distributed by a school to a student;
and
``(ii) any applicable procedures for granting a
request by a parent for reasonable access to such survey
within a reasonable period of time after the request is
received.
``(B) Arrangements to protect student privacy that
are provided by the agency in the event of the
administration or distribution of a survey to a student
containing one or more of the following items (including
the right of a parent of a student to inspect, upon the
request of the parent, any survey containing one or more
of such items):
``(i) Political affiliations or beliefs of the
student or the student's parent.
``(ii) Mental or psychological problems of the
student or the student's family.
``(iii) Sex behavior or attitudes.
``(iv) Illegal, anti-social, self-
incriminating, or demeaning behavior.
``(v) Critical appraisals of other individuals
with whom respondents have close family
relationships.
``(vi) Legally recognized privileged or
analogous relationships, such as those of lawyers,
physicians, and ministers.
``(vii) Religious practices, affiliations, or
beliefs of the student or the student's parent.
``(viii) Income (other than that required by
law to determine eligibility for participation in
a program or for receiving financial assistance
under such program).
``(C)(i) The right of a parent of a student to
inspect, upon the request of the parent, any
instructional material used as part of the educational
curriculum for the student; and
``(ii) any applicable procedures for granting a
request by a parent for reasonable access to
instructional material
[[Page 115 STAT. 2085]]
within a reasonable period of time after the request is
received.
``(D) The administration of physical examinations or
screenings that the school or agency may administer to a
student.
``(E) The collection, disclosure, or use of personal
information collected from students for the purpose of
marketing or for selling that information (or otherwise
providing that information to others for that purpose),
including arrangements to protect student privacy that
are provided by the agency in the event of such
collection, disclosure, or use.
``(F)(i) The right of a parent of a student to
inspect, upon the request of the parent, any instrument
used in the collection of personal information under
subparagraph (E) before the instrument is administered
or distributed to a student; and
``(ii) any applicable procedures for granting a
request by a parent for reasonable access to such
instrument within a reasonable period of time after the
request is received.
``(2) Parental notification.--
``(A) Notification of policies.--The policies
developed by a local educational agency under paragraph
(1) shall provide for reasonable notice of the adoption
or continued use of such policies directly to the
parents of students enrolled in schools served by that
agency. At a minimum, the agency shall--
``(i) provide such notice at least annually,
at the beginning of the school year, and within a
reasonable period of time after any substantive
change in such policies; and
``(ii) offer an opportunity for the parent
(and for purposes of an activity described in
subparagraph (C)(i), in the case of a student of
an appropriate age, the student) to opt the
student out of participation in an activity
described in subparagraph (C).
``(B) Notification of specific events.--The local
educational agency shall directly notify the parent of a
student, at least annually at the beginning of the
school year, of the specific or approximate dates during
the school year when activities described in
subparagraph (C) are scheduled, or expected to be
scheduled.
``(C) Activities requiring notification.--The
following activities require notification under this
paragraph:
``(i) Activities involving the collection,
disclosure, or use of personal information
collected from students for the purpose of
marketing or for selling that information (or
otherwise providing that information to others for
that purpose).
``(ii) The administration of any survey
containing one or more items described in clauses
(i) through (viii) of paragraph (1)(B).
``(iii) Any nonemergency, invasive physical
examination or screening that is--
``(I) required as a condition of
attendance;
``(II) administered by the school
and scheduled by the school in advance;
and
[[Page 115 STAT. 2086]]
``(III) not necessary to protect the
immediate health and safety of the
student, or of other students.
``(3) Existing policies.--A local educational agency need
not develop and adopt new policies if the State educational
agency or local educational agency has in place, on the date of
enactment of the No Child Left Behind Act of 2001, policies
covering the requirements of paragraph (1). The agency shall
provide reasonable notice of such existing policies to parents
and guardians of students, in accordance with paragraph (2).
``(4) Exceptions.--
``(A) Educational products or services.--Paragraph
(1)(E) does not apply to the collection, disclosure, or
use of personal information collected from students for
the exclusive purpose of developing, evaluating, or
providing educational products or services for, or to,
students or educational institutions, such as the
following:
``(i) College or other postsecondary education
recruitment, or military recruitment.
``(ii) Book clubs, magazines, and programs
providing access to low-cost literary products.
``(iii) Curriculum and instructional materials
used by elementary schools and secondary schools.
``(iv) Tests and assessments used by
elementary schools and secondary schools to
provide cognitive, evaluative, diagnostic,
clinical, aptitude, or achievement information
about students (or to generate other statistically
useful data for the purpose of securing such tests
and assessments) and the subsequent analysis and
public release of the aggregate data from such
tests and assessments.
``(v) The sale by students of products or
services to raise funds for school-related or
education-related activities.
``(vi) Student recognition programs.
``(B) State law exception.--The provisions of this
subsection--
``(i) shall not be construed to preempt
applicable provisions of State law that require
parental notification; and
``(ii) do not apply to any physical
examination or screening that is permitted or
required by an applicable State law, including
physical examinations or screenings that are
permitted without parental notification.
``(5) General provisions.--
``(A) Rules of construction.--
``(i) This section does not supersede section
444.
``(ii) Paragraph (1)(D) does not apply to a
survey administered to a student in accordance
with the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.).
``(B) Student rights.--The rights provided to
parents under this section transfer to the student when
the student turns 18 years old, or is an emancipated
minor (under an applicable State law) at any age.
[[Page 115 STAT. 2087]]
``(C) Information activities.--The Secretary shall
annually inform each State educational agency and each
local educational agency of the educational agency's
obligations under this section and section 444.
``(D) Funding.--A State educational agency or local
educational agency may use funds provided under part A
of title V of the Elementary and Secondary Education Act
of 1965 to enhance parental involvement in areas
affecting the in-school privacy of students.
``(6) Definitions.--As used in this subsection:
``(A) Instructional material.--The term
`instructional material' means instructional content
that is provided to a student, regardless of its format,
including printed or representational materials, audio-
visual materials, and materials in electronic or digital
formats (such as materials accessible through the
Internet). The term does not include academic tests or
academic assessments.
``(B) Invasive physical examination.--The term
`invasive physical examination' means any medical
examination that involves the exposure of private body
parts, or any act during such examination that includes
incision, insertion, or injection into the body, but
does not include a hearing, vision, or scoliosis
screening.
``(C) Local educational agency.--The term `local
educational agency' means an elementary school,
secondary school, school district, or local board of
education that is the recipient of funds under an
applicable program, but does not include a postsecondary
institution.
``(D) Parent.--The term `parent' includes a legal
guardian or other person standing in loco parentis (such
as a grandparent or stepparent with whom the child
lives, or a person who is legally responsible for the
welfare of the child).
``(E) Personal information.--The term `personal
information' means individually identifiable information
including--
``(i) a student or parent's first and last
name;
``(ii) a home or other physical address
(including street name and the name of the city or
town);
``(iii) a telephone number; or
``(iv) a Social Security identification
number.
``(F) Student.--The term `student' means any
elementary school or secondary school student.
``(G) Survey.--The term `survey' includes an
evaluation.''.
SEC. 1062. TECHNICAL CORRECTIONS.
The General Education Provisions Act (20 U.S.C. 1221 et seq.) is
amended as follows:
(1) Section 431.--Section 422 (the second place it appears)
(20 U.S.C. 1231a), relating to collection and dissemination of
information, is redesignated as section 431.
(2) Section <<NOTE: 20 USC 1232d.>> 441.--Section 3501(c)
of the Augustus F. Hawkins-Robert T. Stafford Elementary and
Secondary School Improvement Amendments of 1988 (102 Stat. 357)
is amended by striking ``through `such Act)' '' and inserting
``through `Act of 1965' '', effective as of the date of
enactment of that law.
[[Page 115 STAT. 2088]]
(3) Section 444.--Section 444 (20 U.S.C. 1232g) is amended--
(A) in subsection (a)(1), by moving subparagraph (B)
four ems to the left;
(B) in subsection (b)(1)(J), by moving subparagraph
(J)(i) and clause (ii) of subparagraph (J) each two ems
to the left;
(C) in the undesignated text following subsection
(b)(1)(J)(ii), by striking ``clause (E)'' and inserting
``subparagraph (E)''; and
(D) in subsection (b), by moving paragraph (7)(A)
and subparagraph (B) of paragraph (7) each two ems to
the left.
(4) Section 447.--Section 447(b) (20 U.S.C. 1232j(b)) is
amended by striking ``et seq.''.
(5) Section 475.--Section 475(b)(2) (20 U.S.C. 1235d) is
amended by striking ``section 4703(3)'' and inserting ``section
473(3)''.
(6) Section 477.--Section 477 (20 U.S.C. 1235f) is amended
by striking ``section 4702'' and inserting ``472''.
PART G--MISCELLANEOUS OTHER STATUTES
SEC. 1071. TITLE 5 OF THE UNITED STATES CODE.
(a) Compensation.--Section 5314 of title 5, United States Code, is
amended by adding at the end the following:
``Under Secretary of Education''.
(b) Effective <<NOTE: 5 USC 5314 note.>> Date.--This section shall
take effect on the first day of the first pay period on or after the
date of enactment of this Act.
SEC. 1072. DEPARTMENT OF EDUCATION ORGANIZATION ACT.
(a) Coordinator for the Outlying Areas.--Title II of the Department
of Education Organization Act (20 U.S.C. 3411 et seq.) is amended by
adding at the end the following new section:
``coordinator for the outlying areas
``Sec. 220. <<NOTE: 20 USC 3427.>> (a) Establishment.--The
Secretary shall designate an office of the Department to coordinate the
activities of the Department as they relate to the outlying areas.
``(b) Appointment.--Not later than 90 days after the date of
enactment of the No Child Left Behind Act of 2001, the head of the
office designated under subsection (a) shall appoint a coordinator for
the outlying areas, who shall be a person with substantial experience in
the operation of Federal programs in the outlying areas.
``(c) Duties.--The coordinator for the outlying areas shall--
``(1) serve as the principal advisor to the Department on
Federal matters affecting the outlying areas;
``(2) evaluate, on a periodic basis, the needs of education
programs in the outlying areas;
``(3) assist with the coordination of programs that serve
the outlying areas; and
``(4) provide guidance to programs within the Department
that serve the outlying areas.
``(d) Outlying Areas Defined.--As used in this section, the term
`outlying areas' includes Guam, the Virgin Islands, American
[[Page 115 STAT. 2089]]
Samoa, and the Commonwealth of the Northern Marianas Islands, but does
not include the freely associated states of the Republic of the Marshall
Islands, the Federated States of Micronesia, and the Republic of
Palau.''.
(b) Renaming of Office.--The Department of Education Organization
Act (20 U.S.C. 3401 et seq.) <<NOTE: 20 USC 3420, 3423d, 3473.>> is
amended by striking ``Office of Bilingual Education and Minority
Languages Affairs'' and ``Office of Bilingual Education'' each place
either such term appears and inserting ``Office of English Language
Acquisition, Language Enhancement, and Academic Achievement for Limited
English Proficient Students''.
(c) Clerical Amendments.--The Department of Education Organization
Act (20 U.S.C. 3401 et seq.) is amended as follows:
(1) Table of contents.--The table of contents in section 1
(20 U.S.C. 3401 note) is amended--
(A) by amending the item relating to section 209 to
read as follows:
``Sec. 209. Office of English Language Acquisition, Language
Enhancement, and Academic Achievement for Limited English
Proficient Students.'';
(B) by amending the item relating to section 216 to
read as follows:
``Sec. 216. Office of English Language Acquisition, Language
Enhancement, and Academic Achievement for Limited English
Proficient Students.''; and
(C) by inserting after the item relating to section
217 the following new items:
``Sec. 218. Office of Educational Technology.
``Sec. 219. Liaison for Proprietary Institutions of Higher Education.
``Sec. 220. Coordinator for the Outlying Areas.''.
(2) Section headings.--
(A) Section 209.--The section heading for section
209 of the Department of Education Organization Act (20
U.S.C. 3420) is amended to read as follows:
``office of english language acquisition, language enhancement, and
academic achievement for limited english proficient students''.
(B) Section 216.--The section heading for section
216 of the Department of Education Organization Act (20
U.S.C. 3423d) is amended to read as follows:
``SEC. 216. OFFICE OF ENGLISH LANGUAGE ACQUISITION, LANGUAGE
ENHANCEMENT, AND ACADEMIC ACHIEVEMENT FOR LIMITED ENGLISH
PROFICIENT STUDENTS.''.
(d) Conforming amendments.--Sections 209 and 216 of the Department
of Education Organization Act (20 U.S.C. 3420, 3423d) are amended by
striking ``Director of Bilingual Education and Minority Languages
Affairs'' each place such term appears and inserting ``Director of
English Language Acquisition, Language Enhancement, and Academic
Achievement for Limited English Proficient Students''.
(e) Technical Corrections.--
(2) Section 202.--Paragraph (3) of section 202(b) (20 U.S.C.
3412(b)(3)), relating to the Assistant Secretary for Educational
Research and Improvement (as added by section 913(2) of the
Goals 2000: Educate America Act (108 Stat. 223)), is
redesignated as paragraph (4).
[[Page 115 STAT. 2090]]
(3) Section 218.--Section 216 (the second place it appears)
(20 U.S.C. 3425), relating to the Office of Educational
Technology (as added by section 233(a) of the Goals 2000:
Educate America Act (108 Stat. 154), is redesignated as section
218.
SEC. 1073. EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999.
Section 4(b) of the Education Flexibility Partnership Act of 1999
(20 U.S.C. 5891b(b)) is amended to read as follows:
``(b) Included Programs.--The statutory or regulatory requirements
referred to in subsection (a)(1)(A) are any such requirements for
programs that are authorized under the following provisions and under
which the Secretary provides funds to State educational agencies on the
basis of a formula:
``(1) The following provisions of the Elementary and
Secondary Education Act of 1965:
``(A) Part A (other than sections 1111 and 1116),
subpart 3 of part B, and parts C, D, and F of title I.
``(B) Subparts 2 and 3 of part A of title II.
``(C) Subpart 1 of part D of title II.
``(D) Subpart 4 of part B of title III, if the
funding trigger in section 3001 of such Act is not
reached.
``(E) Subpart 1 of part A of title IV.
``(F) Part A of title V.
``(2) The Carl D. Perkins Vocational and Technical Education
Act of 1998 (20 U.S.C. 2301 et seq.).''.
SEC. 1074. EDUCATIONAL RESEARCH, DEVELOPMENT, DISSEMINATION, AND
IMPROVEMENT ACT OF 1994.
The Educational Research, Development, Dissemination, and
Improvement Act of 1994 (20 U.S.C. 6001 et seq.) is amended by adding
after part I the following new part:
``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS
``SEC. 995. <<NOTE: 20 USC 6052.>> CONTINUATION OF AWARDS.
``(a) In General.--Notwithstanding any other provision of law, from
funds appropriated under subsection (b), the Secretary--
``(1) shall continue to fund any multiyear grant or contract
awarded under section 3141 and parts A and C of title XIII of
the Elementary and Secondary Education Act of 1965 (as such
provisions were in effect on the day preceding the date of
enactment of the No Child Left Behind Act of 2001), for the
duration of that multiyear award in accordance with its terms;
and
``(2) may extend, on a year-to-year basis, any multiyear
grant or contract awarded under an authority described in
paragraph (1) that expires after the enactment of the No Child
Left Behind Act of 2001, but before the enactment of successor
authority to this Act.
``(b) Authorization of Appropriations.--There are authorized to be
appropriated for each fiscal year such sums as may be necessary to carry
out subsection (a).''.
SEC. 1075. NATIONAL CHILD PROTECTION ACT OF 1993.
Section 5(9) of the National Child Protection Act of 1993 (42 U.S.C.
5119c(9)) is amended--
[[Page 115 STAT. 2091]]
(1) in subparagraph (A)(i), by inserting ``(including an
individual who is employed by a school in any capacity,
including as a child care provider, a teacher, or another member
of school personnel)'' before the semicolon at the end; and
(2) in subparagraph (B)(i), by inserting ``(including an
individual who seeks to be employed by a school in any capacity,
including as a child care provider, a teacher, or another member
of school personnel)'' before the semicolon at the end.
SEC. 1076. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Legislative Branch Appropriations Act, 1997.--Section 5(d)(1) of
the Legislative Branch Appropriations Act, 1997 (2 U.S.C. 117b-2(d)(1))
is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(b) Legislative Branch Appropriations Act, 1987.--Section
104(3)(B)(ii) of the Legislative Branch Appropriations Act, 1987 (as
incorporated by reference in section 101(j) of Public Law 99-500 and
Public Law 99-591) (2 U.S.C. 117e(3)(B)(ii)) is amended by striking
``14101'' and inserting ``9101''.
(c) National Agricultural Research, Extension, and Teaching Policy
Act of 1977.--Section 1417(j)(1)(B) of the National Agricultural
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152(j)(1)(B)) is amended--
(1) by striking ``14101(25)'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801(25))''.
(d) Refugee Education Assistance Act of 1980.--Section 101(1) of the
Refugee Education Assistance Act of 1980 (8 U.S.C. 1522 note) is amended
by striking ``14101'' and inserting ``9101''.
(e) Title 10, United States Code.--Section 2194(e)(2) of title 10,
United States Code, is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(f) Toxic Substances Control Act.--
(1) Asbestos.--Paragraphs (7), (9) and (12) of section 202
of the Toxic Substances Control Act (15 U.S.C. 2642) are amended
by striking ``14101'' and inserting ``9101''.
(2) Radon.--Section 302(1)(A) of the Toxic Substances
Control Act (15 U.S.C. 2662(1)(A)) is amended by striking
``14101'' and inserting ``9101''.
(g) Higher Education Act of 1965.--Paragraphs (4), (5), (6), (10),
and (14) of section 103 of the Higher Education Act of 1965 (20 U.S.C.
1003) are amended by striking ``14101'' and inserting ``9101''.
(h) General Education Provisions Act.--Section 425(6) of the General
Education Provisions Act (20 U.S.C. 1226c(6)) is amended by striking
``14701'' and inserting ``9601''.
(i) Individuals with Disabilities Education Act.--Section 613(f) of
the Individuals with Disabilities Education Act (20 U.S.C. 1413(f)) is
amended by striking paragraph (3).
(j) Education Amendments of 1972.--Section 908(2)(B) of the
Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is amended by
striking ``14101'' and inserting ``9101''.
(k) Carl D. Perkins Vocational and Technical Education Act of
1998.--Section 3 of the Carl D. Perkins Vocational and Technical
Education Act of 1998 (20 U.S.C. 2302) is amended--
(1) in paragraph (5)--
[[Page 115 STAT. 2092]]
(A) by striking ``10306'' and inserting ``5206'';
and
(B) by striking ``(20 U.S.C. 8066)'';
(2) in paragraph (8), by striking ``14101'' and inserting
``9101''; and
(3) in paragraphs (16) and (21)--
(A) by striking ``14101'' and inserting ``9101'';
and
(B) by striking ``(20 U.S.C. 8801)''.
(l) Education for Economic Security Act.--
(1) Economic security.--Section 3(3) of the Education for
Economic Security Act (20 U.S.C. 3902) is amended--
(A) in paragraph (3), by striking ``198(a)(7)'' and
inserting ``9101'';
(B) in paragraph (7), by striking ``198(a)(10)'' and
inserting ``9101''; and
(C) in paragraph (12), by striking ``198(a)(17)''
and inserting ``9101''.
(2) Asbestos.--Section 511 of the Education for Economic
Security Act (20 U.S.C. 4020) is amended--
(A) in paragraph (4)(A), by striking ``198(a)(10)''
and inserting ``9101''; and
(B) in paragraph (5)(A), by striking ``198(a)(7)''
and inserting ``9101''.
(m) James Madison Memorial Fellowship Act.--Section 815(4) of the
James Madison Memorial Fellowship Act (20 U.S.C. 4514(4)) is amended by
striking ``14101'' and inserting ``9101''.
(n) National Environmental Education Act.--Section 3(5) of the
National Environmental Education Act (20 U.S.C. 5502(5)) is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 3381)''.
(o) Education Flexibility Partnership Act of 1999.--Section 3(1) of
the Education Flexibility Partnership Act of 1999 (20 U.S.C. 5891a(1))
is amended by striking ``14101'' and inserting ``9101''.
(p) District of Columbia College Access Act of 1999.--Section
3(c)(5) of the District of Columbia College Access Act of 1999 (Public
Law 106-98; 113 Stat. 1323) is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(q) School-to-Work Opportunities Act of 1994.--Paragraph (5) of
section 502(b) of the School-to-Work Opportunities Act of 1994 (20
U.S.C. 6212(b)(5)) is amended to read as follows:
``(5) parts K through N of the Educational Research,
Development, Dissemination, and Improvement Act of 1994; and''.
(r) National Education Statistics Act of 1994.--Paragraphs (4) and
(6) of section 402(c) of the National Education Statistics Act of 1994
(20 U.S.C. 9001(c)) are amended by striking ``14101'' and inserting
``9101''.
(s) Adult Education and Family Literacy Act.--Section 203(13) of the
Adult Education and Family Literacy Act (20 U.S.C. 9202(13)) is
amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(t) <<NOTE: 26 USC 1397E.>> Internal Revenue Code of 1986.--Section
1397E(d)(4)(B) of the Internal Revenue Code of 1986 is amended by
striking ``14101'' and inserting ``9101''.
(u) Rehabilitation Act of 1973.--
[[Page 115 STAT. 2093]]
(1) Research.--Section 202(b)(4)(A)(i) of the Rehabilitation
Act of 1973 (29 U.S.C. 762(b)(4)(A)(i)) is amended by striking
``14101'' and inserting ``9101''.
(2) Nondiscrimination.--Section 504(b)(2)(B) of the
Rehabilitation Act of 1973 (29 U.S.C. 794(b)(2)(B)) is amended
by striking ``14101'' and inserting ``9101''.
(v) Family and Medical Leave Act of 1993.--Section 108(a)(1)(A) of
the Family and Medical Leave Act of 1993 (29 U.S.C. 2618(a)(1)(A)) is
amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 2891(12))''.
(w) Workforce Investment Act of 1998.--Paragraphs (23) and (40) of
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801) are
amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(x) Safe Drinking Water Act.--Paragraphs (3)(A) and (6) of section
1461 of the Safe Drinking Water Act (42 U.S.C. 300j-21) are amended by
striking ``14101'' and inserting ``9101''.
(y) Civil Rights Act of 1964.--Section 606(2)(B) of the Civil Rights
Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is amended by striking ``14101''
and inserting ``9101''.
(z) Age Discrimination Act of 1975.--Section 309(4)(B)(ii) of the
Age Discrimination Act of 1975 (42 U.S.C. 6107(4)(B)(ii)) is amended by
striking ``14101'' and inserting ``9101''.
(aa) Hazardous and Solid Waste Amendments of 1989.--Section
221(f)(3)(B)(i) of the Hazardous and Solid Waste Amendments of 1984 (42
U.S.C. 6921 note) is amended by striking ``198(a)(7)'' and inserting
``9101''.
(bb) Albert Einstein Distinguished Educator Fellowship Act of
1994.--Paragraphs (1), (2), and (3) of section 514 of the Albert
Einstein Distinguished Educator Fellowship Act of 1994 (42 U.S.C. 7382b)
are amended by striking ``14101'' and inserting ``9101''.
(cc) Earthquake Hazards.--Section 2(c)(1)(A) of the Act entitled
``An Act to authorize appropriations for carrying out the Earthquake
Hazards Reduction Act of 1977 for fiscal years 1998 and 1999, and for
other purposes'', approved October 1, 1997 (42 U.S.C. 7704 note) is
amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(dd) State Dependent Care Development Grants Act.--Paragraphs (6)
and (11) of section 670G of the State Dependent Care Development Grants
Act (42 U.S.C. 9877) are amended by striking ``14101'' and inserting
``9101''.
(ee) Community Services Block Grant Act.--Section 682(b)(4) of the
Community Services Block Grant Act (42 U.S.C. 9923(b)(4)) is amended--
(1) by striking ``14101'' and inserting ``9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(ff) National and Community Service Act of 1990.--Paragraphs (8),
(14), (22), and (28) of section 101 of the National and Community
Service Act of 1990 (42 U.S.C. 12511) are amended by striking ``14101''
and inserting ``9101''.
(gg) Telecommunications Act of 1996.--Section 706(c)(2) of the
Telecommunications Act of 1996 (47 U.S.C. 157 note) is amended--
[[Page 115 STAT. 2094]]
(1) by striking ``paragraphs (14) and (25), respectively, of
section 14101'' and inserting ``section 9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(hh) Communications Act of 1934.--Section 254(h)(7)(A) of the
Communications Act of 1934 (47 U.S.C. 254(h)(7)(A)) is amended--
(1) by striking ``paragraphs (14) and (25), respectively, of
section 14101'' and inserting ``section 9101''; and
(2) by striking ``(20 U.S.C. 8801)''.
(ii) Transportation Equity Act for the 21st Century.--Section 4024
of the Transportation Equity Act for the 21st Century (49 U.S.C. 31136
note) is amended by striking ``14101'' and inserting ``9101''.
Approved January 8, 2002.
LEGISLATIVE HISTORY--H.R. 1 (S. 1):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 107-63, Pt. 1 (Comm. on Education and the Workforce)
and 107-334 (Comm. of Conference).
SENATE REPORTS: No. 107-7 accompanying S. 1 (Comm. on Health, Education,
Labor, and Pensions).
CONGRESSIONAL RECORD, Vol. 147 (2001):
May 17, 22, 23, considered and passed House.
June 14, considered and passed Senate, amended, in lieu of
S. 1.
Dec. 13, House agreed to conference report.
Dec. 17, 18, Senate considered and agreed to conference
report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
Jan. 8, Presidential remarks.
<all>
Rules Committee Resolution H. Res. 315 Reported to House. Rule provides for consideration of the conference report to H.R. 1 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions.
Rule H. Res. 315 passed House.
Mr. Boehner brought up conference report H. Rept. 107-334 for consideration under the provisions of H. Res. 315. (consideration: CR H10092-10113)
DEBATE - The House proceeded with one hour of debate on the conference report.
The previous question was ordered without objection.
Conference report agreed to in House: On agreeing to the conference report Agreed to by recorded vote: 381 - 41 (Roll no. 497).
Roll Call #497 (House)Motions to reconsider laid on the table Agreed to without objection.
On agreeing to the conference report Agreed to by recorded vote: 381 - 41 (Roll no. 497).
Roll Call #497 (House)Conference report considered in Senate by Unanimous Consent. (consideration: CR S13322-13349)
Enacted as Public Law 107-110
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Conference report considered in Senate. (consideration: CR S13365-13422)
Conference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 87 - 10. Record Vote Number: 371.
Roll Call #371 (Senate)Senate agreed to conference report by Yea-Nay Vote. 87 - 10. Record Vote Number: 371.
Roll Call #371 (Senate)Message on Senate action sent to the House.
Pursuant to the provisions of H. Con. Res. 289, enrollment corrections on H.R. 1 have been made.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 107-110.
Became Public Law No: 107-110.