[Senate Report 107-7]
[From the U.S. Government Printing Office]



                                                        Calendar No. 23
107th Congress                                                   Report
                                 SENATE
 1st Session                                                      107-7
_______________________________________________________________________




                     BETTER EDUCATION FOR STUDENTS


                           AND TEACHERS ACT

                               __________

                              R E P O R T

                                 of the

                    COMMITTEE ON HEALTH, EDUCATION,

                          LABOR, AND PENSIONS

                          UNITED STATES SENATE

                              to accompany

                                  S. 1

                             together with

                            ADDITIONAL VIEWS




                 March 28, 2001.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
71-390                     WASHINGTON : 2001

                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose and need for legislation.................................1
 II. Summary..........................................................4
III. History of legislation and votes in committee...................26
 IV. Explanation of bill and committee views.........................35
  V. Regulatory impact statement.....................................55
 VI. Application of law to the legislative branch....................56
VII. Cost estimate and unfunded mandate statement....................56
VIII.Section-by-section analysis.....................................70

 IX. Additional views...............................................146
  X. Changes in existing law........................................172
                                                        Calendar No. 23
107th Congress                                                   Report
                                 SENATE
 1st Session                                                      107-7

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



 
             BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT

                                _______
                                

                 March 28, 2001.--Ordered to be printed

                                _______
                                

   Mr. Jeffords, from the Committee on Health, Education, Labor, and 
                   Pensions, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                          [To accompany S. 1]

    The Committee on Health, Education, Labor, and Pensions, 
having had under consideration an original bill (S. 1) to 
extend programs and activities under the Elementary and 
Secondary Education Act of 1965, and for other purposes, 
reports favorably thereon and recommends that the bill do pass.

                  I. Purpose and Need for Legislation

    It is the purpose of the Better Education for Students and 
Teachers (BEST) Act to renew, consolidate, and strengthen 
programs under the Elementary and Secondary Education Act of 
1965 for the next 7 years. The BEST Act represents the most 
dramatic change in the Elementary and Secondary Education Act 
(ESEA) over the past several decades, and perhaps the entire 
35-year life of the act.
    Over that period, ESEA has provided the authority for 
virtually all Federal support for elementary and secondary 
education, and ESEA programs currently receive about $18 
billion in Federal funding. Nearly half of these funds are used 
on behalf of disadvantaged children under the title I program. 
Other important activities supported through ESEA include 
professional development, technology, reading and literacy, 
bilingual education, safe and drug-free schools, and impact 
aid.
    Despite the substantial Federal investment over the years, 
the results have been mixed. Far too many of our students are 
coming to school ill-equipped to learn, and leaving it having 
learned far too little. Our students rank near the bottom of 
the industrialized world in international tests of mathematics 
and science knowledge, and this dismal result disguises an even 
greater failing.
    ``The rising tide of mediocrity'' described by the 1983 
Nation at Risk report was and is but a median of mediocrity. 
Some schools and some students are doing well, offering and 
taking challenging courses and aspiring to and meeting high 
standards. But far too many children are not. More than 2 out 
of 3 children in our inner cities in the 4th grade cannot read 
at the basic level measured by the National Assessment of 
Educational Progress.
    President George W. Bush has aptly described tolerance of 
the status quo as ``the soft bigotry of low expectations.'' His 
blueprint for education reform, No Child Left Behind, outlines 
a fundamental reform of ESEA that would: increase 
accountability for student performance, focus on what works, 
reduce bureaucracy and increase flexibility, and empower 
parents with more information and choices when schools fail.
    President Bush has promised that, ``Bipartisan education 
reform will be the cornerstone of my Administration.'' The 
Committee on Health, Education, Labor, and Pensions has built a 
foundation out from that cornerstone that embraces the 
principles of the President's proposal.
    By a unanimous vote, the committee adopted the BEST Act, 
which will demand greater accountability for student 
performance, focus Federal support on a few key priorities, 
provide more flexibility, and require real consequences and 
wider choices when schools fail our children.
    The BEST Act builds on the 1994 reauthorization of ESEA, 
which reformed title I by requiring States to establish 
challenging student performance and content standards, as well 
asassessments aligned to those standards in order to measure 
student achievement.
    The BEST Act would require States to establish content and 
student performance standards in reading, math, history, and 
science for all students. In addition, States will have to 
develop a plan to ensure that all students, including those who 
are racial or ethnic minorities or from low-income families, 
become academically proficient over the course of the next 
decade.
    Progress cannot be divorced from measurement. To ensure 
that all students make progress toward and attain the 
performance standards developed by a State, the BEST Act would 
require States to establish a single, statewide accountability 
system that would report results to parents, educators, and the 
public.
    The central feature of this system will be annual 
assessments in mathematics and reading for all students in 
grades 3-8, which must be in place by the school year of 2005-
06. In addition, participation in the National Assessment of 
Educational Progress (NAEP), which is nearly universal among 
States today, would become mandatory on an annual basis for a 
sample of 4th and 8th grade students in mathematics and 
reading.
    Good quality assessments are not inexpensive. The BEST Act 
recognizes the additional demands being placed on States and 
commits to sharing the burden. The Federal Government would 
assume the full cost of administering State assessments under 
NAEP, which is now borne by the States, and would fund the 
development costs of the additional assessments required by the 
BEST Act. In addition, the BEST Act would ensure that the 
Federal Government would fund half of the ongoing costs of 
assessments required under the Act.
    The results of these assessments, both for all students and 
for specific groups of students, will be a valuable tool in 
educating the public and informing educators. Having 1 set of 
standards and assessments for all students in a State will 
enable the public to easily compare results and assist 
educators in their efforts to continuously improve schools and 
the education of our children.
    If education reform is to succeed, there must be rewards 
for success and consequences for failure. The BEST Act provides 
for both. States and schools that demonstrate significant 
achievement on both a State's assessment and NAEP will be 
eligible for rewards. States and schools serving our lowest-
performing students that fail to make progress will face a 
series of corrective measures designed to produce better 
results.
    If a school receiving funds under title I fails to make 
adequate yearly progress as defined by a State for 1 year, it 
will be designated as needing school improvement. The school 
will be required to work with the local educational agency to 
develop a 2-year school improvement plan and, based on the 
plan, implement changes in curriculum, professional 
development, and other areas as needed.
    If at the end of the 2-year period of the school 
improvement plan there is still not adequate yearly progress, a 
school would be designated as needing corrective action. The 
local educational agency would be required to offer public 
school choice to students and make alternative governance 
arrangements, such as replacing some of the school staff.
    If 1 additional year passes and progress is still not made, 
the local educational agency would be required to reconstitute 
the school by reopening the school as a charter school, 
replacing the school staff, or making alternative governance 
arrangements.
    A parallel set of actions is required of a State with 
respect to a failing local educational agency. A school or 
local educational agency would need to demonstrate 2 
consecutive years of progress to be removed from any of the 3 
categories described above.
    To assist students and schools, the BEST Act makes a 
substantial new commitment to instruction in reading, 
mathematics, and science. Support for reading in the early 
grades is tripled, and a new early reading for children from 
ages 3-5 is created. Funding for technology programs is 
consolidated and simplified, and a new mathematics and science 
partnership program is created by the legislation.
    Education reform cannot succeed without an adequate number 
of well-trained teachers. The BEST Act consolidates funding for 
the hiring and professional development of teachers to provide 
the flexibility to best meet local needs for recruiting, 
retaining, and constantly updating the skills of teachers 
through high quality professional development, particularly in 
mathematics and science.
    The Federal Government provides only a small fraction of 
overall funding for elementary and secondary education in the 
United States. The BEST Act focuses this funding and repeals 
the authorizations for several smaller programs. In eliminating 
these smaller programs, the Act provides greater flexibility to 
parents, schools, and States to adopt the best approach to 
improving the education of their children.
    But the Federal government must insist that, whatever the 
level of its investment in education, it must receive the 
highest return possible in the currency of well-educated 
children, especially those who are from low-income or minority 
families. President Bush has rightly challenged us to ``leave 
no child behind.'' The committee has begun the process of 
demonstrating that Congress is equal to the challenge.

                              II. Summary


          TITLE I--B BETTER RESULTS FOR DISADVANTAGED CHILDREN

Part A--Basic programs

                                Overview

    The purpose of this title is to improve student 
achievement, student performance, and school success by 
including tough accountability provisions, expanding resources, 
improving technical assistance, and providing mechanisms for 
turning around failing schools within 3 years. The last 
reauthorization of title I, which occurred in 1994, made major 
changes in the program regarding standards, assessment, and 
professional development. The provisions contained in the BEST 
proposal build upon and significantly expand the 1994 changes. 
These new provisions are outlined below.

                        New Provisions of Part A

    State Plan: New provisions include--
    Coordination: Title I activities will be coordinated with 
activities in other Federal education programs, including the 
Individuals with Disabilities Education Act, and the Carl D. 
Perkins Vocational and Technical Education Act.
    Accountability: Each State plan will be required to 
implement a single, statewide accountability system which will 
be used for all schools or local educational agencies within 
the State. This system will have to include performance 
indicators for local educational agencies and schools to 
measure student performance. In addition, the State system will 
also have to include sanctions and rewards which will be used 
to hold local educational agencies and schools accountable for 
making adequate yearly progress in the areas of student 
achievement and performance.
    Adequate Yearly Progress: The State will define adequate 
yearly progress using the following criteria--applying the same 
high standards of academic performance to all students, the 
measures used to determine the progress must be statistically 
valid and reliable, results must show continuous and 
substantial improvement for all students on an annual basis, 
the progress of schools and local educational agencies must be 
based on assessments, measuring student achievement and 
performance will include all students and will be disaggregated 
by race, ethnicity, gender, disability status, migrant status, 
English proficiency, and socioeconomic status (this is not 
required in any case in which the number of students in a 
category is insufficient to yield statistically reliable 
information or the results would reveal individually 
identifiable information about an individual student), and 
establishing a timeline for ensuring that all students meet or 
exceed the State's proficient performance level on the State 
assessment within 10 years.
    Assessments: Each State plan will demonstrate, in 
consultation with the local educational agencies, that the 
State has in place, by the school year 2005-06, a system of 
high quality, yearly student assessments in subjects, that 
include, at a minimum math, reading or language arts, and 
science (science assessments must be in place at the beginning 
of the 2007-2008 school year). The assessments are to be 
aligned with the State's content and performance standards. 
Beginning in school year 2005-06, all students in grades 3 
through 8 must be tested annually in mathematics and reading or 
language arts. The Secretary of Education may provide the State 
1 additional year if the State demonstrates that exceptional or 
uncontrollable circumstances prevented full assessment 
implementation. The Federal government will be required to pay 
all development costs associated with the new State assessment 
requirements and will be required to pay 50 percent of all 
State implementation costs. If the required Federal funding 
share is not appropriated, States will not have to comply with 
the new assessment requirements. States will also be required 
to produce individual student reports, which will be given to 
all parents, regarding the assessment scores or other 
information related to student performance.
    NAEP: Beginning in school year 2002-03, each State will be 
required to participate in annual State assessments of 4th and 
8th grade reading and math under the National Assessment of 
Educational Progress if the Secretary of Education pays the 
costs of administering such assessments. No sanctions would be 
levied against a State based solely on the results of its NAEP 
assessment.
    Parental Involvement: Each State plan will describe how the 
State will disseminate effective parental involvement practices 
to local educational agencies and schools.
    Penalty: If a State fails to meet the statutory deadlines 
for demonstrating it has in place challenging content and 
student performance standards, and a system for measuring and 
monitoring adequate yearly progress, the Secretary will 
withhold funds for State administration.
    Report Cards: Beginning in the 2002-03 school year, any 
State and local educational agency receiving funding under the 
Better Education for Students and Teachers Act will be required 
to prepare and disseminate an annual State report card. Any 
State or local educational agency that has been providing 
report cards (prior to enactment of BEST) may continue to use 
those same report cards if they are modified to contain the 
information required under BEST. The required information 
includes: disaggregated student data, the number and names of 
each school identified for school improvement, and student 
assessment results. This information must be presented in a 
manner that parents can understand.
    Annual State Report to the Secretary: Each State must 
report annually to the Secretary its progress in development an 
implementing required assessments, the number and names of each 
school identified for school improvement, the reason why such 
school was so identified, and the measure taken to address the 
performance problems of such school, in addition to the 
information required in the report cards.
    Parents Right To Know: Each local educational agency 
receiving title I funding will, upon request from parents, 
provide information regarding the professionalqualifications of 
the student's classroom teachers. In addition, each school 
receiving title I funding must provide parents with information 
on the level of performance of their children in each State 
assessment. All information provided to parents must be in an 
understandable and uniform format.

Local Educational Agency Plan: New provisions include--

    Coordination: Title I activities will be coordinated with 
activities in other Federal education programs including the 
Individuals with Disabilities Education Act, the Carl Perkins 
Vocational and Technical Education Act, and the Head Start Act.
    Assurances: Several new assurances have been included 
within the local educational agency plan. Each local 
educational agency (LEA) plan will:
          (a) undertake activities so that each school can make 
        adequate yearly progress;
          (b) fulfill school improvement responsibilities;
          (c) coordinate with other agencies providing services 
        to children, youth, and families;
          (d) ensure that low-income students and minority 
        students are not taught at higher rates than other 
        students by unqualified, out-of-field, or inexperienced 
        teachers;
          (e) use the results of student assessments and other 
        measures to annually review the progress of each 
        school; and
          (f) work with schools in the development and 
        implementation of parental involvement and professional 
        development activities.

Schoolwide Programs: New provisions include--

    Eligibility: A local educational agency may use funds for a 
schoolwide program to upgrade its entire educational program if 
the LEA 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.
    Fiscal Accounting: Any school that is using funds from more 
than one Federal education program in the operation of its 
schoolwide program will not be required to maintain separate 
fiscal accounting records by program, so long as the school 
maintains records that demonstrate the schoolwide program 
addresses the intent and purpose of each Federal program for 
which funding is consolidated.

Pupil Safety and Family School Choice: New provisions include--

    Conditions for student participation are:
          (a) any title I student who is a victim of a violent 
        criminal offense on public school grounds will be 
        allowed to transfer to another public school or charter 
        school in the same State, unless allowing such transfer 
        is prohibited under State or local law; or
          (b) if the school the student attends receives title 
        I funds and the school has been designated as unsafe, 
        then the local educational agency may allow such 
        student to transfer to another public or charter school 
        in the same State.
    State Educational Agency Role: The State educational agency 
will determine, based on State law, what constitutes a violent 
offense and will determine the schools that are unsafe public 
schools.
    Transportation Costs:
          (a) the local educational agency serving the school 
        in which a violent criminal offense occurred or which 
        is determined to be unsafe may use title I funds for 
        the transportation costs of a student who transfers to 
        another school.
          (b) the amount of assistance provided for 
        transportation with title I funds may not exceed the 
        per pupil costs for elementary or secondary students as 
        provided by the local educational agency that serves 
        the school involved in the transfer.

Assessment and Local Educational Agency and School Improvement: New 
        provisions include--

    Local Review: Each local educational agency receiving title 
I funds will: use the State assessments described in the State 
plan; review the annual progress of each school served to 
determine whether the school is making adequate progress in 
meeting the State standards; provide the results of the local 
annual review to schools so the schools can refine their 
instruction program; and annually review the effectiveness of 
parental involvement activities.
    School Improvement:
          (a) Identification--A local educational agency will 
        identify for school improvement any elementary or 
        secondary school participating in title I, part A 
        activities that--
                  (i) fails, for any year, to make adequate 
                yearly progress as defined in the State's plan; 
                or
                  (ii) was in school improvement status on the 
                day preceding the date of enactment of the BEST 
                Act.
          (b) Review Opportunity--Before identifying an 
        elementary school or a secondary school for school 
        improvement, the local educational agency will provide 
        the school with an opportunity to review the data on 
        whichthe identification was based.
          (c) School Plan--Each school identified for school 
        improvement, within 3 months after being identified, 
        must develop a 2-year school plan, in consultation with 
        parents, school staff, the local educational agency 
        serving the school, the local school board, and other 
        experts. The plan will contain the following key 
        elements:
                  (i) scientifically based research strategies 
                that strengthen the core academic subjects;
                  (ii) policies and practices that have the 
                greatest likelihood of ensuring that all 
                students will meet the State's proficient level 
                of performance on the State assessment within 
                10 years after enactment of BEST;
                  (iii) an assurance that the school will 
                reserve not less than 10 percent of the funds 
                made available to the school for professional 
                development;
                  (iv) the responsibilities of the school, the 
                local educational agency, and the State 
                educational agency serving the school;
                  (v) strategies to promote effective parental 
                involvement.
          (d) Technical Assistance--For each school identified 
        for school improvement, the local educational agency 
        serving such school will provide technical assistance.
          (e) Parental Notification--A local educational agency 
        will provide to parents of each student enrolled in a 
        school identified for school improvement: an 
        explanation of what the school improvement 
        identification means; the reasons for the 
        identification; an explanation of what the school, 
        local educational agency, or the State educational 
        agency is doing to address the problem; and an 
        explanation of how parents can become involved in 
        addressing issues.
          (f) Corrective Action Implementation--After providing 
        technical assistance to a school identified for school 
        improvement, the local educational agency will take 
        corrective action for any school within the local 
        educational agency that--
                  (i) fails to meet adequate yearly progress at 
                the end of the second year after which the 
                school has been identified as needing 
                improvement; or
                  (ii) was in program-improvement status for 2 
                years or in corrective action status on the day 
                preceding enactment of this bill;
          (g) Corrective Action Policies--After a school is 
        identified as needing improvement, the local 
        educational agency will--
                  (i) provide all students enrolled in the 
                school with the option to transfer to another 
                public school within the local educational 
                agency, including a public charter school that 
                is not in need of school improvement, unless: 
                such an option is prohibited by State law or 
                local law; or the local educational agency 
                demonstrates that the local educational agency 
                lacks the capacity to provide that option to 
                all students in the school who request the 
                transfer; and
                  (ii) take at least 1 of the following 
                corrective actions: make alternative governance 
                arrangements; replace the relevant school 
                staff; or institute and fully implement a new 
                curriculum.
          (h) Corrective Action Exemption--A local educational 
        agency may delay, for up to 1 year, implementation of 
        corrective action if the school's failure to make 
        adequate yearly progress was due to exceptional or 
        uncontrollable circumstances.
          (i) Reconstitution--If, after 1 additional school 
        year, a school subject to corrective action continues 
        to fail to make adequate yearly progress, the local 
        educational agency will--
                  (i) provide all enrolled students in the 
                school with the option to transfer to another 
                public school within the local educational 
                agency, including a public charter school, not 
                identified for school improvement; and
                  (ii) prepare a plan and make arrangements for 
                implementing alternative governance 
                arrangements for the school.
          (j) Reconstitution Transportation and Duration--The 
        local educational agency will pay for transportation as 
        a result of corrective action and reconstitution, but 
        the payments will not exceed 15 percent of the local 
        educational agency's allocation under title I, part A. 
        If any school identified for reconstitution makes 
        adequate yearly progress for 2 consecutive years, then 
        the local educational agency will no longer be required 
        to subject the school to corrective action.
          (k) State Educational Agency (SEA) Responsibilities--
        The State educational agency will provide technical 
        assistance to all identified schools needing school 
        improvement and corrective action.
          (l) State Review and Local Educational Agency 
        Improvement--A State educational agency will annually 
        review each local educational agency receiving title I, 
        part A funds to determine its progress and to determine 
        the effectiveness of its professional development and 
        parental involvement activities.
          (m) State Rewards--If a local educational agency has 
        met or exceeded the State's definition of adequate 
        yearly progress, the State may make rewards for 
        individual schools within the local educational agency 
        meeting or exceeding expectations.
          (n) State Identification--A State educational agency 
        will identify for improvement any local educational 
        agency that for 2 consecutive years is not making 
        adequate yearly progress. Before identifying a local 
        educational agency, the State educational agency will 
        provide the localeducational agency with an opportunity 
        to review the data.
          (o) Local Educational Agency Revisions--Each local 
        educational agency identified as needing improvement 
        will revise their plan to: address yearly progress 
        requirements; incorporate scientifically based research 
        strategies; address professional development needs, and 
        parental notification about the local educational 
        agency's need for improvement.
          (p) State Educational Agency Technical Assistance 
        Responsibility--For each local educational agency 
        needing improvement, the State educational agency will 
        provide technical assistance to the local educational 
        agency. Such assistance must be supported by 
        scientifically based research instructional strategies 
        and must address any problems the local educational 
        agency may be having in implementing parental 
        involvement and professional development activities.
          (q) State Educational Agency Corrective Action--After 
        providing technical assistance and taking other 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency identified as needing improvement. 
        However, during the fourth year following 
        identification, the State educational agency will take 
        action against any local educational agency that still 
        fails to make adequate yearly progress.
          (r) State Educational Agency Required Action--Each 
        State educational agency will implement at least one of 
        the following corrective actions:
                  (i) instituting and implementing a new 
                curriculum;
                  (ii) restructuring the local educational 
                agency;
                  (iii) developing and implementing a joint 
                plan between the State educational agency and 
                the local educational agency that addresses 
                student performance problems;
                  (iv) reconstituting school district 
                personnel;
                  (v) making alternative governance 
                arrangements.
          (s) State Educational Agency Allowable Action--Each 
        State educational agency may take 1 of the following 
        corrective actions:
                  (i) deferring, reducing, or withholding 
                funds;
                  (ii) restructuring or abolishing the local 
                educational agency;
                  (iii) removal of particular schools from the 
                local educational agency jurisdiction;
                  (iv) appointment by the State educational 
                agency of a receiver or a trustee to oversee 
                the local educational agency.
          (t) State Hearing--Prior to corrective action 
        implementation, the State educational agency will 
        provide the local educational agency with the 
        opportunity to hold a hearing.
          (u) Parental Notification--The State educational 
        agency will notify parents about any corrective action 
        the State educational agency may take.
          (v) Delay--A State educational agency may delay, for 
        1 year, implementation of corrective action if the 
        State educational agency determines that the schools 
        within the local educational agency will meet the 
        State's improvement criteria within 1 year.
          (w) Special Rule--If local educational agencies that 
        for at least 2 of the 3 years following identification 
        make adequate progress toward meeting the State's 
        standards, then those agencies no longer need to be 
        identified for improvement.
    Early Childhood Education: A local educational agency may 
use title I, part A funds for preschool services. Early 
childhood education programs may jointly operate with Even 
Start, Head Start, or State-funded preschool programs.
    Funding: A funding level of $15 billion is authorized for 
part A for fiscal year 2002.

Part B--Literacy for children and families

            Subpart 1--William F. Goodling Even Start Family Literacy 
                    programs
    The William F. Goodling Even Start Family Literacy program 
is designed to improve the educational opportunities for low-
income families by integrating early childhood, adult basic 
education, and parenting education into a unified family 
literacy program. The Secretary of Education awards grants to 
State educational agencies through a formula allocation. The 
State educational agencies distribute the funds to local 
educational agencies that form a collaboration with a community 
based organization, an institution of higher education, or 
another agency or nonprofit organization. This collaboration 
will provide joint education programs to serve children and 
their parents.
    Even Start program services must include adult literacy 
instruction, early childhood education, instruction to help 
parents support their child's education, staff training, and 
home-based instruction. Child care and transportation may be 
provided if these services are necessary and other funding 
sources are not available.
    Even Start grants are geared for areas with high rates of: 
poverty, illiteracy, unemployment, families of limited-English 
proficiency, or disadvantaged children. Grants are awarded for 
a 4-year period and may be renewed for up to 4 additional 
years.
    In 2000, Congress amended the Even Start law by passing the 
Literacy Involves Families Together (LIFT) Act as part of the 
fiscal year 2001 omnibus appropriations bill (Public Law 106-
554.)
    The following amendments were made to Even Start:
          (a) extended the authorization for the program 
        through fiscal year 2006;
          (b) increased the fiscal year 2001 authorization to 
        $250 million;
          (c) strengthened the accountability requirements for 
        local projects;
          (d) encouraged the use of family literacy in title I 
        schools; and,
          (e) set standards for Even Start staff who are 
        providing instructional services.
    A funding level of $250 million is authorized for fiscal 
year 2002.
            Subpart 2--Reading first
    It is the purpose of this subpart to provide assistance to 
States, local educational agencies, schools, and teachers to 
help all children in kindergarten through third grade become 
proficient readers by the end of third grade.
    The Secretary is authorized to distribute 75 percent of the 
funds to the States and the District of Columbia based on the 
formula for title I, part A. The remaining 25 percent of funds 
are to be distributed to the States on a competitive basis. The 
competitive grants are to be made based primarily on a State's 
demonstration of significant progress in helping all children 
read at a proficient level. State applications for both the 
formula and competitive funds are subject to a peer review 
process that is described in the bill. With funds from both 
sources, a State must distribute funds to local educational 
agencies through a competitive process. The bill contains 
criteria describing which local educational agencies are 
eligible to apply to the State.
    Funds are also reserved for the Secretary to provide 
technical assistance to the States and to evaluate the programs 
supported by this subpart and for the National Institute for 
Literacy to disseminate information about reading research and 
effective programs supported under this subpart.
    This new program builds upon the Reading Excellence Act, 
which has provided competitive grants to states for similar 
purposes. As in the Reading Excellence Act, all reading-related 
activities supported with these funds must be based on 
``scientifically based reading research,'' as this term is 
defined in the bill. The bill defines how funds can be used at 
the local level, including: purchasing, implementing, or 
developing diagnostic reading assessments, professional 
development, materials (including reading materials), training 
of tutors, and assisting parents to support their children's 
reading development.
    States are authorized to use up to 20 percent of the funds 
they receive under the formula grants for professional 
development, technical assistance, and administering the 
program.
    A funding level of $900 million is authorized for subpart 2 
in fiscal year 2002.
            Subpart 3--Early reading first
    It is the purpose of this subpart to demonstrate effective 
approaches for improving the early language and literacy skills 
of children aged 3 through 5. The Secretary is authorized to 
award 4-year competitive grants to local education agencies, 
organizations serving preschool age children, or combinations 
of such agencies and organizations.
    An eligible applicant must to apply to the Secretary to 
receive funding under this program, and the bill contains 
several required elements of an application. The Secretary 
would award grants on the basis of a peer review process. The 
National Institute for Literacy, with funding it receives under 
the Reading First proposal, would disseminate information 
regarding effective programs funded under this subpart.
    The Secretary of Education is authorized to reserve funds 
from the amount appropriated for this subpart to carry out an 
evaluation of the funded projects and carry out research on 
language and literacy development for children aged 3 through 
5.
    A funding level of $75 million is authorized for subpart 3 
in fiscal year 2002.

Part C--Education of migratory children

    The Migrant Education program provides grants to State 
educational agencies to develop or improve educational programs 
for migrant students. Most migrant programs are administered by 
local educational agencies and operate during both the regular 
school year and in the summer. Priority for services is given 
to current migrant students and to students who are failing, or 
at greatest risk of failing, to meet State performance 
standards.
    Funds are distributed through a formula which is based on 
the number of migrant children residing in the State. The 
number is then adjusted to the average per-pupil expenditure 
for both the State and the United States.
    The bill builds upon current law to ensure that migratory 
children have the opportunity to attain high levels of 
educational excellence. The bill:
          (a) includes language ensuring 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 student 
        performance and content standards;
          (b) adds a provision which ensures that migratory 
        children receive full and appropriate opportunities to 
        meet the same challenging State standards that all 
        children are expected to meet;
          (c) includes a requirement to have joint planning 
        efforts between migrant education programs and 
        bilingual education;
          (d) includes provisions emphasizing the importance of 
        parental involvement and the parent advisory councils;
          (e) establishes an information system for 
        electronically exchanging migrantstudent information 
        which may include: immunization records and other 
        health information; elementary and secondary academic 
        history; credit accrual; State assessment results; 
        other academic information essential to ensuring that 
        migrant children achieve high standards; and 
        eligibility for services under the Individuals with 
        Disabilities Education Act; and
          (f) requires schools which receive Federal migrant 
        education funding, even those which have chosen to 
        participate in schoolwide programs, to first attend to 
        the very special needs of this population which are a 
        direct result of their migratory lifestyle by funding 
        services and activities which will help them 
        participate effectively in school, before putting 
        migrant education funds into schoolwide programs.
    A funding level of $400 million is authorized for fiscal 
year 2002 to carry out part C activities.

Part D--Initiatives for neglected, delinquent, or at-risk students

    This program primarily serves youth who have been assigned 
to institutional facilities. The purpose of the program is to 
provide those youth with the opportunity to make a successful 
transition from institutionalization to further schooling or 
employment. A funding level of $50 million is authorized for 
part D for fiscal year 2002.

Part E--Evaluations and demonstrations

    The BEST Act retains current law provisions. A funding 
level of $35 million is authorized for evaluations and 
demonstrations for fiscal year 2002.

Part F--21st Century Community Learning Centers

    The 21st Century Community Learning Centers program 
provides grant support to rural and inner city public 
elementary or secondary schools, or consortia of such schools, 
to plan, implement, or expand projects that benefit the 
educational, health, social service, cultural, and recreational 
needs of a rural or inner-city community. The BEST bill makes 
some revisions to current law by placing an emphasis on 
academic enrichment programs and also allowing community based 
organizations and units of general purpose local government to 
be awarded grants along with local educational agencies. The 
grant process would continue to be a competitive process. A 
funding level of $1.5 billion is authorized for part F for 
fiscal year 2002.

Part G--Comprehensive School Reform

    The BEST Act includes the Comprehensive School Reform 
program, often referred to as ``Obey-Porter.'' It authorizes 
the Secretary to award grants to State educational agencies by 
formula to enable them to make competitive grants to local 
educational agencies to carry out scientifically based research 
programs that emphasize academics and parental involvement. A 
funding level of $250 million is authorized for part G for 
fiscal year 2002.

Part H--School dropout prevention

    Part H authorizes 2 activities designed to provide for 
school dropout prevention and reentry. Subpart 1 provides for a 
Coordinated National Strategy under which the Secretary of 
Education is authorized to conduct national activities 
including: (1) data collection regarding participation in 
Federal dropout prevention and school reentry programs; (2) 
establishment of an interagency working group to address 
dropout prevention and school reentry issues; and (3) creation 
of a national recognition program for schools that have made 
extraordinary progress in lowering dropout rates. Ten percent 
of the funding made available for part H is allocated for 
subpart 1 activities.
    Subpart 2 provides for a National School Dropout Prevention 
Initiative to provide assistance to States. If the sum that is 
appropriated is less than $250 million, then the Secretary of 
Education will use such an amount to award grants on a 
competitive basis, to State educational agencies. If the amount 
appropriated is equal to or exceeds $250 million, then the 
Secretary will allocate funds to the States through the formula 
established under title I, part A. States are to use subpart 2 
funds to award grants to public middle or secondary schools 
that have the highest dropout rates in the State for the 
purpose of supporting dropout prevention programs. Ninety 
percent of the funding made available for part H is allocated 
for subpart 2 activities.
    A State receiving part H funds must provide dropout rate 
information to the Secretary, establish attendance-neutral 
funding policies, and adopt suspension and expulsion policies.
    A funding level of $250 million is authorized for part H 
for fiscal year 2002.

Education for Homeless Children and Youth

    The Education for Homeless Children and Youth program, 
authorized as Subtitle B of the Stewart B. McKinney Homeless 
Assistance Act, is extended through fiscal year 2008. The 
program provides for: the establishment of Offices of 
Coordinator of Education of Homeless Children and Youth in 
States; the development and implementation of State plans for 
the education of homeless children; and support to local 
educational agencies for the education of these children. The 
reauthorization bill strengthens provisions of the current law 
designed to avoid segregating homeless students, to maintain a 
child's attendance at his or her school or origin, to avoid 
enrollment delays, and to assure that the quality of an 
application is considered in the provision of subgrants to 
local educational agencies. A funding level of $70 million is 
authorized for fiscal year 2002.

                           TITLE II--TEACHERS

Part A--Teacher quality

    Part A of title II consolidates funds and authorities from 
the existing Eisenhower Professional Development and Class Size 
Reduction programs in order to provide greater flexibility for 
States and localities in meeting their specific needs related 
to the professional development, recruitment, and hiring of 
highly qualified teachers.
    Definitions: ``Professional development'' is strictly 
defined in the bill in order to assure that professional 
development activities supported under part A are an integral 
part of educational improvement plans, are sustained, are tied 
to State standards, and are based on the best available 
research. ``Highly qualified'' as the term pertains to teachers 
is also defined.
    State and Local Grant Funds: States will be held harmless 
at their fiscal year 2001 funding allocations under the current 
Eisenhower and the Class Size Reduction programs. Remaining 
funds will be distributed by a formula based 50 percent on 
poverty and 50 percent on population. A State may reserve 5 
percent of funds for State-level activities and local 
partnership activities, and the remaining 95 percent of funds 
must be distributed by formula to local educational agencies.
    State Activities: States may use funds for a range of 
activities relating to the certification, recruitment, 
professional development, and support of teachers. Examples of 
such activities include: reforming teacher certification or 
licensing requirements; addressing alternative routes to State 
certification of teachers; recruiting teachers and principals; 
providing professional development activities to ensure that 
teachers are able to use State standards and assessments to 
improve instruction; and reforming tenure systems.
    Local Activities: Local educational agencies may use funds 
for the professional development, recruitment, or hiring of 
teachers. To receive funds, the local educational agency must 
assess its needs for professional development and hiring and 
develop an evaluation plan.
    Local Accountability: The evaluation plan of a local 
educational agency must include performance objectives related 
to: student achievement, participation in professional 
development activities, teacher retention, and decreased use of 
out-of-field teachers. The local educational agency must report 
annually to the State regarding its progress and will receive 
technical assistance from the State if it fails to make 
progress by the end of the third year of funding. If the local 
educational agency does not make progress by the end of 5 
years, it will be ineligible for part A funding for 2 years. 
Funds which would otherwise be allocated to the local 
educational agency will be used instead by the State to assist 
the agency to meet performance objectives.
    Local Partnerships: The funds reserved for local 
partnerships will be awarded competitively by the State agency 
for higher education, working in conjunction with the State 
educational agency. Eligible partnerships must include a 
private or State institution of higher education and the 
division of that institution that prepares teachers; a school 
of arts and sciences; and a high-need local educational agency. 
Eligible partnerships may also include other entities. 
Partnerships are to use funds for professional development for 
teachers, paraprofessionals and, if appropriate, principals. 
Activities must be coordinated with title II of the Higher 
Education Act, if applicable.
    National Activities: The BEST Act authorizes support for 5 
national activities:
          (1) School Leadership Initiative: This program will 
        ensure that funds for professional development will be 
        available to principals, superintendents, and others to 
        enhance their leadership and management skills.
          (2) Advanced Certification or Credentialing: This 
        program provides funds to the National Board for 
        Professional Teaching Standards to make grants to State 
        educational agencies, local educational agencies, and 
        individuals to promote outreach, recruit teachers, or 
        provide for teacher subsidies.
          (3) Troops-to-Teachers: This program has proven to be 
        effective in recruiting former military personnel as 
        classroom teachers.
          (4) Transition to Teaching: This program will help 
        recruit, prepare, and support mid-career professionals 
        to become highly qualified teachers.
          (5) National Teacher Recruitment Campaign: This 
        program will support a national Public service campaign 
        concerning the resources for and routes to entering 
        teaching.
    Funding: A funding level of $3 billion is authorized for 
this part for fiscal year 2002, of which $100 million will be 
available to carry out national activities. A separate 
authorization of $3 million in fiscal year 2002 is provided for 
a National Teacher Recruitment Campaign.

Part B--Mathematics and science partnerships

    Part B includes new initiatives designed to improve student 
achievement in the areas of mathematics and science by 
strengthening the training and recruitment of highly qualified 
math and science teachers.
            Subpart 1--Mathematics and science partnerships
    Grant Awards to Partnerships: Subpart 1 authorizes the 
award of 5-year competitive, matching grants to partnerships 
linking the math and science departments of institutions of 
higher education with States and local school districts. 
Priority is given to partnerships involving a high-need local 
educational agency. The Federal share is 75 percent in year 1, 
85 percent in year 2, and 50 percent in years 3 through 5.
    Application Requirements: Applications must include: an 
assessment of needs for teacherquality and professional 
development for all participating entities; a description of 
how activities will be aligned with State and local standards; 
and a description of how activities will be based on a review 
of relevant research. Applications must also include an 
evaluation and accountability plan which includes objectives 
and measures for improved student performance; increased 
student participation in advanced courses; increased 
percentages of secondary school classes in math and science 
taught by teachers with academic majors in those subjects; and 
increased numbers of math and science teachers who participate 
in content-based professional development activities
    Partnership Activities: An eligible partnership shall use 
grant funds for 1 or more of the following activities: 
developing more rigorous math and science curricula aligned to 
State and local standards and with the standards expected for 
postsecondary study in mathematics and science, respectively; 
creating opportunities for enhanced and ongoing professional 
development; recruiting math and science majors to teaching; 
promoting strong teaching skills for math and science teachers 
and teacher educators; establishing math and science summer 
workshops or institutes for teachers; establishing distance 
learning programs for math and science teachers; designing 
programs to prepare a teacher to provide professional 
development to other teachers and novice teachers; and 
designing programs to bring teachers into contact with working 
scientists.
    Accountability: Grant recipients must report annually to 
the Secretary regarding their progress in meeting performance 
objectives. If the Secretary determines that a grantee is not 
making substantial progress in meeting those objectives by the 
end of the third year of the grant, then no further grant 
payments will be made.
    Funding: A funding level of $500 million is authorized for 
this subpart for fiscal year 2002.
            Subpart 2--Eisenhower Clearinghouse for Mathematics and 
                    Science Education
    Subpart 2 of part B provides for the continuation of the 
Eisenhower Clearinghouse for Mathematics and Science Education. 
The functions of the Clearinghouse are expanded to include the 
development of an Internet-based site offering a search 
mechanism and including electronic links to users and providers 
of instructional materials and programs. Not later than 2 years 
after the enactment of this Act, the National Academy of 
Sciences is to conduct a study of the Clearinghouse and submit 
its report to Congress. A funding level of $5 million is 
authorized for this subpart for fiscal year 2002.
            Subpart 3--Preparing tomorrow's teachers to use technology
    Grant Awards to Consortia: This subpart authorizes 5-year 
competitive grants to consortia to support programs preparing 
teachers to use technology effectively. Funds must be used to 
create programs that enable prospective teachers to use 
advanced technology to create learning environments where all 
students are prepared to meet challenging State standards. The 
Federal share of any project shall not exceed 50 percent.
    Consortia: Eligible consortia must include at least 1 
institution of higher education that offers a baccalaureate 
degree and prepares teachers for their initial entry into 
teaching, at least 1 State or local educational agency, and 1 
or more of: a second institution of higher education, a school 
or department of education at an institution of higher 
education, a school or college of arts and sciences at an 
institution of higher education, 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.
    Use of Funds: Consortia must use the funds to create 
programs that enable prospective teachers to use advanced 
technology to create learning environments conducive to 
preparing all students to meet standards and to evaluate the 
effectiveness of the project. The Act includes a number of 
permissive uses of funds as well.
    Funding: A funding level of $150 million is authorized for 
this subpart for fiscal year 2002.
            Subpart 4--General provisions
    Subpart 4 of part B provides that the Secretary of 
Education must consult and coordinate activities under part B 
with the Director of the National Science Foundation, 
particularly with respect to the most appropriate and effective 
role each of their agencies can play with respect to summer 
workshops or institutes.

Part C--State and local programs for technology use in the classrooms

    Part C consolidates several Federal educational technology 
programs into a single funding authority in order to provide 
States and localities with greater flexibility in meeting their 
specific technology needs.
    Purpose: Part C is intended to support a comprehensive 
system to use technology effectively in elementary and 
secondary schools to improve student academic achievement and 
performance. The goal of the part is to assist every child in 
crossing the digital divide by ensuring that every child is 
technologically literate by the time the child finishes the 8th 
grade.
    State and Local Grant Funds: The Secretary, through the 
Office of Educational Technology, awards grants to State 
educational agencies to be used for competitive grants to local 
educational agencies. The Secretary shall reserve sufficient 
funds to maintain grants awarded under the National Challenge 
Grants for Technology in Education prior to the enactment of 
the Better Education for Students and Teacher Act. Each State 
educational agencywill receive a grant based on the title I 
formula. A grant recipient under part C may use no more than 5 
percent of grant funds for administrative costs or technical 
assistance. At least 30 percent of local educational agency 
funds must be used for professional development.
    State Activities: A State educational agency must submit a 
statewide educational technology plan that outlines long-term 
strategies for improving student performance and achievement 
through the effective use of technology, for financing and 
coordinating technology education in the State, and for 
enabling the State educational agency to assist local 
educational agencies with the highest numbers or percentages of 
children in poverty and which demonstrate the greatest need for 
technology. The State educational agency awards competitive 
grants to local educational agencies with priority given to 
agencies with the highest numbers or percentages of children in 
poverty in both rural and urban areas and must provide 
technical assistance to local educational agencies that most 
need assistance in developing the application.
    Local Activities: A local educational agency must apply, 
alone or as part of a consortium, to the State educational 
agency for assistance under part C. Local educational agencies 
may use part C funds to support school reform efforts, provide 
ongoing professional development on the integration of 
technology into the curriculum, acquire connectivity; and 
provide educational services for adults and families.
    Local Accountability: Each local educational agency 
receiving funds under part C must develop an evaluation and 
submit an annual report to the State educational agency. If a 
local educational agency has failed to show measurable 
improvements in all performance measures by the end of the 
third year of funding, it will not receive funds for the 
remaining grant years.
    National Technology Plan: The Secretary, in consultation 
with a wide range of individuals and organizations, must 
prepare a national long-range plan to support the national 
technology policy. The plan is to be submitted to the President 
and to the appropriate committees of Congress and is to be made 
readily accessible to the public. The plan must include the 
Secretary's long-range measurable goals and objectives relating 
to the purposes of part C and descriptions of the ways in which 
the Secretary will coordinate efforts to facilitate the 
effective use of technology to promote increased access to 
educational opportunities for all students and higher academic 
achievement and performance in education, training, and 
lifelong learning.
    Funding: A funding level of $1 billion is authorized for 
part C for fiscal year 2002.

Part D--Portability of teacher pensions and credentials

    Part D authorizes the establishment of a 9-member National 
Panel of Portability of Teacher Pensions and Credentials. 
Members are to be appointed by the Secretary from among 
practitioners and experts with experience relating to teacher 
pensions and credentials. The panel is to study options for 
increasing reciprocity of recognition of teacher credentials 
and portability of teacher pensions between States. Such sums 
as necessary are authorized for fiscal year 2002, to remain 
available until expended.

   title iii--moving limited english proficient students to english 
                                fluency

Part A--Bilingual education

    The Bilingual Education program is designed to provide 
educational assistance to students with limited English 
proficiency to meet challenging State standards. The BEST Act 
makes several changes to the program. The key changes are--
    Program Development and Implementation Grants: This program 
has been repealed and the purposes of this initiative have been 
woven into other programs under this subpart.
    Program Enhancement Projects: Grants will be used for: 
developing, implementing, expanding, or enhancing comprehensive 
preschool, elementary, or secondary education programs for 
limited English proficient children and youth; providing high 
quality professional development; and annually assessing the 
English proficiency of all limited English proficient students. 
In awarding grants, the Secretary of Education may give 
priority to an entity that serves less than 10,000 students; a 
large percentage or number of limited English proficient 
students; and limited or no experience in serving English 
proficient students.
    Comprehensive School and Systemwide Improvement Grants: The 
BEST bill combines these two programs (under current law) into 
one program. Grants awarded under this program will be used for 
an array of purposes including: instructional programs for 
limited English proficient students; professional development; 
and implementation of family education or parent outreach 
programs. One-third of the grants awarded under this section 
will be awarded to school districts and two-thirds will be used 
for school activities.
    Priority: In awarding all Bilingual Education grants, the 
Secretary of Education will give priority to an applicant who: 
experiences a dramatic increase in the number or percentage of 
limited English proficient students enrolled in the applicant's 
program and has limited or no experience in serving limited 
English proficient students; is a local educational agency that 
serves a school district with a total district enrollment that 
is less than 10,000 students; demonstrates a proven success 
record in helping limited English proficient students; proposes 
programs providing for bilingual proficiency both in English 
and another language; or serves a school district where there 
is a large percentage or number of limited English students. In 
addition, the 25 percent limitation for special alternative 
programs has been deleted.
    State Grant Program: The State grant program assists local 
educational agencies with program design, capacity building, 
student performance assessment, and program evaluation. The 
bill increases the minimum funding level from $100,000 to 
$200,000.
    Funding: A funding level of $300 million is authorized for 
fiscal year 2002.

Part B--Foreign language assistance

    The Foreign Language Assistance Program provides 
competitive grant assistance to State or local educational 
agencies to provide foreign language study for elementary and 
secondary school students. Incentive payments are authorized as 
well for schools that offer programs designed to lead to 
communicative competency in a foreign language. The BEST Act 
adds provisions giving special consideration to grant 
applications which make effective use of technology, promote 
innovative activities, or are carried out through a consortium 
including the grantee and an elementary or secondary school. A 
funding level of $35 million is authorized for fiscal year 
2002.

Part C--Emergency immigrant education

    The Emergency Immigrant Education program provides funds to 
local educational agencies that experience unexpectedly large 
increases in their student populations due to immigration to 
assist with the education of those students. A funding level of 
$200 million is authorized for fiscal year 2002.

          title iv--safe and drug-free schools and communities

Part A--State grants

    Purpose: It is the purpose of this part to support programs 
that: prevent violence in and around schools; prevent the 
illegal use of alcohol, tobacco and drugs; involve parents; and 
are coordinated with related Federal, State, and community 
efforts. This part also establishes Principles of Effectiveness 
and increases the use of research-based programs. States are 
provided with greater flexibility in preventing violence and 
drug use.
    State and Local Grants: The State application must include: 
a comprehensive plan for use of funds under the Governor's 
program and the State Department of Education's program; a 
needs assessment; and results of ongoing evaluation activities. 
The bill reserves 80 percent of the funds to be available to 
States for State support and local educational agency grants. 
State and local programs must implement scientifically based 
research initiatives. State educational agencies may use up to 
5 percent of funds for technical assistance and up to 5 percent 
for administration.
    State educational agencies may choose between two options 
for allocating remaining funds to local educational agencies: 
(1) provide at least 70 percent to schools based on enrollment 
and up to 30 percent allocated at a State's discretion or to 
schools the State determines to have the greatest need; or (2) 
provide up to 70 percent on a competitive basis to those 
schools with the greatest need, determined by the State, and 30 
percent to those schools the State determines require 
additional help, but who may not meet ``greatest need'' 
criteria. This would allow States to choose and define a 
competitive or baseline minimum grant system and still allow 
them to help those schools that could not compete under that 
system, if they choose.
    The bill also reserves 20 percent of a State's allocation 
for Governors' Programs of which not less than 95 percent of 
the funds must be used for scientifically based research 
activities. The bill allows Governors to add their money to the 
funds being sent to schools and communities.
    Local Educational Agency Grants: In submitting their 
applications, local educational agencies must include a needs 
assessment, set measurable goals, and describe how they will 
utilize scientifically based research activities.
    Evaluations and Reporting: The bill requires the Secretary 
of Education to consult with a newly created National Advisory 
Committee in creating an evaluation to measure the 
effectiveness of the program.
    Parental Involvement: In the application, use of funds, and 
evaluation sections, the bill emphasizes the importance of 
ensuring that parents are involved, so that they can reinforce 
the violence and drug prevention message at home.
    Federal Activities: The Secretary to authorized award 
grants or contracts to support a variety of activities designed 
to prevent the illegal use of drugs and violence among students 
from pre-school through the postsecondary level.
    Domestic Violence Grants: The Secretary is authorized to 
award grants and contracts to elementary and secondary schools 
that work with experts to enable the schools to support 
training, programming, support services, and policies relating 
to children experiencing or witnessing domestic violence. The 
confidentiality of the victim and the victim's family must be 
maintained.
    Funding: For fiscal year 2002, the bill authorizes $700 
million for the State Grants Program, $150 million for National 
Programs, and $75 million for the National Coordinator 
Initiative. In addition, the bill authorizes $5 million in each 
of fiscal years 2002 through 2004 to support grants to combat 
the impact of experiencing or witnessing domestic violence on 
elementary and secondary school children.

Part B--Gun possession

    The Gun-Free Schools provisions contained in part F of 
title XIV of the current law have been transferred to Part B of 
title IV. These provisions require State receiving funds under 
the BEST Act to have laws requiring local educational agencies 
to expel from school for at least 1 year any student who brings 
a weapon to school.

Part C--School safety and violence prevention

    Part C includes a number of new provisions and allowable 
uses of funds related to school safety and violence prevention, 
including:
    School Safety and Violence Prevention: Provides that 
Federal funds provided under titles IV and subpart 4 of part B 
of title V may be used for training school personnel to 
identify potential threats; to identify troubled youth; to make 
comprehensive school security assessments; to purchase metal 
detectors, locks, and surveillance cameras; to engage in 
collaborative efforts with community-based organizations to 
reduce violence; and to utilize other innovative programs to 
reduce school violence.
    School Uniforms: Provides that nothing in the Act can be 
construed to prohibit schools from establishing a school 
uniform policy and allows funds provided under title IV and 
subpart 4 of part B of title VI to be used for establishing a 
school uniform policy.
    Transfer of School Disciplinary Records: Requires States 
receiving Federal funds under the Elementary and Secondary 
Education Act to establish a procedure by which local 
educational agencies must transfer the suspension and expulsion 
records of any student to any private or public elementary or 
secondary school in which that student seeks enrollment. This 
requirement does not apply to private schools.
    Background Checks: Amends the National Child Protection Act 
of 1993 to specify that individuals who are employed, or seek 
employment, with schools are included in the provisions of that 
act relating to background checks.

Part D--Environmental tobacco smoke

    The bill transfers to the Elementary and Secondary 
Education Act the environmental tobacco smoke provisions that 
were contained under part C of title X of the Goals 2000: 
Educate America Act to part D of title IV. These provisions 
prohibit smoking within any indoor facility used for the 
provision of education, routine health care, day care, library 
services, or early childhood development.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Part A--Public school choice

    This part contains 3 programs: charter schools, magnet 
schools, and public school choice.
            Subpart 1--Charter schools
    Charter Schools are public schools that are released from 
various regulations that normally apply to public schools in 
exchange for increased student performance accountability. The 
Charter Schools program supports the establishment of charter 
schools in States that have enacted State charter school laws. 
The program supports the design, initial implementation, and 
evaluation of charter schools. A funding level of $190 million 
is authorized for fiscal year 2002.
            Subpart 2--Magnet schools assistance
    Magnet schools are public elementary or secondary schools 
that offer a special curriculum which attracts substantial 
numbers of students of different racial backgrounds. The 
purpose of this program is to assist schools in increasing 
their racial, economic, linguistic, or ethnic diversity. A 
funding level of $125 million is authorized for fiscal year 
2002.
            Subpart 3--Public school choice
    The Public School Choice initiative requires all school 
districts receiving funds under part A of title I to provide 
students in low-performing title I schools with the option to 
transfer to another public school or public charter school in 
the school district, unless prohibited by State or local law. 
Local educational agencies located within States that qualify 
for the small state minimum under part A of title I are not 
required to comply with this requirement, but may comply if 
they so choose.

Part B--Flexibility

    This part contains several initiatives designed to provide 
greater flexibility to schools and school districts. These 
efforts include the Education Flexibility Partnerships; the 
Rural Education Initiative; Waivers; and Innovative Education 
Program Strategies.
            Subpart 1--Education flexibility partnerships
    The Education Flexibility Partnership Act allows State 
educational agencies, the flexibility to waive certain Federal 
requirements, along with State requirements for the purpose of 
raising student achievement. The provisions of Public Law 106-
25, which was signed into law in 1999 as a free-standing bill, 
have been incorporated into the BEST Act.
            Subpart 2--Rural education initiative
    The Rural Education Initiative is to provide adequate 
funding to rural school districts to enhance their ability to 
improve student performance. Chapter 1, the Small Rural School 
Achievement Program, permits rural schools districts to combine 
funds and apply these funds toward local initiatives designed 
to improve student achievement.
    In addition, participating local educational agencies are 
eligible to receive a supplemental grant that, when combined 
with other Federal dollars, will enable these small rural 
schools to offer programs and activities of sufficient size, 
scope, and quality to have a significant impact upon student 
and school performance. Chapter 2, the Low-Income and Rural 
School Program, is designed to meet the needs of rural school 
districts serving large numbers of disadvantaged students. A 
funding level of $300 million is authorized for fiscal year 
2002, of which $150 million is to be used to support activities 
under chapter 1.
            Subpart 3--Waivers
    Under the Waivers section, a State educational agency, 
local educational agency, or Indian tribe may seeks waivers 
from the Secretary of Education. The entity seeking the waiver 
must describe the Federal requirements to be waived and how, in 
waiving those requirements, overall student achievement will 
improve.
            Subpart 4--Innovative Education Program Strategies
    The Innovative Education Program Strategies, often referred 
to in the current law as ``Title VI,'' has been moved to title 
V which is focused on providing flexibility to State and local 
educational agencies. This program provides support to State 
and local educational agencies to develop education reform 
initiatives that will improve student, school, and teacher 
performance. The administration of program funds is handled by 
the State educational agencies. However, the design and 
implementation of activities under the program are the 
responsibilities of the local educational agencies, school 
superintendents, principals, and teachers. A funding level of 
$850 million is authorized for fiscal year 2002.

Part C--Flexibility in the use of administrative and other funds

    State educational agencies and local educational agencies 
have the ability to consolidate administrative funds for one or 
more of the following: all title I programs; administration of 
the Innovative Education Program Strategies initiative; 
establishment and operation of peer-review mechanisms under the 
BEST Act; and dissemination of information regarding model 
programs and practices.

Part D--Coordination of programs, consolidated state and local plans 
        and applications

    This provisions of this part encourage greater cross-
program coordination, planning, and service delivery. State 
educational agencies and local educational agencies may 
integrate the following programs into one plan: part A of title 
I; part C of title I; title IV; and Innovative Education 
Program Strategies. Local educational agencies may integrate 
the following into one plan: part A of title I; part A of title 
II; title IV; and Innovative Education Program Strategies.

Part E--Advanced placement program

    Part E authorizes a competitive grant program designed to: 
encourage more students (especially low-income students) to 
take the advanced placement (AP) exam; increase the 
availability of AP courses offered; and broaden the range of 
schools offering AP courses. This program, originally 
authorized as part of the Higher Education Amendments of 1998, 
has been expanded and added to the Elementary and Secondary 
Education Act.
    The Secretary is to give first priority to providing grants 
to State educational agencies to enable them to cover all or 
part of the costs of AP test fees for low-income individuals. 
Seventy percent of any remaining funds will be allocated for 
grants to State and local educational agencies to expand access 
for low-income students to AP programs. Thirty percent of any 
remaining funds will be used for grants to provide students 
with on-line AP courses. A funding level of $50 million is 
authorized for these activities in fiscal year 2002.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Part A--Parental assistance

    Part A provides leadership, technical assistance, and 
financial support to nonprofit organizations and local 
educational agencies to implement successful parent involvement 
programs. The Secretary of Education is authorized to award 
competitive grants to nonprofit organizations and local 
educational agencies to establish school-linked or school based 
parental information and resource centers. Grant funds will be 
used to assist parents in participating effectively in their 
children's education. A funding level of $50 million is 
authorized for these activities in fiscal year 2002.

Part--B Improving academic achievement

    The purpose of part B is to create rewards for states and 
schools that make the most progress in improving educational 
achievement. The Secretary would be authorized to make 
``Achievement in Education Awards'' to support States, and ``No 
Child Left Behind Awards'' to recognize schools. The Secretary 
would also be authorized to make one-time bonus payments to 
States that complete the development of assessments in advance 
of the schedule outlined in section 1111. The BEST Act 
authorizes $50 million for fiscal year 2002 for these purposes, 
as well as other activities designed to promote the improvement 
of education, as part of the Fund to Improve Education 
Achievement (FIEA).
    The BEST Act also authorizes the Secretary to reduce 
administrative funds to those States that fail to make adequate 
yearly progress and that show no statistically significant 
improvement for students who are racial or ethnic minorities 
and for economically disadvantaged students. The Secretary's 
determination will be based on both the results of the State 
assessment system described in section 1111, and the results of 
4th and 8th grade assessments by the National Assessment of 
Educational Progress (NAEP) in mathematics and reading. 
However, no sanctions would be levied against a State based 
solely on the results of its NAEP assessment. After 2 years of 
insufficient progress, the Secretary may reduce administrative 
funds by up to 30 percent, after 3 such years, up to 75 
percent.
    In addition to authorizing $50 million for FIEA, part B 
authorizes $400 million and $110 million for the development of 
State assessments and conduct of the state NAEP, respectively, 
in fiscal year 2002.

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

    The purpose of title VII is to modify and improve the 
educational services provided for American Indian, Alaska 
Native, and Native Hawaiian students. The BEST Act continues to 
make grants available to schools operated or supported by the 
Bureau of Indian Affairs and allows local educational agencies 
to provide an increased range of services to include those 
that: (1) promote the incorporation of culturally responsive 
teaching and learning strategies; (2) incorporate American 
Indian and Alaska Native specific curriculum content into the 
curriculum; (3) promote coordination among tribal, Federal, and 
State public schools in areas that will improve education; and 
(4) offer family literacy activities. The BEST Act gives local 
educational agencies which receive formula grants under part A 
the ability to commingle all of the Federal funding they 
receive for educating Indian children, regardless of which 
agency provides it, into 1 coordinated, comprehensive program 
to meet the specific needs of Indian children. The BEST Act 
also authorizes the provision of family literacy services for 
Indian, Native Hawaiian, and Native Alaskan students, limits 
administrative costs to 5 percent, and consolidates a number of 
programs under Part B: Native Hawaiian Education and Part C: 
Native Alaskan Education. Fiscal year 2002 funding 
authorizations levels are $116 million for Indian Education, 
$28 million for Native Hawaiian Education, and $17 million for 
Alaska Native Education.

                          TITLE VIII--REPEALS

    This title repeals titles IX through XIV of the Elementary 
and Secondary Education Act of 1965 and repeals the Goals 2000: 
Educate America Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    This title authorizes a grant award to the National Board 
on Testing and Assessment of the National Research Council to 
conduct an ongoing evaluation of high stakes assessments. A 
funding level of $4 million is authorized for fiscal year 2002, 
to remain available until expended.

General notes

    1. Throughout the bill, specific funding levels are 
established for fiscal year 2002 and ``such sums as may be 
necessary'' are authorized for each of the 6 succeeding fiscal 
years. Unless otherwise noted, all programs included in the 
BEST Act are authorized through fiscal year 2008.
    2. Impact Aid programs remain a part of the Elementary and 
Secondary Education Act. These programs were reauthorized in 
2000 as part of the Floyd D. Spence National Defense 
Authorization Act for fiscal year 2001 (Public Law 106-398). 
The BEST Act retains impact aid programs as title VIII, but 
makes no changes to these programs.

             III. Legislative History and Committee Action

    During the 106th Congress, the committee held 24 hearings 
on issues related to the reauthorization of the Elementary and 
Secondary Education Act (ESEA). On February 15, 2001, the full 
committee held a hearing on President Bush's education 
proposals-receiving testimony from Education Secretary Roderick 
Paige.

                           EXECUTIVE SESSION

    On March 7 and 8, 2001, the committee met in executive 
session to consider the Better Education for Students and 
Teachers (BEST) Act.
    An initial draft of the Better Education for Students and 
Teachers Act was circulated to members of the committee on 
February 16, and a substitute proposal was circulated on March 
2. By unanimous consent of the committee, the March 2 
substitute, in combination with the 4 amendments offered by 
Senator Jeffords at the outset of the executive session, served 
as original text for purposes of further amendment.
    The committee took action on 30 amendments, adopting 21 of 
them and defeating the remaining 9. Fourteen amendments were 
offered and subsequently withdrawn, and an additional 19 
amendments were filed but not offered. The bill as amended was 
adopted by a roll call vote of 20 yeas to 0 nays.

                  Votes Taken During Executive Session

    Eight roll call and 23 voice votes were taken during 
committee consideration of the Better Education for Students 
and Teachers Act, as follows:
    1. Senator Jeffords offered a manager's amendment that 
includes technical corrections to the bill language distributed 
to members on March 2, as well as several small issues worked 
out with members prior to the executive session. The amendment 
was adopted by voice vote (en bloc with the 3 Jeffords 
amendments described immediately below).
    2. Senator Jeffords offered an amendment to expand and 
strengthen the accountability provisions of the bill. The 
amendment: (1) includes a set-aside to help States, school 
districts, and schools develop school improvement strategies; 
(2) requires States to create statewide standards for moving 
all students towards proficiency; (3) requires States to test 
all students in grades 3 through 8 annually in math and 
reading, authorizing funds to cover development costs and half 
of the testing implementation costs; (4) requires States to 
administer the National Assessment of Educational Progress 
(NAEP) reading and math tests in grades 4 and 8, with the 
Federal government assuming the cost of NAEP; (5) requires 
States, school districts, and schools to take stronger actions 
on a 3-year time line if they are not meeting the annual yearly 
progressgoals; (6) creates an achievement fund to reward high 
performing States; and (7) requires schools, school districts, 
and States to develop report cards. The amendment was adopted 
by voice vote (en bloc).
    3. Senator Jeffords offered an amendment making several 
technical and clarifying changes to the new Reading First 
program that was included in the substitute distributed to 
members on March 2. The Reading First program, in Part B of 
Title I, has the goal of having all students read well by the 
end of third grade. The amendment was adopted by voice vote (en 
bloc).
    4. Senator Jeffords offered an amendment to authorize $75 
million in fiscal year 2002 and such sums as may be necessary 
in the 6 succeeding fiscal years for the establishment of the 
Early Reading First program as a complement to the Reading 
First initiative. The goal of Early Reading First is to assist 
preschool age children in their language and early literacy 
development. The program would provide competitive grants to 
schools and other programs serving children ages 3-5, and it 
contains a strong evaluation component. The amendment was 
adopted by voice vote (en bloc).
    5. Senator Kennedy offered an amendment to require that 
local educational agencies use at least 50 percent of their 
teacher quality funds for professional development activities 
(rather than using all or a majority of funds for teacher 
recruitment or hiring). The amendment was defeated by a roll 
call vote 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    6. Senator Hutchinson offered an amendment to add teacher 
merit pay and the reform of tenure systems as permissive uses 
of State funds under the teacher quality provisions of the 
bill. These activities, as well as teacher testing, would also 
be added to the list of permissive activities to be conducted 
by local educational agencies. The amendment was adopted by 
voice vote.
    7. Senator Mikulski offered an amendment to authorize a new 
Community Technology Centers program. The program would provide 
competitive grants to allow foundations, museums, libraries, 
for-profit businesses, non-profits, community-based 
organizations, institutions of higher education, State 
educational agencies, local educational agencies, or consortia 
to expand access to computers and related services to 
disadvantaged residents of economically distressed urban and 
rural communities. The amendment would authorize $100 million 
for fiscal year 2002 and such sums as may be necessary for the 
4 succeeding fiscal years. The amendment was defeated by voice 
vote.
    8. Senator Bingaman offered an amendment to establish an 
expanded Advanced Placement (AP) testing program within the 
Elementary and Secondary Education Act. Seventy percent of the 
funds would be allocated for grants to State and local 
educational agencies to expand access for low-income students 
to AP programs. The remaining 30 percent of funds would be used 
for grants to provide students with on-line AP courses. 
Authorized funding is $50 million in fiscal year 2002 and such 
sums as may be necessary for the out-years. The amendment was 
adopted by voice vote (en bloc with the 2 Bingaman amendment 
described immediately below).
    9. Senator Bingaman offered an amendment to authorize 
school dropout prevention programs. Of that amount, 10 percent 
is allocated for national activities. The remaining 90 percent 
is to be used for States formula grants and for capacity 
building and design initiatives. State funds are to be awarded 
competitively to local schools to support dropout prevention 
programs, to assist school reentry, and to raise the academic 
achievement of all students. Authorized funding is $50 million 
in fiscal year 2002 and such sums as may be necessary for the 
out-years. The amendment was adopted by voice vote (en bloc).
    10. Senator Bingaman offered an amendment to authorize a 
new grant program to provide higher education consortia that 
prepare prospective teachers to better train them in the use of 
advanced technologies. Authorized funding is $150 million in 
fiscal year 2002 and such sums as may be necessary for the out-
years. The amendment was adopted by voice vote (en bloc).
    11. Senator Harkin offered an amendment to authorize a 
school renovation grant program. The amendment would authorize 
a funding level of $1.6 billion for fiscal year 2002 and such 
sums as may be necessary for each of the fiscal years 2003 
through 2006. The amendment was defeated by a roll call vote of 
10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    12. Senator Warner offered an amendment to permit local 
municipalities to compete for grant funds awarded under the 
21st Century Community Learning Centers program. The amendment 
was adopted by voice vote.
    13. Senator Murray offered an amendment to authorize 
funding for the continuation of the class-size reduction 
program as a separate program. (The BEST bill combines this 
program with the Eisenhower professional development program 
and makes class-size reduction a permissive use of funds.) The 
amendment authorized $2.4 billion for fiscal year 2002 and such 
sums as may be necessary for fiscal year 2003 through 2009. The 
amendment was defeated by a roll call vote of 10 yeas to 10 
nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    14. Senator Murray offered an amendment to increase the 
fiscal year 2002 authorization for homeless education programs 
from $40 million to $90 million. During committee discussion of 
the amendment, Senator Murray modified it to provide for a 
fiscal year 2002 authorization level of $70 million. The 
amendment, as modified, was adopted by voice vote.
    15. Senator Clinton offered an amendment require that local 
educational agencies use 10 percent of their allotments to 
recruit, hire, and train teachers. It would also include 
paraprofessional training programs and programs that attract 
mid-career professionals to teaching among the examples of 
recruitment activities which could be conducted. During 
committee discussion of the amendment, Senator Clinton modified 
the amendment to delete the provisions requiring a 10-percent 
set-aside. The amendment, as modified, was adopted by voice 
vote.
    16. Senator Clinton offered an amendment to authorize $3 
million for a National Teacher Recruitment Campaign as part of 
the national programs portion of the Teacher Quality provisions 
of the bill. The Secretary is to make a competitive grant to a 
single national coalition of teacher and media organizations, 
including the National Teacher Recruitment Clearinghouse. Grant 
funds would be used to conduct a national public service 
campaign concerning the resources for and routes to entering 
teaching. The amendment was adopted by voice vote.
    17. Senator Clinton offered an amendment to include 
recruitment and mentorship as activities in the national 
program dealing with professional development of school 
leadership and to clarify that principals and assistant 
principals are included in the term ``school leadership.'' The 
amendment was adopted by voice vote.
    18. Senator Clinton offered an amendment to require that 
results from assessments be provided to parents and teachers 
within 4 weeks after the test is taken. During committee 
discussion of the amendment, Senator Clinton modified it to 
delete the 4-week time limit and to instead require that 
parents and teachers be provided with assessment results as 
soon as is practicably possible after the test is taken. The 
amendment, as modified, was adopted by voice vote.
    19. Senator Bingaman offered an amendment to establish a 
National Panel on Portability of Teacher Pensions and 
Credentials. The 9-member panel, appointed by the Secretary, is 
to study options for increasing the reciprocity of recognition 
of teacher credentials and the portability of teacher pensions 
between States and to issue a report 1 year after members of 
the panel have been appointed. The amendment was adopted by 
voice vote.
    20. Senator Sessions offered an amendment to add provisions 
dealing with school safety and violence prevention activities, 
school uniforms, transfer of school disciplinary records, 
employee background checks, and memorial services at public 
schools to Title IV (Safe and Drug-Free Schools and 
Communities) of the bill. During consideration of the 
amendment, Senator Sessions modified it to clarify the 
application of the provisions and to delete the provisions 
relating to memorial services. The amendment, as modified, was 
adopted by voice vote.
    21. Senator Gregg offered an amendment to permit the 
Secretary to award 21st Century Community Learning Centers 
grants to community based organizations and to waive any 
provision of the program requiring that the money be used in or 
through a school. Following a discussion of additional 
revisions to the 21st Century Community Learning Centers 
program to be made in a managers' package for the floor, the 
amendment was adopted by voice vote.
    22. Senator Dodd offered an amendment to set fixed dollar 
figures in each of the 7 years of the reauthorization bill for 
the grants to State and local educational agencies authorized 
under part A of title I. Beginning with a fiscal year 2002 
level of $15 billion, the authorized funds would increase each 
year--ending at a funding level of $ 37.7 billion in fiscal 
year 2008 (full funding under the allocation formula). (The 
BEST bill provides an authorization level of $15 billion for 
fiscal year 2002 and ``such sums'' in each of the 6 succeeding 
fiscal years.) The amendment was defeated by a roll call vote 
of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    23. Senator Dodd offered an amendment to increase the 
authorization of the 21st Century Community Learning Centers 
program from $846 million to $1.5 billion for fiscal year 2002. 
The amendment was adopted by voice vote.
    24. Senator Wellstone offered an amendment to authorize $4 
million to support a study by the National Academy of Sciences 
of the impact/effects of high stakes testing. The amendment was 
adopted by voice vote.
    25. Senator Reed offered an amendment to authorize a new 
formula grant program to State educational agencies to help 
local educational agencies and schools support the acquisition 
of up-to-date school library materials and provide funds for 
training of school library resource personnel. The amendment 
would authorize $475 million in fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years. 
The amendment also authorizes an additional $25 million in 
fiscal year 2002 and such sums as may be necessary in each of 
the 6 succeeding fiscal years for expanding the non-school 
hours of operation of school libraries. The amendment was 
defeated by a roll call vote of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    26. Senator Reed offered an amendment to authorize the 
Secretary to make grants to local educational agencies to 
support and enhance the involvement of parents in schools and 
their children's education. The amendment authorizes $500 
million in fiscal year 2002 and such sums as may be necessary 
in subsequent years for this purpose. The amendment also 
requires the State educational agency to include in its 
application for funding under title I a description of its 
parental involvement policies, how it will use federal funds to 
implement those policies, and how it will evaluate such 
activities. Each State would also need to involve parents in 
the review of its plan. The amendment was defeated by a roll 
call vote of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    27. Senator Reed offered an amendment to authorize a 
competitive grant program for the establishment or expansion of 
child opportunity zone family centers in elementary and 
secondary schools. Such centers are school-based or school-
linked centers that provide comprehensive support services 
designed to improve the education, health, mental health, 
safety, and economic well-being of children and their families. 
The amendment would authorize a funding level of $100 million 
in fiscal year 2002 and such sums as may be necessary in each 
of the 6 succeeding fiscal years. The amendment was defeated by 
voice vote.
    28. Senator Murray offered an amendment to mandate that 3 
additional elements--dropout rates, professional 
qualifications, and class size--be included in the state and 
local report cards required by the bill. Under the bill, the 
inclusion of these 3 elements is discretionary. The amendment 
was defeated by a roll call vote of 10 yeas to 10 nays.
        YEAS                          NAYS
Kennedy                             Jeffords
Dodd                                Gregg
Harkin                              Frist
Mikulski                            Enzi
Bingaman                            Hutchinson
Wellstone                           Warner
Murray                              Bond
Reed                                Roberts
Edwards                             Collins
Clinton                             Sessions

    29. Senator Murray offered an amendment to provide that 
State educational agencies, in making grants to local 
educational agencies to improve the use of technology in 
education, must give priority to districts with the highest 
number or percentage of children in poverty and must provide 
for an equitable urban/rural distribution of grant funds. The 
amendment was adopted by voice vote.
    30. Senator Wellstone offered an amendment to authorize $5 
million in each of the fiscal years 2002 through 2004 to 
provide grants to provide training for staff, education 
programs for students, and materials to combat the impact of 
experiencing or witnessing domestic violence. These provisions 
would be included in title IV (Safe and Drug-Free Schools and 
Communities). The amendment was adopted by voice vote.
    31. The substitute bill, as amended, was reported favorably 
by a roll call vote of 20 yeas to 0 nays.
        YEAS                            
Jeffords
Gregg
Frist
Enzi
Hutchinson
Warner
Bond
Roberts
Collins
Sessions
Kennedy
Dodd
Harkin
Mikulski
Bingaman
Wellstone
Murray
Reed
Edwards
Clinton

             Amendments Offered and Subsequently Withdrawn

    Fourteen amendments were offered, discussed, and 
subsequently withdrawn:
    1. Senator Gregg offered and then withdrew an amendment to 
authorize $500 million for a new child centered program within 
title I. Under the program, up to 10 States and up to 20 local 
educational agencies located in States which do not participate 
would allocate all their part A funds (including the additional 
amount authorized in the amendment) to title I-eligible 
children on a per-pupil basis. The per-pupil amount could be 
used for supplemental educational services provided by the 
school or by another entity and would follow any eligible child 
who transfers to another school.
    2. Senator Frist offered and then withdrew an amendment to 
establish an Academic Achievement for All Demonstration 
program. Under the demonstration program, up to 15 States would 
be permitted to combine funds under a dozen Federal education 
formula grant programs to use to advance the educational 
priorities of the State. Participating States must show results 
in improving the academic performance of all students during 
the 5-year term of the performance agreement. If a State 
chooses not to participate, any local educational agency in the 
State may do so.
    3. Senator Kennedy offered and then withdrew an amendment 
to require that, within 4 years, every teacher who provides 
services to title I students will meet the definition of 
``highly qualified'' included in the bill. The amendment would 
also prohibit a local educational agency from using teacher 
quality funds to hire a teacher who is not ``highly 
qualified.''
    4. Senator Dodd offered and then withdrew an amendment to 
authorize the establishment of an Early Childhood Educator 
Professional Development Program. The amendment would provide a 
funding level of $100 million in fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years.
    5. Senator Dodd offered and then withdrew an amendment to 
increase the amount of basic grants for Puerto Rico under title 
I in order to provide for funding equity. The increases would 
be phased in over a 5-year period, beginning in fiscal year 
2002.
    6. Senator Harkin offered and then withdrew an amendment to 
authorize grants to establish or expand elementary and 
secondary school counseling programs. The amendment would 
provide a funding level of $100 million in fiscal year 2002 and 
such sums as may be necessary in each of the 4 succeeding 
fiscal years.
    7. Senator Bingaman offered and then withdrew an amendment 
to authorize grants to schools and local educational agencies 
to assist in the establishment of smaller learning communities. 
The amendment would provide a funding level of $200 million in 
fiscal year 2002 and such sums as may be necessary in each of 
the 4 succeeding fiscal years.
    8. Senator Bingaman offered and then withdrew an amendment 
to earmarks funds to establish aSchool Security and Technology 
Center at the Sandia Lab that would serve as a resource center 
for local educational agencies. The amendment would also 
provide grants to local educational agencies to improve the 
security at their schools. The amendment would authorize a 
funding level of $2.75 million and $10 million, respectively, 
in each of the fiscal years 2002, 2003, and 2004.
    9. Senator Wellstone offered and then withdrew an amendment 
to provide that States would not have to develop or implement 
the new annual assessment requirements in title I unless: (1) 
the authorization for this development (authorization is $400 
million in the bill) is fully funded (in which case the 
deadline for implementation would be delayed for 1 school 
year); and (2) funding for IDEA reaches 40 percent of the 
national average per-pupil expenditure.
    10. Senator Wellstone offered and then withdrew an 
amendment to provide that States would not have to develop or 
implement the new annual assessment requirements in Title I 
unless: (1) the authorization for this development 
(authorization is $400 million in the bill) is fully funded (in 
which case the deadline for implementation would be delayed for 
one school year); and (2) Title I, Part A is funded at $15 
billion, the authorized amount in the bill.
    11. Senator Wellstone offered and then withdrew an 
amendment to delete a provision in the bill that rewards states 
with one-time payments for developing their assessments ahead 
of schedule. In its place it would authorize one-time payments 
for States that develop particularly high-quality assessments.
    12. Senator Murray offered and then withdrew an amendment 
to add 2 options to the 3 included in the bill for schools 
subject to reconstitution. The current options are: (1) 
reopening as a charter school; (2) replacing all or most of the 
school staff; or (3) making alternative governance 
arrangements. The Murray amendment would add the following 
options: (1) replacing the school's leadership, including the 
principal, for which purpose bonuses may be given from title I 
funds, and (2) providing extended learning time through an 
academically focused after-school program.
    13. Senator Reed offered and then withdrew an amendment to 
require that local educational agencies use at least 5 percent 
of their title I allocations in FY 2002 and 2003 for 
professional development. The percentage would be increased to 
10 percent in subsequent fiscal years.
    14. Senator Clinton offered and then withdrew an amendment 
to authorize a public school choice demonstration program. 
States and local educational agencies would apply to the 
Secretary for funds to plan, implement, and evaluate innovative 
approaches to public school choice. A funding level of $50 
million would be authorized in fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years.

            IV. Explanation of the Bill and Committee Views


      title I--helping disadvantaged children meet high standards

Part A--Basic programs

    The purpose of part A is to provide opportunities for those 
students served by part A of title I to meet challenging State 
performance and content standards. The last revision of title 
I, which occurred in 1994, made major changes regarding 
standards, assessment, professional development, and 
accountability. The 1994 law also established a 7-year 
timetable for all States to develop and implement standards and 
assessments. The BEST Act builds upon these reforms and expands 
them to all students.
    The 1994 law created several mechanisms to measure student 
performance. One such mechanism was adequate yearly progress. 
The BEST Act changes the definition of adequate yearly progress 
by stating that all children shall meet the State's performance 
level for proficiency within 10 years. In addition, adequate 
yearly progress must be based on State standards and 
assessments.
    The BEST Act significantly expands the scope and frequency 
of current assessment efforts. States receiving title I funds 
would be required to establish performance standards for all 
students, and assess students in grades 3-8 annually in 
mathematics and reading by school year 2005-2006. The results 
of these assessments would be made available to parents and the 
public as the primary measure of success in reaching the 
State's performance standards, at the school, local educational 
agency, and statewide level. In recognition of the substantial 
investment this additional assessment will require, the Act 
provides funding for nearly all development costs as well as 
guaranteeing half the ongoing costs for implementation.
    The BEST Act also takes several steps to provide better 
information to parents and the public on the progress of 
schools in meeting State performance standards. The Act would 
require report cards that would indicate the progress of 
students in meeting State performance goals, disaggregated into 
several subgroups, including race, gender, disability, and 
income. Report cards would report results at the school, local, 
and State levels. In recognition of the statistical limits of 
such disaggregation, the BEST Act does not require 
disaggregation for groups of students in small schools or local 
educational agencies that would yield invalid results, and 
would permit techniques, such as multi-year aggregation, that 
would strengthen the validity of assessment data. In addition, 
data could not be disaggregated when doing so would violate an 
individual's privacy.
    Another reform included in the 1994 law was the 
establishment of the school improvement and corrective action 
process for local educational agencies and schools. The BEST 
Act expands these provisions by requiring State educational 
agencies and local educational agencies to take at least 1 of a 
series of corrective actions with respect to schools and local 
educational agencies that do not improve after being identified 
as failing to meet adequate yearly progress.
    In addition, in order to draw broad public attention to the 
efforts of States and local educational agencies to turn around 
failing schools, the BEST Act requires States to report 
annually to the Secretary the number and names of each school 
identified for school improvement, the reason why each school 
was so identified, and the measure taken to address the 
performance problems of each school.
    A new mechanism for measuring the progress of States 
established by the BEST Act is required participation in the 
National Assessment of Education Progress (NAEP). While nearly 
all States now participate in NAEP, such participation would be 
required of all States, and paid for by the Federal government, 
to provide a benchmark for comparison among States and to serve 
as confirmation of progress or lack thereof for the purposes of 
the State rewards and sanctions outlined in title VI. No 
sanctions would be levied against a State based solely on the 
results of its NAEP assessment.
    The BEST Act also expands parental involvement and 
professional development activities. Both the State and local 
educational agencies must implement parental involvement and 
professional development programs that have demonstrated 
effectiveness. The State is required to provide technical 
assistance to districts and schools that may be having problems 
implementing parental involvement and professional development 
activities.
    Since 1994, the title I school-wide program has become 
quite popular. Due to its popularity, the committee changed the 
eligibility qualification from not less than 50 percent of 
enrolled children from low-income families to not less than 40 
percent.
    Two new provisions pertaining to school choice have been 
included in the BEST Act. The bill requires local educational 
agencies to offer public school choice alternatives to students 
attending title I schools that have been identified as needing 
improvement or corrective action, as well as schools where 
violent incidents have occurred.
    The BEST Act increases the authorization level for fiscal 
year 2002 for part A to $15 billion. Of amounts appropriated, 
up to 5 percent may be reserved by State educational agencies 
to use for school improvement activities, assessment 
initiatives, and awards for outstanding schools and educators. 
The State will determine how the reservation will be used.

Part B--Literacy for children and families

            Subpart 1--William F. Goodling Even Start Family Literacy 
                    Act
    The William F. Goodling Even Start Family Literacy program 
is designed to improve the educational opportunities for low-
income families by integrating early childhood, adult basic 
education, and parental education into a unified family 
literacy program. Even Start grants are geared to areas with 
high rates of poverty, illiteracy, unemployment, families of 
limited English proficiency, or disadvantaged children. The 
program was reauthorized in 2000 as part of the Omnibus 
Consolidated and Emergency Supplemental Appropriations Act for 
fiscal year 2001 (Public Law 106-554), and the BEST Act makes 
no changes to the program.
            Subpart 2--Reading First
    President Bush has set as a goal for the nation that all 
students be proficient readers by the end of the third grade. 
This is critically important because after third grade, in most 
of our nation's schools, reading is taught less as a skill in 
and of itself but increasingly becomes a tool for learning 
other knowledge and skill areas. Young students who can not 
read well--with speed, accuracy, and understanding--are likely 
not only to fall further behind their peers in reading ability, 
but also will not be able to keep up in the other subjects 
areas. Reading is truly the foundation for all further school 
success.
    Research carried out over the past 2 decades has given us a 
clear picture of how children learn how to read, what is the 
cause of reading difficulties, and how instruction can be 
designed in order to help nearly all children become proficient 
readers. A recent report of the National Reading Panel, 
``Teaching Children to Read,'' summarizes some of the most 
important threads of this research and presents its 
implications for instruction. It is this research base that 
forms the basis on which the Reading First program is built. 
Like the Reading Excellence Act, this new program requires that 
all activities carried out with Reading First funds must be 
based on scientific reading research. In fact, this term is 
defined in this new program exactly as it is in the Reading 
Excellence Act.
    The overall focus of Reading First is to have the knowledge 
generated by solid research reflected in the teaching of 
reading to all students. The BEST Act allows for the 
participation of parents and other community members in the 
implementation of programs supported under both Reading First 
and Early Reading First, so long as they are based on evidence 
from scientific research meeting the definition in the Act. For 
example, a number of States, including Texas, Ohio, and 
Michigan, have implemented reading programs with community and 
parent involvement that they have found to be effective. So 
long as they comply with the requirements of the Act with 
regard to being based on sound research and covering the basic 
components of reading instruction, these approaches can be 
important tools in helping all children learn to read well by 
the end of third grade.
    All State educational agencies are eligible to apply for 
Reading First funds. However, applications must be approved by 
a peer review panel in order to be funded. It is the intent of 
the committee that the Secretary and the review panels 
seriously consider the quality of the applications--under both 
the formula and competitive grant sections--and insure that 
Reading First funds are used to improve reading instruction 
based on scientific reading research. In addition, the 
committee intends that the funds appropriated under this 
subpart be targeted to schools serving children most likely to 
experience difficulties learning to read, including children 
with disabilities and children learning to speak and/or read 
English as a second language.
            Subpart 3--Early Reading First
    While explicit instruction in reading usually begins in 
kindergarten or first grade, research has clearly demonstrated 
that the skills which make learning to read possible develop at 
a much earlier age. A recent report from the Department of 
Education--``The Kindergarten Year''--found that children 
arrive at kindergarten with significant differences in their 
early language and pre-literacy skills. Those children with 
more ``risk factors''--coming from poor families, having 
parents with low levels of education--lacked the foundation 
skills identified by research as critical to successfully 
learning to read.
    It is the purpose and goal of the Early Reading First 
program to demonstrate how programs serving preschool age 
children can help those who are at risk for reading 
difficulties gain the important language and pre-literacy 
skills identifies by rigorous research. Like the Reading First 
program, it is the intent of the committee that funds 
appropriated under this subpart be targeted at programs serving 
those children most likely to need this program-based 
assistance. The research would indicate this should include 
children from poor families, children whose parents have low 
levels of education and literacy, children with disabilities, 
and children learning to speak English as a second language. In 
addition, since parents should be a critical part of this early 
childhood learning process, the committee believes that 
programs serving both children and parents should be included 
in the programs funded.
    Since there is no uniform organizational structure at the 
local level to designate as an eligible applicant, the 
committee intends that the Secretary, in awarding these grants, 
give priority to applicants that can show that Early Reading 
First funds will benefit a broad coalition or collaboration of 
local programs serving preschool age children. In this way, the 
limited funds being made available through this subpart can 
have the greatest impact at the community level.
    Since this is a demonstration program, and the research 
base for language and literacy development in this age group is 
less well developed, the committee has included two important 
national activities. The evaluation authorized by this subpart 
should be carried out with the same scientific rigor as the 
definition of ``scientifically based reading research'' 
describes. It is the expectation of the committee that these 
evaluation results will themselves advance our knowledge of how 
language and pre-literacy skills develop in the preschool years 
and how programs serving these children and their families can 
ensure that nearly all children arrive at school ready to 
learn. In the same vein, the committee has required the 
Secretary to carry out research to advance our knowledge in 
this important area. It is the committee's expectation that 
this research will be carried out in such a manner so as to 
meet the criteria for quality and rigor established by the 
National Reading Panel.

Part C--Education of migratory children

    The Migrant Education program provides grants to State 
educational agencies to develop or improve educational programs 
for migrant students. Most migrant programs are administered by 
local educational agencies and operate during both the regular 
school year and in the summer. Priority for services is given 
to current migrant students and to students who are failing, or 
at greatest risk of failing, to meet State standards. The BEST 
Act builds upon current law to ensure that migratory children 
have the opportunity to attain high levels of educational 
excellence. A funding level of $400 million is authorized for 
fiscal year 2002.

Part D--Initiatives for Neglected, Delinquent or At-Risk Students

    The Initiatives for Neglected, Delinquent or At-Risk 
Students program is designed to meet the academic and skills 
building needs of at-risk, school-aged youth in all States and 
remains unchanged from current law. A funding level of $50 
million is authorized for fiscal year 2002.

Part E--Evaluations and demonstrations

    The BEST Act retains current law and authorizes $35 million 
for fiscal year 2002.

Part F--21st Century Community Learning Centers

    The BEST Act includes the reauthorization of the 21st 
Century Community Learning Centers program. The bill makes 
several revisions to current law by placing an emphasis on 
academic enrichment programs. In addition, community-based 
organizations, public and private entities, and units of 
general purpose government will become eligible for 21st 
Century Community Learning Center grants and compete with local 
educational agencies for the funds.
    During the executive session, committee members discussed 
further changes that will be made to the program. The key 
change focused on giving an equal priority to 3 entities for 
the purpose of awarding grants. The 3 entities that will have 
equal priority are: title I-eligible schools; joint 
applications between eligible organizations and title I-
eligible schools; and community-based organizations and other 
eligible organizations serving communities in which title I-
eligible schools are based or located.

Part G--Comprehensive School Reform

    The BEST Act includes the Comprehensive School Reform 
program, often referred to as the Obey-Porter initiative. The 
Comprehensive School Reform program awards formula grants to 
State educational agencies. These grants are designed to assist 
in the implementation of effective school reform models. There 
are a number of demonstration programs that have produced 
positive results in a variety of subject areas. A funding level 
of $200 million is authorized for fiscal year 2002.

Part H--Assistance to address school dropout problems

    An issue of great concern to the members of the committee 
is the escalating school dropout rate. To address this problem, 
a dropout prevention program has been included in theBEST Act. 
The initiative creates a grant program that will provide 
assistance to public schools for the implementation of an 
effective, sustainable, and coordinated dropout effort.

Education for Homeless Children and Youth

    The BEST Act also includes amendments to the Education for 
Homeless Children and Youth program authorized as Subtitle B of 
Title VII of the Stewart D. McKinney Homeless Assistance Act. 
The program provides State formula grant assistance for: the 
establishment of Offices of Coordinator of Education of 
Homeless Children and Youth in States; the development and 
implementation of State plans for the education of homeless 
children; and subgrant support to local educational agencies 
for the education of these children.
    The committee notes that much progress has been made since 
the enactment of the homeless education program in 1987. At 
that time, nearly half of all homeless children were not 
attending school. Currently, an estimated 88 percent of these 
children are enrolled in grades K-12. At the same time, much 
remains to be done in overcoming the particular challenges 
involved in educating homeless children and youth. A 
substantial portion of homeless children do not attend school 
regularly. The mobility and frequent absence of the records or 
immunizations required for enrollment of homeless children 
present significant obstacles to meeting the educational needs 
of these children.
    The BEST Act strengthens provisions of the current law in 
an effort to assure that homeless children receive a quality 
education, to provide for continuity in the education of 
homeless children, and to focus resources on high quality 
programs. Specifically, the BEST Act includes several 
provisions designed to avoid segregating homeless students into 
separate schools. It is estimated that 40 such schools are now 
in operation. Many of these schools were established as 
temporary arrangements, but have now become permanent fixtures. 
Serious questions have been raised regarding the quality of the 
education offered by some of these institutions.
    The bill also contains provisions intended to avoid 
disruption of a child's education program by maintaining the 
child's attendance at his or her school of origin. The bill 
also attempts to avoid enrollment delays by requiring immediate 
enrollment and by directing school officials to make referrals 
for immunizations and to contact other schools to obtain 
required records. Consistent with the committee's efforts 
throughout the BEST Act to focus Federal resources on proven 
approaches, the bill includes new provisions requiring that the 
quality of an application is considered in the provision of 
subgrants to local educational agencies. A funding level of $70 
million is authorized for fiscal year 2002.

                       TITLE II--TEACHER QUALITY

Part A--Teachers

    The committee is unanimous in its interest in improving the 
quality of professional development opportunities for teachers. 
Committee members agree that children can make greater academic 
gains if they have a knowledgeable and caring teacher leading 
their classroom. This bill recognizes that an investment in 
better teachers is an investment in our nation's young people. 
The legislation authorizes $3 billion for fiscal year 2002 for 
teacher quality and classroom quality measures.
    It was the committee's intent to create legislation that 
reflected the observations and recommendations by professionals 
in the field regarding how best to meet the needs of individual 
students in schools across this country. The bill takes a 
flexible approach that allows States and local educational 
agencies to adopt successful models that will work for the 
conditions and circumstances of their schools. It was the 
committee's intent to provide a general framework and funding 
stream for teacher quality initiatives with a specific emphasis 
on professional development and the hiring of qualified 
teachers, while allowing individual school districts to adapt 
programs to meet their specific needs. It is the expectation of 
the committee that the States and local educational agencies 
will maximize the results from the activities of this bill by 
carefully assessing their needs and designing a systematic 
approach to meeting those needs. The bill encourages each State 
educational agency to review relevant research and to explain 
why the activities it proposes in its application are expected 
to improve student performance and outcomes, how the activities 
are aligned to State content and performance standards and 
assessments, and how it will ensure that local educational 
agencies will carry out their proposed activities.
    The BEST Act combines funds and authorities from the 
Eisenhower Program and Class Size Reduction programs. It 
maintains a separate Federal program for teacher quality 
initiatives in recognition of the critically important role 
that teachers play in improving educational opportunities for 
young people. The professional development component of part A 
of title II builds upon the strengths of the Eisenhower program 
by placing an emphasis on innovative professional development 
programs.
    In an effort to direct Federal professional development 
dollars effectively, the bill strictly defines professional 
development as activities that are an integral part of broad 
schoolwide and districtwide educational improvement plans; are 
tied to State content and student performance standards; are 
sustained; and are based on the best available research on 
teaching and learning. The bill requires professional 
development activities to be tied to strategies that 
demonstrate effectiveness in increasing student academic 
achievement and performance. Further, it prohibits the one-day, 
``one-shot'' workshop approach that research and evaluation 
have shown to be largely ineffective in fostering learning and 
changing the way a teacher teaches. In addition, the bill 
provides that professional development activities supported by 
local educational agencies must be designed to improve the 
knowledge of teachers concerning: the academic subjects they 
teach, effective means to improve student achievement and 
performance, and effective use of State standards and 
assessments.
    The BEST Act allows a school district to commit the same 
percentage of funds that it does now to class size reduction 
initiatives, if it so chooses. For a school district that has a 
greater need for professional development, it allows that 
school district to shift funds to that need.
    Title II of the Elementary and Secondary Education Act also 
maintains an important role for institutions of higher 
education in providing professional development for teachers. A 
recent review of the Eisenhower program stated that teachers 
participating in State Agency for Higher Education (SAHE) 
administered activities found that the professional development 
led to enhanced knowledge and skills and to positive changes in 
their classroom teaching practices. In addition, SAHE 
activities were of longer duration and placed a greater 
emphasis on subject matter content, active learning and 
coherence. Using the success of the Eisenhower program as a 
model, institutions of higher education within each State will 
receive a dedicated stream of funding to be provided through 
competitive grants within the State.
    The bill includes strong language that will hold local 
educational agencies accountable for increasing the academic 
achievement for all students. Local educational agencies that 
do not show improvement risk losing control of the formula-
based Federal funds marked for professional development and 
teacher hiring.
    The bill authorizes the Secretary to invest in 4 areas that 
are key to improving teaching and learning in the classroom. 
Under a separately authorized funding stream, the Secretary 
shall make grants to the Troops to Teachers Program, the School 
Leadership Initiative, the National Board for Professional 
Teaching Standards, and the Transition to Teaching program. 
Troops to Teachers is a program that has proven to be effective 
in recruiting former military personnel as classroom teachers. 
The School Leadership Initiative will ensure that funds for 
professional development will be available to principals, 
superintendents and others to enhance their leadership and 
management skills. It authorizes a new program designed to meet 
the unique professional development needs of our Nation's 
school leaders. The Snelling Center for School Leadership in 
Vermont is an example of one place that is addressing the needs 
of our nation's school leaders effectively. Funds made 
available to the National Board for Professional Teaching 
Standards will be used to make grants to State educational 
agencies, local educational agencies, and individuals to 
promote outreach, recruit teachers, or provide for teacher 
subsides. The committee believes that efforts to encourage and 
support teachers to become highly accomplished master teachers 
as recognized through advanced certification or credential 
programs will improve teaching and learning in schools. 
Finally, the Transition to Teaching program will help recruit, 
prepare, and support mid-career professionals to become highly 
qualified teachers.
    A separate authorization of $3 million in fiscal year 2002 
is provided for a National Teacher Recruitment Campaign. The 
Secretary is to make a competitive grant to a single national 
coalition of teacher and media organizations. Grant funds are 
to be used to conduct a national public service campaign 
concerning the resources for and routes to entering teaching.

Part B--Mathematics and science partnerships

    Part B includes important new initiatives designed to 
improve student achievement in the areas of mathematics and 
science by strengthening the training and recruitment of highly 
qualified math and science teachers. In developing these 
initiatives, the committee has drawn from the recommendations 
made by several commissions and organizations which have 
recently called attention to the pressing need in this area. 
These include: The National Commission on Mathematics and 
Science Teaching for the 21st Century, also known as the Glenn 
Commission (``Before It's Too Late''), the National Research 
Council (``Educating Teachers of Science, Mathematics, and 
Technology''), and the US Commission on National Security 
(``Road Map for National Security: Imperative for Change'').
    An enormous improvement in mathematics and science 
education at the K-12 level is necessary if today's students 
want good jobs and the US wants to stay competitive in the 
world economy. Test data from the Third International 
Mathematics and Science Study (TIMSS) in 1995 have shown that 
students from the United States in the fourth grade were among 
the top scorers of students from the 41 nations testing. 
However, both TIMSS and the Third International Mathematics and 
Science Study--Repeat (TIMSS-R) in 1999 show that, by the 
eighth grade, students from the United States test in the 
middle of the students from the countries tested. By the 
twelfth grade, TIMSS shows that students from the United States 
test near the bottom of the students tested. Our students are 
not receiving the education that is required to cause them to 
learn the mathematics and science that students in many other 
countries are learning. They are not receiving an education 
that stimulates their imagination enough that they want to 
learn mathematics and science at a world-class level. Every 
year that our students stay in school, they lose ground in 
mathematics and science knowledge compared with the students of 
other countries of the world.
    The National Assessment of Educational Progress (NAEP) in 
1996 showed that fewer than one-third of all United States 
students in grades 4, 8, and 12 performed at or above the 
``proficient'' achievement level in mathematics and science. 
More than one-third of United States students scored below the 
``basic'' level--lacking mastery of the prerequisite knowledge 
and skills needed for ``proficient'' at each grade. The results 
in NAEP also indicate that students in the United States score 
lower with respect to the standards of proficiency for those 
grade levels each year that they are in school.
    With globalization, the good jobs will go to the people who 
can do them best. If those people are not in the United States, 
then those jobs will also not be in the United States. At 
present, the law allows 195,000 immigrants to enter the United 
States on H-1B visas each year in order to take jobs that 
cannot be filled by workers in the United States. As tele-
commuting increases, there will be no reason to bring those 
workers to the United States to take the jobs that the workers 
in the United States cannot fill, and the jobs themselves will 
move to countries that have the workers. We have seen 
manufacturing jobs move out of the country, and, unless 
theUnited States can supply the workers to fill the jobs from 
its own students, we will see it happen with information jobs. 
The Glenn Commission report, ``Before It's too Late,'' 
(September 2000) states that ``. . . the rapid pace of change 
in both the increasingly interdependent global economy and in 
the American workplace demands widespread mathematics- and 
science-related knowledge and abilities.''
    Not only are mathematics and science literacy essential in 
the workforce, but, according to the Glenn Commission, ``Our 
citizens need both mathematics and science for their everyday 
decision-making.'' The ability to evaluate data impartially and 
to make decisions based on that evaluation is needed by our 
citizens in every aspect of life. Citizens are called upon 
daily to evaluate advertisements, political claims, conflicting 
requests for public funds, and many other aspects of private 
and public decision making. Not only is the training that comes 
from looking at information in a scientific manner important, 
but also a knowledge of science and mathematics is essential at 
a time when much of the information evaluated becomes more 
technical. Without that knowledge, our citizens become unable 
to make the best daily decisions in their personal lives and in 
their roles as citizens.
    The Glenn Commission found that the ``most powerful 
instrument for change, and therefore the place to begin, lies 
at the very core of education--with teaching itself. ``The most 
consistent and powerful predictors of student achievement in 
mathematics and science are full teaching certification and a 
college major in the field being taught.'' Therefore, the 
Commission suggests that we ``establish an ongoing system to 
improve the quality of mathematics and science teaching in 
grades K-12'' and that we ``increase significantly the number 
of mathematics and science teachers and improve the quality of 
their preparation.''
    These sentiments are echoed by the National Research 
Council in its 2001 ``Educating Teachers of Science, 
Mathematics, and Technology'' report. The Council notes:

    If the nation is to make the continuous improvements needed 
in teaching, we need to make a science out of teacher 
education--using evidence and analysis to build an effective 
system of teacher preparation and professional development.

The Council found that teacher education must be a continuous 
process involving schools of education, school districts, 
practicing professionals, and higher education faculty in a 
collaborative partnership with shared responsibility for 
teacher education. Teachers must be treated as professionals 
with ongoing professional development to allow them to grow 
within their profession and to take on new responsibilities. 
The measure of the success of any teacher education program 
should be how well their students achieve.
    In an effort to begin to address the challenge of improving 
math and science learning and teaching, the BEST Act authorizes 
$500 million in fiscal year 2002 for the establishment of 
mathematics and science partnerships linking the math and 
science departments of institutions of higher education with 
States and local school districts. The partnership program is 
included as subpart 1 of part B.
    Partnerships may use funds to conduct 1 or more of the 
following activities: (1) developing more rigorous math and 
science curricula aligned to State and local standards and with 
the standards expected for postsecondary study in mathematics 
and science, respectively; (2) creating opportunities for 
enhanced and ongoing professional development in content areas; 
(3) recruiting math and science majors to teaching; (4) 
promoting strong teaching skills for math and science teachers 
and teacher educators; (5) establishing math and science summer 
workshops or institutes for teachers; (6) establishing distance 
learning programs for math and science teachers; (7) designing 
programs to prepare a teacher to provide professional 
development to other teachers and novice teachers; and (8) 
designing programs to bring teachers into contact with working 
scientists.
    The committee has included a definition of summer workshops 
or institutes to make clear that such workshops or institutes 
are to be substantial and sustained programs. Specifically, 
they must be conducted for a period of at least 2 weeks, 
provide for direct interaction between students and faculty, 
and include followup training during the academic year.
    The committee also encourages local educational agencies to 
create various financial incentives to help recruit individuals 
with strong mathematics or science backgrounds into the 
teaching field. Current rewards, incentives, and school 
environments are not adequate to attract large numbers of the 
best students to teaching or to encourage them to remain in the 
profession beyond the first few years of teaching. These 
problems are exacerbated in science and mathematics, where 
teacher shortages already exists in many parts of the United 
States and are expected to grow worse over the next decade. The 
lack of teachers with adequate content knowledge and 
pedagogical skills for teaching science and mathematics is 
especially acute in small rural and inner-city schools, where 
science or mathematics departments may consist of only 1 or 2 
individuals and a given teacher may be required to teach 
several different subject areas every day.
    The committee believes that several financial incentives 
could be used to help recruit and retain math and science 
teachers with strong math and science skills. Stipends could be 
provided to current mathematics teachers and science teachers 
for certification through alternative routes. A local 
educational agency could offer money for scholarships for 
teachers to pursue advanced course work in math or science. 
Additionally, the local educational agency could offer signing 
bonuses or performance bonuses to math and science teachers. 
The committee encourages local educational agencies to create 
programs that will be effective in recruiting individuals with 
strong mathematics or science backgrounds into the teaching 
field.
    Subpart 2 of part B provides for the continuation of the 
Eisenhower Clearinghouse for Mathematics and Science Education, 
authorizing $5 million in fiscal year 2002 for this purpose. 
The functions of the Clearinghouse are expanded to include the 
development of an Internet-basedsite offering a search 
mechanism and including electronic links to users and providers 
of instructional materials and programs.
    Subpart 3 of part B authorizes $150 million in fiscal year 
2002 to support programs preparing teachers to use technology 
effectively. Funds must be used to create programs that enable 
prospective teachers to use advanced technology to create 
learning environments where all students are prepared to meet 
challenging State standards.
    Subpart 4 of part B provides that the Secretary of 
Education must consult and coordinate activities under part B 
with the Director of the National Science Foundation. The 
committee believes that it is particularly important that the 
Secretary and the Director work together to determine the most 
appropriate and effective role each of their agencies can play 
with respect to summer workshops or institutes.

Part C--Technology education

    First authorized as part of the Elementary and Secondary 
Education Act in 1994, Federal educational technology programs 
have made a significant and positive difference in increasing 
access to technology in our public school classrooms. These 
Federal dollars have played a significant role in making 
technology more prevalent and effectively used in our Nation's 
classrooms.
    The BEST Act combines the competitively awarded Technology 
Challenge Grant program into a new formula-based grant program 
to the States modeled after the Technology Literacy Challenge 
program authorized under current law. Since the Challenge Grant 
program was first created, it has funded numerous cutting-edge 
model programs in schools. At this juncture, the committee 
believes it is important to provide the States with additional 
sources of dedicated funding so that many of these model 
programs can be replicated and so that a broad range of school 
districts across the country can benefit.
    While the committee was mindful of the extraordinary 
advances made in the area of educational technology, the 
members also recognized there is still a long way to go in 
making technology an effective educational tool for all 
students in the nation. The committee is committed to the 
concept of eliminating the Digital Divide in the Nation's 
schools. Therefore, it was the committee's intent to give 
priority to those local educational agencies which serve the 
highest number or percentage of children in poverty in both 
urban and rural parts of each State and to provide grants to 
local educational agencies of a sufficient size and duration to 
carry out the purposes of this part.
    The BEST Act reaffirms the Federal commitment to 
educational technology. Throughout the legislation, the 
committee has incorporated provisions related to educational 
technology in recognition of the ``next wave'' of educational 
technology: that is--effectively integrating it into the 
everyday learning activities of the student. The committee's 
actions acknowledge the importance of ``not separating 
technology from learning.'' It is the intent of the committee 
to encourage the integration of technology with learning by 
requiring that both the State and the local educational 
agencies submit a systemic educational technology plan that 
outlines how technology will improve student outcomes and how 
the activities funded in the BEST Act fit into that plan. With 
the same intent, the committee has also required that 
professional development in the integration of technology into 
the curriculum be a large part of the use of local funds. The 
BEST Act maintains a separate funding stream for educational 
technology programs in an effort to ensure that the Federal 
Government continues to provide leadership and support for 
strengthening and integrating educational technology in 
classrooms throughout the Nation.

Part D--Portability of teacher pensions and credentials

    Part D authorizes the establishment of a 9-member National 
Panel of Portability of Teacher Pensions and Credentials. 
Members are to be appointed by the Secretary from among 
practitioners and experts with experience relating to teacher 
pensions and credentials. The panel is to study options for 
increasing reciprocity of recognition of teacher credentials 
and portability of teacher pensions between States.

   TITLE III--MOVING LIMITED ENGLISH PROFICIENT STUDENTS TO ENGLISH 
                                FLUENCY

    Programs under part A of title III are designed to provide 
educational assistance to students with limited English 
proficiency to help them meet challenging State standards. The 
BEST Act repeals the authorization for Program Development and 
Implementation grants and weaves the purposes of the program 
into other initiatives funded under this title. The committee 
also decided to combine Comprehensive School grants and System-
wide Improvement grants into 1 program. Grants awarded under 
this initiative will be used for activities such as improving 
instructional programs, training school personnel, and 
implementing family education or parent outreach programs.
    One significant change the committee has included in the 
BEST Act pertains to grant priority. In awarding grants, the 
Secretary shall give priority to an applicant: (1) who 
experiences a dramatic increase in the number or percentage of 
limited English proficient students enrolled in the applicant's 
program and has limited or no experience in serving limited 
English proficient students; (2) that is a local educational 
agency that serves a school district with a total enrollment 
less than 10,000 students; (3) who demonstrates a proven record 
of success in helping limited English proficient students; (4) 
who proposes initiatives that provide for the development of 
bilingual proficiency both in English and another language for 
all participating students; or (5) who serves a school district 
in which a large percentage or number of limited English 
students is enrolled.
    The BEST Act retains the State grant program. The committee 
believes that it is important to increase the minimum funding 
level from $100,000 to $200,000. A funding level of$300 million 
is authorized for fiscal year 2002.
    The Foreign Language Assistance program included as part B 
of title III provides competitive grant assistance to State or 
local educational agencies to provide foreign language study 
for elementary and secondary school students. The BEST Act 
extends this program through fiscal year 2008 and adds 
provisions giving special consideration to grant applications 
which make effective use of technology, promote innovative 
activities, or are carried out through a consortium. A funding 
level of $35 million is authorized for fiscal year 2002.
    The Emergency Immigrant Education program included as part 
C of title III provides funds to local educational agencies 
that experience unexpectedly large increases in their student 
populations due to immigration to assist with the education of 
those students. A funding level of $200 million is authorized 
for fiscal year 2002.

          TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

Part A--State grants

    The committee has made substantial revisions to the Safe 
and Drug-Free Schools and Communities program in an effort to 
increase the accountability for the use of Federal funds and to 
ensure that effective, research-based programs are funded with 
Federal dollars. By better directing the use of Federal funds 
under this program, it is the committee's intent to improve 
efforts to provide all of our Nation's students a safe and 
nurturing learning environment. Recent tragedies in our 
Nation's schools have heightened attention to the devastating 
impact that an unsafe environment can have on learning. The 
committee believes strongly that every school in this Nation 
should be violence-free as well as drug- and alcohol-free and 
has strengthened the current program to better achieve those 
goals. The committee also believes that involving parents in 
violence and drug prevention programs is important.

Part B--Gun possession

    The Gun-Free Schools provisions currently contained in part 
F of title XIV are transferred to part B of title IV. These 
provisions, which were first enacted in 1994, require States 
receiving funds under the Elementary and Secondary Education 
Act to have laws requiring local educational agencies to expel 
from school for at least 1 year any student who brings a weapon 
to school.
    The Report of State Implementation of the Gun-Free Schools 
Act--School Year 1998-99 issued in October 2000 indicates that 
an estimated 3,523 students were expelled for bringing a 
firearm to school. Fifty-seven percent of the 1998-99 
expulsions involved high school students; 33 percent involved 
junior high students; and the remaining 10 percent involved 
elementary school students.

Part C--School safety and violence prevention

    Part C includes a number of new provisions dealing with: 
school safety and violence prevention activities; school 
uniforms; transfer of school disciplinary records; and employee 
background checks. These provisions are virtually identical to 
provisions dealing with these subjects which were approved by 
the Senate in 1999 as part of the Juvenile Justice 
reauthorization bill (S. 254).

Part D--Environmental tobacco smoke

    The bill transfers to part D of title IV the Elementary and 
Secondary Education Act the environmental tobacco smoke 
provisions currently contained in part C of title X of the 
Goals 2000: Educate America Act. These provisions prohibit 
smoking within any indoor facility used for the provision of 
education, routine health care, day care, library services, or 
early childhood development to children.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Part A--Public school choice

            Subpart 1--Public charter schools
    The BEST Act continues and maintains the Public Charter 
Schools program as provided in current law, authorizing a 
funding level of $190 million for fiscal year 2002. Last 
considered in 1998, the Charter Schools program was amended to 
increase and strengthen accountability, promote dissemination, 
and support technical assistance, evaluation and research on 
model charter school programs.
            Subpart 2--Magnet Schools Assistance Program
    The Magnet Schools Assistance Program (MSAP) provides 
competitive grants to local educational agencies for magnet 
schools that are intended to reduce, eliminate, or prevent 
minority group isolation in elementary and secondary schools 
and to strengthen students' knowledge of academic or vocational 
subjects. In order to be eligible for a grant, a local 
educational agency must be a participant in a court-ordered or 
voluntary desegregation plan. Magnet schools provide a special 
curriculum intended to be attractive to substantial numbers of 
students of different races.
    The BEST Act continues the Magnet Schools Assistance 
Program and includes several new elements designed to: improve 
the capacity of local educational agencies to continue 
operating magnet schools after the grant has ended; increase 
the allowable use of funds for planning; clarify the critical 
role of professional development; and enhance the quality of 
the program. The fiscal year 2002 authorization level is $125 
million.
    The current law lists 4 uses of funds: (1) planning; (2) 
acquisition of books and materials;(3) payment or subsidization 
of the compensation of teachers and instructional staff who are 
necessary for the conduct of the program; and (4) for schools 
whose magnet program does not include all students enrolled in 
the school. The BEST Act adds 3 new uses of funds to those in 
current law. Grant funds may be used: (1) for professional 
development in order to build the capacity to operate the 
magnet school once Federal assistance has terminated; (2) to 
enable the local educational agency 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 (3) to enable the local educational agency 
to have flexibility in designing magnet schools for students of 
all grades.
    The addition of professional development as a use of funds 
is particularly important. Clarification is needed in the law 
regarding professional development as a separate activity from 
planning. Therefore, it is the committee's intent that 
professional development be considered a core use of funds, and 
not as planning. Trained, qualified teachers and staff are 
critical to the success of magnet school as well as any other 
school and these changes ensure that the magnet schools law 
reflects these priorities.
            Subpart 3--Public school choice
    The Public School Choice provisions of the BEST Act 
allocates funds to States, which--in turn--distribute them to 
local educational agencies to carry out school improvement 
activities. Each local educational agency receiving funds under 
this subpart or under part A of title I, with the exception of 
local educational agencies located in a States which receives a 
minimum grant, must provide all students enrolled in a school 
identified for school improvement with the option to transfer 
to another public school within the agency that has not been 
identified for school improvement. An exception is provided in 
cases where the option to transfer is prohibited by State or 
local law. If a local educational agency can demonstrate to the 
State educational agency that it lacks the capacity to provide 
all students with the option to transfer, the agency must 
permit as many students as possible--selected on an equitable 
basis--to transfer. A funding level of $225 million is 
authorized for fiscal year 2002.

Part B--Flexibility

                                Overview

    Part B of title V includes a broad array of flexibility 
options for States and localities. A variety of current law 
provisions dealing with waivers, program coordination, 
consolidated applications, and related authorities are 
incorporated into title V, permitting State and local officials 
to find in one place the options available to them. New rural 
flexibility provisions offer opportunities to combine Federal 
education funds in ways which will make the most effective use 
of these funds in meeting the individual needs of small, rural 
schools and their students. In addition, part B includes the 
Innovative Education Program Strategies program, authorized 
under current law as title VI. This program offers the funds 
and the discretion to local school districts which permit them 
to address their most pressing local needs.
            Subpart 1--Education flexibility partnerships
    Subpart 1 includes the provisions of the Education 
Flexibility Partnership Act, which was signed into law in 1999 
(Public Law 106-25) as a free-standing bill. This act allows 
State educational agencies to waive certain Federal 
requirements, along with related State requirements, for the 
purpose of raising the achievement of all students.
            Subpart 2--Rural education initiative
    The purpose of subpart 2 is to provide adequate funding to 
rural school districts to enhance their ability to recruit and 
retain teachers, strengthen the quality of instruction, and 
improve student achievement. Through flexibility provisions and 
a supplemental grant program, rural school districts will have 
the ability to maximize their resources for implementation of 
education reform strategies.
    The programs authorized in subpart 2 are designed to 
address two unique problems facing small, rural districts. The 
Elementary and Secondary Education Act authorizes formula and 
competitive grants that allow many of our local school 
districts to improve the education of their students. These 
Federal grants support efforts to promote such laudable goals 
as the professional development of teachers, the incorporation 
of technology into the classroom, and making sure our schools 
provide safe learning environments for our children. Schools 
receive several categorical grants supporting these programs, 
each with its own authorized activities and regulations and 
each with its own red tape and paperwork.
    Unfortunately, as valuable as these programs may be for 
thousands of predominantly urban and suburban school districts, 
they simply do not work well in rural areas. This is because 
the grants are based on school district enrollment. These 
individual grants confront smaller schools with a dilemma; 
namely, they simply may not receive enough funding from any 
single grant to carry out meaningful activities.
    Chapter 1, the Small, Rural School Achievement Program, 
will allow a district with an enrollment of fewer than 600 
students to combine the funds from programs authorized under 
titles II and IV and subpart 4 of part B of title V and use the 
funds to support projects that bring about improved academic 
achievement. If student performance on assessments does not 
improve at the end of 3 years of participation in the program, 
the district may no longer participate.
    Small rural schools face equally difficult challenges when 
attempting to compete for competitive grants. These schools 
must dedicate all of their resources to the primary task of 
educating students. They lack the personnel and resources to 
prepare successful applications.
    To address this issue, participating local educational 
agencies are eligible to receive a supplemental grant that, 
when combined with other Federal dollars, will enable these 
small rural schools to offer programs and activities of 
sufficient size, scope, and quality to have a significant 
impact upon student and school performance.
    Chapter 2, the Low-Income and Rural School Program, is 
designed to meet the needs of rural school districts serving 
large numbers of disadvantaged students. Local educational 
agencies residing in rural communities are eligible to receive 
funds from this program if 20 percent of the children they 
serve are from families living below the poverty level. A local 
educational agency will not be permitted to continue to 
participate in the program if student performance has not 
increased after 3 years.
    A funding level of $300 million is authorized to support 
these programs during fiscal year 2002, of which $125 million 
is to be made first available to carry out chapter 1.
            Subpart 3--Waivers
    Subpart 3 includes the waiver provisions currently included 
as part D of title XIV. These provisions offer broad authority 
for the waiver of statutory or regulatory requirements of the 
act in order to increase the quality of instruction or improve 
academic performance.
            Subpart 4--Innovative Education Program Strategies
    The purpose of the Innovative Education Program Strategies 
program is to provide funds to local educational programs for 
the implementation of initiatives that support school 
improvement and reform efforts with the goal of advancing 
student performance. To accomplish this purpose, States 
allocate funds to local school districts for an array of 
activities such as professional development, technology, and 
library services.
    This program was created 20 years ago in response to the 
calls from State and local educational agencies that they be 
given the flexibility to respond to the education reform needs 
of their local communities. It remains the most flexible source 
of education funds provided by the Federal government. The 
Title VI Effectiveness Evaluation for 1998 prepared by the 
Title VI National Steering Committee included the following 
observation from an Arkansas school district official:

    Title VI is the only Federal program where schools can 
actually use money that isn't previously directed to a need 
identified by those outside the school. As our needs change, 
the program has the flexibility to change with us. The funds 
are most beneficial when they are used with other funding 
sources to work toward improving targeted areas identified by 
the district.

    The funding level authorized for the Innovative Education 
Program Strategies program is $850 million for fiscal year 
2002.

Part C--General flexibility authorities

    Part C includes the ``Flexibility in the Use of 
Administrative and Other Funds'' currently included as part B 
of title XIV. These provisions permit States and localities to 
consolidate administrative funds from several Federal programs.

Part D--Coordination of programs; consolidated State and local plans 
        and applications

    Part D includes the ``Coordination of Programs; 
Consolidated State and Local Plans and Applications'' 
provisions currently included as part C of title XIV. These 
provisions permit the submission of a single plan for several 
different programs at both the State and local levels.

Part E--Advanced Placement Program

    The Advanced Placement Program was initially authorized as 
part of the Higher Education Amendments of 1998. The BEST Act 
adds the program to the Elementary and Secondary Education Act 
and expands its purposes. The committee recognizes that having 
rigorous academic programs available to students provides those 
young people with better preparation for postsecondary study 
and has adopted this program to ensure that the opportunity is 
available to more students. A funding level of $50 million is 
authorized for fiscal year 2002.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Part A--Parental assistance

    The Parental Information and Resource Centers, established 
under the Goals 2000: Educate America Act, has been 
incorporated into the BEST Act. The committee bill strengthens 
provisions that focus on partnerships among parents, teachers, 
principals, administrators, and other school personnel. A 
funding level of $50 million is authorized for fiscal year 
2002.

Part B--Improving academic achievement

    Part B is intended to support the accountability provisions 
of the act by providing financial assistance to States for the 
development and implementation of assessments and for State 
participation in the National Assessment of Educational 
Progress (NAEP). In addition, it provides for one-time bonus 
payments to States that develop the new assessments required by 
the BEST Act in advance of the deadlines included in the bill.
    Further support for strong accountability is provided 
through a system of awards and sanctions tied to student 
achievement levels.
    Both States and schools are eligible for awards. 
``Achievement in Education Awards'' will be granted to States 
that make the most progress in improving educational 
achievement. The Secretary is to give greatest weight to a 
State's success in improving the performance of economically 
disadvantaged and minority students, as measured by State 
assessments and by the State NAEP. Other measures to be taken 
into account include the achievement of all students, improved 
English proficiency of limited English proficient students, 
increased high schoolgraduation percentages, and increased 
percentage of students taking advanced coursework.
    ``No Child Left Behind Awards'' will be granted to schools 
that have made greatest progress in improving the educational 
achievement of economically disadvantaged students.
    Penalties will be assessed on States that--based on State 
assessment and State NAEP results--fail to make adequate yearly 
progress and whose economically disadvantaged and minority 
students fail to make statistically significant progress in the 
academic subjects for which the State has developed content and 
student performance standards. After 2 years of insufficient 
progress, the Secretary is required to reduce up to 30 percent 
of the State's administrative funds. After 3 such years, the 
Secretary is required to reduce up to 75 percent of the State's 
administrative funds.
    Funding levels in part B include: $400 million for fiscal 
year 2002 to develop and implement the required assessments, 
$110 million for fiscal year 2002 to administer State 
assessments under NAEP, and $50 million for fiscal year 2002 
for the Fund to Improve Education Achievement. This Fund will 
be used for awards and bonuses, as well as for improvement 
activities, such as character education, that are designed to 
promote the improvement of elementary and secondary education.

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

Part A--Indian education

    Part A modifies and improves educational services provided 
for American Indian and Alaska Native students. The committee 
has included four new activities that can be provided under 
grants to local educational agencies. These additions are 
intended to encourage local educational agencies to address the 
needs of American Indians and Alaskan Native students in the 
areas of curriculum development, creating and implementing 
standards, improving student achievement, and gifted and 
talented education. The committee also recognizes that 
increasing the flexibility at the local level may give local 
educational agencies the ability to reduce their administrative 
costs while improving the services they provide. Accordingly, 
the committee included a new provision which would allow a 
local educational agency which receives formula grants under 
part A the ability to commingle all of the Federal funding they 
receive for educating Indian children, regardless of which 
agency provides it, into one coordinated, comprehensive program 
to meet the specific needs of Indian children. In addition, the 
committee has provided increased flexibility in counting 
eligible children for funding purposes to BIA-funded schools.
    In recognition of the importance of family literacy 
services for affected populations, the committee has allowed 
for grants for this purpose under the improvement of 
educational opportunities for Indian children. The committee 
has also underscored the importance of both pre-service and in-
service training by separating the 2 into different sections 
under professional development. Finally, the percentage of 
funds that can be used on administrative costs is reduced.

Part B--Native Hawaiian education

    Part--modifies and improves the educational services 
provided for Native Hawaiian students. The findings section is 
updated with the most recent data available and includes 
additional findings that reflect the new legal position of the 
United States relative to the status of Native Hawaiians as set 
forth in the brief filed by the United States in the United 
States Supreme Court on July 28, 1999. The committee has 
maintained the Native Hawaiian Education Council, while 
reducing its size and composition. The committee has also 
established priorities for the award of contract or grants 
Recognizing that it has been difficult to have 1 Council 
serving 2 or more islands, the committee has added 2 more 
Island Councils so that each island will have its own Council.
    The committee believes that placing all of the existing 
programs serving Native Hawaiians into a single, more flexible 
authority will allow all of the types of activities currently 
carried out to continue. It is the committee's hope that this 
consolidation will better serve the educational needs of Native 
Hawaiians children and adults. The committee has focused on the 
importance of family literacy services in affected populations 
once again by adding it as a new permissible activity, and the 
percentage of funds that can be used on administrative costs is 
reduced.

Part C--Alaskan Native education

    Part C modifies and improves the educational services 
provided for Alaska Native students. The committee has placed 
all of the existing programs serving Alaskan Natives into a 
single, more flexible authority. These programs include: Alaska 
Native Educational Planning, Curriculum Development, Teacher 
Training, and Recruitment; Home-Based Education for Preschool 
Children; and Student Enrichment. The committee believes that 
the consolidation will allow these activities to continue and 
will better serve the educational needs of Alaskan Native 
children and adults. The committee has added family literacy 
services as a new permissible activity and reduced the 
percentage of funds that can be used on administrative costs.

                         TITLE VIII--IMPACT AID

    Impact aid programs were reauthorized in 2000 as part of 
the Floyd D. Spence National Defense Authorization Act for 
fiscal year 2001 (Public Law 106-398), but remain a part of the 
Elementary and Secondary Education Act. The BEST Act retains 
impact aid programs in title VIII, but makes no changes to 
these programs.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    Title IX includes provisions for an independent evaluation 
by the National Academy of Sciences of the impact and effects 
of high stakes assessments used by State and local educational 
agencies. The evaluation is to address 3 components: (1) 
Students, Teachers, Parents, Families, Schools, and School 
Districts; (2) Students With Disabilities; and (3) Low Socio-
Economic Students, Limited English Proficient Students, and 
Minority Students. A funding level of $4 million is authorized 
for the evaluation.

                                REPEALS

    The BEST Act repeals titles IX through XIV of the 
Elementary and Secondary Education Act of 1965. The Goals 2000: 
Education America Act is also repealed.

                     V. Regulatory Impact Statement

    The committee has determined there will be increased 
demands upon States, local educational agencies, and other 
recipients of ESEA funds due to the expanded accountability 
features of the BEST Act.
    The BEST Act requires the development of State content and 
student performance standards in history and science. Science 
assessments must also be developed by the 2007-08 school year. 
In addition, the BEST Act requires that all public school 
students in grades 3 through 8 be tested annually in 
mathematics and reading. These new provisions expand current 
title I assessment requirements, not only by increasing the 
frequency of math and reading assessments but also by expanding 
the pool of students to be tested. Current title I requirements 
apply only to students attending schools which receive title I 
funds. States will also be required to participate in annual 
State assessments under the National Assessment of Educational 
Progress (NAEP) in 4th and 8th grade mathematics and reading. 
Participation in these assessments is currently optional. 
States and local educational agencies will also be required to 
issue annual report cards including assessment information, as 
well as other data related to student performance.
    Recipients of funds under other ESEA programs, such as 
teacher quality and technology education, will now be required 
to submit performance objections as part of their applications 
for funds. A failure to meet these objectives will result in 
loss of grant funds.
    In general, recipients of ESEA funds will be expected to 
use those funds on programs which have proven to be effective 
in improving student achievement and performance and in meeting 
other program objectives.
    The committee believes that it is appropriate to demand 
results and accountability in exchange for the approximately 
$18 billion expended annually by the Federal Government for 
programs authorized under the Elementary and Secondary 
Education Act. Recognizing the additional expense which some of 
these new requirements will entail, the committee has provided 
that the Federal Government will assume the costs of 
development of the new assessments required for students in 
grades 3-8 (as well as half of ongoing costs) and of State 
participation in NAEP.
    Finally, the BEST Act substantially reduces the number of 
separate programs authorized under ESEA. These programs, as 
well as the nearly $2 billion provided for them in fiscal year 
2001, have been consolidated into broader authorities. This 
program consolidation is expected to reduce the administrative 
time and expense involved in developing, processing, and 
awarding separate grants. The BEST Act also provides the 
opportunity for small, rural school districts to combine funds 
from several separate formula grant programs and apply these 
funds toward local initiatives designed to improve student 
achievement.

            VI. Application of Law to the Legislative Branch

    The BEST Act reauthorizes and amends the Elementary and 
Secondary Education Act of 1965 to continue programs primarily 
offering assistance to States and local educational agencies on 
behalf of teachers and elementary and secondary school students 
and, as such, has no application to the legislative branch.

           VII. Cost Estimate and Unfunded Mandates Statement

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 28, 2001.
Hon. James M. Jeffords,
Chairman, Committee on Health, Education, Labor, and Pensions, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the Better Education 
for Students and Teachers Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Donna Wong 
(for federal costs), Susan Sieg Tompkins (for the state and 
local impact), and Nabeel Alsalam (for the private-sector 
impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               congressional budget office cost estimate

Better Education for Students and Teachers Act--As ordered reported by 
        the Senate Committee on Health, Education, Labor, and Pensions 
        on March 8, 2001

    Summary: Programs under the Elementary and Secondary 
Education Act of 1965 (ESEA) were authorized through 2000 under 
the General Education Provisions Act (GEPA). Programs were 
authorized in 2001 by the Consolidated Appropriations Act 
(Public Law 106-554). The Better Education for Students and 
Teachers Act would reauthorize these programs through 2008. It 
would also reauthorize parts of the Stuart B. McKinney Act, and 
activities under ESEA that were authorized under Parts III and 
IV of the Goals 2000: Educate America Act (Goals 2000).
    CBO estimates that authorizations under the bill relative 
to current law would total approximately $28 billion in 2002 
and about $205 billion over the 2002-2008 period, assuming that 
annual levels are adjusted to keep pace with inflation when 
specific annual authorizations are not provided. (Without such 
inflation adjustments, the annual authorization total would be 
about $28 billion for each year, for a total of $194 billion 
over the 2002-2008 period.) CBO estimates that appropriations 
of the authorized levels would result in additional outlays of 
$167 billion over the 2002-2008 period, relative to estimated 
spending under the current law, if inflation adjustments are 
included (and about $160 billion without inflation 
adjustments).
    The programs reauthorized in this bill would provide grants 
to state and local education agencies and tribal governments to 
assist specific populations of students in meeting state 
performance standards. The bill contains no intergovernmental 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
Any costs incurred by state, local, or tribal governments would 
result from complying with conditions of aid. The bill contains 
no private-sector mandates as defined in UMRA.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of the bill is shown in Table 1. The costs of 
this legislation fall within the budget function 500 
(education, training, employment, and social services).

           TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF THE BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars.--
                                 -------------------------------------------------------------------------------
                                    2001      2002      2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

                                         With Adjustments For Inflation

Spending Under Current Law:
    Budget Authority/               16,767     8,718  ........  ........  ........  ........  ........  ........
     Authorization Level \1\....
    Estimated Outlays...........    13,910    14,709     4,650       744        20  ........  ........  ........
Total Proposed Changes:
    Estimated Authorization       ........    27,715    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........  ........     1,506    20,886    26,951    28,643    29,172    29,727    30,290
Spending Under the Bill:
    Estimated Authorization         16,767    36,454    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........    13,910    16,215    25,536    27,694    28,663    29,172    29,727    30,290

                                        Without Adjustments For Inflation

Spending Under Current Law:
    Budget Authority/               16,767     8,718  ........  ........  ........  ........  ........  ........
     Authorization Level \1\....
    Estimated Outlays...........    13,910    14,709     4,650       744        20  ........  ........  ........
Total Proposed Changes:
    Estimated Authorization       ........    27,735    27,729    27,719    27,709    27,709    27,709    27,709
     Level......................
    Estimated Outlays...........  ........     1,506    20,856    26,517    27,695    27,685    27,683    27,683
Spending Under the Bill:
    Estimated Authorization         16,767    36,454    27,729    27,719    27,709    27,709    27,709    27,709
     Level......................
    Estimated Outlays...........    13,910    16,215    25,506    27,260    27,715    27,685    27,683    27,683
----------------------------------------------------------------------------------------------------------------
\1\ The 2001 level is the amount appropriated for that year.
Note: Components may not sum to totals because of rounding.


    Basis of Estimate: The bill would reauthorize funding 
through 2008 for various programs created under ESEA. These 
programs would generally be reauthorized at specific levels for 
2002 and for such sums as may be necessary for 2003 through 
2008. CBO estimates that the bill would increase authorized 
levels by $27.7 billion in 2002 and by $205.5 billion over the 
2002-2008 period assuming that ``such sums'' amounts provided 
after 2002 are adjusted for inflation. If the authorized 
amounts are appropriated, the bill would increase outlays 
relative to current law by $1.5 billion the first year and by 
$167.2 billion over the seven-year period. (Without 
inflationary adjustments, the increased authorizations would 
result in outlays of $159.6 billion over the seven years.)
    Table 2 presents CBO's estimates for the various components 
of each title under the bill. CBO's estimate of authorized 
levels is generally the authorized amount for 2002 with those 
amounts inflated in later years. (The authorization for some 
programs are specified after 2002.) For most existing programs 
that the bill would reauthorize, the estimated outlays reflect 
CBO's current spendout rate assumptions. For new programs or 
significant revisions to existing programs, an explanation of 
CBO's estimate is provided below.
    Becuase most education programs operate on a forward-funded 
basis, spending in the first year is consistently slow across 
all programs, with variation in spending patterns in the 
subsequent years. Historically, spending occurs even more 
slowly when the programs are new, experience significant 
funding increases, or institute matching requirements or other 
restrictions.

           title i--better results for disadvantaged children

    Title I of the bill would reauthorize and revise programs 
currently authorized under parts A, B, C, and E of Title I of 
ESEA. It also would introduce new programs for student 
assessments and reading initiatives. The bill would authorize a 
total of $19 billion for 2002 for all programs under title I. 
CBO estimates the total funding for title I for the 2002-2008 
period would be $140.8 billion, assuming adjustments for 
inflation, with resulting outlays of $115.9 billion over those 
seven years.
    Part A--Better Results for Disadvantaged Children. The bill 
would reauthorize the Basic, Concentration, and Targeted Grant 
Programs under Part of Title I, phase out the capital expensive 
account, add new requirements for states to develop more 
specific standards and assessments, and require states to 
report annually on the results of the assessments.

TABLE 2.--DETAILED EFFECTS OF THE BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT, WITH ADJUSTMENTS FOR INFLATION
----------------------------------------------------------------------------------------------------------------
                                                     By fiscal year, in millions of dollars--
                                 -------------------------------------------------------------------------------
                                    2001      2002      2003      2004      2005      2006      2007      2008
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority/               16,767     8,718         0         0         0         0         0         0
     Authorization level \1\....
    Estimated Outlays...........    13,910    14,709     4,650       744        20         0         0         0
Proposed Changes:

                               Title I--Better Results for Disadvantaged Children

Basic Grants to Local Education
 Agencies (LEAs):
    Estimated Authorization              0    15,000    15,294    15,587    15,881    16,189    16,497    16,805
     Level......................
    Estimated Outlays...........         0       750    12,015    14,950    15,537    15,831    16,137    16,445
Targeted Grants to LEAs:
    Estimated Authorization              0       200       204       208       212       216       220       224
     Level......................
    Estimated Outlays...........         0        10       160       199       207       211       215       219
Even Start:
    Estimated Authorization              0       250       255       260       265       270       275       280
     Level......................
    Estimated Outlays...........         0         8       183       229       258       263       268       273
Reading First:
    Estimated Authorization              0       900       918       935       953       971       990     1,008
     Level......................
    Estimated Outlays...........         0        27       658       823       929       947       965       984
Early Reading First:
    Estimated Authorization              0        75        76        78        79        81        82        84
     Level......................
    Estimated Outlays...........         0         2        55        69        77        79        80        82
Education of Migratory Children:
    Estimated Authorization              0       400       408       416       423       432       440       448
     Level......................
    Estimated Outlays...........         0        20       320       399       414       422       430       439
Neglected, Delinquent, or At-
 Risk Youth:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         3        40        50        52        53        54        55
Capital Expense Account:
    Estimated Authorization              0        15        15         5         0         0         0         0
     Level......................
    Estimated Outlays...........         0         1        12        14         7         1         0         0
National Assessment and
 Demonstrations of Innovative
 Practices:
    Estimated Authorization              0        35        36        36        37        38        38        49
     Level......................
    Estimated Outlays...........         0         2        28        35        36        37        38        38
21st Century Community Learners:
    Estimated Authorization              0     1,500     1,529     1,559     1,588     1,619     1,650     1,681
     Level......................
    Estimated Outlays...........         0       180     1,204     1,497     1,556     1,585     1,616     1,647
Comprehensive School Reform:
    Estimated Authorization              0       250       255       260       265       270       275       280
     Level......................
    Estimated Outlays...........         0        13       200       249       259       264       269       274
Dropout Prevention:
    Estimated Authorization              0       250       255       260       265       270       275       280
     Level......................
    Estimated Outlays...........         0        13       200       249       259       264       269       274
Education for Homeless Children:
    Estimated Authorization              0        70        71        73        74        76        77        78
     Level......................
    Estimated Outlays...........         0         4        49        68        72        74        75        77
      Subtotal, Title I:........
          Estimated                      0    18,995    19,366    19,728    20,094    20,484    20,874    21,264
           Authorization Level..
          Estimated Outlays.....         0     1,030    15,123    18,830    19,664    20,031    20,416    20,806

                                               Title II--Teachers

Grants to States, Local
 Educational Agencies, and
 Eligible Partnerships:
    Estimated Authorization              0     3,000     3,059     3,117     3,176     3,238     3,299     3,361
     Level......................
    Estimated Outlays...........         0       150     2,103     2,894     3,100     3,159     3,219     3,281
National Programs:
    Estimated Authorization              0       100       102       104       106       108       110       112
     Level......................
    Estimated Outlays...........         0         5        70        96       103       105       107       109
National Teacher Recruitment
 Campaign:
    Estimated Authorization              0         3         3         3         3         3         3         3
     Level......................
    Estimated Outlays...........         0         3         3         3         3         3         3         3
Math and Science Partnerships:
    Estimated Authorization              0       500       510       520       529       540       550       560
     Level......................
    Estimated Outlays...........         0        15        40       176       505       514       524       534
Eisenhower Clearinghouse:
    Estimated Authorization              0         5         5         5         5         5         5         6
     Level......................
    Estimated Outlays...........         0       (2)         3         5         5         5         5         6
Preparing Tomorrow's Teachers to
 Use Technology:
    Estimated Authorization              0       150       153       156       159       162       165       168
     Level......................
    Estimated Outlays...........         0         8       105       145       155       158       161       164
State and Local Programs for
 Technology Use in Classrooms:
    Estimated Authorization              0     1,000     1,020     1,039     1,059     1,079     1,100     1,120
     Level......................
    Estimated Outlays...........         0       100       652       965     1,033     1,053     1,073     1,094
National Panel on Portability of
 Teacher Pensions:
          Estimated                      0         2         0         0         0         0         0         0
           Authorization Level..
          Estimated Outlays.....         0         1         1         0         0         0         0         0
      Subtotal, Title III:......
    Estimated Authorization              0     4,760     4,851     4,944     5,037     5,135     5,233     5,330
     Level......................
    Estimated Outlays...........         0       281     2,978     4,284     4,904     4,997     5,093     5,191

                    Title III--Moving Limited English Proficient Students to English Fluency

Bilingual Program:
    Estimated Authorization              0       300       306       312       318       324       330       336
     Level......................
    Estimated Outlays...........         0        15       210       289       295       301       306       312
Foreign Language Assistance:
    Estimated Authorization              0        35        36        36        37        38        38        39
     Level......................
    Estimated Outlays...........         0         2        25        34        34        35        36        36
Immigrant Education:
    Estimated Authorization              0       200       204       208       212       216       220       224
     Level......................
    Estimated Outlays...........         0        10       140       193       197       200       204       208
      Subtotal, Title III:......
          Estimated                      0       535       545       556       566       577       588       590
           Authorization Level..
          Estimated Outlays.....         0        27       375       516       526       536       546       557

                              Title IV--Safe and Drug-Free Schools and Communities

State Grants:
    Estimated Authorization              0       700       714       727       741       755       770       784
     Level......................
    Estimated Outlays...........         0        35       491       675       723       737       751       766
National Programs:
    Estimated Authorization              0       150       153       156       159       162       165       168
     Level......................
    Estimated Outlays...........         0         8       105       145       155       158       161       164
National Coordinator Initiative:
    Estimated Authorization              0        75        76        78        79        81        82        84
     Level......................
    Estimated Outlays...........         0         4        53        72        77        79        80        82
Grants to Combat the Impact of
 Domestic Violence on Children:
    Estimated Authorization              0         5         5         5         0         0         0         0
     Level......................
    Estimated Outlays...........         0       (2)         4         5         5         2         0         0
      Subtotal, Title IV:.......
          Estimated                      0       930       948       966       979       998     1,017     1,036
           Authorization Level..
          Estimated Outlays.....         0        47       652       897       961       975       993     1,012

                                  Title V--Public School Choice and Flexibility

Charter Schools:
    Estimated Authorization              0       190       194       197       201       205       209       213
     Level......................
    Estimated Outlays...........         0        10       133       183       196       200       204       208
Magnet Schools:
    Estimated Authorization              0       125       127       130       132       135       137       140
     Level......................
    Estimated Outlays...........         0         6        88       121       129       132       134       137
Public School Choice:
    Estimated Authorization              0       225       225       225       225       225       225       225
     Level......................
    Estimated Outlays...........         0        11       158       214       225       225       225       225
Rural Education:
    Estimated Authorization              0       300       306       312       318       324       330       336
     Level......................
    Estimated Outlays...........         0        15       210       289       310       316       322       328
Innovative Education Programs:
    Estimated Authorization              0       850       867       883       900       917       935       952
     Level......................
    Estimated Outlays...........         0        43       596       820       878       895       912       930
Advanced Placement:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         3        35        48        52        53        54        55
      Subtotal, Title V:........
          Estimated                      0     1,740     1,770     1,799     1,829     1,860     1,891     1,922
           Authorization Level..
          Estimated Outlays.....         0        87     1,219     1,675     1,790     1,820     1,851     1,882

                                Title VI--Parental Involvement and Accountability

Parental Involvement:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         5        33        48        52        53        54        55
State Assessment Plans:
    Estimated Authorization              0       400       408       416       423       432       440       448
     Level......................
    Estimated Outlays...........         0        12       272       386       413       421       429       437
National Assessment of Education
 Progress:
    Estimated Authorization              0       110       112       114       116       119       121       123
     Level......................
    Estimated Outlays...........         0         3        75       106       114       116       118       120
Improving Academic Achievement:
    Estimated Authorization              0        50        51        52        53        54        55        56
     Level......................
    Estimated Outlays...........         0         5        33        48        52        53        54        55
      Subtotal, Title VI:.......
          Estimated                      0       610       622       634       646       658       671       683
           Authorization Level..
          Estimated Outlays.....         0        25       412       588       630       642       654       667

                        Title VII--Indians, Native Hawaiians, and Alaska Native Education

Grants Administration and
 Planning:
    Estimated Authorization              0         3         3         3         3         3         3         3
     Level......................
    Estimated Outlays...........         0       (2)         2         3         3         3         3         3
Indian Education:
    Estimated Authorization              0        93        95        97        98       100       102       104
     Level......................
    Estimated Outlays...........         0         5        74        93        96        98       100       102
Special Programs and National
 Activities:
    Estimated Authorization              0        20        20        21        21        22        22        22
     Level......................
    Estimated Outlays...........         0         1        16        20        21        21        22        22
Native Hawaiian Council:
    Estimated Authorization              0       (2)       (2)       (2)       (2)       (2)       (2)       (2)
     Level......................
    Estimated Outlays...........         0       (2)       (2)       (2)       (2)       (2)       (2)       (2)
Education for Native Hawaiians:
    Estimated Authorization              0        28        29        29        30        30        31        31
     Level......................
    Estimated Outlays...........         0         1        20        27        29        29        30        31
Alaska Native Education Equity:
    Estimated Authorization              0        17        17        18        18        18        19        19
     Level......................
    Estimated Outlays...........         0         1        12        16        18        18        18        19
      Subtotal, Title VII:......
          Estimated                      0       161       164       167       171       174       177       180
           Authorization Level..
          Estimated Outlays.....         0         8       125       159       167       170       173       176

                                       Title IX--Miscellaneous Provisions

Evaluation of Assessments:
    Estimated Authorization              0         4         0         0         0         0         0         0
     Level......................
    Estimated Outlays...........         0         1         1         1         1         0         0         0
Total Proposed Changes:
    Estimated Authorization              0    27,735    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........         0     1,506    20,886    26,951    28,643    29,172    29,727    30,290
Total Spending Under the Bill:
    Estimated Authorization         16,767    36,454    28,267    28,795    29,323    29,887    30,452    31,016
     Level......................
    Estimated Outlays...........    13,910    16,215    25,536    27,694    28,663    29,172    29,727    30,290
----------------------------------------------------------------------------------------------------------------
1 The 2001 level is the amount appropriated for that year.
2 Less than $500,000.

Note: Components may not sum to totals because of rounding.

    The bill would authorize $15 billion for 2002 for the basic 
and concentrations grants under Part A. The comparable funding 
for the 2001-2002 academic year is $8.6 billion. The bill also 
would authorize $200 million in 2002 for targeted grants. 
Although authorized, this program has not been funded in the 
past.
    The bill would continue the authorization of the capital 
expense account. This account funds costs associated with 
ensuring that Title I services to private-school children are 
administered in neutral settings. In response to the 1997 
Supreme Court ruling that overturned this requirement, the bill 
would phase out funding over three years, authorizing $15 
million for 2002, $15 million for 2003, and $5 million for 
2004. The funding level for 2001 is $6 million.
    The bill would amend Part A of Title I to include more 
specific standards and assessment requirements for state plans. 
The bill would require states to include performance indicators 
in their plans as well as sanctions and rewards for local 
educational agencies (LEAs). State progress would be measured 
by each state according to its state plan. The bill also would 
require that states produce annual report cards beginning in 
academic year 2002-2003. The report cards would provide 
information on student achievement performance at each 
proficiency level on the state assessments. The bill would 
require states to assess all students annually in grades 3 
through 8 in mathematics and reading, and measure the outcomes 
of the assessments against the state content and student 
performance standards established in the state plans, beginning 
no later than school year 2005-2006.
    The bill also would authorize $35 million for 2002 for 
federal evaluations and demonstrations. Funding for these 
activities is $9 million in 2001.
    Part B--Literacy for Children and Families. The bill would 
reauthorize funding for the Even Start Literacy program, 
currently Part B in Title I of ESEA, and create two new reading 
programs--the Reading First program and the Early Reading First 
program.
    The bill would authorize $250 million for the Even Start 
program, the same amount that was appropriated for 2001.
    The bill would authorize $900 million in 2002 for the 
Reading First program. The Reading First program replaces the 
Reading Excellence program, which is currently authorized under 
Part C of Title II of ESEA, The Reading Excellence program is 
funded at $286 million in 2001. The Reading First program would 
first provide formula grants to states. States would award 
grants competitively to LEAs. The program would allow states to 
apply for grants if funds remain. The Reading Excellence 
program uses a two-tier competitive grant structure, which has 
resulted in slow spending in the first two years relative to 
formula grant or one-tier competitive grant programs. CBO 
estimates that spending for the Reading First program would be 
at a rate comparable to spending for other formula grants to 
states with competitive grants to LEAs.
    The bill also would create a new program for pre-school 
reading programs. The Early Reading First program would provide 
competitive grants to LEAs or private organizations to develop 
and provide pre-school reading programs. The bill would 
authorize $75 million for the Early Reading First program.
    Part C--Education of Migratory Children. The bill would 
authorize $400 million in 2002 to continue to fund grants to 
support the needs of children of migrant workers, currently 
authorized under Part C of Title I. Funding in 2001 for the 
Migrant Education program is $380 million.
    Part D--Initiatives for Neglected, Delinquent, or At-Risk 
Youth. The bill would authorize $50 million in 2002 to 
reauthorize grants for education programs for neglected or 
delinquent youth, compared with the 2001 funding level of $46 
million.
    Part E--21st Century Community Learning Centers; 
Comprehensive School Reform; School Dropout Prevention. The 
bill would authorize $1.5 billion in 2002 to continue the 21st 
Century Community Learners program currently authorized under 
Part I of Title X of ESEA. The program's funding for 2001 is 
$846 million.
    The bill would authorize $250 million for 2002 to continue 
the Comprehensive School Reform Grant Program. The program 
received $210 million in 2001.
    The bill would also introduce a new National School Dropout 
Prevention Program. A program to address school dropouts is 
currently authorized under Part C of Title V, but has never 
been funded. Schools would be allowed to use funds for start-up 
and implementation costs of dropout prevention programs. The 
bill would authorize $250 million to fund grants to states. 
States would award grants to schools with the highest dropout 
rates in the state. If funding is less than $250 millions, 
grants would be awarded to states on a competitive basis. If 
funding is equal to more that $250 million, grants would be 
distributed to states using a formula. CBO assumes a spending 
rate consistent with spending for other competitive grant 
programs.
    Part F--Education for Homeless Children and Youth. The bill 
would amend and reauthorize Subtitle B of Title VII of the 
Steward D. McKinney Homeless Assistance Act, authorizing $70 
million for education for homeless children and youth in 2002. 
The appropriation for 2001 was $35 million.

                           Title II--Teachers

    Title II would authorize a total of $4.8 billion for 2002 
for several initiatives that address teacher hiring, 
recruitment, and professional development. CBO estimates that 
implementing this title would cost $27.7 billion over the 2002-
2008 period.
    Teacher Quality. The bill would authorize a total of $3 
billion for a block grant to fund many activities previously 
authorized under the Eisenhower Professional Development and 
Class Size Reduction programs, both of which would be 
discontinued. The combined funding level in 2001 is $1.9 
billion under the Eisenhower Professional Development and the 
Class Size Reduction programs. CBO assumes a spending rate 
consistent with the rate of spending for other new formula 
grant programs.
    The bill also would authorize $100 million to fund national 
programs and activities such as nonprofit agencies or 
institutions of higher education providing mentors or 
professional development for teachers. In 2001, $41 million was 
appropriated for these activities.
    The bill also would authorize $3 million for each year over 
the 2002-2008 period for a National Teacher Recruitment 
Campaign. The program would award a grant to a coalition of 
teacher and media organizations to conduct a public service 
campaign concerning the resources for and routes to entering 
the field of teaching. For each year, CBO estimates that almost 
all funds would be spent in the year that they are 
appropriated.
    Mathematics and Science Partnerships. The bill would 
authorize total funding of $505 million in 2002 for the Math 
and Science Partnerships program and the Eisenhower 
Clearinghouse for Mathematics and Science Education. The Math 
and Science Partnerships program would replace the existing 
Eisenhower Regional Mathematics and Science Education Consortia 
currently authorized in Title XIII, Part C. The Mathematics and 
Science Partnerships program would provide grants to 
partnership of states, local institutions, and institutions of 
higher education to offer summer and distance education 
workshops for math and science teachers, establish recruitment 
strategies, and provide other career development activities.
    The bill would authorize $500 million for 2002 for the Math 
and Science Partnerships program. The existing Eisenhower 
Regional Mathematics and Science Education Consortia is funded 
at $15 million in 2001. The bill also would authorize $5 
million in 2002 for the Eisenhower Clearinghouse for 
Mathematics and Science Education. The Clearinghouse is funded 
at $5 million in 2001. CBO assumes that funding for the new 
programs would be spent at a rate similar to other competitive 
matching grant programs.
    The bill also would authorize $150 million in 2002 for a 
new program. Preparing Tomorrow's Teachers to Use Technology. 
Grants would be awarded competitively to education consortiums 
to develop or redesign teacher preparatory programs to enable 
teachers to use technology effectively in classrooms. CBO 
assumes that outlays for this program would be consistent with 
the rate of spending for other competitive grant programs.
    State and Local Programs for Technology Use in Classrooms. 
The bill would authorize a total of $1 billion in 2002 for 
competitive grants to fund many activities previously 
authorized under the Literacy Challenge Fund, the Innovative 
Challenge Fund, and the National Leadership program. The 
combined funding level in 2001 is $588 million for those three 
programs. The Technology Use in Classrooms program would 
provide grants for ongoing professional development in the 
integration of technology into the curriculum, providing 
educational services for adults and families, and acquiring 
resources. CBO assumes that the rates of spending for this 
program would be similar to other competitive grant programs.
    Portability of Teacher Pensions and Credentials. The bill 
would authorize such sums as may be necessary for fiscal year 
2002 for a National Panel to study various options for 
increasing the reciprocity of recognition of teacher 
credentials and portability of teacher pensions between states. 
A report would be complete no later than one year after 
appointment of the panel. CBO estimates the National Panel 
would cost $2 million, with outlays of about $1 million in each 
of fiscal years 2002 and 2003.

   title iii--moving limited english proficient students to english 
                                fluency

    The bill would authorize $535 million for the Moving 
Limited English Proficiency Students to English Fluency 
program, currently authorized as the Bilingual Education 
program under Title VII or ESEA. The funding level for 2001 is 
$460 million. CBO estimates that implementing this title would 
cost $3.1 billion over the 2002-2008 period.
    The bill would authorize:
          $300 million for 2002 for the Bilingual Education 
        Program, which is funded at $296 million for 2001;
          $35 million for the Foreign Language Assistance 
        Program in 2002, which received $14 million in funding 
        in 2001; and
          $200 million for the Emergency Immigrant Education 
        Program, which is funded at $150 million for 2001.

          Title IV--Safe and Drug-Free Schools and Communities

    The bill would authorize a total of $930 million for 2002 
to continue the Safe and Drug-Free Schools and Communities 
Program, currently authorized under Title IV of ESEA. CBO 
estimates that implementing this title would cost $5.5 billion 
over the 2002-2008 period. Total funding for the program in 
2001 is $644 million.
    State Grants. The bill would authorize $700 million in 2002 
to continue grants to state educational agencies and governors' 
programs, which are funded at $439 million in 2001.
    The bill would authorize $150 million in 2002 to continue 
national programs, which are funded at $155 million in 2001. 
The bill also would authorize $75 million in 2002 to continue 
the National Coordinator Initiative. The National Coordinator 
Initiative is funded at $50 million in 2001.
    The bill would also create a new competitive grant program 
to provide grants to elementary and secondary schools to combat 
the impact of experiencing or witnessing domestic violence on 
elementary and secondary children. Funds could be used for 
training of personnel or developing programs and policies to 
combat the impact of experiencing or witnessing domestic 
violence. The bill would authorize $5 million in 2002, 2003, 
and 2004 for this program. CBO assumes a spending rate 
consistent with the rate of spending for other new competitive 
grant programs.
    School Safety and Violence Prevention. The bill would allow 
federal funds in title IV to be used to train personnel to 
identify potential safety threats in the schools. CBO expects 
that this provision would have no impact on the rate at which 
such funds are spent.

             Title V--Public School Choice and Flexibility

    Title V would authorize $1.7 billion in 2002 for several 
programs previously authorized under other titles of ESEA. 
Programs authorized under Title V are Charter Schools, Magnet 
Schools, Public School Choice, Rural Education, Innovative 
Education Programs, and Advanced Placement. CBO estimates that 
implementing this title would cost $10.3 billion over the 2002-
2008 period.
    Public School Choice. The bill would reauthorize the 
Charter School program, currently authorized through 2003 under 
the Charter School Reauthorization Act (Public Law 105-278) and 
through 2004 under GEPA. The bill would authorize $190 million 
for 2002-the same amount that has been provided for 2001--and 
extend the authorization through 2008.
    The bill would authorize $125 million for 2002 to continue 
the Magnet Schools Program currently authorized under Part A of 
Title V, compared with 2001 funding of $110 million.
    The bill would reauthorize $225 million for each of the 
fiscal years 2002-2008 for the Public School Choice program 
which was created in the Consolidated Appropriations Act of 
2001 (Public Law 106-554). The program allocates funds to 
states who in turn allocate funds to LEAs for school 
improvement activities. LEAs that receive funds must provide 
students enrolled in a school identified for school improvement 
with an option to transfer to another public school that has 
not been identified for school improvement within the school 
district served by the LEA. The program is funded at $225 
million in 2001 as a set-aside from basic grants to LEAs under 
Title I of ESEA.
    Flexibility. The bill would authorize the Rural Education 
Achievement Program and the Local Innovative Education Program.
    The bill would create a new program called the Rural 
Education Achievement Program to replace the Urban and Rural 
Education Assistance program, currently authorized under Part J 
of Title X of ESEA. The bill would authorize the program at 
$300 million in 2002, of which $150 million would be available 
for grants to small rural education agencies to carry out 
innovative assistance activities. Any remaining funds could be 
used for grants to state educational agencies for the low-
income and rural school program. The Urban and Rural Education 
Assistance Program is not funded for 2001.
    The bill also would authorize $850 million to continue the 
Innovative Education Program. The program is currently 
authorized under Title VI of ESEA. This program is funded at 
$385 million in 2001.
    Flexibility and Coordination. The bill would allow state 
educational agencies to consolidate funds for administration of 
programs. The bill also would allow state educational agencies 
to submit a consolidated state plan or application for each of 
the programs in which the state participates or applies.
    Advanced Placement Programs. The bill would authorize $50 
million in 2002 and expand allowable activities under the 
Advanced Placement program currently authorized by Part B of 
Title VII of the Higher Education Act. Funds would first be 
allocated to states to enable states to reimburse low income 
individuals to cover all or part of the cost of advanced 
placement (AP) test fees. The remainder of funds could be used 
to expand AP courses and fund on-line AP courses. The program 
is funded at $22 million in 2001.

           title vi--parental involvement and accountability

    Title VI would authorize a total of $610 million in 2002 
for new initiatives aimed at increasing parental involvement in 
schools. CBO estimates that implementing this title would cost 
$3.6 billion over the 2002-2008 period.
    Parental Involvement Grants. The bill would authorize $50 
million for 2002 for a new Parental Involvement Grant Program. 
The Parental Involvement Grant Program would replace and expand 
upon the Parental Assistance Funds Program, authorized under 
Title IV of Goals 2000 which is funded at $38 million in 2001. 
Funds provided under this part would be used to support 
continuation grants for recipients under the current program.
    Improving Academic Achievement. The bill also would 
authorize funds for the planning and implementation of the 
state assessment plans and the administration of the annual 
assessments of students described in title I of this bill. The 
bill would authorize $400 million in 2002 for planning and 
implementation of state plans. The bill also would authorize 
$110 million for states to administer assessments under 
National Assessment of Educational Progress (NAEP). The bill 
would provide funds to states to administer state assessments 
of fourth- and eighth-grade reading and mathematics under NAEP. 
CBO assumes the new funds will be spent at a rate consistent 
with the rate for other new formula grant programs.
    The bill also would create a new Education Award program 
which would allow the Secretary of Education to award grants to 
states that make the most progress in student achievement, 
schools that complete their state assessment plans in advance 
of the schedule, and schools that make the most progress in the 
progress of economically disadvantaged students' achievement. 
The bill would authorize $50 million for education awards. CBO 
assumes funds would be spent at the same rate as the National 
Assessment of Educational Progress grants.
    The bill also would establish penalties for states based on 
state assessment results. States that fail to make yearly 
progress for two consecutive years could have their 
administrative funds reduced up to 30 percent. States that fail 
to make progress for three or more consecutive years could have 
up to 75 percent of their administrative funds reduced. CBO 
expects that this provision would not significantly change 
spending.

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

    The bill would authorize $161 million to continue education 
programs currently authorized under Parts A, B, and C of Title 
IX of ESEA. Total funding for 2001 is $159 million.
    Indian Education. For 2002, the bill would reauthorize a 
total of $116 million for Indian Education programs. The bill 
would authorize $93 million for formula grants to LEAs for 
Indian Education. That program is funded at the same amount for 
2001. The bill would authorize $20 million for special programs 
and national activities in 2002, the same amount that is 
appropriated for 2001. Finally, the bill would authorize $3 
million for each of the fiscal years 2002 through 2008 for 
grants to tribes for administration and planning. Funding in 
2001 is also $3 million.
    Native Hawaiian Education. The bill would authorize $28 
million in 2002 for education for Native Hawaiians. Current 
programs would be consolidated into one authorization and new 
activities would be authorized. The appropriation for 2001 is 
also $28 million. The bill also would authorize $300,000 for a 
Native Hawaiian Council to oversee coordination of educational 
services available to Native Hawaiians.
    Alaska Native Education. The bill would authorize $17 
million in 2002 for Alaska Native education. Funding in 2001 is 
$15 million.

                          title viii--repeals

    The bill would repeal Titles IX through XIV of the 
Elementary and Secondary Education Act of 1965. The bill also 
would repeal the Goals 2000: Educate America Act. Programs that 
would be repealed in title VIII or elsewhere in the bill 
include:
          Telecommunications Demonstration Project for 
        Mathematics,
          Elementary Mathematics and Science Equipment Program,
          Star Schools,
          Ready to Learn TV,
          Technology Education,
          Women's Education Equity,
          Fund for Improvement of Education,
          Gifted and Talented,
          Arts in Education,
          Inexpensive Book Distribution,
          Ellender Fellowship,
          National Writing Project,
          International Education Exchange,
          School Facilities Infrastructure Improvement Act,
          Comprehensive Regional Assistance Centers,
          National Diffusion Network,
          Eisenhower Regional Mathematics and Science Education 
        Consortia,
          Community-based Technology Centers,
          Professional Development National Programs, and
          School Renovation Grants.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    Title IX would authorize the appropriation of $4 million in 
2002 for an evaluation of standardized tests that are mandated 
to be used in determining a student's promotion, graduation, or 
tracking. the bill would authorize such funding for the Board 
on Testing and Assessment of the National Research Council of 
the National Academy of Sciences for an ongoing evaluation of 
the effectiveness of school assessments. The study would not 
exceed four years. CBO estimates that completing the study 
would cost about $1 million each year over the four-year 
period.
    Pay as you go considerations: None.
    Estimated impact on State, local, and tribal governments: 
The bill would reauthorize certain sections of the Elementary 
and Secondary Education Act of 1965 and would authorize over 
$27 billion in grants to state and local education agencies and 
tribal governments to support their efforts to improve 
educational opportunities and performance for specific 
populations of students. The bill contains no intergovernmental 
mandates as defined in UMRA. In general, any costs to state, 
local, or tribal governments as a result of enactment of this 
bill would be incurred voluntarily, as conditions of aid.
    Estimated impact on the private sector: The bill contains 
no private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Donna Wong; impact on 
State, local, and tribal governments: Susan Sieg Tompkins; 
impact on the private sector: Nabeel Alsalam.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                   VIII. Section-By-Section Analysis

    Section 1--Short Title; Table of Contents. Section 1 
specifies the title of the legislation as the ``Better 
Education for Students and Teachers Act'' and lists the table 
of contents.
    Section 2--References. Section 2 notes that all amendments 
and repeals referenced in the act apply to the Elementary and 
Secondary Education Act of 1965 (ESEA).
    Section 3--Short Title; Purpose; Definitions; Uniform 
Provisions. Section 3 amends the Elementary and Secondary 
Education Act (``the Act'') to add the following new sections:
    Section 2 of the Act specifies the purpose of the 
Elementary and Secondary Education Act, which is to support 
programs and activities that will improve the Nation's schools 
and enable all children to achieve high standards.
    Section 3 of the Act includes the definitions used 
throughout ESEA.
    Section 4 of the Act--Maintenance of Effort. This section 
restates current law provisions requiring that a local 
educational agency must maintain at least 90 percent of its 
combined fiscal effort per student or the aggregate of State 
and local educational agency expenditures for free public 
education for the previous fiscal year in order to receive 
funds under the Act.
    Section 5 of the Act--Prohibition Regarding State Aid. This 
section restates current law provisions prohibiting a State 
from taking payments under this Act into consideration in 
determining the eligibility of a local educational agency for 
State aid or for the amount of such aid. An exception is made 
for payments under Title VIII (impact aid).
    Section 6 of the Act--Participation by Private School 
Children and Teachers. This section restates current law 
provisions regarding programs under the Act in which private 
school children and teachers may participate and the conditions 
and procedures which apply to such participation.
    Section 7 of the Act--Standards for By-Pass. This section 
restates current law provisions regarding the Secretary's 
arranging for equitable services to children, teachers, or 
other educational personnel at private elementary and secondary 
schools in cases where a State educational agency, a local 
educational agency, an educational service agency, or 
consortium is prohibited from providing for their 
participation.
    Section 8 of the Act--Complaint Process for Participating 
of Private School Children. This section restates current law 
provisions establishing procedures regarding complaints 
regarding violations of provisions of the Act providing for 
participation by private school children and teachers.
    Section 9 of the Act--By-Pass Determination Process. This 
section restates current law provisions providing that the 
Secretary may not exercise by-pass authority until the State 
educational agency, local educational agency, educational 
service agency, or consortium of such agencies affected by the 
action has had an opportunity to submit written objections and 
to appear before the Secretary. The agency or consortium may 
appeal the decision of the Secretary. Funding for the services 
provided through the by-pass authority is providing from the 
appropriate State allocation or allocations under the Act.
    Section 10 of the Act--Prohibition Against Funds for 
Religious Worship or Instruction. This section restates the 
current law provision that nothing in the Act is to be 
construed to authorize the making of any payment for religious 
worship or instruction.
    Section 11 of the Act--Applicability to Home Schools. This 
section restates the current law provision that nothing in the 
Act is to be construed to affect home schools.
    Section 12 of the Act--General Provision regarding 
Nonrecipient Nonpublic Schools. This section restates current 
law provisions providing that nothing in the Act is to be 
construed to authorize 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. The section is not be to construed to bar private, 
religious, or home schools from participating in programs or 
services under the Act.
    Section 13 of the Act--School Prayer. This section restates 
current law provisions regarding school prayer.
    Section 14 of the Act--General Prohibitions. This section 
restates current law provisions prohibiting the use of funds 
under this Act for the promotion of sexual activity, the 
distribution of obscene materials to minors, sex education or 
HIV prevention education (unless such instruction is age 
appropriate and includes the health benefits of abstinence), or 
condom distribution.
    Section 15 of the Act--Prohibition on Federal Mandates, 
Direction, and Control. This section restates current law 
provisions providing that nothing in the Act is to be construed 
to authorize Federal direction or control of curriculum, 
programs of instruction, or allocation of State or local 
resources. The section also provides that the Federal 
Government may not require a State or any subdivision to spend 
funds or incur costs not paid for under the Act.

           title I--better results for disadvantaged children

    Section 101--Policy and Purpose. Section 101 amends section 
1001 of the Act to modify the purpose. The purpose is to enable 
schools to provide opportunities for children served under 
title I to acquire the knowledge and skills contained in the 
challenging State content standards and to meet the challenging 
State student performance standards developed for all children. 
Thesection also describes various mechanisms for accomplishing 
the purpose.
    Section 102--Authorization of Appropriations. Section 102 
amends section 1002 of the Act and specifies the authorized 
funding levels for all parts and certain provisions of title 1. 
The authorization level for part A (Better Results for 
Disadvantaged Children) is $15 billion for fiscal year 2002 and 
such sums as may be necessary in each of the 6 succeeding 
fiscal years. The authorization level for subpart 1 of part B 
(Even Start) is $250 million for fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years. 
The authorization level for subpart 2 of part B (Reading First) 
is $900 million for fiscal year 2002 and such sums as may be 
necessary in each of the 6 succeeding fiscal years. The 
authorization level for subpart 3 of part B (Early Reading 
First) is $75 million for fiscal year 2002 and such sums as may 
be necessary in each of the 6 succeeding fiscal years. The 
authorization level for part C (Migratory Children) is $400 
million for fiscal year 2002 and such sums as may be necessary 
in each of the 6 succeeding fiscal years. The authorization 
level for Part D (Neglected, Delinquent Youth) is $50 million 
for fiscal year 2002 and such sums as may be necessary in each 
of the 6 succeeding fiscal years. The authorization level for 
section 1120(e) (Capital Expenses) is $15 million for each of 
the fiscal years 2002 and 2003 and is $5 million for fiscal 
year 2004. The authorization level for section 1501 (Federal 
Activities) is $10 million for fiscal year 2002 and such sums 
as may be necessary in each of the 6 succeeding fiscal years. 
For section 1502, the authorization level is $25 million for 
fiscal year 2002 and such sums as may be necessary in each of 
the 6 succeeding fiscal years. The authorization level for part 
F (21st Century Community Learning Centers) is $1.5 billion for 
fiscal year 2002 and such sums as may be necessary in each of 
the 6 succeeding fiscal years. The authorization level for part 
G (Comprehensive School Reform) is $250 million for fiscal year 
2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years. The authorization level for part H 
(School Dropout Prevention) is $250 million for fiscal year 
2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years, of which 10 percent will be used for 
subpart 1 (Coordinated National Strategy) and the remaining 90 
percent for subpart 2 (National School Dropout Prevention 
Initiative).
    Section 103--Reservation and Allocation for School 
Improvement. Section 103 amends section 1003 of the Act to 
provide that each State educational agency will reserve a 
portion of its title I allocation to conduct school improvement 
activities and to provide technical assistance and support for 
local educational agencies. At least half of the reserved funds 
must be provided directly to local educational agencies for 
schools identified for school improvement, corrective action, 
or reconstitution. The reserved amount is 3.5 percent of the 
allocation in each of fiscal years 2002 and 2003, rising to 5 
percent of that amount in each of fiscal years 2004 through 
2008.

Part A--Better Results for Disadvantaged Children

    Section 111--State Plans. Section 111 rewrites section 1111 
of the Act. Provisions of the new section 1111 include:
    Section 1111(a)--State Plans. Section 1111(a) requires 
States to submit a plan to the Secretary by March 1, 2002, in 
order to received funds under part A. The plan must meet the 
requirements of section 1111 and be coordinated with other 
programs under this Act and with other Federal education 
programs.
    Section 1111(b)--Standards, Assessments, and 
Accountability.
    Section 1111(b)(1) [Challenging Standards] requires that 
States adopt challenging content and student performance 
standards and that those standards apply to all schools and 
children in the State. In addition to having standards in 
mathematics and reading or language arts, as required by 
current law, States must have standards in history and science. 
States have until the beginning of the 2005-2006 school year to 
meet the new history and science standards requirement. The 
section maintains current law provisions requiring that 
challenging student performance standards be aligned with State 
content standards and that they describe 2 levels of high 
performance (proficient and advanced) and 1 other level of 
performance (partially proficient).
    Section 1111(b)(2)(A) [Accountability] requires States to 
develop and implement a single, statewide accountability system 
for assuring that all local educational agencies and schools 
make adequate yearly progress (AYP). The accountability system 
must be based on the standards and assessments required under 
title I, must include indicators for measuring student 
performance, and must include sanctions and rewards.
    Section 1111(b)(2)(B) [Adequate Yearly Progress] provides 
that adequate yearly progress will be demonstrated by annual 
student assessments. In addition, States must define adequate 
yearly progress in a manner that: (1) applies high standards to 
all students; (2) is statistically valid and reliable; (3) 
results in academic improvement for all students; (4) measures 
progress primarily through assessments; (5) includes annual 
measurable objectives for improvement in the achievement of all 
students and of economically disadvantaged students, students 
with disabilities, students with limited English proficiency, 
migrant students, students by racial and ethnic group, and 
students by gender; (5) includes a timeline for assuring that 
each group of students meets or exceeds the State's proficient 
level of performance within 10 years; and (6) includes school 
completion or dropout rates and at least 1 other academic 
indicator.
    Section 1111(b)(2)(C) [Public Comment] provides that the 
State seek public comments from a range of institutions and 
individuals in developing its plan. In addition, the State is 
to ensure information under part A is widely known throughout 
the State. At a minimum, this information and explanatory text 
is to be made broadly available through means such as the 
Internet, the media, and public agencies.
    Section 1111(b)(2)(D) [Exceptions to Statewide Application] 
addresses cases where no State official or entity has authority 
under State law to adopt curriculum content standards, student 
performance standards, and aligned assessments which are 
applicable to all public school students. In such cases, the 
State may meet title I requirements either: (1) by applying 
statewide standards and assessments only to children served 
under part A, or (2) by ensuring that each local educational 
agency which receives title I funds will adopt standards and 
assessments which meet all of the criteria described in 
subsection (b).
    Section 1111(b)(2)(E) [Statistical Significance] provides 
that the State plan must include a description of the standard 
the State will use in determining statistically significant 
educational progress for purposes of implementing the 
reconstitution provisions.
    Section 1111(b)(3) [Assessments] provides that, in addition 
to having annual student assessments in mathematics and reading 
or language arts as required by current law, States must have 
such assessments in science. States have until the beginning of 
the 2007-2008 school year to meet the new science assessment 
requirement. The same assessments must be used to measure the 
performance of all children. A new provision is added to 
require annual assessment in mathematics and reading or 
language arts of all students in grades 3 through 8, beginning 
in school year 2005-2006. In exceptional circumstances, a State 
may be given 1 additional year to come into compliance. In 
addition, a State will not be required to conduct any of the 
new mathematics and reading assessments in any school year in 
which less than 50 percent of the costs of administering these 
assessments was provided by the Federal government in the 
previous year.
    All reading or language arts assessments must be written in 
English for any student who has attended school in the United 
States for 3 or more consecutive years, unless the local 
educational agency--on a case-by-case basis--determines that 
assessments in another language would yield more accurate and 
reliable information. In such situations, students may be 
tested in a language other than English for 1 additional year 
or--in exceptional circumstances--for additional years. The 
section also clarifies that the individual student reports 
required under current law must be provided to parents of all 
students. The report must include scores, and may include other 
performance standards (student course work over time, 
attendance rates, dropout rates, and participation in advanced 
level courses).
    Section 1111(b)(3) also maintains current law provisions 
requiring that assessments: (1) be aligned with State content 
and student performance standards; (2) be used for purposes for 
which they are valid and reliable; (3) be consistent with 
relevant, nationally recognized professional and technical 
standards; (4) be administered at least once during grades 3 
through 5, 6 through 9, and 10 through 12; (5) involve multiple 
measures of student performance; (6) provide for the 
participation of all students, including students with 
disabilities and limited English proficient students; (7) 
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; (8) provide 
individual student interpretive and descriptive reports which 
include test scores or other information on the attainment of 
performance standards; (9) enable results to be disaggregated 
by gender, by racial and ethnic group, by English proficiency 
status, by migrant status, by students with disabilities 
compared with nondisabled students, and by economically 
disadvantaged students compared with students who are not 
economically disadvantaged.
    Section 1111(b)(4) [Special Rules] clarifies the current 
law provision permitting the inclusion of measures that do not 
meet standards of validity and reliability, provided that the 
State includes information regarding efforts to validate such 
measures. A new provision is added, permitting States to 
measure the academic proficiency of students in grades 
kindergarten through 2.
    Section 1111(b)(5) [Language Assessments] maintains the 
current law provision that States identify the languages other 
than English for which yearly student assessments are needed, 
but not available. The Secretary is to assist with the 
identification of appropriate assessment measures but shall not 
mandate a specific assessment or mode of instruction. A 
reference in current law to the Office of Bilingual Education 
and Minority Language Affairs is deleted.
    Section 1111(b)(6) [Requirement] maintains the current law 
provision that the State plan describe how it will assist local 
educational agencies and schools to comply with requirements 
related to school improvement and corrective action, schoolwide 
projects, and targetted assistance schools, as applicable, and 
describe other factors deemed appropriate to providing students 
an opportunity to achieve.
    Section 1111(b)(7) [ED-FLEX] provides that a State will not 
be eligible for designation as an Ed-Flex State until it 
develops assessments aligned with the State's content standards 
in mathematics and reading or language arts.
    Section 1111(c) [Other Provisions to Support Teaching and 
Learning] includes new State plan assurances that States will: 
(1) produce annual State report cards, beginning with the 2002-
2003 school year; (2) participate in annual State assessments 
of 4th and 8th grade reading and mathematics under the National 
Assessment of Educational Progress (NAEP), provided that the 
Secretary pays the cost of administering such assessments; (3) 
provide technical assistance to local educational agencies and 
schools to carry out parental involvement responsibilities; (4) 
inform the Secretary and the public of how Federal laws, if at 
all, hinder their ability to hold local educational agencies 
and schools accountable for student academic performance; (5) 
encourage schools to consolidate funds from other Federal, 
State, and local sources for schoolwide reform; (6) modify or 
eliminate fiscal and accounting barriers so that schools can 
easily consolidate funds from other Federal, State, and local 
sources for schoolwide programs; (7) inform local educational 
agencies of their authority to obtain waivers under this act; 
and (8) coordinate activities funded under part A with other 
Federal activities. Section 1111(c) also maintainscurrent law 
provisions requiring assurances in the State plan that the 
State will: (1) provide technical assistance to local 
educational agencies and schools; (2) consider providing 
professional development and technical assistance through 
educational service agencies or through other cooperative 
agreements; (3) notify local educational agencies and the 
public of standards and assessments and of the authority to 
operate schoolwide programs; (4) fulfill its responsibilities 
regarding local educational agency improvement and school 
improvement; (5) provide the least restrictive and burdensome 
regulations for local educational agencies and schools; and (6) 
involve the committee of practitioners in developing the plan 
and monitoring its implementation.
    Section 1111(d) [Parental Involvement] includes new 
provisions requiring States to collect effective parental 
involvement practices and disseminate this information to local 
educational agencies and schools.
    Section 1111(e) [Peer Review and Secretarial Approval] 
maintains current law provisions regarding the establishment of 
a peer review process to assist the Secretary in reviewing 
State plans and procedures to be followed in the event the 
State plan does not meet the requirements of this section. 
Language is added to specify that members of the peer review 
panel must be familiar with educational standards, assessments, 
accountability, and other diverse educational needs of 
students. In addition, the Secretary must approve a State plan 
within 120 days of its submission unless the plan fails to meet 
the requirements of this section.
    Section 1111(f) [Provision of Testing Results to Parents 
and Teachers] includes a new provision requiring that local 
educational agencies provide the results from required 
assessments to parents and teachers as soon as is practicably 
possible after the test is taken--in a manner and form that is 
understandable and easily accessible to parents and teachers.
    Section 1111(g) [Duration of the Plan] maintains current 
law provisions providing that a State plan will remain in 
effect for the duration of its participation under part A, with 
periodic review and revisions.
    Section 1111(h) [Limitation on Conditions] maintains the 
current law provision that nothing in part A is to be construed 
to authorize Federal control over specific instructional 
content, student performance standards and assessments, 
curriculum, or program of instruction as a condition of 
receiving part A funds.
    Section 1111(i) [Penalty] includes a new provision 
requiring the Secretary to withhold State administrative funds 
in cases where a State fails to meet statutory deadlines for 
having in place challenging content and student performance 
standards and a system for measuring and monitory adequate 
yearly progress.
    Section 1111(j) [Reports] includes new requirements for the 
issuance of annual report cards by States and local educational 
agencies, beginning in the 2002-2003 school year. All report 
cards must be broadly disseminated through public means.
    Section 1111(j)(1) [State Report Cards] provides that the 
State report card be concise and presented in an understandable 
form. The report card must include: (1) information on student 
achievement at each proficiency level on the State assessments, 
disaggregated by race, ethnicity, gender, disability status, 
migrant status, English proficiency, and socioeconomic status; 
(2) the percentage of students not tested, also disaggregated; 
(3) the number and names of each school identified for school 
improvement; (4) information on the adequate yearly progress of 
local educational agencies; and (5) such other information the 
State chooses to include regarding the progress of public 
schools in the State.
    Section 1111(j)(2) [Local Educational Agency Report Cards] 
provides that the local educational agency report card include 
information about the LEA and each school served by it. The 
information about the local educational agency to be included 
is the number and percentage of schools identified for school 
improvement and the performance by students on statewide 
assessments compared to students in the State as a whole. 
Information about schools to be included is whether the school 
has been identified for school improvement and how students 
performed on the statewide assessment compared to students in 
the local educational agency and the State as a whole.
    Section 1111(j)(3) [Pre-existing Report Cards] provides 
that a State or local educational agency that already provide 
public report cards may continue to use those reports to comply 
with the reporting requirements of this section, provided that 
the report includes the information required by the section.
    Section 1111(j)(4) [Annual State Report to the Secretary] 
requires States to report annually to the Secretary, beginning 
in school year 2001-2002, their progress in developing and 
implement required assessments. Beginning in school year 2004-
2005, the annual report must include student assessment 
information, including disaggregated results. The report must 
also include the number and names of schools identified for 
school improvement, the reasons for the identification, and the 
measures taken to address performance problems.
    Section 1111(j)(5) [Parents Right-to-Know] requires local 
educational agencies that receive part A funds provide parents 
with information regarding the professional qualifications of 
their student's teachers. Parents are also to be provided 
information regarding the level of performance of their 
children in each State assessment in an understandable and 
uniform format.
    Section 1111(k) [Privacy] provides that the privacy of 
individuals is to be protected with respect to the information 
collected under this section.
    Section 1111(l) [Technical Assistance] requires the 
Secretary to provide States with technical assistance, upon 
request, regarding the requirements of this section.
    Section 112--Local Educational Agency Plans. Section 112 
amends section 1112 of the act.
    Section 112(1) amends section 1112(a) of the act to specify 
that the local educational agency plan shall be coordinated 
with plans submitted under the Individuals with Disabilities 
Education Act, the Carl D. Perkins Vocational and Technical 
Education Act of 1998, the Head Start Act, and other acts as 
appropriate.
    Section 112(2) amends section 1112(b) of the act to specify 
that the local educational agency shall determine the literacy 
levels of first graders and their needs for interventions and 
shall coordinate professional development planning provisions 
with similar provisions described under title II of this act. 
This section also includes a provision requiring the local 
educational agency to describe, where appropriate, how funds 
under part A will be used to support early childhood education 
programs and to describe how the agency will implement 
effective parental invovlement.
    Section 112(3) amends section 1112(c) of the act to require 
each local educational agency to plan to carry out several new 
activities including: working with schools in the development 
and implementation of parental involvement and professional 
development activities; complying with professional development 
requirements as described under this part; informing eligible 
schools about waiver authority; ensuring the use of effective 
strategies to avoid low-income and minority students' being 
taught at higher rates than other students by unqualified or 
inexperienced teachers; using the results of assessments and 
other indicators to review annually the progress of each school 
served by the agency; and assuring that parents and teachers 
are provided with assessment results as soon as possible after 
the test is given. In addition, the section maintains current 
law provisions regarding local educational agency activities, 
including: providing information to schools and parents 
regarding schoolwide authority; providing technical assistance 
to schoolwide programs; working with schools in the development 
and implementation of school plans; fulfilling school 
improvement responsibilities; coordinating, to the extent 
possible, with other agencies providing services to children, 
youth, and families; providing services to eligible children 
attending private elementary and secondary schools in 
accordance with the act; and examining model programs for the 
educationally disadvantaged.
    Section 112(4) amends section 1112(e) of the act to add a 
requirement that the State review a local educational agency 
plan to determine if such agency's parental involvement 
activities are in accordance with section 1118.
    Section 113--Eligible School Attendance Areas. Section 113 
amends Section 1113(b) of the act to add a provision allowing a 
local educational agency to designate and serve, for 1 
additional year, a school attendance area or school that is not 
an eligible school attendance area, but that was an eligible 
school attendance area and was served in the fiscal year 
preceding the fiscal year for which the determination is made.
    Section 114--Schoolwide Programs. Section 114 amends 
Section 1114 of the act to allow a local educational agency to 
use part A funds with other Federal, State, and local funds to 
upgrade the entire educational program in a school that serves 
an eligible school attendance area where not less than 40 
percent of the children are from low-income families. A new 
provision is added to indicate that schools with schoolwide 
programs are not required to maintain separate fiscal 
accounting records by program, so long as the school 
demonstrates that the program as a whole addresses the intent 
and purposes of the programs that were consolidated. This 
section also includes technical amendments to section 1114 of 
the act.
    Section 115--Targeted Assistance Schools. Section 115 
includes several technical amendments to section 1115 of the 
act. It addition, the section provides a more specific listing 
of the individuals eligible for professional development and of 
parental involvement activities.
    Section 116--Pupil Safety and Family School Choice. Section 
116 amends subpart 1 of part A of title I by inserting a new 
section after section 1115A of the act. The new section is 
entitled ``SEC. 1115B. PUPIL SAFETY AND FAMILY SCHOOL CHOICE''.
    New Section 1115B(a) describes student eligibility as it 
pertains to the pupil safety and family school choice 
initiative. Eligibility criteria includes a student who is 
served by the title 1 program and becomes a victim of a violent 
criminal offense while on public school grounds. If a student 
meets the eligibility criteria, then the local educational 
agency shall allow the eligible student to transfer to another 
public school or public charter school in the same State as the 
school where the criminal offense occurred. The transfer must 
occur in accordance with State and local law.
    New Section 1115B(b) describes State educational agency 
determinations. These include deciding the actions that 
constitute a violent criminal offense and determining which 
schools in the State are unsafe public schools. A definition of 
``unsafe public schools'' is provided.
    New Section 1115B(c) allows a local educational agency that 
serves the public school in which the violent criminal offense 
occurred to use funds from part A of title I to provide 
transportation services or to pay the reasonable costs of 
transportation for the student to attend another school.
    New Section 1115B(d) specifies that any school receiving 
assistance under this section shall comply with title VI of the 
Civil Rights Act of 1964 and not discriminate on the basis of 
race, color, or national origin.
    New Section 1115B(e) specifies that nothing under this 
section will affect the requirements of part B of the 
Individuals with Disabilities Education Act.
    New Section 1115B(f) stipulates that the amount of 
assistance provided under part A for a student who transfers 
shall not exceed the per pupil expenditures for students as 
provided by the local educational agency that serves the school 
involved in the transfer.
    Section 117--Assessment and Local Educational Agency and 
School Improvement. Section 117 rewrites section 1116 of the 
act. Provisions of the new Section 1116 include:
    Section 1116(a) [Local Review] maintains current law 
requirements that local educational agencies: use State 
assessments, use any additional indicators to review the annual 
progress of each school served under part A, and provide the 
result of the local review to schools. A new provision is 
added, requiring the local educational agency to annually 
review the effectiveness of schools in carrying out parental 
involvement and professional development activities.
    Section 1116(b) [Designation of Distinguished Schools] 
restates the current law provision providing for State and 
local designation of distinguished schools.
    Section 1116(c) [School Improvement]. Section 1116(c)(1) 
requires a local educational agency to identify a school for 
school improvement if the school fails to make adequate yearly 
progress in any year or was in school improvement status 
immediately prior to the enactment of the Better Education for 
Students and Teachers Act. An exception is provided in cases 
where nearly every student in the school is meeting the State's 
proficient level of performance.
    Section 1116(c)(2) [Opportunity to Review and Present 
Evidence; Time Limit] provides that a school shall have the 
opportunity to review school-level data prior to being 
identified for school improvement, corrective action, or 
reconstitution. If the principal of the school believes the 
data is in error, he or she may provide supporting evidence. 
The local educational agency must make a final determination 
within 30 days after making an initial determination of the 
status of a school.
    Section 1116(c)(3) [School Plan] provides that a school 
identified for school improvement must develop a school plan 
within 3 months. The plan is to cover a 2-year period and is to 
include strategies, policies, and practices designed to improve 
student academic performance. The school must reserve at least 
10 percent of its part A funds to provide high-quality 
professional development to the school's teachers and 
principal. The local educational agency may condition approval 
of the school plan on inclusion of 1 or more corrective actions 
(which include alternative governance arrangements, replacement 
of school staff, and institution of a new curriculum). A school 
must implement the plan no later than the beginning of the 
school year following the identification of the school as being 
in need of improvement. Within 45 days of receiving a school 
plan, the local educational agency must establish a peer-review 
process and review the plan.
    Section 1116(c)(4) [Technical Assistance] requires the 
local educational agency to provide technical assistance to 
each school identified for school improvement. The technical 
assistance must be based on scientifically based research and 
must include assistance in analyzing assessment data, in 
identifying and implementing instructional strategies, and in 
analyzing the budget of the school. Technical assistance may be 
provided through other entities.
    Section 1116(c)(5) [Notification to Parents] provides a new 
requirement that the local educational agency promptly notify 
the parents of a school identified for school improvement to 
explain what school improvement means, what is being done to 
address the performance problems of the school, and what 
parents can do to help deal with these problems.
    Section 1116(c)(6) [Corrective Action].
    Section 1116(c)(6)(A) defines ``corrective action'' as 
being a direct and substantial response to the consistent 
academic failure of a school and the underlying causes of the 
failure in order to increase the likelihood that students will 
perform at proficient and advanced levels.
    Section 1116(c)(6)(B) requires each local educational 
agency to implement a system of corrective action.
    Section 1116(c)(6)(C) specifies that, after providing 
technical assistance, the local educational agency may take 
corrective action for any school that fails to made adequate 
yearly progress for 1 year after the school has been identified 
for school improvement. The local educational agency must take 
corrective action for any school that fails to make adequate 
yearly progress within 2 years of being identified for school 
improvement. The local educational agency must also take 
corrective action for any school that was in program-
improvement status for 2 years or in corrective action 
immediately prior to the enactment of BEST. The local 
educational agency must continue providing technical assistance 
to schools in corrective action and must promptly notify 
parents of the option to transfer their child to another public 
school.
    Section 1116(c)(6)(D) provides that all students enrolled 
in a school which the local educational agency is required to 
place in corrective action be given the option to transfer to 
another public school within the local educational agency which 
has not been identified for school improvement. Exceptions to 
this requirement include instances in which such an option is 
prohibited by State or local law or where the local educational 
agency does not have the capacity to provide the transfer 
option to all students who request it. In cases where lack of 
capacity is the issue, the agency must permit as many students 
as possible, selected on an equitable base, to transfer. In 
addition, the local agency must take at least 1 of the 
following corrective actions: (1) make alternative governance 
arrangements; (2) replace the relevant school staff; and (3) 
institute and fully implement a new curriculum.
    Section 1116(c)(6)(E) provides that a local educational 
agency may delay implementation of corrective action for no 
more than 1 year in cases where failure to make adequate yearly 
progress was due to exceptional or uncontrollable 
circumstances.
    Section 1116(c)(6)(F) requires the local educational agency 
to publish information regarding any corrective action it takes 
to the public and parents, in a format and language that 
parents can understand.
    Section 1116(c)(7) [Reconstitution].
    Section 1116(c)(7)(A) provides that, if a school subject to 
corrective action continues to fail to make adequate yearly 
progress after 1 year and if economically disadvantaged 
students are not making statistically significant progress, the 
local educational agency must provide all students with the 
option to transfer to another public school in the local 
educational agency which has not been identified for school 
improvement. In this case, each student is to be given the same 
right to attend any public school as is provided to any child 
who is a new resident of that school's attendance area. The 
local educational agency must also prepare a plan and make 
arrangements for alternative governance for the school.
    Section 1116(c)(7)(B) provides that, no later than 1 year 
after the transfer option described in subparagraph (A) is 
implemented, the local educational agency must: (1) reopen the 
school as a public charter school; (2) replace all or most of 
the school staff; or (3) make alternative governance 
arrangements.
    Section 1116(c)(7)(C) provides that the local educational 
agency must promptly notify teachers and parents whenever the 
transfer option or the alternative governance arrangements 
apply.
    Section 1116(c)(8) [Transportation] provides that the local 
educational agency must provide or pay for the transportation 
of students who choose the transfer option provided under the 
corrective action or reconstitution provisions of this section, 
provided that transportion payments do not exceed 15 percent of 
the agency's title I allocation.
    Section 1116(c)(9) [Duration of Reconstitution] provides 
that a school identified for reconstitution will not be subject 
to corrective action or identified for school improvement if 
the school makes adequate yearly progress for 2 consecutive 
years and if economically disadvantaged students at the school 
make statistically significant educational progress over that 
same period.
    Section 1116(c)(10) [State Educational Agency 
Responsibilities] requires the State educational agency to make 
technical assistance available to all schools identified for 
school improvement and corrective action and to take corrective 
actions if a local educational agency fails to do so.
    Section 1116(d) [State Review and Local Educational Agency 
Improvement].
    Section 1116(d)(1) specifies that a State educational 
agency shall prepare an annual performance report for each 
local educational agency receiving funds under part A. The 
performance report shall contain information regarding local 
educational agency performance in making adequate yearly 
progress, the progress of the local educational agency in 
enabling students to meet the State levels of performance, and 
the effectiveness of professional development and parental 
involvement activities carried out by the local educational 
agency.
    Section 1116(d)(2) [Rewards] provides that the State may 
make institutional and individual rewards to local educational 
agencies that have met or exceed the State's definition of 
adequate progress for 3 consecutive years.
    Section 1116(d)(3) [Identification] provides that the State 
must identify for improvement any local educational agency that 
is not making adequate yearly progress for 2 consecutive years 
in schools served under part A. The local educational agency 
must be given the opportunity to review the data on which the 
identification is based and may provide evidence to the State 
that the identification for improvement is in error.
    Section 1116(d)(4) [Local Educational Agency Revisions] 
provides that, if a local educational agency is identified as 
an entity needing improvement, the local educational agency 
shall submit a plan that: (1) includes specific yearly progress 
requirements; (2) addresses the teaching and learning needs in 
the schools within the local educational agency; (3) 
incorporates research-based strategies; (4) addresses 
professional development needs of the instructional staff, 
including the commitment of 10 percent of title I funds during 
1 fiscal year for professional development; (4) identifies 
specific goals and objectives the local educational agency will 
undertake for making adequate yearly progress; (5) identifies 
how the local educational agency will provide written 
notification to parents; (6) specifies the responsibilities of 
the State educational agency and the local educational agency; 
and (7) includes strategies for effective parental involvement.
    Section 1116(d)(5) [State Educational Agency 
Responsibility] specifies that the State will provide technical 
assistance to local educational agencies needing improvement. 
Such assistance must be supported by scientifically based 
research instructional strategies and must address any problems 
the local educational agency may be having in implementing 
parental involvement and professional development activities.
    Section 1116(d)(6) [Corrective Action].
    Section 1116(d)(6)(A) provides that the State must 
implement a corrective action system.
    Section 1116(d)(6)(B) provides that, after providing 
technical assistance, each State educational agency may take 
corrective action at any time for any local educational agency 
that has been identified for improvement and shall continue to 
provide technicalassistance while implementing any corrective 
action. Consistent with State and local law, the State 
educational agency shall take at least 1 of the following 
corrective actions: (1) instituting and implementing a new 
curriculum; (2) restructuring the local educational agency; (3) 
developing and implementing a joint plan between the State 
educational agency and the local educational agency that 
addresses student performance problems; (4) reconstituting 
school district personnel; or (5) making alternative governance 
arrangements. This section also lists several permissible 
corrective actions that a State educational agency may 
implement, including: (1) deferring, reducing, or withholding 
funds; (2) restructuring or abolishing the local educational 
agency; (3) removing particular schools from the jurisdiction 
of the local educational agency, or (4) appointing a receiver 
or trustee to administer the local educational agency.
    Section 1116(d)(6)(C) [Hearing] provides that, prior to 
implementing any corrective action, the State educational 
agency shall provide a hearing to the affected local 
educational agency, if State law provides for a hearing 
process.
    Section 1116(d)(6)(D) [Notification to Parents] provides 
that the State must notify parents and the public of any 
corrective action it takes.
    Section 1116(d)(6)(E) [Delay] provides that a State 
educational agency may delay, for a period not to exceed 1 
year, implementation of corrective action if the State 
educational agency determines that the local educational agency 
is meeting the State yearly progress requirements and the 
schools within the local educational agency will meet the 
State's criteria for improvement within 1 year.
    Section 1116(d)(6)(F) [Waivers] provides that the State 
educational agency shall review any waivers granted to a local 
educational agency that has been designated for improvement or 
corrective action and shall terminate any waiver that is not 
helping the local educational agency meet the yearly progress 
requirements.
    Section 1116(d)(7) [Special Rule] provides that local 
educational agencies which make adequate progress for at least 
2 of the 3 years following identification no longer need to be 
identified for improvement.
    Section 1116(e) [Construction] provides that nothing in 
this section shall be construed to alter or otherwise affect 
the rights of school or school district employees under 
Federal, State, or local laws or under agreements between such 
employees and their employers.
    Section 118--Assistance for School Support and Improvement. 
Section 118(1) amends section 1117(a) of the act to list the 
priorities for a State educational agency for providing support 
to local educational agencies. First, the State educational 
agency must provide support and assistance to local educational 
agencies that have received corrective action. Second, the 
State educational agency must provide support and assistance to 
other local educational agencies and schools identified as in 
need of improvement. Third, the State educational agency must 
provide support and assistance to other local educational 
agencies and schools participating under part A of title I that 
need support and assistance to carry out the purpose of part A.
    Section 118(2) amends section 1117(b) of the act to correct 
the reference to comprehensive regional technical assistance 
centers.
    Section 118(3) rewrites section 1117(c)(1) of the act to 
specify that priority be given to the establishment of school 
support teams for assignment to and working in schools subject 
to corrective action and for the support of such teams. Each 
school support team is to be comprised of individuals 
knowledgeable about successful schoolwide projects, school 
reform, and improving educational opportunities for low-
achieving students. The support team assigned to a school is 
to: review all facets of the school's operation; collaborate in 
the design, implementation, and monitoring of the school plan; 
evaluate the effectiveness of school personnel; and make 
additional recommendations, as the school implements its plan, 
regarding additional assistance and resources that are needed. 
After 1 school year, the support team may recommend that it 
continue to provide assistance to the school or that the local 
educational agency or the State take other action with respect 
to the school. This section also makes minor revisions in 
current law provisions, enabling a State--if the State chooses 
to do so--to recognize and provide financial rewards to 
teachers or principals in a school where the students have 
consistently made significant gains in academic achievement.
    Section 119--Parental Involvement. Section 119 amends 
section 1118 of the act.
    Section 119(1) amends section 1118(a)(2)(B) of the act to 
specify that the local educational agency will provide the 
coordination, technical assistance, and other support necessary 
to assist participating schools in planning and implementing 
effective parent involvement activities to improve student 
achievement and student and school performance.
    Section 119(2) amends section 1118(b)(1) of the act to 
ensure that schools served under this part of the act will 
jointly develop, and distribute a written policy of parental 
involvement, in a language parents can understand, to the 
parents of participating children that shall describe the means 
for carrying out the requirements of subsections (c) through 
(f). The policy shall also be made available to the local 
community and shall be updated periodically to meet the 
changing needs of parents and the school.
    Section 119(3) amends section 1118(e) of the act to ensure 
effective involvement of parents and to support a partnership 
among the school, parents, and the community to improve student 
achievement, each school and local educational agency shall 
provide assistance to parents of children served by the school 
or local educational agency, as appropriate, in understanding 
the State's content standards and State student performance 
standards, the provisions of section 1111(b)(8), State and 
local assessments, the requirements of this part, and how to 
monitor a child's progress and work with educators to improve 
the performance of their children as well asinformation on how 
parents can participate in decisions relating to the education 
of their children. This section also states that each school 
and local educational agency shall provide materials and 
training using technology, as appropriate, to foster parental 
involvement. This section also eliminates paragraph 1118(e)(15) 
and establishes a new paragraph 1118(e)(15) to allow each 
school and local educational agency, should they choose to do 
so, to establish a school district wide parent advisory council 
to advise the school and local educational agency on all 
matters related to parental involvement in programs supported 
under this section. This section also provides a new provision 
requiring that schools and local educational agencies provide 
reasonable support for parental involvement activities under 
this section that parents may request, including emerging 
technologies.
    Section 119(4) amends section 1118(f) of the act to make 
technical amendments regarding the provision of services to the 
parents of migratory children and parents with disabilities.
    Section 119(5) amends section 1118(g) of the act to specify 
that, in a State where a parental information and resource 
center is established, such a center shall provide parents with 
a description of the services and programs provided by the 
center. This section also provides for the State education 
agency to review the local educational agency's parental 
involvement policies and practices to determine if the 
requirements of this section are met.
    Section 120--Professional Development. Section 120 amends 
section 1119(b) of the act to establish that professional 
development activities shall provide support to teachers, 
principals, administrators, paraprofessionals, pupil services 
personnel, and parents. Professional development activities 
shall advance teacher understanding of effective instructional 
strategies, based on research for improving student 
achievement, at a minimum in reading or language arts and 
mathematics. Professional development initiatives shall also be 
of sufficient intensity and duration to have a positive and 
lasting impact. This section also refers to providing training 
for teachers in the use of technology, evaluating the impact of 
professional development initiatives and includes strategies 
for identifying and eliminating racial and gender bias in 
instructional materials and practices.
    Section 120A--Participation Of Children Enrolled In Private 
Schools. Section 120A(1) amends section 1120(a) of the act in 
general terms and makes technical amendments to current law. 
Section 120A(2) amends section 1120(b) of the act to specify 
that local educational agencies shall consult private school 
officials during the design of the agency's programs in regard 
to how the services will be assessed and how the results of 
that assessment will be used to improve the agency's programs. 
The act is also amended to specify that the local educational 
agency shall make decisions about the delivery of services to 
eligible private school children, including an analysis of the 
views of private school officials regarding the delivery of 
services through potential third party providers. If the local 
educational agency disagrees with the views of the private 
school officials on the delivery of services, the local 
educational agency will provide a written document, to private 
school officials, with the reasons why the local educational 
agency has chosen not to provide the services. Each local 
educational agency will provide to the State educational agency 
a written affirmation that the consultation has occurred. If a 
private school declines to have eligible children in the 
private school participate in title I, part A services, the 
local educational agency is not required to further consult 
with the private school officials. Each year, the local 
educational agency shall inform the private school of the 
opportunity for eligible children to participate in title I, 
part A services. A private school official shall have the right 
to appeal the local educational agency decision to the State 
educational agency as to whether: the consultation was 
meaningful; timely; and the views were given due consideration.
    Section 120A(3) amends section 1120 of the act to 
redesignate subsections (c), (d), and (e) as subsections (d), 
(e) and (f), respectively.
    Section 120A(4) amends section 1120 of the act to add a 
provision to describe the allocation for equitable services to 
private school students.
    Section 120A(b) establishes an effective date of September 
30, 2003, for the amendment made by subsection (a)(4) dealing 
with the allocation for equitable services to private school 
students.
    Section 120A(c) amends section 1120A(a) of the act with a 
technical amendment.
    Section 120B--Early Childhood Education. Section 120B(1) 
amends the heading of Section 1120B.
    Section 120B(2) amends section 1120B to make technical 
changes to the act.
    Section 120B(3) amends section 1120B to add 2 new 
subsections, (d) and (e), to permit a local educational agency, 
if the local educational agency chooses to do so, to use part A 
of title I funds to provide preschool services. New subsection 
1120B(e) establishes that early childhood education programs 
that use part A of title I funds may do so jointly with Even 
Start programs under part B of title I, Head Start programs or 
State-funded preschool programs. Early childhood education 
programs shall: focus on the developmental needs of children; 
teach children to understand and use language; enable children 
to develop an appreciation of books; and, for children with 
limited English proficiency, enable the children to make 
progress toward acquisition of the English language.
    Section 120C--Allocations. Section 120C amends subpart 2 of 
part A of title I to read as follows:
            Subpart 2--Allocations
    Section 1121--Grants for the Outlying Areas and the 
Secretary of the Interior. Section1121(a) specifies the 
reservation of funds.
    Section 1121(b) authorizes grants to the outlying areas in 
accordance with the Compacts of Free Association.
    Section 1121(c) specifies the allotment that is reserved 
for the Secretary of the Interior to meet the educational needs 
of Indian children.
    Section 1122--Amounts for Basic Grants, Concentration 
Grants, and Targeted Grants. Section 1122(a) establishes the 
level of the appropriation of funds for the Basic, 
Concentration and Targeted Grant programs under part A of title 
I for fiscal years 2002 through 2008. The section specifies 
that funds for part A of title I shall be allocated in such a 
way that the Basic and Concentration Grant programs shall 
receive an amount equal to the amount received in fiscal year 
2001 before funding is allocated to the Targeted Grant Program. 
Funding that is appropriated in excess of the fiscal year 2001 
level shall be allocated to the Targeted Grant Program. In the 
event that funding for part A of title I is reduced in any 
fiscal year, funds shall first be reduced from the Targeted 
Grant Program. If additional reductions are necessitated, 
funding shall then be taken from the Concentration Grant 
program.
    Section 1122(b) describes the adjustments to the 
allocations where necessitated by the appropriations process. 
The ratable reduction rule is utilized to determine the 
relative size of each State's allocation when full funding is 
not available.
    Section 1122(c) establishes the hold harmless provisions 
that determine the amount of title I funding that a local 
education agency may receive as a result of changes in absolute 
and relative population and poverty. If the proportion of 
children counted is above 30 percent of the children served by 
the local education agency, it will receive not less than 95 
percent of the amount it received in the previous year. If the 
proportion of children counted is between 15 percent and 30 
percent of the children served by the local education agency, 
it will receive not less than 90 percent of the amount it 
received in the previous year. If the proportion of children 
counted falls below 15 percent of the children served by the 
local education agency, it will receive not less than 85 
percent of the amount it received in the previous year. The 
section is amended to eliminate the ``cliff'' phenomenon 
whereby a local education agency that loses eligibility during 
one year as a result of a change in population or poverty loses 
all of its funds. A local education agency that received 
funding in the prior year is eligible to continue to receive 
funding in accordance with the hold harmless provisions. A 
local education agency that loses eligibility for 5 consecutive 
years may not continue receive funding.
    Section 1122(d) describes ratable reductions.
    Section 1123--Definitions. Section 1123 defines ``Freely 
associated States'', ``outlying areas'', and ``State'' for the 
purposes of distributing the allocations.
    Section 1124--Basic Grants to Local Educational Agencies. 
Section 1124(a) specifies the amounts of the local educational 
agencies basic grants. This section also describes and 
simplifies the formula by which grants are calculated. Section 
1124(a) outlines the allocations to large and small local 
educational agencies. In addition, this section establishes the 
formula for Puerto Rico.
    Section 1124(a)(3) provides authority to calculate grants 
on the basis of county data in the event that the Department of 
Census fails to provide local education agency specific data.
    Section 1124(b) specifies the minimum number of children a 
local educational agency must have to qualify for a basic 
grant.
    Section 1124(c) describes the categories that are used for 
counting the number of children for basic grants.
    Section 1124(d) establishes the State minimum for basic 
grants.
    Section 1124A--Concentration Grants to Local Educational 
Agencies.
    Section 1124A(a) specifies the eligibility requirements and 
amount of grants.
    Section 1124A(2) is amended to simplify the reference to 
the basic grant expenditure factor.
    Section 1124A(4) is amended to eliminate reference to the 
county suballocation formula in effect for fiscal years 1996-
98. Authority for the States to allocate funding on the basis 
of county data is retained for any year in which the Secretary 
relies upon county data in lieu of local education agency data. 
The section retains authority for a State to reserve 2 percent 
of its allocations (when county data is utilized) to make 
grants to eligible local educational agencies that reside in 
ineligible counties.
    Section 1124A(b) establishes the ratable reduction rule 
utilized for making allocations when full funding is not 
available.
    Section 1124A(c) is amended to allow a state that receives 
0.25 percent or less of the available funds, but does not 
receive a grant in accordance with the formula used to 
determine the small grant minimum, to allocate these funds to 
local education agencies in accordance with the same rules 
applied to allocation by states that receive a grant in 
accordance with the small grant minimum.
    Section 1125--Targeted Grants to Local Educational 
Agencies. Section 1125(a) specifies the eligibility 
requirements for local educational agencies.
    Section 1125(b) establishes the amount of grants for local 
educational agencies, the District of Columbia, and Puerto 
Rico.
    Section 1125(c) updates the weights for allocations to 
counties and the weights for allocations to local educational 
agencies to increase the targeting of the program.
    Section 1125(d) describes how targeted grants are 
calculated.
    Section 1125(e) establishes a .5 percent state minimum 
grant.
    Section 1125A--Education Finance Incentive Program. Section 
1125A(a) authorizes the Secretary to make grants to States.
    Section 1125A(b) specifies the distribution of funds for 
this subsection which is based upon fiscal effort and equity.
    Section 1125A(c) describes how funds awarded under this 
subsection will be utilized.
    Section 1125(d) establishes maintenance of effort.
    Section 1125(e) authorizes $200 million for fiscal year 
2002 and such sums for each of the 6 succeeding years.
    Section 1126--Special Allocation Procedures. Section 
1126(a) specifies the allocations for neglected children.
    Section 1126(b) describes allocations for local educational 
agencies that have special circumstances.
    Section 1126(c) specifies the reallocation process.
    Section 1127--Carryover and Waiver. Section 1127(a) 
specifies the limitation on carryover funds.
    Section 1127(b) establishes waiver authority for a State 
educational agency.
    Section 1127(c) specifies that the limitation on carryover 
funds does not apply to any local educational agency that 
receives less than $50,000 under subpart 2.

Part B--Literacy for Children and Families

    Section 121--Reading First. Section 121 amends part--of 
title I by renaming the part as ``Part B--Literacy for Children 
and Families'' and by creating a subpart 1 entitled ``Subpart 
1--William F. Goodling Even Start Family Literacy Programs''.
    Section 121 also makes conforming amendments to subpart 1 
and adds a new subpart 2 (``Subpart 2--Reading First'') as 
follows:
            Subpart 2--Reading First
    New Section 1221. Purposes. This section contains 5 
purposes for this new program. The purposes relate to helping 
all children learn to read well by the end of third grade.
    New Section 1222. Formula Grants to States; Competitive 
Subgrants to Local Agencies. The Secretary will make grants to 
State educational agencies that have applications approved 
under this subpart. Of the total amount appropriated for this 
subpart, 75 percent shall be distributed to the States with 
approved applications using the formula in section 1124 of 
title I, part A. The State educational agency must distribute 
at least 80 percent of these funds to local educational 
agencies through a competitive process.
    To be eligible to receive funds under this subpart, a local 
educational agency must have a high percentage of students 
reading below grade level and demonstrate 1 other indicator of 
need. Local educational agencies must use similar criteria to 
target funds to schools within their jurisdictions.
    A local educational agency that receives funds under this 
subpart shall use funds for the uses defined in this section. 
Among these uses of funds are: utilizing diagnostic 
assessments; purchasing or developing materials; assisting 
parents to help support their children's reading development; 
and professional development. All materials, instructional 
approaches, and professional development must be derived from 
scientifically based reading research, a term that is defined 
in section 1228. A local educational agency can use up to 5 
percent of its funds for planning and administration.
    The State educational agency may expend up to 20 percent of 
its formula grant funds on professional development, technical 
assistance, planning, and administration. No more than 15 
percent of State funds may be used to develop and implement a 
professional development program for teachers of grades 
kindergarten through 3. No more than 5 percent of the funds may 
be used for technical assistance, and no more than 5 percent 
may be used for planning and administration.
    New Section 1223. Competitive Grants to States; Competitive 
Subgrants to Local Agencies. From the funds not used under 
section 1222 (the remaining 25 percent), the Secretary may 
award to a State educational agency a competitive grant based 
on an application submitted in accordance with section 1224. 
The Secretary shall award competitive grants on the basis of a 
State's performance as described in this section. Any State 
educational agency receiving a competitive grant must expend 
100 percent of these funds on competitive subgrants to local 
educational agencies.
    The section describes how a local educational agency must 
apply to the State educational agency for funds available under 
this section. The criteria for receiving such funds are 
primarily tied to performance in increasing the reading skills 
of children in grades kindergarten to 3. The local uses of 
funds under the formula grant section and the competitive grant 
section are the same.
    New Section 1224. State Applications. This section 
describes the required contents of an application for funds 
authorized under this subpart. The State educational agency 
must submit its application to the Secretary. The Secretary 
must convene a review panel to evaluate the applications and 
make recommendations to the Secretary with regards to whether 
they meet the requirements of the subpart. The application 
requirements and the peer review process are similar to the 
provisions of the Reading Excellence Act, which this new 
subpart replaces.
    In order for the State to receive a grant under the 
subpart, the Governor of the State, in consultation with the 
State educational agency, shall establish a reading and 
literacy partnership. This section details the required 
membership of the partnership and its duties.
    New Section 1225. Reservations from Appropriations. The 
Secretary may reserve up to 1 percent of the funds appropriated 
for this subpart to carry out section 1226 (national 
activities) and shall reserve $5 million to carry out section 
1227 (dissemination of information).
    New Section 1226. National Activities. With funds reserved 
for this section, the Secretary shall carry out an evaluation 
of programs under this subpart and may provide technical 
assistance to States, local educational agencies, and schools 
requesting such assistance.
    New Section 1227. Information Dissemination. From the funds 
reserved for this section, the National Institute for Literacy, 
in collaboration with the Departments of Education and Health 
and Human Services, including the National Institute for Child 
Health and Human Development, shall disseminate information 
about scientifically based reading research and about effective 
programs carried out under this subpart, and shall support the 
continued identification of high quality reading research.
    New Section 1228. Definitions. This section contains the 
definitions of a number of terms that are used in this subpart, 
including ``eligible professional development provider,'' 
``instructional staff,'' ``major components of reading 
instruction,'' ``reading,'' ``rigorous diagnostic reading 
assessment,'' and ``scientifically based reading research''. 
Several of these definitions are identical to the definitions 
contained in the Reading Excellence Act.
    Section 122. Early Reading Initiative. Section 122 adds a 
new subpart 3 (``Subpart 3--Early Reading First'' to part B of 
title I, as follows:
            Subpart 3--Early Reading First
    New Section 1241. Purposes. This section contains 4 
purposes for this subpart. They primarily relate to providing 
preschool age children the knowledge and skills necessary to 
take advantage of reading instruction once they enter 
kindergarten.
    New Section 1242. Local Early Reading First Grants. From 
the funds appropriated for this subpart, the Secretary will 
make 4-year grants to eligible applicants. Such grants will be 
awarded on the basis of a competitive process established by 
the Secretary.
    The section defines an eligible applicant to be a local 
educational agency that is eligible under the provisions of 
subpart 2, 1 or more public or private organizations that serve 
preschool age (ages 3-5) children, or a combination of such 
agencies and organizations. The section contains a list of 
topics that must be addressed in an application by an eligible 
entity to the Secretary. The Secretary shall award grants on 
the basis of the quality of the applications utilizing a peer 
review process.
    New Section 1243. Federal Administration. The Secretary of 
Education shall consult with the Secretary of Health and Human 
Services in carrying out this subpart.
    New Section 1244. Information Dissemination. The National 
Institute for Literacy shall disseminate information regarding 
effective projects under this subpart.
    New Section 1245. Reporting Requirements. Each applicant 
receiving a grant shall report annually to the Secretary on 
their progress in addressing the purposes of this subpart.
    New Section 1246. Evaluations. The Secretary shall reserve 
not more than $5 million from the funding available for this 
subpart from fiscal years 2002-08 to conduct an independent 
evaluation of the effectiveness of this subpart.
    New Section 1247. Additional research. This section 
requires the Secretary to reserve $3 million from the 
appropriations available for this subpart for each of the 
fiscal years 2002-06 to conduct additional research on language 
and literacy development in preschool age children.

Part C--Education of migratory children

    Section 131--Program Purpose. Section 131 amends section 
1301 of the act to make technical amendments to add 2 new 
purposes. The new purposes 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 student performance and content 
standards and that migratory children receive full and 
appropriate opportunities to meet the same challenging State 
standards that all children are expected to meet.
    Section 132--State Application. Section 132 amends section 
1304 of the act to require new information for the State 
application. This information includes a description of 
jointplanning efforts with respect to local, State, and Federal 
programs and bilingual programs under part A of title III. In 
addition, States will also be required to consult with parent 
advisory councils for the purposes of planning and operating 
programs.
    Section 133--Comprehensive Plan. Section 133 makes 
technical amendments to section 1306 of the act.
    Section 134--Coordination. Section 134(1) amends section 
1308(b) of the act to establish an information system for 
electronically exchanging, among the States, health and 
educational information regarding all students served under 
this program.
    Section 134(2) amends section 1308(c) to authorize $10 
million to carry out this section.
    Section 134(3) amends section 1308(d)(1) to authorize $3 
million to carry out incentive grants as described under 
current law.
    Section 134(4) amends section 1308(e) to require the 
Secretary to direct the National Center for Education 
Statistics to collect data on migratory children.

Part D--Initiatives for Neglected, Delinquent, or At Risk Youth

    Section 141 of the bill amends part D, ``Initiatives for 
Neglected, Delinquent, or At Risk Students,'' to read as 
follows:
            Subpart 1--Prevention and intervention programs for 
                    children and youth who are neglected, delinquent, 
                    or at risk of dropping out
    Section 1401--Purpose; Program Authorized. This section 
repeals the congressional findings currently in the act and 
states the purpose of subpart 1, which is to improve 
educational services in local and State institutions for 
neglected or delinquent children so that they have the 
opportunity to meet the same challenging State content and 
student performance standards that all children in the State 
are expected to meet; to provide such children with the 
services needed to make a successful transition from 
institutionalization to further schooling or employment; and to 
prevent at-risk youth from dropping out of school and to 
provide dropouts and youth returning from institutions with a 
support system to ensure their continued education.
    Section 1401(b) requires the Secretary to provide grants to 
State educational agencies so that they can award subgrants to 
State agencies and local educational agencies to establish or 
improve programs of education for neglected or delinquent 
children at risk of dropping out of school before graduation.
    Section 1402--Payments for Programs Under this Subpart. 
This section authorizes the Secretary to allocate to each State 
educational agency amounts necessary to make subgrants to State 
agencies under chapter 1. Each State is required to retain 
funds generated throughout the State under title I, part A 
based on youth residing in local correctional facilities, or 
attending community day programs for delinquent children.

Chapter 1--State agency programs

    Section 1411--Eligibility. This section states that a State 
agency may be eligible for assistance under chapter 1 if the 
State agency is responsible for providing free public education 
for children: in institutions for neglected or delinquent 
children; attending community day programs for neglected or 
delinquent children; or in adult correctional institutions.
    Section 1412--Allocation of Funds. This section establishes 
the criteria by which a State agency, including those in Puerto 
Rico, may be eligible to receive a subgrant under chapter 1. 
The Secretary is allowed to ratably reduce subgrants if the 
amount appropriated is insufficient to pay the full amount for 
which State agencies are eligible.
    Section 1413--State Reallocation of Funds. This section 
allows State educational agencies to reallocate unneeded funds 
from one State agency to another in need of additional funds.
    Section 1414--State Plan and State Agency Applications. 
This section requires each State educational agency seeking a 
grant under chapter 1 to submit for approval of the Secretary, 
a plan for meeting the needs of neglected and delinquent 
children at risk of dropping out of school. The Secretary is 
required to approve each State plan meeting the criteria 
detailed in this section. Each State agency seeking funds to 
carry out a program must submit an application with specific 
guidelines to the State educational agencies.
    Section 1415--Use of Funds. This section states that funds 
under chapter 1 shall only be used by State agencies for 
programs and projects that are consistent with the State plan 
under section 1414(a) and concentrate on providing participants 
with the knowledge and skills needed to make a successful 
transition to secondary school completion, further education, 
or employment. The number of hours of instruction students 
receive from State and local sources under chapter 1 programs 
shall supplement and not supplant the requirements of section 
1120A.
    Section 1416--Institution-Wide Projects. This section 
allows State agencies that provide education to neglected or 
delinquent children to use funds received under part D to 
upgrade the educational effort of the institutions or programs 
these children are educated in, if the State agency has 
developed and approved a plan for that institution or program. 
This section establishes specific guidelines for the plan.
    Section 1417--Three-Year Programs or Projects. This section 
authorizes State educational agencies to approve State agencies 
applications for subgrants if the State agency finds it likely 
that a child will participate in a program for more than 1 
year. An application maynot be approved for a period exceeding 
3 years.
    Section 1418--Transition Services. This section authorizes 
State agencies to reserve 10 percent of the funds received 
under chapter 1 to support projects that facilitate the 
transition of children from State-operated institutions to 
local educational agencies. Projects are to be conducted either 
by the State agency or through a contract with 1 or more local 
educational agencies, public agencies, or private non-profit 
organizations. Reserved funds shall be used only to provide 
transitional educational services, which may include pupil 
services and mentoring, to neglected and delinquent children in 
schools other than State-operated institutions.

Chapter 2--Local agency programs

    Section 1421--Purpose. This section states the purpose of 
chapter 2, which is to support the operation of local 
educational agency programs that involve collaboration with 
locally operated correctional facilities to: (1) carry out high 
quality education programs to prepare youth for secondary 
school completion, training and employment, or further 
education; (2) provide activities to facilitate the transition 
of such youth from the correctional program to further 
education or employment; and (3) operate dropout prevention 
programs in local schools for youth at risk of dropping out of 
school and youth returning from correctional facilities.
    Section 1422--Programs Operated by Local Educational 
Agencies. This section authorizes State educational agencies to 
award subgrants to local educational agencies with high numbers 
or percentages of youth residing in locally operated youth 
correctional facilities. In addition, a local educational 
agency which includes a correctional facility that operates a 
school is not required to operate a dropout prevention program 
if more than 30 percent of the youth attending reside outside 
of the local educational agency boundaries upon leaving the 
facility. State educational agencies are required to notify 
local educational agencies of subgrants.
    Section 1423--Local Educational Agency Applications. This 
section provides detailed criteria for applications to be 
completed by those local educational agencies seeking 
assistance from State educational agencies under chapter 2.
    Section 1424--Uses of Funds. This section requires that 
funds provided to local educational agencies under chapter 2 be 
used for dropout prevention programs which serve youth at 
educational risk; the coordination of health and social 
services for such individuals if there is a likelihood that the 
services will enable them to complete their education; and 
programs to meet the unique education needs of youth at risk of 
dropping out of school.
    Section 1425--Program Requirements for Correctional 
Facilities Receiving Funds Under this Section. This section 
requires correctional facilities that have agreements with 
local educational agencies to: ensure educational programs in 
juvenile facilities are coordinated with the student's home 
school; notify local schools if a youth is identified in need 
of special education services; provide transition assistance to 
help youth stay in school; provide support programs to 
encourage youth who have dropped out to re-enter school; work 
to ensure facilities are staffed with teachers and other 
qualified staff who are trained to work with children with 
disabilities; ensure educational programs in correctional 
facilities are related to assisting students to meet high 
educational standards; use technology to assist in coordinating 
educational programs between the juvenile facility and the 
community school; involve parents in efforts to improve the 
educational achievement of their children; coordinate funds 
received under this program with other local, State, and 
Federal funds available to provide services to participating 
youth; and work with local businesses to develop training and 
mentoring programs for participating youth.
    Section 1426--Accountability. This section authorizes a 
State educational agency to reduce or terminate funding for 
projects if a local educational agency does not reduce dropout 
rates or require juvenile facilities to demonstrate that there 
has been an increase in the number of youth returning to school 
or pursuing post-secondary opportunities.

Chapter 3--General provisions

    Section 1431--Program Evaluations. This section requires 
State agencies and local educational agencies that conduct 
programs under chapters 1 and 2 to evaluate the programs. The 
results of the evaluations should be submitted to the State 
educational agencies in order to improve subsequent programs.
    Section 1432--Definitions. This section provides the 
meanings of certain terms used in subpart 1, including ``adult 
correctional institution,'' ``at-risk youth,'' ``community day 
program,'' and ``institution for neglected or delinquent 
children and youth.''
    Section 151--21st Century Learnings Centers; Comprehensive 
School Reform. This section amends of title I by redesignating 
part F as part H; sections 1601 through 1604 as sections 1901 
through 1904, respectively; and by inserting 2 new parts to 
follow part E of title I, including: Part F (21st Century 
Community Learning Centers) and Part G (Comprehensive School 
Reform).

Part F--21st Century Community Learning Centers

    Section 1601--Short Title. This section specifies that this 
part may be cited as the ``21st Century Community Learning 
Centers Act.''
    Section 1602--Purpose. This section repeals the 
congressional findings currently in the act and inserts the 
purpose of part A, which is to provide local public schools, 
primarily in rural or inner-city communities, to collaborate 
with public and nonprofit agencies and organizations, local 
businesses, and educational institutions to offer a broad 
selection of services that address the needs of the community 
and to offer extended learning opportunities for children, 
youth, and adults in the community.
    Section 1603--Program Authorization. This section 
authorizes the Secretary to award grants to local educational 
agencies and units of general purpose local government on 
behalf of rural and inner-city public elementary or secondary 
schools to plan, implement, or expand projects that benefit the 
educational, health, social service, cultural, and recreational 
needs of a rural or inner-city community. The Secretary is 
required to ensure an equitable distribution of assistance 
among the States, among urban and rural areas of the United 
States, and among rural and urban areas of a State. The time 
period for the distribution of grants may not exceed 3 years, 
and the Secretary may not award grants in an amount less than 
$50,000.
    Section 1604--Eligibility of Certain Organizations and 
Entities. This section authorizes the Secretary to award grants 
to community-based organizations and public or private entities 
that have experience in providing before- and after-school 
services, on the same basis as local educational agencies. In 
addition to giving priority to projects that offer a broad 
selection of services which address the needs of the community, 
the Secretary is to give priority to projects with academic 
enrichment components which are submitted jointly by community-
based organizations/public or private entities and rural and 
inner-city public elementary or secondary schools. The 
Secretary may waive, for the applicants described in this 
section, the requirement that a project be carried out through 
or in a school if the Secretary determines that such a 
requirement would undermine the effectiveness of the project or 
limit its accessibility to children and families.
    Section 1605--Application Required. This section requires a 
local educational agency or unit of general purpose local 
government seeking a grant to submit an application with 
specific criteria. The Secretary shall give priority to 
applications describing projects that offer a broad selection 
of services which address the needs of the community.
    Section 1606--Uses of Funds. This section specifies that 
grant funds shall be used to plan, implement, or expand 
community learning centers which include not less than 4 of the 
following activities: literacy education programs; senior 
citizen programs; children's day care services; integrated 
education, health, social service, recreational or cultural 
programs; summer and weekend school programs; expanded library 
service hours; telecommunications and technology education 
programs; services for individuals who leave school before 
graduating from secondary school; services for individuals with 
disabilities; and academic enrichment activities.
    Section 1607--Definitions. This section provides the 
meaning of the terms ``community learning center'' and ``unit 
of general purpose local government'' for the purposes of this 
part.

Part G--Comprehensive school reform

    New Section 1701--Purpose. This section states the purpose 
of this part which is to provide financial incentives for 
schools to develop comprehensive school reforms based upon 
effective practices and research-based programs that emphasize 
basic academics and parental involvement so that all children 
can meet State content and student performance standards.
    New Section 1702--Program Authorization. This section 
authorizes the Secretary to award grants to State educational 
agencies, by formula to enable them to provide subgrants to 
local educational agencies to carry out the purpose of this 
part.
    New Section 1703--State Applications. This section requires 
State educational agencies seeking a grant to submit an 
application to the Secretary, describing such items as: process 
and selection criteria; how the State educational agency will 
ensure that reforms are research-based programs; how the State 
educational agency will evaluate the implementation of reforms 
and link the reforms to student achievement; and how the State 
educational agency will make available technical assistance to 
the local educational agencies or consortia.
    New Section 1704--State Use of Funds. This section requires 
State educational agencies receiving grants to award 
competitive subgrants to local educational agencies. The 
subgrants must be of sufficient size and scope to support the 
initial costs for the plan selected or designed, in an amount 
of at least $50,000, and renewable for 2 additional one-year 
periods. The State educational agency must give priority 
consideration to local educational agencies that plan to use 
the funds for schools identified as being in need of 
improvement or corrective action and demonstrate a commitment 
to assist schools with budget, professional development, and 
other strategies to ensure reforms are properly implemented and 
sustained. The State educational agency shall distribute 
subgrants equitably to different geographic regions within the 
State, including urban and rural areas. State educational 
agencies may not reserve more than 5 percent of the grant funds 
for administrative, evaluation, and technical assistance 
expenses.
    New Section 1705--Local Applications. This section requires 
local educational agencies or consortia seeking subgrants under 
this part to submit an application to the State educational 
agencies for consideration.
    New Section 1706--Local Use of Funds. This section requires 
local educational agencies or consortia receiving a subgrant to 
provide funds to schools eligible for assistance under part A 
to support a variety of reform activities.
    New Section 1707--National Evaluation and Reports. This 
section requires the Secretary to develop a plan for a national 
evaluation of the programs assisted under this part. The 
evaluation shall examine the implementation and results 
achieved by schools after 3 years of implementing school 
reforms and the effectiveness of reforms in schools with 
diverse characteristics.

Part H--School dropout prevention

    New Section 1801--Short Title. This section specifies that 
Part H may be cited as the ``Dropout Prevention Act.''
    New Section 1802--Purpose. This section states the purpose 
of this part, which is to provide school dropout prevention and 
to raise academic achievement levels.
            Subpart 1--Coordinated national strategy
    New Section 1811--National Activities. This section 
authorizes the Secretary to: (1) collect data regarding 
participation in Federal dropout prevention and school reentry 
programs; (2) establish an interagency working group to address 
dropout prevention and school reentry issues; and (3) create a 
national recognition program awarding monetary awards to 
schools that have made extraordinary progress in lowering 
dropout rates. The Secretary may award not more than 5 
contracts for not more than 5 years each to non-Federal 
entities to conduct an initiative to increase the types of 
proven strategies for dropout prevention. The Secretary may 
provide appropriate support to eligible entities, which are 
defined as those that were providing dropout support to more 
than 100 schools and published a specific program before the 
enactment of the Dropout Prevention Act.
            Subpart 2--National school dropout prevention initiative
    New Section 1821--Program Authorized. New Section 1821(a) 
states that funds under this part will be allocated to States 
based on the title I formula if funds appropriated equal or 
exceed $250 million, but competitively if funds appropriated 
are less than $250 million.
    New Section 1821(b) authorizes funds provided to States 
under this subpart be used by State educational agencies to 
award grants to public middle or secondary schools that have 
dropout rates that are in the highest of all dropout rates in 
the State for the purpose of supporting dropout prevention 
programs.
    New Section 1821(c) specifies that first-year grants to 
schools shall be awarded based on school size, cost of 
strategies, and local cost factors, with grant amounts 
decreasing during each year of participation in the program. 
Schools which create smaller learning communities are eligible 
for a 10 percent increase in the amount of their grant.
    New Section 1821(d) states that grants under this subpart 
may be awarded for a duration of 3 years, plus an additional 2 
years if significant progress is made in reducing the dropout 
rate.
    New Section 1822--Strategies and Capacity Building. This 
section requires schools receiving grants under this subpart to 
use grant funds for research-based, sustainable, and widely 
replicated strategies for dropout prevention and school reentry 
programs serving the entire school population. This section 
specifies strategies for targeted purposes and comprehensive 
reform approaches.
    New Section 1823--Selection of Schools. New Section 1823(a) 
requires schools seeking a grant under this subpart to submit 
an application, containing specific information, to the State 
educational agency.
    New Section 1823(b) requires State educational agencies to 
review applications and award grants to schools after a review 
by a panel of experts on school dropout prevention.
    New Section 1823(c) specifies that to be eligible to 
receive a grant under this subpart, schools must be public 
schools that serve at least 50 percent of students who are low-
income or participate in a school-wide program.
    New Section 1823(d) specifies that a school receiving a 
grant under this subpart may use the funds to secure services 
from a community-based organization if the school approves the 
use, the funds are used for dropout prevention, and the 
organization has demonstrated an ability to provide effective 
services.
    New Section 1823(e) specifies that activities under this 
subpart must be coordinated with other Federal programs.
    New Section 1824--Dissemination Activities. This section 
requires schools receiving a grant under this subpart to 
provide information and technical assistance to other schools 
within the school district.
    New Section 1825--Progress Incentives. This section states 
that local educational agencies shall use funding under this 
title to provide assistance to schools that have not made 
progress toward lowering school dropout rates after receiving 
assistance under this subpart for 2 fiscal years.
    New Section 1826--School Dropout Rate Calculation. This 
section specifies that in order to calculate a school dropout 
rate, schools shall use: (1) ``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,'' or (2) a standard method 
determined by the State educational agency.
    New Section 1827--Reporting and Accountability. This 
section requires schools receiving funding under this subpart 
to provide, on an annual basis, a report to the Secretary and 
to the State regarding the status of the implementation of 
activities funded under this subpart. The Secretary shall 
evaluate the effectiveness of the activities assisted under 
this subpart.
    New Section 1828--State Responsibilities. New Section 
1828(a) requires State educational agencies to report to the 
Secretary, 1 year after the enactment of the Dropout Prevention 
Act, all school district and school data regarding school 
dropout rates.
    New Section 1828(b) requires State educational agencies 
receiving funds under this part to develop and implement 
education funding formula policies for public schools that 
provide appropriate incentives to retain students in school.
    New Section 1828(c) requires State educational agencies 
receiving funds under this part to develop uniform, long-term 
suspension and expulsion policies for serious infractions 
resulting in more than 10 days of exclusion from school.
    New Section 1828(d) requires the Secretary to issue 
regulations implementing the provisions of this section.
            Subpart 3--Definitions; authorization of appropriations
    New Section 1831--Definitions. This section provides the 
meanings of certain terms used in this part, including: ``low-
income'' and ``school dropout.''

Part F--Education for Homeless Children and Youth

    Part F of the bill amends the Education for Homeless 
Children and Youth authorized as Subtitle B of Title VII of the 
Stewart D. McKinney Homeless Assistance Act (referred to below 
as ``the act''.)
    Section 161--Statement of Policy. Section 161 of the bill 
amends section 721 of the act to state that homelessness alone 
is not sufficient reason to separate students from the 
mainstream school environment.
    Section 162--Grants for State and Local Activities. Section 
162(1) of the bill amends section 722(c) of the act to 
eliminate Palau as part of those receiving reserved funds and 
to drop the reference to Palau in the definitions.
    Section 162(2) amends section 722(e) of the act to add a 
new paragraph (3) to prohibit the segregation of homeless 
students. A State is required to provide a free public 
education to a homeless child or youth, and it may not 
segregate such child or youth, either in separate school, or in 
a separate program within a school, based on such child or 
youth's status as homeless, except as provided in cases of 
health or safety emergency or to provide special or 
supplementary services to those children.
    Section 162(3) amends section 722(f) of the act, which 
deals with the functions of the Coordinator of Education of 
Homeless Children and Youth in each State, to: (1) strike the 
provision that the coordinator estimate the number of homeless 
children in the state, and/or the number of youth served under 
this subtitle; (2) permit the Secretary to set reporting dates 
for the collection and transmittal of data the coordinator 
gathers; (3) clarify the coordination of services provisions, 
emphasizing not only ``coordination'' but also 
``collaboration'' of services; (4) add local educational agency 
liaisons for homeless children and youth and community 
organizations representing such children and their families 
among those in the coordination/collaboration effort; and (5) 
provide technical assistance to local educational agencies to 
ensure compliance with the prohibition on the segregation of 
homeless students.
    Section 162(4)(A) amends section 722(g)(1) of the act, 
which deals with State plans, to strengthen assurances that 
homeless children will not be isolated or stigmatized and to 
provide that local educational agencies serving homeless 
children and youth designate an appropriate staff person (who 
may also be in charge of administering other Federal programs) 
to serve as liaison for homeless children and youth and post 
public notice of the educational rights of such children and 
youth in locations such as family shelters, and soup kitchens.
    Section 162(4)(B) amends section 722(g)(3) of the act, 
which deals with local educational agency requirements, to 
expand provisions related to school of origin and to provide 
for prompt enrollment. A child who becomes homeless is to be 
served in the school of origin for the duration of the child's 
homelessness, rather than for the remainder of the academic 
year. A child who becomes permanently housed is to be served in 
the school of origin for the remainder of the school year. (The 
current option of enrolling the child in the attendance area 
where he or she is actually living is retained.) To the extent 
feasible, a local educational agency must keep a student in the 
school of origin except when that is contrary to the wishes of 
the parent or guardian or, in the case of an unaccompanied 
youth, the youth. The bill includes a new requirement that a 
written explanation be provided to the parent or guardian if 
the child is sent to a school other than the school of origin 
or the school requested by the parent or guardian. In addition, 
the bill adds a new provision stipulating that a school must 
immediately enroll homeless youth, even if they are unable to 
produce required records. The new school must also contact the 
old school for the records and refer the child to proper place 
for immunization if he or she lacks needed shots. A school must 
immediately enroll homeless youth in cases of an enrollment 
dispute, pending resolution of the dispute.
    Section 162(4)(C) amends section 722(g)(6) of the act, 
which deals with coordination of services, to consolidate 
current law provisions regarding coordination of agencies and 
programs and to add language stating the purpose of 
coordination, which is to ensure that homeless children and 
youth have access to available education and related support 
services and to raise the awareness of school personnel and 
service providers of the effects of short-term stays in a 
shelter and other challenges associated with homeless children 
and youth.
    Section 162(4)(D) amends section 722(g)(7) of the act, 
which deals with the local educational agency liaison, to add 
provisions that the liaison ensure that: (1) homeless youth 
have full and equal opportunity to succeed; (2) parents are 
informed of the education and related opportunities available 
to their children and are provided with the opportunity to 
participate in the education of their children; and (3) public 
notice of the educational rights of homeless children and youth 
is posted at places such as family shelters and soup kitchens. 
The bill also includes new provisions requiring local liaisons 
to coordinate and collaborate with statecoordinators and 
community/school personnel responsible for the education of 
homeless children and youth and to assist in the resolution of 
disputes.
    Section 163--Local Educational Agency Grants. Section 
163(1) of the bill amends section 723(a) of the act, which 
deals with the services provided by local educational agencies, 
to clarify current law provisions and to prohibit the 
segregation of homeless children and youth from the general 
education population except as is necessary for health and 
safety emergencies or to provide temporary, special, 
supplementary services.
    Section 163(2) of the bill amends section 723(b) of the 
act, which deals with local applications, to add a requirement 
that the application include an assessment of the educational 
and related needs of homeless youth (which can be undertaken as 
a part of needs assessment for other disadvantaged groups).
    Section 163(3) of the bill amends section 723(c) of the 
act, which deals with grant awards to local educational 
agencies, to provide that grants be awarded on a competitive 
basis and that grant awards be based on both need and on the 
quality of the application. Factors to be considered in 
determining quality include: (1) needs assessment and the 
likelihood the program will meet those needs; (2) the types, 
intensity, and coordination of services; (3) involvement of 
parents; (4) integration of homeless students; (5) quality of 
evaluation plans; (6) how services under this title will be 
coordinated with other services; and (7) other indicators as 
established by the State educational agency.
    Section 164--Secretarial Responsibilities. Section 164 of 
the bill amends section 724 of the act to add new provisions 
requiring the Secretary to issue guidelines regarding the 
immediate enrollment of homeless children and youth and to 
collect data regarding homeless education. In addition, the 
reporting requirement is updated, and not later than 4 years 
after enactment, the Secretary is to prepare and submit to the 
President and appropriate congressional committees a report on 
the status of education of homeless youth, which includes 
information on the actions of the Department and the 
effectiveness of programs supported under this subtitle. 
Specifically, the Secretary is to publish in the Federal 
Register, not later than 60 days after date of enactment, 
guidelines to States describing ways in which a State may 
assist local educational agencies in immediately enrolling 
homeless students and how States can review their immunization 
and medical or school records to make such revisions as 
appropriate and necessary in order to more quickly enroll 
homeless students. Under the new information provisions, the 
Secretary to periodically collect and disseminate data 
regarding the number and locale of homeless youth, the 
education and services provided, the extent to which needs are 
being met, and other data needed to carry out homeless 
education programs. The Secretary is to coordinate such 
collection and dissemination with all entities that receive and 
administer programs for the education of homeless children and 
youth.
    Section 165--Definitions. Section 165 of the bill amends 
section 725 of the act to include definitions of ``local 
educational agency'' and ``State educational agency.''
    Section 166--Authorization of Appropriations. Section 166 
of the bill amends section 726 of the act to authorize a 
funding level of $70 million for fiscal year 2002 and such sums 
as may be necessary for each of the 6 succeeding fiscal years.
    Section 167--Conforming Amendments. Section 167 of the bill 
makes conforming changes to references within the act.

                       TITLE II--TEACHER QUALITY

Part A--Teachers

    Section 201--Teacher Quality. Section 201 amends Title II 
to strike all of Part A and insert new provisions, renaming 
Title II as ``TEACHER QUALITY'' and Part A as ``TEACHERS.''

Part A--Teachers

    Provisions of the new Title II, Part A include:
    Section 2101--Purpose. Section 2101 states the purpose of 
part A is to provide grants to State and local educational 
agencies and eligible partnerships in order to increase student 
achievement and student performance through such strategies as 
improving teacher quality and increasing the number of highly 
qualified teachers in the classroom and hold local educational 
agencies and schools accountable for improvements in student 
academic achievement and student performance.
    Section 2102--Definitions. Section 2102 provides 
definitions for the terms ``all students,'' ``core academic 
subjects,'' ``highly qualified,'' ``high need local educational 
agencies,'' ``institution of higher education,'' ``out of field 
teacher,'' ``poverty line,'' and ``professional development''.
    Section 2103--Authorization of Appropriations. Section 2103 
authorizes $3 billion for fiscal year 2002 and such sums as 
necessary for the 6 succeeding fiscal years. It authorizes $100 
million for fiscal year 2002 and such sums as necessary for the 
6 succeeding fiscal years for National Programs.
            Subpart 1--Grants to States
    Section 2111--Allotments to States. Section 2111 includes 
general provisions dealing with formula grants to States, 
providing that States with applications approved by the 
Secretary will receive grants in order to make subgrants to 
local educational agencies and eligible partnerships as well as 
to carry out specified statewide activities.
    Section 2111(b) establishes allotments as follows:
          \1/2\ of 1 percent is reserved for the outlying areas 
        (United States Virgin Islands, Guam, American Samoa and 
        the Commonwealth of the Northern Mariana Islands).
          \1/2\ of 1 percent is reserved for the Secretary of 
        Interior for schools operated by the Bureau of Indian 
        Affairs.
          Provides a limitation that the amount reserved does 
        not exceed the amount received under the Eisenhower 
        program and section 306 of the Department of Education 
        Appropriations Act, 2001.
          The 50 States, the District of Columbia and the 
        Commonwealth of Puerto Rico will first receive an 
        allotment equal to the amount received in fiscal year 
        2001 from the Eisenhower program and the Class Size 
        Reduction program--subject to a ratable reduction if 
        appropriations are insufficient to meet the hold 
        harmless. Amounts above the fiscal year 2001 levels 
        will be allocated based on the number of individuals 
        age 5 through 17 in the State (50 percent) and on the 
        number of individuals areas 5 through 17 from families 
        with incomes below the poverty level (50 percent). No 
        State may receive less than \1/2\ of 1 percent of the 
        total amounts above the 2001 level.
          If a State does not apply for funds, the funding it 
        would have received will be reallotted among the 
        remaining States on the basis described above.
    Section 2112--State Applications. Section 2112 requires 
that the State educational agency submit an application to the 
Secretary at such time and in such manner as the Secretary may 
reasonably require. Each application must contain the following 
information: a description of how the activities to be carried 
out by the State educational agency will be based on a review 
of relevant research and an explanation of why the activities 
are expected to improve student performance and outcomes; a 
description of how the State educational agency will align 
activities with State content and student performance standards 
and State assessments; a description of how the State 
educational agency will use funds to improve the quality of the 
teaching force and the educational opportunities for all 
students; a description of how the State educational agency 
will coordinate professional development activities authorized 
under this part with professional development provided under 
other Federal, State and local programs; an assurance that the 
State educational agency will consistently monitor the progress 
of each local educational agency and school in the State in 
achieving the purpose of this part and meeting the performance 
objectives and measures described in section 2141. The 
Secretary shall approve a State application submitted to the 
Secretary under this section unless the Secretary makes a 
written determination within 90 days after receiving the 
application that the application does not meet the requirement 
of this Act.
    Section 2113--State Use of Funds. Section 2113 requires 
that a State receiving a grant under section 2111 shall reserve 
a portion of the funds for State activities; 95 percent for 
local educational agencies; and a portion of the funds for 
subgrants to local partnerships.
    State educational agencies shall use funds to carry out 1 
or more of the following activities: (1) reforming teacher 
certification (including recertification) or licensing 
requirements to ensure that teachers have necessary subject 
matter knowledge and teaching skills in the subject area that 
the teachers teach, that requirements are aligned with 
challenging State content standards, and that teachers have the 
subject matter knowledge and teaching skills necessary to meet 
challenging State student performance standards; (2) carrying 
out programs that provide support during the initial teaching 
experience; (3) carrying out programs that establish, expand, 
or improve alternative routes for State certification of 
teacher for highly qualified individuals with baccalaureate 
degree; (4) supporting activities to encourage and support 
teachers seeking national board certification from the National 
Board for Professional Teaching Standards or other recognized 
entities; (5) developing and implementing effective mechanisms 
to assist local educational agencies and schools in effectively 
recruiting and retaining highly qualified and effective 
teachers and principals; (6) funding projects to promote 
reciprocity of teacher certification or licensure between or 
among States; (7) testing new teachers for subject matter 
knowledge, and testing the teachers for State certification or 
licensure; (8) supporting activities that ensure teachers are 
able to use State content and student performance standards and 
assessments to improve instructional practices; (9) 
establishing teacher compensation systems based on merit; and 
(10) reforming tenure systems. A State receiving a grant must 
coordinate these activities with those funded under section 202 
of the Higher Education Act.
            Subpart 2--Subgrants to local educational agencies
    Section 2121--Allocations to Local Educational Agencies. 
States receiving grants shall make grants to eligible LEAs in 
an amount allocated based on the number of individuals age 5 
through 17 in the State (25 percent) and on the number of 
individuals areas 5 through 17 from families with incomes below 
the poverty level (75 percent).
    Section 2122--Local Application and Needs Assessment. Local 
educational agencies must submit an application to the State 
educational agency at such time and in such manner as the State 
educational agency may reasonably require. Each application 
submitted must be based on a needs assessment and shall include 
the following: A description of the activities to be carried 
out by the local educational agency; a description of how the 
activities will be based on a review of relevant research and 
an explanation of why the activities are expected to improve 
student performance and outcomes; a description of how the 
activities will have a substantial, measurable and positive 
impact on student achievement and student performance 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 and other students; an assurance that the 
local educational agency will target funds to schools with the 
lowest proportion of highly qualified teachers; are identified 
for school improvement or are identified for school improvement 
inaccordance with other measures of school quality as 
determined and documented by the local educational agency; a 
description of how the local educational agency will coordinate 
professional development activities authorized under this 
subpart with professional development activities provided under 
other Federal, State, and local programs; a description of the 
evaluation plan the local educational agency will carry out 
pursuant to section 2141; a description of how the local 
educational agency has collaborated with teachers, 
paraprofessionals, principals and other relevant school 
personnel and parents in preparation of the application; a 
description of the results of the needs assessment; and a 
description of how the local educational agency will address 
the ongoing professional development and mentoring needs of 
teachers and administrators.
    Section 2123--Local Use of Funds. This section provides 
that a local educational agency may use the amount of funds it 
received under the class-size reduction provisions of the 
Department of Education Appropriations Act, 2001 to carry out 
the activities authorized under those provisions. A local 
educational agency must use funds to carry out 1 or more of the 
following activities: (1) providing professional development 
activities that improve the content knowledge, effective 
instructional practices, and effective use of State standards 
and assessments of teachers; (2) mentoring; (3) providing 
teachers and principals with professional development through 
institutions of higher education; (4) providing induction and 
support for beginning teachers; (5) recruiting, hiring, and 
training teachers; and (6) carrying programs and activities 
related to teacher tenure reform, merit pay, and testing of 
teachers in academic subjects that the teachers teach.
            Subpart 3--Subgrants to eligible partnerships
    Section 2131--Subgrants. This section provides that the 
State agency for higher education shall use funds to make 
competitive subgrants to eligible partnerships. Such subgrants 
are to be equitably distributed geographically within the State 
and serve all areas of the State. No single participant in a 
partnership may use more than 50 percent of the funds made 
available.
    Section 2132--Applications. This section requires eligible 
partnerships to submit applications for funding to the State 
agency for higher education.
    Section 2133--Use of Funds. This section requires that 
eligible partnerships use funds for: professional development 
activities in core academic subjects and assisting local 
educational agencies and teachers, paraprofessionals, or 
principals with sustained, high-quality professional 
development activities. An eligible partnership which receives 
a grant under this subpart and under section 203 of the Higher 
Education Act must coordinate the activities carried out under 
both grants.
    Section 2134--Definition. This section defines ``eligible 
partnership,'' which must include a private or State 
institution of higher education and the division of the 
institution that prepares teachers, a school of arts and 
sciences, and a high-need local educational agency. A 
partnership may also include another local educational agency, 
a public charter school, an elementary 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, a nonprofit 
cultural organization, an entity carrying out a prekindergarten 
program, a teacher organization, or a business.
            Subpart 4--Accountability
    Section 2141--Evaluation Plan for Local Educational 
Agencies. This section provides that each local educational 
agency receiving funds under part A must develop an evaluation 
plan including performance objectives and other measures 
relating to increasing student achievement and performance for 
all students, increasing participation in sustained 
professional development and mentoring, increasing teacher 
retention among new teachers, and decreasing the use of out-of-
field teachers. The evaluation plan may also include other 
measures of student achievement and performance determined by 
the local educational agency.
    Section 2142--Sanctions for Local Educational Agencies. 
This section provides that each local educational agency 
receiving funds under part A must submit an annual report to 
the State educational agency describing progress towards 
meeting the purpose of part A and the performance objectives 
and measures. If the State educational agency determines that a 
local educational agency has failed to make substantial 
progress by the end of the third year of funding, the State 
educational agency must provide technical assistance to the 
local educational agency and, if applicable, to schools served 
by that agency in need of assistance. If the local educational 
agency fails to make substantial progress by the end of the 
fifth year of funding, the State educational agency must 
withhold the funding allocation to the local educational agency 
for 2 fiscal years and use those funds to assist the LEA to 
achieve the purpose and meet the objectives and measures.
            Subpart 5--National programs
    Section 2151--National Programs of Demonstrated 
Effectiveness. This section provides that the Secretary shall 
use funds to carry out the following national activities: (1) 
professional development for school leaders to held develop or 
enhance their leadership skills, recruitment of school leaders, 
and mentorship of new school leaders; (2) encouragement and 
support for teachers seeking advanced certification or 
credentialing through high quality programs, including programs 
provided by the National Board for Professional Teaching 
Standards; (3) support for the Troops-to-Teachers Program 
through a contract with the Defense Activity for Non-
Traditional Education Support of the Department of Defense; (4) 
support for programs to recruit, prepare, and support mid-
career professionals to become highly qualified teachers; and 
(5) support for a National Teacher Recruitment Campaign to be 
conducted by a single national coalition of teacher and media 
organizations, including the National Teacher Recruitment 
Clearinghouse. A separate authorization of $3 million is 
provided for the recruitment campaign.

Part--B Mathematics and science partnerships

    New section 2201--Purpose. This section states the purpose 
of part B, which is to improve the performance of students in 
the areas of mathematics and science by encouraging the 
participation of States, institutions of higher education, and 
elementary and secondary schools in programs that: encourage 
institutions of higher education to establish a system of 
recruiting and advising mathematics and science teachers; focus 
on career-long education for mathematics and science teachers; 
bring together mathematics and science teachers with 
scientists, mathematicians, and engineers; and develop rigorous 
curricula aligned with standards and postsecondary studies.
    New section 2202--Definitions: Eligible Partnership. This 
section defines ``eligible partnership,'' which must include a 
State educational agency, a mathematics or science department 
of an institution of higher education, and a local educational 
agency. A partnership may also include another mathematics or 
science department or a teacher training department, another 
local educational agency, an elementary or secondary school, a 
business, or a nonprofit organization. ``High need local 
educational agency'' is defined as having the meaning given the 
term in section 210(b) of the Higher Education Act of 1965. 
``Summer workshop or institute'' is defined as one which lasts 
during a minimum of 2 weeks, provides direct interaction 
between students and faculty, and provides for at least 3 days 
follow-up training in the classroom during the academic year, 
with specified exceptions.
            Subpart 1--Grants to partnerships
    New section 2211--Grants Authorized. The Secretary is 
authorized to award 5-year competitive grants to eligible 
partnerships. The federal share of such grants is 75 percent 
for the first year, 65 percent for the second year, and 50 
percent for each of the remaining years in the grant period. 
Priority must be given to partnerships involving a high need 
local educational agency.
    New section 2212--Application Requirements. Applications 
for grant funds must include: an assessment of needs for 
teacher quality and professional development for all 
participating entities; a description of how activities will be 
aligned with State and local standards; and a description of 
how activities will be based on a review of relevant research. 
Applications must also include a description of the proposed 
program and an evaluation and accountability plan.
    New section 2213--Authorized Activities. This section 
provides that an eligible partnership shall use grant funds for 
1 or more of the following activities: developing more rigorous 
math and science curricula aligned to State and local standards 
and with the standards expected for postsecondary study in 
mathematics and science, respectively; creating opportunities 
for enhanced and ongoing professional development; recruiting 
math and science majors to teaching; promoting strong teaching 
skills for math and science teachers and teacher educators; 
establishing math and science summer workshops or institutes 
for teachers; establishing distance learning programs for math 
and science teachers; designing programs to prepare a teacher 
to provide professional development to other teachers and 
novice teachers; and designing programs to bring teachers into 
contact with working scientists.
    New section 2214--Evaluation and Accountability Plan. This 
section requires each eligible partnership to develop an 
evaluation and accountability plan which includes objectives 
and measures for improved student performance on State math and 
science assessments or the Third International Math and Science 
Study assessment; increased student participation in advanced 
courses; increased percentages of secondary school classes in 
math and science taught by teachers with academic majors in 
those subjects; and increased numbers of math and science 
teachers who participate in content-based professional 
development activities.
    New section 2215--Report; Revocation of Grant. This section 
requires grant recipients to report annually to the Secretary 
regarding progress in meeting performance objectives. If the 
Secretary determines that a grantee is not making substantial 
progress in meeting those objectives by the end of the third 
year of the grant, then no further grant payments will be made.
            Subpart 2--Eisenhower Clearinghouse for Mathematics and 
                    Science Education
    New section 2221--Clearinghouse. This section allows the 
Secretary, in consultation with the Director of the National 
Science Foundation, to award a grant or contract to continue 
the Eisenhower National Clearinghouse for Mathematics and 
Science Education. The grant or contract will be awarded on a 
competitive, merit basis by the Secretary for 5 years. The 
funds shall be used to: maintain a permanent repository of math 
and science education instructional materials and programs; 
compile information on all math and science education programs 
administered by each Federal agency or department; disseminate 
information, programs and instructional materials; coordinate 
with identifiable and existing data bases; gather qualitative 
and evaluative data on submissions to the Clearinghouse; 
solicit and gather materials and programs, review the 
evaluation of the materials and programs, rank them, distribute 
the results of the reviews and excerpts of materials and links 
to Internet-based sites and information regarding on-line 
communities of users to teachers, but not conduct evaluations; 
and develop and establish an Internet-based site with search 
mechanism to identify information available through the 
Clearinghouse. Each Federal agency or department developing 
math or science educational instructional material or programs 
shall submit copies to the Clearinghouse. The Secretary shall 
use a peer review process to choose the recipient of the award, 
will disseminate information concerning the grant or contract 
awarded, and may appoint a steering committee to direct the 
Clearinghouse. Copyright laws apply to material collected by 
the Clearinghouse. Not later than 2 years after the enactment 
of this Act, the National Academy of Sciences will conduct a 
study of the Clearinghouse and submit its report to Congress.
            Subpart 3--Preparing tomorrow's teachers to use technology
    New Section 2231--Purpose; Program Authority. This section 
states that the purpose ofsubpart 3 is to assist consortia in 
programs preparing prospective teachers to use advanced 
technology to foster learning environments conducive to 
preparing all students to meet standards. This section gives 
the Secretary of Education, acting through the Director of the 
Office of Educational Technology, the authority to make awards 
on a competitive basis and for not more than 5 years to pay the 
Federal share of projects to develop or redesign teacher 
preparation programs to use advanced technology effectively.
    New Section 2232--Eligibility. This section states that, in 
order to receive an award under this subpart, an applicant must 
include at least 1 institution of higher education that offers 
a baccalaureate degree and prepares teachers for their initial 
entry into teaching, at least 1 State or local educational 
agency, and 1 or more of: a second institution of higher 
education, a school or department of education at an 
institution of higher education, a school or college of arts 
and sciences at an institution of higher education, 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. This section states that the applicant 
must submit an application to the Secretary and that the 
application shall include: a description of the proposed 
project including how the individuals participating would use 
advanced technology to create learning environments conducive 
to preparing all students to meet standards; a demonstration of 
the commitment, including financial, of each member of the 
consortium and of the active support of the leadership of each 
member; a description of how each member will be included in 
the activities; a description of how the project will be 
continued after Federal funds end; and a plan for project 
evaluation, including evaluation to monitor progress toward 
project objectives. This section states that the Federal share 
of any project shall not exceed 50 percent and the non-Federal 
share may be in cash or in kind, including services except in 
the case of equipment, networking capabilities, or 
infrastructure--where the Federal share cannot exceed 10 
percent and the non-Federal share must be in cash.
    New Section 2233--Use of Funds. This section states that 
recipients must use the funds to create programs that enable 
prospective teachers to use advanced technology to create 
learning environments conducive to preparing all students to 
meet standards and to evaluate the effectiveness of the 
project. This section states that recipients may use the funds 
to develop and implement programs that enable educators to 
learn the range of resources that can be accessed through the 
use of technology, integrate a variety of technologies into the 
classroom, evaluate educational technologies and their use, and 
help students develop their technical skills and digital 
learning environments; develop alternative teacher development 
paths; develop performance-based standards and assessments 
aligned with the standards to measure the capacity of 
prospective teachers to use technology; provide technical 
assistance to entities carrying out other teacher preparation 
programs; develop and disseminate resources and information to 
assist in preparing teachers; and acquire equipment, networking 
capabilities, and infrastructure to carry out the project.
            Subpart 4--General provisions
    New section 2241--Consultation with 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 of each in summer workshops or 
institutes.
    New section 2242--Authorization of Appropriations. This 
section authorizes appropriations for part--activities. The 
authorization for subpart 1 is $500 million for fiscal year 
2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years. The authorization for subpart 2 is $5 
million for fiscal year 2002 and such sums as may be necessary 
in each of the 6 succeeding fiscal years. The authorization for 
subpart 3 is $150 million for fiscal year 2002 and such sums as 
may be necessary in each of the 6 succeeding fiscal years.

Part C--State and local programs for technology use in classrooms

    Section 2301--Purpose; Goal. This section of the bill 
states the purpose and goal of part C. The purpose of the part 
is to support a comprehensive system to use technology 
effectively in elementary and secondary schools to improve 
student achievement and performance. The goal of the part is to 
assist every child in crossing the digital divide by ensuring 
that every child is technologically literate by the time the 
child finished the 8th grade.
    Section 2302--Definitions. This section provides 
definitions for the terms ``adult education,'' ``all 
students,'' ``information infrastructure,'' ``interoperable; 
interoperability,'' ``public telecommunications entity,'' 
``State educational agency,'' and ``State library 
administrative agency.''
    Section 2303--Allotment and Reallotment. Section 2303(a) 
provides that the Secretary shall reserve sufficient funds to 
maintain grants awarded under the National Challenge Grants for 
Technology in Education prior to the enactment of the Better 
Education for Students and Teacher Act.
    Section 2303(b) provides that each State educational agency 
will receive a grant based on the title I formula, with a 
minimum grant level of \1/2\ of 1 percent of the amount 
available each year.
    Section 2303(c) provides that the Secretary may reallot any 
State educational agency allotment which is not needed during a 
fiscal year to other State educational agencies in proportion 
to their original allotments. To the extent that a State 
educational agency is unable to use all or a portion of the 
reallotted funds in a fiscal year, those additional funds will 
be similarly realloted among the other State educational 
agencies.
    Section 2304--Technology Grants. Section 2304(a) provides 
that the Secretary, through the Office of Educational 
Technology, shall award grants to State educational agencies to 
be usedfor competitive grants to local educational agencies. 
Grant awards to local educational agencies must be of 
sufficient size, scope, and quality to carry out the purposes 
of part C. In awarding grants, the State educational agency 
must give priority to the local educational agencies serving 
the highest number or percentage of children in poverty and 
must ensure an equitable distribution of assistance among urban 
and rural areas of the State.
    Section 2304(b) provides that each State educational agency 
which receives a grant must identify and offer technical 
assistance to local educational agencies with the highest 
number or percentage of children in poverty and which 
demonstrate the greatest need for technical assistance in 
developing an application for funds.
    Section 2305--State Application. This section provides that 
a State educational agency must submit a statewide educational 
technology plan in order to receive part C funds. The statewide 
plan must: outline long-term strategies for improving student 
performance and achievement through the effective use of 
technology; outline long-term strategies for financing 
technology education in the State and describe the 
participation of other agencies and organizations with the 
State; and meet other criteria established by the Secretary to 
enable the State educational agency to assist local educational 
agencies with the highest numbers or percentages of children in 
poverty and which demonstrate the greatest need for technology.
    Section 2306--Local Uses of Funds. This section provides 
that local educational agencies, to the extent possible, use 
part C funds to: use technology to support school reform 
efforts; provide ongoing professional development in the 
integration of technology into the curriculum; acquire 
connectivity linkages, resources, and services; acquire 
connectivity with wide area networks; provide educational 
services for adults and families; and repair and maintain 
school technology equipment. At least 30 percent of local 
educational agency funds must be used for professional 
development.
    Section 2307--Local Applications. Section 2307(a) requires 
that a local educational agency apply to the State educational 
agency for assistance under part C. The application must 
include an updated version of a strategic, long-range plan that 
includes: a description of how activities will be based on a 
review of relevant research and an explanation of why the 
activities are expected to improve student achievement; an 
explanation of how acquired technologies will be integrated 
into the curriculum; a description of the technologies to be 
acquired; an explanation of how programs will be developed in 
collaboration with existing adult literacy service provides; a 
description of how ongoing, sustained professional development 
will be provided for teachers, administrators, and school 
library media personnel; a description of the supporting 
resources which will be acquired; the projected costs of 
technologies and related expenses; a description of how 
technology provided under part C will be coordinated with other 
technology grant funds; a description of the process for the 
ongoing evaluation of how technologies will be integrated into 
the curriculum; and a description of the evaluation plan of the 
local educational agency.
    Section 2307(b) provides that a local educational agency 
may apply for assistance as part of a consortium with other 
local educational agenciess, institutions of higher education, 
intermediate educational units, libraries, or other appropriate 
educational entities.
    Section 2308--Accountability. This section provides that 
each local educational agency receiving funds under part C must 
develop an evaluation plan including performance objectives and 
other measures relating to increased professional development 
in the effective use of technology, increased access to 
technology in the classroom, and other indicators reflecting 
increased student achievement or performance. Each local 
educational agency must submit an annual report to the State 
educational agency describing progress towards meeting the 
purpose of part C and the performance objectives and measures. 
If a local educational agency has failed to show measurable 
improvements in all performance measures by the end of the 
third year of funding, it will not receive funds for the 
remaining grant years. The State educational agency must 
provide technical assistance to local educational agencies to 
assist them in meeting the performance objectives and measures.
    Section 2309--National Education Technology Plan. This 
section requires the Secretary, within 1 year of enactment, to 
prepare a national long-range plan to support the national 
technology policy. The Secretary is to consult with a wide 
range of individuals and organizations in preparing the plan. 
Upon completion, the plan is to be submitted to the President 
and to the appropriate committees of Congress and is to be made 
readily accessible to the public. The plan must include 
descriptions of: (1) the way in which the Secretary will 
encourage the effective use of technology to provide all 
students the opportunity to achieve; (2) joint activities in 
support of the overall national technology policy to promote 
the use of technology in education, training, and lifelong 
learning; (3) the way in which the Secretary will work with 
educators, educational agencies, and the private sector to 
facilitate the effective use of technology in education; (4) 
the way in which the Secretary will promote higher academic 
achievement and performance, increased access to technology, 
the use of technology to assist with State systemic reform, the 
application of technological advances to improve educational 
opportunities, increased access to high quality adult and 
family education services, and increased professional 
development opportunities; (5) the way in which the Secretary 
will determine the feasibility and desirability of establishing 
guidelines to facilitate an easy exchange of date and effective 
use of technology in improving education; (6) the way in which 
the Secretary will promote the exchange of information 
regarding the effective use of technology in education; and (7) 
the Secretary's long-range measurable goals and objectives 
relating to the purposes of part C.
    Section 2310--Authorization of Appropriations. This section 
authorizes a funding level of $1 billion for fiscal year 2002 
and such sums as may be necessary in each of the 6 succeeding 
fiscal years. A grant recipient under part C may use no more 
than 5 percent of grant funds for administrative costs or 
technical assistance.
    Section 202. Teacher Mobility. This section, the ``Teacher 
Mobility Act,'' adds a new part D entitled ``Part D--
Portability of Teacher Pensions and Credentials'' to title II.

Part D--Portability of teacher pensions and credentials

    New Section 2401. Definition. This section defines 
``pension'' as a pension provided under an employee pension 
benefit plan, as defined in section 3(2) of the Employee 
Retirement Income Security Act of 1974.
    New Section 2402. National Panel of Portability of Teacher 
Pensions and Credentials. Section 2402(a) establishes a 
National Panel of Portability of Teacher Pensions and 
Credentials (the ``panel'').
    Section 2402(b) provides that the 9 members of the panel 
will be appointed by the Secretary from among practitioners and 
experts with experience relating to teacher pensions and 
credentials.
    Section 2402(c) provides that members will be appointed for 
the life of the panel.
    Section 2402(d) sets the duties of the panel as studying 
options for increasing reciprocity of recognition of teacher 
credentials and portability of teacher pensions between States 
and as reporting the results of the study to the Secretary and 
the appropriate committees of Congress within 1 year.
    Section 2402(e) gives the panel the powers to hold 
hearings, take testimony, and receive evidence the panel 
considers advisable; to secure such information from any 
Federal department or agency as the majority of the panel 
requests; and to use the United States mails in the same manner 
and under the same conditions as other Federal departments and 
agencies.
    Section 2402(f) states that members of the panel shall 
receive no compensation, but shall be allowed travel expenses 
and that Federal employees may be detailed to the panel without 
interruption or loss of civil service status or privilege.
    Section 2402(g) states that Section 14 of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
panel.
    Section 2402(h) states that funds necessary to carry out 
this act are authorized for fiscal year 2002 and shall remain 
available until expended.

   TITLE III--MOVING LIMITED ENGLISH PROFICIENT STUDENTS TO ENGLISH 
                                FLUENCY

    Section 301--Amendment to the Elementary and Secondary 
Education Act of 1965. This section renames title III 
``Bilingual Education, Language Enhancement, and Language 
Acquisition Programs'' and amends the title to read as follows:

Part A--Bilingual education

    The new part A includes the following provisions:
    Section 3001--Short Title. New section 3001 provides that 
the short title of part A is ``Bilingual Education Act.''
    Section 3002--Purpose. New section 3002 states that the 
purpose of part A is to promote systemic improvement for 
educational programs serving limited English proficient 
students.
    Section 3003--Authorization of Appropriations. New section 
3003 authorizes a funding level of $300 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years. At least 25 percent of such funds are 
reserved to carry out subpart 3.
    Section 3004--Native American and Alaska Native Children in 
School. New section 3004 provides that specified schools and 
other entities serving Native American and Alaska Native 
children shall be considered to be a local educational agency 
for the purposes of this part. Eligible entities submit 
applications for assistance under part A directly to the 
Secretary.
    Section 3005--Residents of the Territories and Freely 
Associated Nations. New section 3005 provides that, for 
carrying out part A programs in the outlying areas, the term 
``local educational agency'' includes public entities whose 
mission is the preservation and maintenance of native 
languages.
            Subpart 1--Bilingual education capacity and demonstration 
                    grants
    Section 3101--Financial Assistance for Bilingual Education. 
New section 3101 states that the purpose of subpart 1 is to 
develop the capacity of local educational agencies, 
institutions of higher education, and community-based 
organization to enhance their capacity to provide high-quality 
instruction to children and youth of limited English 
proficiency and to help such children and youth develop 
proficiency in English.
    Section 3102--Program Enhancement Projects. New section 
3102(a) states that the purpose for Program Enhancement 
Projects is to: provide grants to entities for locally 
designed, high quality instruction to children and youth of 
limited English proficiency; help children and youth develop 
English language proficiency; and help children and youth in 
attaining the standards established under section 1111(b) of 
this act.
    New section 3102(b) authorizes the activities for Program 
Enhancement Projects which shall include: developing 
comprehensive preschool, elementary, or secondary education 
programs for limited English proficient children and youth; 
providing high quality professional development; and annually 
assessing the English proficiency of alllimited English 
proficient students. Other activities may include: upgrading 
reading and other academic skills; developing accountability 
systems to monitor academic progress of limited English 
proficient and formerly limited English proficient students; 
implementing family education programs; acquiring and applying 
effective instructional materials; providing intensified 
instruction; adapting best practice models; assisting limited 
English proficient students with disabilities; and implementing 
applied learning activities.
    New section 3102(c) defines entities which are eligible to 
apply for Project Enhancement Projects as being: one or more 
local educational agencies; one or more local educational 
agencies in collaboration with an institution of higher 
education, community-based organization, or local or State 
educational agency; or a community-based organization or 
institution of higher education which has an application 
approved by the local educational agency.
    New section 3102(d) authorizes the Secretary, if the 
Secretary so chooses, to give priority in awarding grants to an 
entity that serves a school district which has either a total 
enrollment of less than 10,000 students or a large percentage 
or number of limited English proficient students and which has 
limited or no experience in serving limited English proficient 
students.
    Section 3103--Comprehensive School and Systemwide 
Improvement Grants. New section 3103(a) states that the 
purposes of Comprehensive School and Systemwide Improvement 
Grants are to: provide financial assistance to schools and 
local educational agencies for implementing bilingual education 
programs; assist limited English proficient students in meeting 
the standards established under section 1111(b); and improve 
instructional programs in schools and local educational 
agencies that serve significant percentages of students with 
limited English proficiency or significant numbers of such 
students.
    New Section 3103(b) specifies that grants awarded under 
this section shall be used for: improving instructional 
programs for limited English proficient students; aligning 
activities with State and local school reform efforts; 
providing training to improve instruction and assessment of 
limited English proficient students; implementing culturally 
and linguistically appropriate family education programs; 
coordinate training activities with title II of the Higher 
Education Act; coordinating activities with other programs; 
providing services to meet the full range of the educational 
needs of limited English proficient students; annually 
assessing the English proficiency of limited English proficient 
students; and developing accountability systems. This section 
also lists several permissible activities.
    New Section 3103(c) specifies the reservation of funds for 
continued payments of grants awarded prior to the date of 
enactment for which the grant period has not ended. One-third 
of remaining funds will be used to award grants for activities 
carried out within an entire school district, and two-thirds of 
such funds will be used to award grants for activities carried 
out within individual schools.
    New section 3103(d) defines entities which are eligible to 
apply for Comprehensive School and Systemwide Improvement 
Grants as being: one or more local educational agencies; or one 
or more local educational agencies in collaboration with an 
institution of higher education, community-based organization, 
or local or State educational agency.
    Section 3104--Applications. New section 3104 sets out 
requirements for the application of grant funds under subpart 
1.
    New section 3104(b) provides that the State educational 
agency must review an application and provide written comments 
to be included with the application.
    New section 3104(c) provides that an eligible entity may 
address the comments provided by the State educational agency.
    New section 3104(d) provides that the Secretary must take 
the State educational agency comments into consideration.
    New section 3104(e) authorizes the Secretary to waive the 
requirement for State educational agency review of the 
application if the agency can demonstrate that the requirement 
would impede the agency's ability to fulfill the requirements 
of participation in the State grant program.
    New Section 3104(f) provides that the application must 
document that the applicant has sufficient qualified personnel 
and that the leadership personnel of each participating school 
have been involved in developing and planning the program.
    New Section 3104(g) provides that grant applications must 
include: a description of the need for the proposed program, 
including data on the number and characteristics of students to 
be served and the professional development needs of the 
instructional personnel who will provide services; a 
description of the program to be implemented, including how it 
will be coordinated with other programs and will ensure 
accountability in achieving high standards; a description of 
any collaborative activities with other entities; an assurance 
that State and local funds will not be reduced if grant funds 
are received; an assurance that teachers employed in the 
program will be proficient in English and in the native 
language of the majority of the students taught by the teachers 
(if the instruction in the program is in the native language as 
well as English); a budget for grant funds; a description of 
services to be provided, including specific achievement and 
school retention goals; and assurances that the program will be 
integrated with the overall educational program and that the 
application has been developed in consultation with an advisory 
council.
    New section 3104(h) provides that the Secretary may approve 
a grant application only if: the program will use qualified 
personnel; the needs of children in nonprofit private 
elementaryand secondary schools have been taken into account; 
student evaluation and assessment procedures are valid, 
reliable, and fair; federal funds will be used to supplement, 
not supplant, State and local funds; grant assistance will 
contribute to building the capacity of the applicant to provide 
a program on a regular basis; and the applicant uses State and 
national dissemination sources.
    New section 3104(i) provides the Secretary shall give 
priority to a grant applicant who: experiences a dramatic 
increase in the number or percentage of limited English 
proficient students enrolled in the applicant's programs and 
has limited or no experience in serving limited English 
proficient students; is a local educational agency that serves 
a school district that has a total district enrollment of less 
than 10,000 students; demonstrates that the applicant has a 
proven record of success in helping limited English proficient 
children and youth learn English and meet high academic 
standards; proposes programs that provide for the development 
of bilingual proficiency in English and another language; or 
serves a school district with a large percentage or number of 
limited English proficient students. The Secretary shall also 
give consideration to the degree to which the program involves 
collaborative efforts and shall give due consideration to 
applications providing personnel training.
    Section 3105--Capacity Building. New section 3105 provides 
that grant recipients shall use funds to build their capacity 
to continue to offer high-quality programs once assistance is 
reduced or eliminated.
    Section 3106--Programs for Native Americans and Puerto 
Rico. New section 3106 provides that programs under this 
subpart serving Native American children, Native Pacific Island 
children, and children in the Commonwealth of Puerto Rico may 
include activities designed for Native American children and 
youth studying Native American languages, except that one 
outcome of such programs shall be increased English proficiency 
among Native American children. Funds may also be used for 
children and youth of limited Spanish proficiency
    Section 3107--Evaluations. New section 3107 requires each 
grant recipient to conduct an annual evaluation which will 
review the progress of the recipient in achieving the 
objectives of the program and determine whether the students 
being served by the program are meeting the State's student 
performance standards.
    Section 3108--Construction. New section 3108 provides that 
nothing in subpart 1 should be construed to prohibit a local 
educational agency from serving limited English proficient 
children and youth in the same educational settings with 
students who have similar educational needs.
            Subpart 2--Research, evaluation, and dissemination
    Section 3121--Authority. New section 3121 authorizes the 
Secretary to conduct data collection, dissemination, research, 
and ongoing program evaluation activities to improve 
instruction of children and youth with limited English 
proficiency. Such activities are to be carried out through the 
Office of Bilingual Education and Minority Language Affairs.
    Section 3122--Research. New section 3122 requires the 
Secretary to conduct research through the Office of Educational 
Research and Improvement in coordination with the Office of 
Bilingual Education and Minority Language Affairs. The research 
is required to have practical application and may include 
research on effective instructional practices and may also 
include establishing a common definition of ``limited English 
proficient student''. At least 5 percent of the funds must be 
used for field-initiated research conducted by grant 
recipients.
    Section 3123--Academic Excellence Awards. New section 3123 
authorizes the Secretary to make grants to State educational 
agencies to assist in recognizing local educational agencies 
and other public and nonprofit entities whose programs have 
demonstrated significant progress in assisting limited English 
proficient students to learn English and achieving the content 
standards. Each State seeking an grant shall submit an 
application.
    Section 3124--State Grant Program. New section 3124 
authorizes awards to State educational agencies which 
demonstrate that they effectively provide for the education of 
limited English proficient students through their own or 
through other federal education programs. Such awards may not 
exceed 5 percent of the total awarded to local educational 
agencies in the State under subpart 1, but may not be less than 
$200,000. Funds may be used to assist local educational 
agencies with program design, student assessment, evaluation, 
accountability systems, and data collection. Funds may also be 
used to train State educational agency personnel. State 
educational agencies receiving awards must provide an annual 
report to the Secretary summarizing the use of award funds.
    Section 3125--National Clearinghouse for Bilingual 
Education. New section 3125 requires the Secretary to establish 
and support a national clearinghouse to collect, analyze, 
synthesize, and disseminate information about bilingual 
education and related programs. Functions of the clearinghouse 
include that it is to: be administered as an adjunct 
clearinghouse supported by the Office of Educational Research 
and Improvement; coordinate with other federal efforts; develop 
a monitoring system; disseminate through comprehensive regional 
assistance centers a listing of individuals who might be used 
as a resource by local educational agencies; and publish an 
annual list of grant recipients under subpart 1.
    Section 3126--Instructional Materials Development. New 
section 3126 authorizes grants for the development, 
publication, and dissemination of instructional materials in 
Native American and Native Hawaiian languages, in the language 
of Native Pacific Islanders and other natives of the outlying 
areas, and in other low-incidence languages. Priority is given 
to proposals for materials in languages indigenous to the 
United States or the outlying areas and for materials 
consistent with voluntary national and State content standards.
            Subpart 3--Professional development
    Section 3131--Purpose. New section 3131 describes the 
purpose of this subpart assupporting professional development 
and the dissemination of information about appropriate 
instructional practices related to the education of limited 
English proficient children and youth.
    Section 3132--Training for All Teachers Program. New 
section 3132 authorizes five-year grants to local educational 
agencies or to one or more local educational agencies in a 
consortium with one or more State educational agencies, 
institutions of higher education, or non-profit organizations 
to offer pre-service and in-service professional development 
programs for teachers, administrators, and other personnel to 
improve their provision of services to limited English 
proficient children and youth. Grantees are to use funds to 
conduct high-quality, long-term professional development 
activities, which may include: developing induction programs; 
implementing school-based collaborative efforts; coordinating 
activities with other programs; implementing education 
technologies to improve instruction; establishing professional 
networks; and developing curricular materials.
    Section 3133--Bilingual Education Teachers and Personnel 
Grants. New section 3133 authorizes five-year grants to 
institutions of higher education in consortia with local or 
State educational agencies for pre-service and in-service 
professional development of teachers and other educational 
personnel and for national professional development institutes. 
In addition, five-year grants may also be awarded to State and 
local educational agencies for in-service professional 
development. Priority is given to institutions of higher 
education, in consortia with local or State educational 
agencies, which prepare new bilingual education teachers.
    Section 3134--Bilingual Education Career Ladder Program. 
New section 3134 authorizes five-year grants to institutions of 
higher education in consortia with local or State educational 
agencies (consortia may also include community-based 
organizations or professional education organizations) for 
bilingual education career ladder programs and for recruitment 
of bilingual education teachers. Permissive activities include 
development of curricula, stipends and other financial 
assistance, and programs to introduce secondary school students 
to careers in bilingual education. Special consideration is 
provided for applicants which provide for: participant 
completion of baccalaureate and master's degree teacher 
education programs; teacher proficiency in English as a second 
language; coordination with TRIO and other federal programs; 
and student financial aid.
    Section 3135--Graduate Fellowships in Bilingual Education 
Program. New section 3135 authorizes fellowships for masters, 
doctoral, and post-doctoral study related to the instruction of 
limited English proficient children and youth. Fellowship 
recipients must work in an activity related to the education of 
limited English proficient children and youth or repay 
assistance received. The specifics of the fellowship are to be 
set by the Secretary in regulation. Priority may be given to 
institutions of higher education that demonstrate experience in 
assisting fellowship recipients find employment in bilingual 
education.
    Section 3136--Application. New section 3136 establishes 
general requirements for the receipt of grants under subpart 3. 
It deals with consultation, needs assessment, assurances, State 
educational agency review of applications, outreach and 
technical assistance, and assurance of adequate representation 
of Hispanic-serving institutions.
    Section 3137--Stipends. New section 3137 authorizes the 
Secretary to pay stipends to individuals participating in 
subpart 3 training programs.
    Section 3138--Program Evaluations. New section 3138 
requires subpart 3 grant recipients to evaluate their programs 
annually. The evaluations are to include information regarding 
the number of participants, the effectiveness of the program, 
and the teaching effectiveness of graduates of the program.
    Section 3139--Use of Funds for Second Language Competence. 
New section 3139 provides that awards under subpart 3 may be 
used to develop a participant's competence in a second language 
for use in instructional programs.

Part B--Foreign Language Assistance Program

    Section 3201--Short Title. New section 3201 provides that 
the short title of part B is ``Foreign Language Assistance Act 
of 1994''.
    Section 3202--Program Authorized. New section 3202 
authorizes three-year matching grants to State educational 
agencies or local educational agencies for innovative model 
programs of foreign language study for elementary and secondary 
school students. The federal match is 50 percent, but it may be 
waived for a local educational agency which can demonstrate 
lack of adequate resources to pay the non-federal share. State 
educational agency grants shall be for programs that promote 
systemic approaches to improving foreign language learning. 
Local educational agency grants must show promise of being 
continued beyond the grant period, demonstrate approaches which 
can be disseminated, and may include professional development. 
At least three-fourths of the funds must be used to expand 
foreign language learning in the elementary grades.
    Section 3203--Applications. New section 3203 includes 
application requirements. The Secretary shall give special 
consideration to applications which: include intensive summer 
foreign language programs for professional development; promote 
two-way language learning; promote the sequential study of a 
foreign language; make effective use of technology; promote 
innovative activities, such as immersion; and are carried out 
through a consortium between the grantee and an elementary or 
secondary school.
    Section 3204--Elementary School Foreign Language Incentive 
Program. New section 3204 authorizes incentive payments to 
public elementary schools which provide students with a program 
designed to lead to communicative competency in a foreign 
language.
    Section 3205--Authorization of Appropriations. New section 
3205 authorizes appropriations of $35 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years, of which no more than $20 million may 
be used in each fiscal year to carry out the elementary school 
foreign language incentive program.

Part C--Emergency Immigrant Education Program

    Section 3301--Purpose. New section 3301 sets out findings 
related to the education of immigrant students and states the 
purpose of Part C, which is to assist eligible local 
educational agencies that experience unexpectedly large 
increases in their student population due to immigration in 
providing educational services to those students.
    Section 3302--State Administrative Costs. New section 3302 
permits State educational agencies to reserve up to 1.5 percent 
of the amount allocated to them for administrative costs. State 
educational agencies may reserve up to 2 percent if they 
distribute funds to local educational agencies competitively.
    Section 3303--Withholding. New section 3303 permits the 
Secretary to withhold Part C funds from a State educational 
agency if, after notice and opportunity for a hearing, the 
Secretary determines that the State educational agency has 
failed to meet the requirements of Part C. The Secretary may 
also require that the State educational agency not make further 
payments to specified local educational agencies whose actions 
are involved with the failure to meet these requirements.
    Section 3304--State Allocations. New section 3304 
establishes the allocation of Part C funds to State educational 
agencies. Each participating State receives an allocation equal 
to the State's proportion the number of immigrant students 
relative to the total number of immigrant students in all 
States participating in the program. Immigrant student counts 
are determined on a local educational agency basis, with 
eligible local educational agencies being those which have at 
least 500 immigrant students or 3 percent of total enrollment 
comprised of such students--whichever is less. If Part C 
funding exceeds $50 million, a State educational agency may 
reserve up to 20 percent of its payment to award competitive 
grants to local educational agencies--at least half of which 
must go to the local educational agencies with the highest 
numbers and percentages of immigrant students. The remaining 
competitive grant funds may be awarded either to the local 
educational agencies described above or to local educational 
agencies with a sudden influx of immigrant children which would 
otherwise not be eligible for assistance under Part C.
    Section 3305--State Applications. New section 3305 provides 
that State educational agencies must apply for funds and sets 
out assurances which must be included in the application, 
including an assurance that funds not distributed by 
competitive grant will be provided to local educational 
agencies on the basis of their immigrant student count and an 
assurance that immigrant students attending nonpublic schools 
are served. The application must be approved by the Secretary.
    Section 3306--Administrative Provisions. New section 3306 
provides that the Secretary must notify a State educational 
agency regarding the amount of its allocation for the 
succeeding year no later than June 1 each year. If a local 
educational agency is prohibited from, has substantially failed 
or is unwilling to provide educational services for children 
enrolled in nonpublic schools, the Secretary must arrange for 
the provision of services to such children. Waivers of the 
local educational agency's requirements to offer these services 
are subject to consultation, withholding, notice, and judicial 
review requirements in accordance with the provisions of title 
I.
    Section 3307--Uses of Funds. New section 3307 sets out a 
number of permissive uses of funds, the purpose of which is to 
enhance instructional opportunities for immigrant students. A 
local educational agency may form a consortia with one or more 
local educational agencies, institutions of higher education, 
and nonprofit organizations and may also make subgrants.
    Section 3308--Reports. New section 3308 requires State 
educational agencies to report every 2 years to the Secretary 
concerning the expenditure of funds by local educational 
agencies under this part. Each local educational agency 
receiving funds under this part shall submit to the State 
educational agency such information as may be necessary for 
such report. The Secretary shall submit, once every 2 years, a 
report to the appropriate committees of the Congress concerning 
programs assisted under Part C.
    Section 3309--Authorization of Appropriations. New section 
3309 authorizes appropriations of $200 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.

Part D--Administration

    Section 3401--Release Time. New section 3410 requires the 
Secretary to allow professional development programs funded 
under part A to use such funds for professional release time to 
enable individuals to participate in programs assisted under 
the subpart.
    Section 3402--Education Technology. New section 3402 
provides that funds made available under part A may be used to 
provide for the acquisition or development of education 
technology or instructional materials, including authentic 
materials in languages other than English, access to and 
participation in electronic networks for materials, training 
and communications, and incorporation of such resources in 
curricula and programs such as those funded under title III.
    Section 3403--Notification. New section 3403 provides that 
the State educational agency, and when applicable, the State 
board for postsecondary education, shall be notified within 
three working days of the date an award under part A is made to 
an eligible entity within the State.
    Section 3404--Continued Eligibility. New section 3404 
provides that entities receiving grants under this title shall 
remain eligible for grants for subsequent activities which 
extend or expand and do not duplicate those activities 
supported by a previous grant under this title. In considering 
applications for grants under this title, the Secretary shall 
take into consideration the applicant's record of 
accomplishments under previous grants under this title.
    Section 3405--Coordination and Reporting Requirements. New 
section 3405 requiresthe Secretary to coordinate with other 
programs serving limited English proficient children and youth 
administered by the Department and by other agencies, to assure 
that data collected by the Department include data on limited 
English proficient children and youth (to the extent feasible), 
publish and disseminate all requests for proposals for subpart 
1 programs. In addition, the Director of the Office of 
Bilingual Education and Minority Language Affairs shall report 
to the Secretary and House and Senate authorizing committees 
every other year on activities related to this title.

Part E--General provisions

    Section 3501--Definitions; Regulations. New section 3501 
provides definitions for the terms ``bilingual education 
program,'' ``children and youth,'' ``community-based 
organization,'' ``community college,'' ``director,'' ``family 
education program,'' ``immigrant children and youth,'' 
``limited English proficiency and limited English proficient,'' 
``Native American and Native American language,'' ``Native 
Hawaiian or Native American Pacific Islander native language 
educational organization,'' ``native language,'' ``office,'' 
``other programs for persons of limited English proficiency,'' 
``paraprofessional,'' and ``special alternative instructional 
program.''
    Section 3502--Regulations and Notification. New section 
3502 requires the Secretary to consult with State educational 
agencies, local educational agencies, and groups involved in 
bilingual education in developing title III regulations. It 
also includes provisions for parental notification of items 
related to the program and for the option to decline enrollment 
of their children in bilingual education programs. Parents are 
also to receive this information in a manner and form 
understandable to them.

          TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

    Section 401--Amendment to the Elementary and Secondary 
Education Act of 1965. This section amends title IV and inserts 
the following:

Part A--State grants

    The new part A renames title IV, part A as ``State 
Grants.''
    Provisions of title IV, part A include:
    Section 4001--Short Title. This section specifies that part 
A may be cited as the ``Safe and Drug-Free Schools and 
Communities Act of 1994.''
    Section 4002--Findings. This section provides new 
congressional findings regarding this part, including: (1) 
every student should attend a school in a drug- and violence-
free learning environment; (2) the widespread illegal use of 
alcohol and drugs among the Nation's secondary school students, 
and increasingly by students in elementary schools, constitutes 
a grave threat to such students' physical and mental well-
being, and significantly impedes the learning process; (3) drug 
and violence prevention programs are essential components of a 
comprehensive strategy to promote school safety, youth 
development, positive school outcomes, and to reduce the demand 
for and illegal use of alcohol, tobacco and drugs throughout 
the Nation; (4) drug and violence prevention programs are most 
effective when implemented within a research-based, drug and 
violence prevention framework of proven effectiveness; (5) 
research clearly shows that community contexts contribute to 
substance abuse and violence; (6) substance abuse and violence 
are intricately related and must be dealt with in a holistic 
manner; and (7) research has documented that parental behavior 
and environment directly influence a child's inclination to use 
alcohol, tobacco or drugs.
    Section 4003--Purpose. This section states the purpose of 
Part A which is to support programs that prevent violence in 
and around schools and prevent the illegal use of alcohol, 
tobacco, and drugs; involve parents; and are coordinated with 
related Federal, State, school, and community efforts and 
resources.
    Section 4004--Funding. This section authorizes specific 
funding levels for fiscal year 2002 and such sums as may be 
necessary for the 6 succeeding fiscal years for the following 
programs: $700 million for the State Grants program under 
subpart 1; $150 million for the National Programs under subpart 
2; and $75 million for the National Coordinator Initiative 
under section 4122. In addition, this section authorizes $5 
million in each of fiscal years 2002 through 2004 to carry out 
the ``Grants to Combat the Impact of Experiencing or Witnessing 
Domestic Violence on Elementary and Secondary School Children'' 
authorized in section 4125.
            Subpart 1--State grants for drug and violence prevention 
                    programs
    Section 4111--Reservations and Allotments. This section 
requires the Secretary to: reserve 1 percent of the amount made 
available under section 4004(1) for Guam, American Samoa, the 
Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands; reserve 1 percent of the same amount for the Secretary 
of the Interior to carry out programs under this part for 
Indian youth; reserve not more than $2 million for the National 
impact evaluation required by section 4117(a); and reserve 0.2 
percent of above amount for programs for Native Hawaiians under 
section 4118.
    Section 4112--State Applications. This section requires 
States seeking an allotment to submit an application to the 
Secretary including: a comprehensive plan for the use of funds 
under the Governor's program and the State Department of 
Education's program; a needs assessment and results of ongoing 
State evaluation activities; assurances that stakeholders were 
consulted; measurable goals; a description of how the funds 
will be spent; a description of how the State will receive 
input from parents; and a comprehensive plan for using and 
monitoring the funds received under title IV. The State plan 
shall also include a comprehensive plan for the Governor's 
program by the chief executive officer.
    Section 4113--State and Local Educational Agency Programs. 
This section reserves 80 percent of the funds made available to 
States to be used for State support and grants to local 
educational agencies for drug and violence prevention 
activities. State and local programs must implement activities 
that are research-based initiatives, and States are required to 
implement auniform management and information reporting system 
so that expenditures of these funds can be clearly tracked. A 
State educational agency may use up to 5 percent of available 
funds for technical assistance and 5 percent for the 
administrative costs of carrying out responsibilities.
    State educational agencies may choose between the following 
two options for allocating remaining funds to local educational 
agencies: (1) at least 70 percent to schools based on 
enrollment and up to 30 percent allocated at the State's 
discretion or to schools the State determines to have the 
greatest need; or (2) up to 70 percent on a competitive basis 
to those schools with the greatest need, and 30 percent to 
those schools the State determines require additional help to 
run a program but which might not meet the ``greatest need'' 
criteria. These options would allow States to choose and define 
a competitive or baseline minimum grant system and still allow 
them to help those schools that could not compete under that 
system.
    Section 4114--Governor's Programs. This section reserves 20 
percent of a State's allocation for Governors' programs, of 
which not less than 95 percent of the funds must be used for 
research-based substance abuse/violence reduction through a 
broad range of activities. Governors are authorized to add 
their money directly to the funds being sent to schools and 
communities to serve out-of-school youth and to undertake 
community mobilization activities related to substance abuse 
and violence.
    Section 4115--Local Applications. This section states that 
in order to be eligible for a distribution under section 
4113(d), a local educational agency must submit an application 
to the State educational agency. The application shall: include 
a needs assessment; set measurable goals and objectives; 
utilize effective research-based programs; ensure participation 
of community groups; and include a program evaluation.
    Section 4116--Local Drug and Violence Prevention Programs. 
This section requires local educational agencies to use funds 
received under subpart 1 to adopt and carry out a comprehensive 
drug and violence prevention program. The program shall be 
designed for all students and school employees in order to 
prevent the use, possession, and distribution of tobacco, 
alcohol, and illegal drugs; prevent violence and promote school 
safety; and create a disciplined environment conducive to 
learning. The program must also include activities to promote 
the involvement of parents and coordination with community 
groups and agencies.
    Section 4117--Evaluations and Reporting. This section 
requires the Secretary of Education to consult with the newly 
created National Advisory Committee to conduct an independent 
biennial evaluation of the impact of programs assisted under 
subpart 1 and on other recent and new initiatives to combat 
violence in schools. The evaluation shall determine whether 
funded programs conform to the principles of effectiveness; 
target research-based programs such as risk factors and/or 
protective factors/buffers or assets; reduce drug use, school 
violence, and the presence of firearms at schools; and have 
conducted effective parental involvement and voluntary training 
activities. The Department of Education, States, and the 
Governors are required to implement program and financial 
monitoring. Every 2 years, States shall provide the Secretary 
with a report detailing the implementation and outcomes of the 
State's and local educational agencies programs and their 
effectiveness, the State's progress toward attaining its goals 
for drug and violence prevention, and the State's efforts to 
inform parents of, and include parents in, violence and drug 
prevention efforts. In addition, local educational agencies are 
required to provide State educational agencies with the 
information they may need to complete the State reports.
    Section 4118--Programs for Native Hawaiians. This section 
authorizes the Secretary to provide grants to or enter into 
cooperative agreements with organizations that serve and 
represent Native Hawaiians in order to plan, conduct, and 
administer programs that are authorized by and consistent with 
the provisions of title IV for the benefit of Native Hawaiians. 
For the purposes of this section, Native Hawaiians are those 
individuals whose ancestors were natives, prior to 1778, of the 
area which now comprises the State of Hawaii.
            Subpart 2--National programs
    Section 4121--Federal Activities. This section authorizes 
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, to carry out programs 
to prevent the illegal use of drugs and violence among 
students, and to promote safety and discipline for students. 
The Secretary may carry out programs directly or award grants 
to public and private nonprofit organizations and individuals 
for a variety of activities designed to prevent the illegal use 
of drugs and violence among students from pre-school through 
the postsecondary level.
    Section 4122--National Coordinator Program. This section 
states that the Secretary shall provide for the establishment 
of a National Coordinator Program under which grants are 
awarded to local educational agencies for the hiring of drug 
prevention and school safety program coordinators. Coordinators 
shall be responsible for developing, conducting, and analyzing 
assessments of drug and crime problems at their schools, and 
administering the safe and drug free grant program.
    Section 4123--Safe and Drug Free Schools and Communities 
Advisory Committee. This section creates a Safe and Drug Free 
Schools and Communities Advisory Committee. The Advisory 
Committee shall: coordinate Federal drug and violence 
prevention programs; develop core data sets and evaluation 
programs; provide technical assistance and training; provide 
for the diffusion of research-based programs; and review other 
regulations and standards developed under this title. The 
committee will include representatives from the Department of 
Education, the Centers for Disease Control and Prevention, the 
National Institute on Drug Abuse, the National Institute on 
Alcoholism and Alcohol Abuse, the Center for Substance Abuse 
Prevention, the Center for Mental Health Services, the Office 
of Juvenile Justice and Delinquency Prevention, the Office of 
National Drug Control Policy, and the State and local 
government education agency representatives. The Advisory 
Committee shall annually consult with State and local 
coordinators of school and community-based substance abuse and 
violence prevention programs and other interested groups.
    Section 4124--Hate Crime Prevention. This section 
authorizes the Secretary to makegrants to local educational 
agencies and community-based organizations for the purpose of 
providing assistance to localities most directly affected by 
hate crimes. Grants may be used to: (1) develop education and 
training programs designed to prevent and reduce the incidences 
of crimes motivated by hate; (2) develop curriculum to improve 
conflict or dispute resolution skills of students, teachers and 
administrators; (3) develop equipment and instructional 
materials to meet the needs of hate crime or conflict programs; 
and (4) provide professional training and development for 
teachers and administrators on the causes, effects, and 
resolutions of hate crimes.
    Section 4124(b) requires local educational agencies seeking 
a grant under this section to submit an application to the 
Secretary that includes a request for funds, a description of 
the schools and communities to be served by the grants, and an 
assurance that the Federal funds will be used to supplement and 
not supplant non-Federal funds. Applications shall also include 
a comprehensive plan describing the hate crime problems within 
the school or community and a description of the program to be 
developed or augmented by Federal funds.
    Section 4124(c) requires the Secretary, in awarding grants, 
to consider the incidence of crimes in the community and should 
attempt to achieve an equitable geographic distribution. If 
possible, the Secretary shall make available information 
regarding successful hate crime prevention programs.
    Section 4124(d) provides that, every 2 years, the Secretary 
shall submit a report to Congress describing the grants and 
awards, the activities of grant recipients, and an evaluation 
of programs established by this section.
    Section 4125. Grants to Combat the Impact of Experiencing 
or Witnessing Domestic Violence on Elementary and Secondary 
School Children. This section authorizes the Secretary to award 
competitive grants and contracts to elementary and secondary 
schools that work with experts to support training, 
programming, support services, and policies relating to 
children experiencing or witnessing domestic violence. The 
confidentiality of the victim and the victim's family must be 
maintained. The section includes definitions of ``domestic 
violence,'' ``experts,'' ``witness domestic violence,'' and 
``witness.''
            Subpart 3--General provisions
    Section 4131--Definitions. This section provides the 
meanings of certain terms used in this part, including, 
``community-based organization,'' ``drug and violence 
prevention,'' ``hate crime,'' ``nonprofit,'' ``objectively 
measurable goals,'' ``protective factor, buffer, or asset,'' 
``risk factor,'' ``school-aged population,'' and ``school 
personnel.''
    Section 4132--Materials. This section states that drug 
prevention programs supported under part A should convey a 
message that the use of drugs and alcohol is illegal and 
harmful. In addition, the Secretary may not prescribe the use 
of specific curriculum for programs supported under this part, 
but may evaluate the effectiveness of the curriculum.
    Section 4133--Prohibited Uses of Funds. This section 
prohibits the use of funds under part A for construction and 
medical services, drug treatment or rehabilitation, except for 
pupil services or referral to treatment for students who are 
victims or witnesses to crime or who use alcohol or drugs.
    Section 4134--Quality Rating. This section encourages 
States to establish a standard of quality for drug and alcohol 
prevention programs implemented in elementary and secondary 
schools and to identify and designate a school that achieves 
such standard as a quality program school. The standard shall 
address: a comparison of the rate of illegal use of drugs and 
alcohol by students; the rate of suspensions or expulsions of 
students for offenses; the effectiveness of the prevention 
programs; the involvement of parents and community members in 
the design of prevention programs; and the extent of review of 
existing community prevention programs before implementation of 
the public school program. Schools wishing to receive a quality 
school program designation shall submit a request to the State 
and the State shall create a list of the designated schools for 
the public.
    Section 402--Gun-Free Requirements. This section amends 
title IV by adding the following:

Part B--Gun possession

    Part B retains current law with respect to ``Gun 
Possession'' as follows:
    Section 4201--Gun-Free Requirements. This section specifies 
that this part may be cited as the ``Gun-Free Schools Act of 
1994.'' Part B requires States receiving Federal funds under 
this act to have a State law requiring local educational 
agencies to expel from school for at least 1 year any student 
who brings a weapon to school. This part should not prevent a 
local educational agency that has expelled a student from the 
student's regular school setting from providing educational 
services to the student in an alternative setting. Local 
educational agencies seeking assistance from State educational 
agencies, shall provide to the State an assurance that such 
local educational agency is in compliance with the State law 
and a description of the circumstances surrounding any 
expulsions imposed under the State law. States shall report 
this information to the Secretary on an annual basis.
    Section 4202--Policy Regarding Criminal Justice System 
Referral. This section states that no funds under part B shall 
be made available to a local educational agency unless the 
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 the agency.
    Section 403. School Safety and Violence Prevention. Section 
403 adds a new Part C,entitled ``School Safety and Violence 
Prevention'', to title IV, as follows:

Part C--School safety and violence prevention

    Section 4301--School Safety and Violence Prevention. This 
section states that Federal funds under title IV and subpart 4 
of title V of this act may be used for: training school 
personnel to identify potential threats; training community 
members and school personnel to identify troubled youth; 
delinquency and violence prevention programs; comprehensive 
school security assessments; purchase of metal detectors, 
locks, and surveillance cameras; collaborative efforts with 
community-based organizations to reduce violence; assistance in 
establishing school uniform policies; school resource officers; 
and other innovative programs to reduce school violence.
    Section 4302--School Uniforms. This section states that 
nothing in this act should be construed to prohibit schools 
from establishing a school uniform policy. Funds under title IV 
and subpart 4 of title V may be used to establish a school 
uniform policy.
    Section 4303--Transfer of School Disciplinary Records. This 
section requires States receiving Federal funds under this act 
to assure the Secretary that the State has a procedure in place 
by which local educational agencies must transfer the 
suspension and expulsion records of any student to any private 
or public elementary or secondary school in which that student 
seeks enrollment. This requirement does not apply to private 
schools. This section also amends the National Child Protection 
Act of 1993 to specify that individuals who are employed, or 
seek employment, with schools are included in the provisions of 
that act relating to background checks.
    Section 404--Environmental Tobacco Smoke. Section 403 adds 
a new Part D, entitled ``Environmental Tobacco Smoke'', to 
title IV, as follows:

Part D--Environmental tobacco smoke

    Section 4401--Short Title. This section specifies that this 
part may be cited as the ``Pro-Children Act of 2000.''
    Section 4402--Definitions. This section provides the 
meanings of certain terms used in part D, including: 
``children,'' ``children's services,'' ``indoor facility,'' 
``person,'' and ``Secretary.''
    Section 4403--Nonsmoking Policy for Children's Services. 
This section prohibits smoking within any indoor facility owned 
or leased or contracted for, and utilized for the provision of 
regular or routine kindergarten, elementary or secondary 
education or library services to children; or regular or 
routine health care or day care or early childhood development 
(Head Start services). Any portion of a facility that is used 
for inpatient hospital treatment of individuals dependent on, 
or addicted to drugs or alcohol and private residences are 
exempt from the provision. The prohibitions shall be published 
in the Federal Register by the Secretary. Such prohibitions 
shall be effective 90 days after such notice is published or 
270 days after the enactment of this act, whichever occurs 
first. Failure to comply with a prohibition shall be considered 
a violation of this act and a civil penalty in an amount not to 
exceed $1,000 shall be charged. A civil penalty may be assessed 
in a written notice, or an administrative compliance order may 
be issued.
    Section 4404--Preemption. This section states that nothing 
in this part is intended to preempt a provision of a State law 
or a political subdivision of a State that is more restrictive 
than a provision in this part.
    Section 501--Public School Choice and Flexibility. This 
section renames title V of Elementary and Secondary Education 
Act of 1965 ``Public School Choice and Flexibility'' and amends 
the title to read as follows:

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Part A--Public school choice

            Subpart 1--Charter schools
    This subpart maintains current law provisions dealing with 
charter schools, transferring the provisions from part C of 
title X of the act to subpart 1 of part A of title V and making 
minor drafting changes for purposes of clarification and 
consistency.
    Section 5111. Purpose. New section 5111 maintains the 
current law purpose relating to charter schools.
    Section 5112. Program Authorized. New section 5112 
maintains current law provisions authorizing grants to State 
educational agencies to conduct a charter school grant program. 
The section also provides for the awarding of grants to 
eligible applicants in cases where the State educational agency 
elects not to participate in or does not have an application 
approved under this program.
    Section 5113. Applications. New section 5113 maintains 
current law provisions outlining the content of grant 
applications submitted under this subpart.
    Section 5114. Administration. New section 5114 maintains 
current law provisions describing the selection criteria to be 
used by the Secretary in awarding grants and the use of subpart 
1 funds.
    Section 5115. National Activities. New section 5115 
maintains current law provisions requiring the Secretary to 
reserve funds to carry out national information, study, 
evaluation, datagathering, and dissemination activities.
    Section 5116. Federal Formula Allocation During First Year 
and For Successive Enrollment Expansions. New section 5116 
maintains current law provisions dealing with the allocation of 
title I funds to a charter school within 5 months after the 
charter school opens and to a charter school that first opens 
after November 1 of any academic year.
    Section 5117. Solicitation of Input from Charter School 
Operators. New section 5117 maintains current law provisions 
regarding the consultation with individuals directly involved 
in the operation of charter schools in the development of rules 
and regulations for this subpart or for any other Federal 
program involving charter schools.
    Section 5118. Records Transfer. New section 5118 maintains 
current law provisions dealing with the transfer of student 
records to a charter school.
    Section 5119. Paperwork Reduction. New section 5119 
maintains current law provisions stating that implementation of 
this subpart should result in a minimum amount of paperwork for 
eligible applicants and charter schools.
    Section 5120. Definitions. New section 5120 maintains 
current law provisions defining the terms ``charter school,'' 
``developer,'' ``eligible applicant,'' and ``authorized public 
chartering agency.''
    Section 5121. Authorization of Appropriations. This section 
authorizes $190 million in funding for fiscal year 2002 and 
such sums as may be necessary for each of the 6 succeeding 
fiscal years.
            Subpart 2--Magnet schools assistance
    Section 5131--Findings and Statement of Purpose. This 
section provides congressional findings and the purpose of this 
part which is to assist in the desegregation of schools served 
by local educational agencies by providing financial assistance 
to: (1) eliminate, reduce, or prevent minority group isolation; 
(2) promote systemic reform efforts; (3) develop innovative 
educational methods and practices; (4) develop courses of 
instruction which strengthen knowledge of academic subjects and 
marketable skills; (5) improve capacity of magnet schools to 
operate after Federal funding is terminated; and (6) ensure 
that magnet schools students have equitable access to the 
education necessary to succeed.
    Section 5132--Program Authorized. This section authorizes 
the Secretary to make grants to local educational agencies for 
magnet schools.
    Section 5133--Definition. This section defines the term 
``magnet school.''
    Section 5134--Eligibility. This section defines eligibility 
standards for the receipt of magnet school grants.
    Section 5135--Applications and Requirements. This section 
requires a local educational agency seeking assistance under 
this part to submit an application to the Secretary. This 
section also includes a description of the requirements of the 
application.
    Section 5135(b)(2)(E) amends current law to provide 
equitable consideration for students in the local attendance 
area, consistent with desegregation guidelines and the capacity 
of the program to accommodate these students. Other provisions 
of current law are maintained.
    Section 5136--Priority. This section provides guidelines 
for the prioritization of applicants by the Secretary. This 
section amends current law by giving priority to applicants 
that propose activities to build local capacity to operate the 
program once Federal assistance has ended. Other provisions of 
current law are maintained.
    Section 5137--Use of Funds. This section specifies the 
allowable uses of grant funds. This new section amends current 
law to: allow grant recipients to use funds for professional 
development in order to facilitate self-sufficiency after 
Federal assistance has ended; offer the flexibility of a magnet 
school program in order to serve local students not enrolled in 
a magnet school program; and enable the local educational 
agency to have flexibility in designing magnet schools for 
students of all grades. Other provisions of current law are 
maintained.
    Section 5138--Prohibition. This section prohibits the use 
of funds for transportation or any activity that does not 
augment academic improvement.
    Section 5139--Limitations. This section provides for the 
duration of awards, limits on planning funds, and amount and 
timing of awards. This section increases the percentage of 
funds which may be expended for planning in the second and 
third years to 25 and 15 percent respectively. This section 
also clarifies that professional development is not planning.
    Section 5140--Innovative Programs. This section authorizes 
the Secretary to award grants to local educational agencies to 
conduct innovative programs that involve strategies other than 
magnet schools to achieve desegregation goals and assist 
students in meeting State and local standards. This section 
amends provisions of current law to update references. Other 
provisions of current law are maintained.
    Section 5141--Evaluations. This section provides guidelines 
for evaluations of projects under this part and for technical 
assistance for grant recipients. This new section amends 
current law to provide that evaluations shall address how 
magnet school programs will continue once assistance under this 
part has ended. This section also amends current law to require 
the Secretary to collect and disseminate information to the 
public on successful magnet schoolprograms. Finally, this 
section amends provisions of current law to update references. 
Other provisions of current law are maintained.
    Section 5142--Authorization of Appropriations; Reservation. 
This section authorizes a funding level of $125 million for 
fiscal year 2002 and such sums as may be necessary for the 6 
succeeding fiscal years. Other provisions of current law are 
maintained.
            Subpart 3--Public school choice
    Section 5151--Public School Choice. This section allocates 
funds to States, which are to allocate all these funds to local 
educational agencies to carry out school improvement 
activities. Each local educational agency receiving funds under 
this subpart or under part A of title I, with the exception of 
local educational agencies located in a States which receives a 
minimum grant, must provide all students enrolled in a school 
identified for school improvement with the option to transfer 
to another public school within the agency that has not been 
identified for school improvement. An exception is provided in 
cases where the option to transfer is prohibited by State or 
local law. If a local educational agency can demonstrate to the 
State educational agency that it lacks the capacity to provide 
all students with the option to transfer, the agency must 
permit as many students as possible--selected on an equitable 
basis--to transfer. A funding level of $225 million for fiscal 
year 2002 and such sums as may be necessary in each of the 6 
succeeding fiscal years is authorized for this section.

Part B--Flexibility

            Subpart 1--Education flexibility partnerships
    Section 5201--Short Title. Section 5201 cites subpart 1 of 
part B as the ``Education Flexibility Partnership Act of 
2001''.
    Section 5202--Definitions. Section 5202 defines ``eligible 
school attendance area,'' ``school attendance area,'' and 
``State.'' These definitions apply to subpart 1 of part B.
    Section 5203--Education Flexibility Partnership. Section 
5203(a) establishes the Educational Flexibility (Ed-Flex) 
Program.
    Section 5203(b) describes the programs that are included 
under Ed-Flex.
    Section 5203(c) describes waivers that are not authorized 
under Ed-Flex.
    Section 5203(d) describes the treatment of existing Ed-Flex 
Partnership States.
    Section 5203(e) requires the Secretary to publish a notice 
in the Federal Register which describes the Secretary's 
decision to authorize State educational agencies to issue 
waivers.
            Subpart 2--Rural Education Initiative Program
    New section 5221--Short Title. This section provides that 
subpart 2 of title V may be cited as the ``Rural Education 
Achievement Program.''
    New section 5222--Purpose. This section states the purpose 
of the subpart is to address the unique needs of rural school 
districts which frequently lack the personnel and resources 
needed to compete for Federal competitive grants and frequently 
receive formula allocations in amounts too small to be 
effective in meeting their intended purposes.
    New section 5223--Authorization of Appropriations. This 
section authorizes $300 million for fiscal year 2002, of which 
$125 million shall first be made available to carry out chapter 
1, and such sums as may be necessary for each of the 6 
succeeding fiscal years

Chapter 1--Small, Rural School Achievement Program

    New section 5231--Formula Grant Program Authorized. This 
section authorizes rural educational agencies with an average 
daily attendance of 600 students or fewer to consolidate the 
funds they receive under Titles II, IV, and V of the Elementary 
and Secondary Education Act. These funds may be used to improve 
student achievement in accordance with the provisions of 
sections 1114, 1115, 1116, 2123, or 4116.
    New section 5232--Competitive Grant Program Authorized. 
This section authorizes the Secretary to award grants to small 
rural educational agencies to carry out innovative assistance 
activities. The grant will be equal to $100 multiplied by the 
total number of students in excess of 50 students that are in 
average daily attendance. No grant may be less than $20,000 or 
more than $60,000.
    New section 5233--Accountability. This section requires 
that each participating educational agency must administer an 
assessment, consistent with the assessment used pursuant to 
section 1111(b) of the Elementary and Secondary Education Act, 
to assess the academic achievement of students in schools 
served by the local educational agency. At the end of 3 years 
of participation in this program, the state educational agency 
shall determine whether students served by the participating 
local educational agency have improved their performance on the 
assessments. If student achievement has not improved, the local 
educational agency may no longer participate in the program.
    New section 5234--Ratable Reductions in Case of 
Insufficient Appropriations. This section provides for ratable 
reductions in case of insufficient appropriations.

Chapter 2--Low-Income and Rural School Program

    New section 5241--Definitions. This section provides 
definitions of ``poverty line'' and``specially qualified 
agency'' for use in chapter 2 of title V which provides funding 
for the Low-Income and Rural School Program.
    New section 5242--Program Authorized. This section 
authorizes the Secretary of Education to make grants to state 
educational agencies that are located in rural communities and 
that have student populations of which 20 percent or more come 
from families with incomes below the poverty line.
    New section 5243--State Distribution of Funds. This section 
describes the authorized uses of funds and provides that the 
State educational agency may distribute funds to local 
educational agencies on a competitive basis or on the basis of 
a formula based on the number of students in average daily 
attendance at the eligible local educational agency.
    New section 5244--Applications. This section requires each 
State educational agency or local educational agency in a non-
participating State to submit an application to the Secretary 
of Education. The application shall, at a minimum, include 
measurable goals and objectives, including specific goals and 
objectives relating to increased student academic achievement, 
decreased student drop out rates, or other factors.
    New section 5245--Accountability. This section requires 
each State educational agency to prepare and submit to the 
Secretary an annual report that describes the method that funds 
were distributed to local educational agencies, how the funds 
were used by these agencies, and the degree to which the State 
made progress toward meeting the goals and objectives described 
in the application. The section also provides that a 
participating local educational agency that receives a grant 
under this subpart may not continue to participate if after 3 
years it has not improved student academic achievement.
    New section 5246--Supplement Not Supplant. This section 
provides that funds shall be used to supplement and not 
supplant other Federal, State, or local education funds.
    New section 5247--Special Rule. This section provides that 
no local educational agency may concurrently participate in 
both chapter 1 and chapter 2.
            Subpart 3--Waivers
    Section 5251--Waivers of Statutory and Regulatory 
Requirements. Section 5251(a) gives the Secretary waiver 
authority.
    Section 5251(b) describes the waiver process. A State 
educational agency, local educational agency, or Indian tribe 
seeking a waiver will submit a waiver request to the Secretary 
that identifies the Federal programs affected by the waiver, 
describes which Federal requirements are to be waived and how 
the waiving will improve quality of instruction or improve 
student academic performance, (if applicable) describes which 
similar State and local requirements will be waived, describes 
specific outcomes for all students, and describes how schools 
will continue to provide assistance to the same populations 
served by programs for which waivers are requested.
    Section 5251(c) specifies that the Secretary shall not 
waive certain statutory or regulatory requirements that pertain 
to the following: allocation of funds to States, local 
educational agencies, or other recipients; maintenance of 
effort; comparability of services; use of Federal funds to 
supplement (not supplant) non-Federal funds; equitable 
participation of private school students and teachers; parental 
participation and involvement; applicable civil rights 
requirements; charter school requirements; prohibitions 
regarding State aid or use of funds for religious worship or 
instruction; or the selection of a school attendance area or 
school under subsections (a) and (b) of section 1113 (except 
that the Secretary may grant a waiver to allow a school 
attendance area or school to participate in activities under 
part A of title I if the percentage of children from low-income 
families in the school attendance area of such school or who 
attend such school is not less than 10 percentage points below 
the lowest percentage of such children for any school 
attendance area or school within the local educational agency 
that meets the requirements of subsections (a) and (b) of title 
1).
    Section 5251(d) establishes that an approved waiver under 
this section may be for 3 years. The Secretary may extend the 
period of time for the waiver if the Secretary determines that 
the waiver has been effective and the waiver is in the public 
interest.
    Section 5251(e) requires a local educational agency that 
receives a waiver under this section to submit a report to the 
State educational agency at the end of the second year and each 
subsequent year for which a waiver is received. This section 
also requires a State educational agency that receives local 
educational reports to submit a report to the Secretary. In 
addition, the Secretary is also required to submit a report to 
the House and Senate education committees summarizing the use 
of waivers and whether the waivers increased the quality of 
instruction or student academic performance.
    Section 5251(f) authorizes the Secretary to terminate a 
waiver if the Secretary determines that the waiver has been 
inadequate or if the waiver is no longer necessary to achieve 
its original purposes.
    Section 5251(g) requires that a notice of the Secretary's 
decision to grant each waiver will be published in the Federal 
Register.
            Subpart 4--Innovative education program strategies
    Section 5301--Purpose; State and Local Responsibility. 
Section 5301(a) lists the purposes of subpart 4 which are: to 
support local and state education reform efforts; to provide a 
continuing source of innovation and educational improvement, 
including support for library services and instructional and 
media materials; and to develop education programs to 
improveschool, student, and teacher performance including 
professional development and class size reduction programs.
    Section 5301(b) specifies that the administration of these 
funds are the responsibility of the State educational agencies 
and the responsibility for design and implementation of the 
programs rests primarily with local educational agencies.
    Section 5302--Authorization of Appropriations; Duration of 
Assistance. Section 5302(a) authorizes $850 million for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    Section 5302(b) authorizes the Secretary to make payments 
to State educational agencies in accordance with the purposes 
described under section 5301(a).
    Section 5303--Definition of Effective Schools Program. 
Section 5303 describes an effective schools program as: 
promoting school-level planning; instructional improvement; and 
staff development for all personnel; and increasing academic 
performance for all children.

Chapter 1--State and local programs

    Section 5311--Allotment to States. Section 5311(a) 
specifies the percentage of funds reserved for the outlying 
areas for subpart 4 activities.
    Section 5311(b) establishes the State allotment formula.
    Section 5311(c) defines ``school-age population'' and 
``State'' as they apply to State allotment.
    Section 5312--Allocation to Local Educational Agencies. 
Section 5312(a) describes the allocation of funds to local 
educational agencies.
    Section 5312(b) describes the calculation of enrollments.
    Section 5312(c) specifies the distribution of funds from 
the State educational agency to the local educational agency.

Chapter 2--State programs

    Section 5321--State Uses of Funds. Section 5321(a) 
authorizes the State educational agency activities which 
include: State administration; support for planning and 
implementing charter schools; support for designing and 
implementing student assessments; support for State and local 
standards implementation; and technical assistance.
    Section 5321(b) specifies the amount of funds available for 
State administration.
    Section 5322--State Applications. Section 5322(a) specifies 
the State application requirements.
    Section 5322(b) specifies that the State application is for 
a period of 3 years and may be amended annually.
    Section 5322(c) specifies that a local educational agency 
that receives less than an average of $10,000 under this part, 
for 3 years will not be audited more than once every 5 years.

Chapter 3--Local innovative educational programs

    Section 5331--Targeted Use of Funds. Section 5331(a) 
establishes that local educational agencies shall use the funds 
awarded under chapter 1 for innovative assistance.
    Section 5331(b) describes an array of activities, programs, 
and initiatives that may be used for innovative assistance. 
These include: programs for the acquisition of instructional 
and educational materials (such as library services, media 
materials, and assessments); professional development programs; 
activities designed to advance student performance; parental 
involvement initiatives; programs to reduce class size; 
programs to improve academic performance of educationally 
disadvantaged students; expansion of best practice models; 
literacy programs; technology activities; school improvement 
programs; activities for gifted and talented students; programs 
to provide same gender schools or classrooms; service learning 
programs; and school safety programs. All activities shall be: 
tied to promoting high academic standards; used to improve 
student performance; and part of an overall education reform 
strategy.
    Section 5332--Administrative Authority. Section 5332 allows 
a State educational agency or a local educational agency to 
enter into grants or contracts with higher education 
institutions, libraries, museums, and public and private 
nonprofit entities.
    Section 5333--Local Application. Section 5333(a) specifies 
the contents of a local educational agency application.
    Section 5333(b) specifies that the local educational agency 
application shall be for a period of 3 years and may be amended 
annually.
    Section 5333(c) gives the local educational agency complete 
discretion in determining how funds are expended at the local 
level.

Chapter 4--General administrative provisions

    Section 5341--Maintenance of Effort; Federal Funds 
Supplementary. Section 5341(a) describes maintenance of effort 
requirements.
    Section 5341(b) specifies that a State or local educational 
agency may only use funds received under this subpart to 
supplement (not supplant) other funding sources.
    Section 5342--Participation of Children Enrolled in Private 
Schools. Section 5342(a) specifies that State education 
agencies shall provide benefit for children enrolled in private 
schools with programs or projects under this subpart.
    Section 5342(b) describes expenditures of funds under this 
subpart for children enrolled in private schools.
    Section 5342(c) requires that the funds provided under this 
subpart must be controlled by a public agency and that public 
agency employees must provide the services.
    Sections 5342(d) through (i) describes the arrangement for 
provision of services to private school children if a State or 
local educational agency, through either State or local law, is 
prohibited from providing services.
    Section 5343--Federal Administration. Section 5343(a) 
requires the Secretary, upon request, to provide technical 
assistance to State and local educational agencies.
    Section 5343(b) gives the Secretary authority to issue 
regulations.
    Section 5343(c) requires that funds become available on 
July 1 of each fiscal year.

Part C--Flexibility in the use of administrative and other funds

    Section 5401--Consolidation of State Administrative Funds 
for Elementary and Secondary Education Programs. Section 
5401(a) establishes the process for a State educational agency 
to consolidate administrative funds if the State educational 
agency chooses the consolidation process.
    Section 5401(b) establishes that a State educational agency 
may use consolidated administrative funds for activities that: 
strengthen coordination of programs; disseminate model programs 
and practices; and provide technical assistance.
    Section 5401(c) provides for consolidated recordkeeping for 
State educational agencies that consolidate administrative 
funds.
    Section 5401(d) requires the Secretary to review State 
educational agencies that consolidate administrative funds.
    Section 5401(e) enables a State educational agency that 
does not use all of its administrative funds to use those 
remaining funds for program activities.
    Section 5401(f) gives a State educational agency the 
ability to consolidate funds for standards and assessment 
development as described under title I of this act.
    Section 5402--Single Local Educational Agency States. 
Section 5402 requires a State educational agency that also 
serves as a local educational agency to describe how 
duplication of administrative functions will be eliminated.
    Section 5403--Consolidation of Funds for Local 
Administration. Section 5403(a) establishes that a local 
educational agency may consolidate administrative funds.
    Section 5403(b) requires the State educational agency to 
establish procedures for responding to requests from local 
educational agencies to consolidate administrative funds.
    Section 5403(c) specifies the conditions for a local 
educational agency to consolidate administrative funds.
    Section 5403(d) describes the use of administrative funds 
for a local educational agency that chooses to consolidate 
administrative funds.
    Section 5403(e) provides for consolidated recordkeeping for 
local educational agencies that consolidate administrative 
funds.
    Section 5404--Administrative Funds Studies. Section 5404(a) 
requires the Secretary to conduct an evaluation of State and 
local uses of administrative funds for programs covered under 
this act.
    Section 5405--Consolidated Set-Aside for Department of the 
Interior Funds. Section 5405 establishes a transfer of funds 
mechanism to the Department of Interior for those consolidated 
funds pertaining to part A of title VII and to subtitle B of 
title VII of the Stewart B. McKinney Homeless Assistance Act.
    Section 5406--Availability of Unneeded Program Funds. 
Section 5406 allows a local educational agency to transfer not 
more than 5 percent of a program's unused funds to another 
program.

Part D--Coordination of programs; consolidated State and local plans 
        and applications

    Section 5501--Purpose. Section 5501 describes the purpose 
for coordinating and consolidating State and local plans and 
applications.
    Section 5502--Optional Consolidated State Plans or 
Applications. Section 5502(a) establishes the authority for 
compiling consolidated State plans or applications.
    Section 5502(b) requires the Secretary to collaborate with 
State educational agencies, local educational agencies, public 
and private entities, parents, students, and teachers to 
establish criteria and procedures for consolidated planning.
    Section 5503--General Applicability of State Educational 
Agency Assurances. Section 5503(a) requires a State educational 
agency that submits a consolidated plan to have on file with 
the Secretary a single set of assurances that are applicable to 
each program.
    Section 5503(b) establishes that section 441 of the General 
Education Provisions Act does not apply to programs under this 
act.
    Section 5504--Additional Coordination. Section 5504(a) 
directs the Secretary to seek coordination of programs with 
other members of the Cabinet for the purpose of enhancing 
coordination and reducing administrative burdens.
    Section 5505--Consolidated Local Plans or Applications. 
Section 5505(a) enables a local educational agency to submit a 
consolidated plan or application to a State educational agency.
    Section 5505(b) specifies that a State educational agency 
that has submitted and had approved a consolidated State plan 
or application may require local educational agencies in the 
State to submit consolidated local plans.
    Section 5505(c) requires a State educational agency to 
collaborate with local educational agencies in establishing 
procedures for the submission of consolidated plans and 
applications.
    Section 5505(d) specifies that a State educational agency 
will require a local educational agency to submit only 
necessary material as part of its plan or application.
    Section 5506--Other General Assurances. Section 5506(a) 
requires any applicant that submits a plan under this Act to 
have on file, with the State educational agency, a set of 
assurances for each program for which a plan or application has 
been submitted.
    Section 5506(b) specifies that section 442 of the General 
Education Provisions Act does not apply to programs under this 
act.

Part E--Advanced placement programs

    Section 5601--Short Title. This section specifies that part 
E may be cited as the ``Access to High Standards Act.''
    Section 5602--Findings and Purposes. This section states 
the findings and purposes of this part. The purposes are to 
encourage more of the students who take advanced placement 
courses to take the exam; to build on the benefits of advanced 
placement programs for students; to support State and local 
efforts to raise academic standards through advanced placement 
programs; to increase the availability and broaden the range of 
schools that have advanced placement programs; to build on 
present State programs and demonstrate that larger and more 
diverse groups of students can participate and succeed in 
advanced placement courses; to provide greater access to 
advanced placement courses; to provide access to advanced 
placement courses for students in schools that do not offer the 
courses; and to increase the participation of low-income 
individuals in taking advanced placement tests.
    Section 5603--Funding Distribution Rule. This section 
authorizes the Secretary to give priority to funding activities 
under the Advanced Placement Incentive Program (section 5606) 
and to distribute 70 percent of remaining funds to carry out 
Advanced Placement Program Grants (section 5604) and 30 percent 
to carry out Online Advanced Placement Courses (section 5605).
    Section 5604--Advanced Placement Program Grants. This 
section authorizes the Secretary to award grants on an annual 
basis for a period of 3 years to State educational agencies and 
local educational agencies in order to expand access for low-
income individuals to advanced placement incentive programs 
that involve teacher training; pre-advanced placement course 
development; curriculum coordination and articulation between 
grade levels that prepare students for advanced placement 
courses; curriculum development; books and supplies; and other 
activities. All entities seeking a grant shall submit an 
application to the Secretary. Those entities receiving grants 
shall annually report to the Secretary: the number of students 
taking advanced placement courses; the number of advanced 
placement tests taken by students; the scores on the advanced 
placement tests; and demographic information regarding 
individuals taking the advanced placement courses. The 
Secretary shall annually compile the information and submit a 
report to Congress.
    Section 5605--On-Line Advanced Placement Courses. This 
section authorizes the Secretary to award grants, on a 
competitive basis, to State educational agencies to enable them 
to award grants to local educational agencies to provide 
students with on-line advanced placement courses. State 
educational agencies seeking a grant shall submit an 
application to the Secretary and in awarding grants, priority 
should be given to local educational agencies that: serve high 
concentrations of low-income students; serve rural areas; and 
would not otherwise have access to on-line advanced placement 
courses. Grant funds may be used to purchase on-line curriculum 
or course materials and to train teachers.
    Section 5606--Advanced Placement Incentive Program. This 
section authorizes the Secretary to award grants to State 
educational agencies in order to reimburse low-income 
individuals to cover part or all of the costs of advanced 
placement test fees. If an excess of funds exists, State 
educational agencies may use the grant funds to increase the 
enrollment of low-income individuals in advanced placement 
courses; the participation of low-income individuals in 
advanced placement courses; and the availability of advanced 
placement courses in schools serving high-poverty areas. Grant 
funds shall supplement and not supplant other non-Federalfunds 
that are available to assist low-income individuals in paying 
for the cost of advanced placement test fees.
    Section 5607--Definitions. This section provides the 
meanings of certain terms used in this part, including: 
``advanced placement incentive program,'' ``advanced placement 
test,'' ``high concentration of low-income students,'' ``low-
income individual,'' ``institution of higher education,'' and 
``State.''
    Section 5608--Authorization of Appropriations. This section 
authorizes $50 million for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.
    Section 601--Parental Involvement and Accountability. This 
section renames title VI as ``PARENTAL INVOLVEMENT AND 
ACCOUNTABILITY'' and amends the title to read as follows:

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Part A--Parental assistance

    New Section 6101--Parental Information and Resource 
Centers. This section states the purpose of this part which is 
to: (1) provide leadership, technical assistance, and financial 
support to nonprofit organizations and local educational 
agencies to help implement successful and effective parental 
involvement policies, programs, and activities; (2) strengthen 
partnerships among parents, teachers, principals, 
administrators, and other school personnel; (3) develop and 
strengthen the relationship between parents and the schools; 
(4) further the developmental progress of children; and (5) 
coordinate activities funded under this part with other 
parental involvement initiatives in the act.
    New Section 6101(b) authorizes the Secretary to award 
grants (while ensuring geographic distribution of grants) to 
nonprofit organizations, or consortia of nonprofits and local 
educational agencies, to establish school-linked or school-
based parental information and resource centers to provide 
training, information, and support to parents of elementary and 
secondary school students, individuals who work with parents, 
and organizations that carry out parent education and family 
involvement programs.
    New Section 6102--Applications. This section requires 
agencies and organizations seeking grants under this part to 
submit an application to the Secretary which must include a 
broad range of assurances. Each organization or consortium 
receiving a grant will be governed by a board of directors 
which includes parents or organizations that represent parents. 
At least \1/2\ of the overall funding provided each fiscal year 
must serve areas with high concentrations of low-income 
families.
    New Section 6103--Uses of Funds. This section states that 
grant funds shall be used to: (1) assist parents in 
participating effectively in their children's education; (2) 
obtain information about the range of options, programs, 
services, and resources available at all levels of the 
government to assist parents and school personnel who work with 
parents; (3) help parents learn and use the technology applied 
in their children's education; (4) plan, implement, and fund 
activities for parents that coordinate the education of their 
children with other Federal programs that serve their children; 
and (5) provide support for State or local educational 
personnel if the participation of such personnel will further 
the activities assisted under the grant.
    New Section 6104--Technical Assistance. This section states 
that 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.
    New Section 6105--Reports. This section requires agencies 
and organizations receiving assistance under this part to 
submit to the Secretary, on an annual basis, information 
concerning parental information and resource centers assisted 
under this part.
    New Section 6105(b) requires the Secretary to annually 
disseminate to the public and the Congress, the information 
that each organization or consortium submits.
    New Section 6106--General Provisions. This section states 
that no person shall be required to participate in a parent 
education or developmental screening program. In addition, no 
program or center assisted under this part shall take any 
action that infringes on the right of a parent to direct the 
education of their children.
    New Section 6107--Authorization of Appropriations. This 
section authorizes a funding level of $50 million for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.

Part B--Improving academic achievement

    New section 6201--Education Awards.
    New section 6210(a) authorizes the Secretary to make 
``Achievement in Education Awards'' to States that, beginning 
with the 2002-2003 school year, make the most progress in 
improving educational achievement. Awards will be made on the 
basis of: (1) the progress of economically disadvantaged and 
minority students in meeting State student performance 
standards as measured by State assessments and (beginning with 
the 2nd year for which data are available for all States) the 
progress of such students on State assessments under the 
National Assessment of Educational Progress (NAEP); (2) overall 
improvement in student achievement as measured by State 
assessments and (beginning with the 2nd year for which data are 
available for all States) the progress of all students onState 
assessments NAEP; (3) improvement in the English proficiency of 
students who enter school with limited English proficiency; (4) 
increased percentage of students who graduate from high school; 
and (5) increased percentage of students who take advanced 
coursework. The Secretary is to give greatest weight to a 
State's success in improving the performance of economically 
disadvantaged and minority students.
    New section 6210(b) permits the Secretary to make 1-time 
bonus payments to States that develop the new assessments 
required by this bill in advance of the deadlines included in 
the bill.
    New section 6210(c) permits the Secretary to make ``No 
Child Left Behind Awards'' to schools that have made greatest 
progress in improving the educational achievement of 
economically disadvantaged students.
    New section 6210(d) permits the Secretary to make awards 
for activities, such as character education, that are designed 
to promote the improvement of elementary and secondary 
education.
    New section 6202--Loss of Administrative Funds. New section 
6202 establishes penalties for States that--based on State 
assessment and State NAEP results--fail to make adequate yearly 
progress and whose economically disadvantaged and minority 
students fail to make statistically significant progress in the 
academic subjects for which the State has developed content and 
student performance standards. If such failure persists for 2 
consecutive fiscal years, the Secretary is required to reduce 
up to 30 percent of the State's administrative funds. If such 
failure persists for 3 or more consecutive fiscal years, the 
Secretary is required to reduce up to 75 percent of the State's 
administrative funds.
    New section 6203--Authorization of Appropriations. New 
section 6203 authorizes $400 million for fiscal year 2002 and 
such sums as may be necessary in the 6 succeeding fiscal years 
to develop and implement the standards and assessments required 
under section 1111 of the act. The section authorizes $110 
million for fiscal year 2002 and such sums as may be necessary 
in the 6 succeeding fiscal years to administer State 
assessments under NAEP. The section authorizes $50 million for 
fiscal year 2002 and such sums as may be necessary in the 6 
succeeding fiscal years for the awards, bonuses, and 
improvement activities authorized under section 6201.

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

    Section 701--Amendment to the Elementary and Secondary 
Education Act of 1965. This section transfers programs 
currently authorized under title IX to title VII, renaming 
Title VII ``Indian, Native Hawaiian, and Alaska Native 
Education'' and amending the title to read as follows:

Part A--Indian education

    Section 7101--Findings. New section 7101 maintains the 
current law statement of findings regarding Indian education.
    Section 7102--Purpose. New section 7102 maintains the 
current law purpose of part A.
            Subpart 1--Formula grants to local educational agencies
    Section 7111--Purpose. New section 7111 maintains the 
current law purpose of subpart 1.
    Section 7112--Grants to Local Educational Agencies. New 
section 7112 maintains current law provisions regarding the 
distribution of grants to local educational agencies and Indian 
tribes.
    Section 7113--Amount of Grants. New section 7113 sets out 
grant awards. The order of the subsections has changed in that 
the subsection related to schools operated or supported by the 
Bureau of Indian Affairs is now subsection (b).
    Section 7114--Applications. New section 7114 maintains the 
current law provisions regarding application requirements.
    Section 7115--Authorized Services and Activities. New 
section 7115 adds 4 new kinds of services and activities to the 
7 services and activities in current law. These activities 
include: activities that promote the incorporation culturally 
responsive teaching and learning strategies; activities that 
incorporate American Indian and Alaska Native specific 
curriculum content; activities that promote coordination and 
collaboration between tribal, Federal, and State public 
schools; and family literacy services. The section also limits 
the amount of funds spent on administrative costs to not more 
than 5 percent.
    Section 7116--Integration of Services Authorized. New 
section 7116 allows local educational agencies which receive 
formula grants under part A the ability to commingle all of the 
federal funding they receive for educating Indian children, 
regardless of which agency provides it, into one coordinated 
comprehensive program to meet the specific needs of Indian 
children. Local educational agencies that choose to do this 
will submit a single plan describing how they intend to 
consolidate funding and specifying the student achievement 
goals that they will meet.
    Section 7117--Student Eligibility Forms. New section 7117 
allows the Secretary to use either the count certified by the 
Bureau of Indian Affairs, or the count of the number of 
students for whom the school has eligibility forms when 
awarding grants to tribal schools. It also allows each local 
educational agency to select either a particular date or period 
(up to 31 days) to countthe number of children it will claim 
for purposes of receiving a grant. The choice of the child 
counts allows the schools to avoid the burden of 2 separate 
counts.
    Section 7118--Payments. New section 7118 maintains current 
law provisions dealing with payments by the Secretary to local 
educational agencies.
    Section 7119--State Educational Agency Review. New section 
7119 modifies the current requirements for application review 
by the Secretary (as the requirement that a local educational 
agency must submit an application to the Secretary is already 
in section 7114(a)), while maintaining the requirement that the 
local educational agency must submit the application to State 
educational agency for its possible comments.
            Subpart 2--Special programs and projects to improve 
                    educational opportunities for Indian children
    Section 7121--Improvement of Educational Opportunities for 
Indian Children. New section 7121 maintains the 11 types of 
grants authorized under this section while adding a provision 
for family literacy service and adds 2 new provisions as 
requirements for applications for dissemination grants: that 
the application must include information demonstrating that the 
proposed program is a research-based program, and that the 
application must contain a description of how the applicant 
will incorporate the proposed activities into the ongoing 
school program involved once the grant period is over. New 
section 7121 limits the amount of funds spent on administrative 
costs to not more than 5 percent.
    Section 7122--Professional Development. New section 7122 
modifies the preference for programs that train Indian 
students. The obligation of service has been modified to 
include only those persons who receive pre-service training.
    Section 7123--Fellowships for Indian Students. New section 
7123 maintains current law provisions authorizing the Secretary 
to award fellowships to Indian students for study in graduate 
and professional programs at institutions of higher education.
    Section 7124--Gifted and Talented Indian Students. New 
section 7124 maintains current law provisions authorizing the 
Secretary to establish 2 centers for gifted and talented Indian 
students at tribally controlled community colleges and to 
support demonstration programs relating to gifted and talented 
Indian students.
    Section 7125--Grants to Tribes for Education Administrative 
Planning and Development. New section 7125 maintains current 
law provisions authorizing the Secretary to make grants to 
Indian tribes and tribal organizations approved by Indian 
tribes to develop a centralized tribal administrative entity to 
coordinate education programs and related activities. A funding 
level of $3 million is authorized for each of the fiscal years 
2002 through 2008.
            Subpart 3--Special programs relating to adult education for 
                    Indians
    Section 7131--Improvement of Educational Opportunities for 
Adult Indians. This section maintains current law provisions 
authorizing the Secretary to make grants to State and local 
educational agencies and to Indian tribes, institutions, and 
organizations to support adult education activities.
            Subpart 4--National research activities
    Section 7141--National Activities. New section 7141 
maintains current law provisions authorizing the Secretary to 
conduct research and evaluation activities related to the 
education of Indian children and adults.
            Subpart 5--Federal administration
    Section 7151--National Advisory Council on Indian 
Education. New section 7151 maintains current law provisions 
establishing a National Advisory Council on Indian Education.
    Section 7152--Peer Review. New section 7152 maintains 
current law provisions permitting the Secretary to use a peer 
review process to review applications submitted under subpart 
2, 3, or 4.
    Section 7153--Preference for Indian Applicants. New section 
7153 maintains current law provisions giving preference to 
Indian applications for grants and contracts under subpart 2, 
3, or 4.
    Section 7154--Minimum Grant Criteria. New section 7154 
maintains current law provisions providing that the Secretary 
may approve only applications which are of sufficient size, 
scope, and quality to achieve the objectives of the grant or 
contract and which are based on relevant research findings.
            Subpart 6--Definitions; authorizations of appropriations
    Section 7161--Definitions. New section 7161 maintains 
current law definition of terms applicable to part A.
    Section 7162--Authorization of Appropriations. New section 
7162 authorizes a funding level of $93 million for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years to carry out subpart 1; $20 million for 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 succeeding fiscal years to carry out subparts 2 through 
4. No funds are authorized for carrying out subpart 5.

Part B--Native Hawaiian education

    Section 7201--Short title. New section 7201 provides that 
part B may be cited as the ``Native Hawaiian Education Act''.
    Section 7202--Findings. New section 7202 sets forth 
congressional findings regarding Native Hawaiians and education 
and includes new findings that reflect the new legal position 
of the United States relative to the status of Native Hawaiians 
as set forth in the brief filed by the United States in the 
U.S. Supreme Court on July 28, 1999.
    Section 7203--Purposes. New section 7203 maintains the 
current law purposes related to the education of Native 
Hawaiians.
    Section 7204--Native Hawaiian Education Council and Island 
Councils. New section 7204 authorizes the Secretary to make 
direct grants to Native Hawaiian educational organizations; 
provides that the Native Hawaiian Education Council will be 
reduced to 21 members; changes the composition, appointment, 
terms of Council members; and authorizes seven Island councils, 
so that each island will now have its own council.
    Section 7205--Program Authorized. New section 7205 
consolidates the following programs: the Family-Based Education 
Centers program; the Higher Education program; the Gifted and 
Talented; Curriculum Development, Teacher Training and 
Recruitment program; and Community-Based Education Learning 
Center into a single authority and adds 3 new permissible 
activities: family literacy services; activities which enhance 
beginning reading and literacy among K-3rd grade; and early 
education and care services for children pre-natal to age 5. 
New section 7205 also establishes priorities for the award of 
contracts or grants; includes special rules and conditions; 
provides that qualified Native Hawaiian student attending a 
post-secondary institution outside the State of Hawaii shall 
not be prevented from receiving a fellowship; that individuals 
who receive a fellowship are required to serve the Native 
Hawaiian community either during their fellowship period or 
upon completion of the program of post-secondary education. New 
section 7205 also limits the amount of funds spent on 
administrative costs to not more than 5 percent and authorizes 
$28 million for fiscal year 2002 and such sums as may be 
necessary for the 6 succeeding fiscal years for these 
activities.
    Section 7206--Administrative Provisions. New section 7206 
maintains current law provisions relating to applications for 
funds.
    Section 7207--Definitions. New section 7207 maintains 
current law definitions applicable to part B.

Part C--Alaska Native education

    Section 7301--Short Title. New section 7301 provides that 
part C may be cited as the ``Alaska Native Educational Equity, 
Support, and Assistance Act''.
    Section 7302--Findings. New section 7302 maintains current 
law findings related to Alaska Native education.
    Section 7303--Purposes. New section 7303 maintains the 
current law purposes of part C.
    Section 7304--Program Authorized. New section 7304 
consolidates the following programs serving Alaska Native 
children and adults: The Educational Planning, Curriculum, 
Development, Teacher Training, and Recruitment program; Home-
Based Education for Preschool Children program; and Student 
Enrichment Programs into a single authority and adds family 
literacy services as an additional activity. New section 7304 
also limits the amount of funds spent on administrative costs 
to not more than 5 percent and authorizes $17 million for 
fiscal year 2002 and such sums as may be necessary for the 6 
succeeding fiscal years for these activities.
    Section 7305--Administrative Provisions. New section 7305 
maintains current law provisions relating to applications for 
funds.
    Section 7306--Definitions. New section 7306 maintains 
current law definitions applicable to part C.
    Section 702--Conforming Amendments. This section of the 
bill provides for conforming amendments to references in other 
acts, reflecting the transfer of title IX programs to the new 
title VII.

                          TITLE VIII--REPEALS

    Section 801(a) of the bill repeals titles IX through XIV of 
the Elementary and Secondary Education Act of 1965.
    Section 801(b) of the bill repeals the Goals 2000: 
Education America Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

    Section 901--Independent Evaluation. Section 901 amends the 
act by adding a new ``TITLE IX--MISCELLANEOUS PROVISIONS'' and 
``Part A--INDEPENDENT EVALUATION''.

Part A--Independent evaluation

    Provisions of the new Title IX, Part A include:
    Section 9101--In General. New Section 9101 authorizes the 
Secretary to award a grant to the Board on Testing and 
Assessment of the National Research Council of the National 
Academy of Sciences in order to conduct an ongoing evaluation 
of high stakes assessments used by a representative sample of 
state and local educational agencies. The evaluation shall be 
conducted in consultation with the Department and shall not 
exceed 4 years in duration. The evaluation shall be based on a 
research design designed by the board, in consultation with 
others. The evaluation shall address at least the 3 components 
described in section 9102.
    Section 9102--Components Evaluated. New Section 9102 
describes the 3 components mentioned in Section 9101.
    Section 9102 (1) establishes Students, Teachers, Parents, 
Families, Schools, and School Districts as a component to be 
addressed by the evaluation. The evaluation of this component 
shall include: overall change in what students are learning 
based upon independent measures; changes in course offerings, 
teaching practices, course content, and instructional material; 
measures of teacher satisfaction with the assessments; changes 
in rates of teacher and administrator turnover; changes in 
dropout, grade retention, and graduation rates for students; 
the relationship of student performance on the assessments to 
school resources, teacher and instructional quality, or such 
factors as language barriers or construct-irrelevant 
disabilities; changes in the frequency of referrals for 
enrichment opportunities, remedial measures, and other 
consequences; changes in student post-graduation outcomes, 
including admission to, and signs of success at colleges, 
community colleges or technical school training programs; cost 
of preparing for, conducting, and grading the assessments in 
terms of dollars expended by; the school district and time 
expended by students and teachers; changes in funding levels 
and distribution of instructional and staffing resources for 
schools based on the results of the assessments; purposes for 
which the assessments or components of the assessments are used 
beyond what is required under part A of title I, and the 
consequences for students and teachers because of those uses; 
differences in the areas studied under this section between 
high poverty and high concentration minority schools and school 
districts, and schools and school districts with lower rates of 
poverty and minority students; and the level of involvement of 
parents and families in the development and implementation of 
the assessments and the extent to which the parents and 
families are informed of assessment results and consequences.
    Section 9102 (2) establishes Students With Disabilities as 
a component to be addressed by the evaluation. The evaluation 
of this component shall include: the overall improvement or 
decline in academic achievement for students with disabilities; 
the numbers and characteristics of students with disabilities 
who are excluded from the assessments, and the number and type 
of modifications and accommodations extended; changes in the 
rate of referral of students to special education; changes in 
attendance patterns and dropout, retention, and graduation 
rates for students with disabilities; changes in rates at which 
students with disabilities are retained in grade level; changes 
in rates of transfers of students with disabilities to other 
schools or institutions; and the level of involvement of 
parents and families of students with disabilities in the 
development and implementation of the assessments and the 
extent to which the parents and families are informed of 
assessment results and consequences.
    Section 9102 (3) establishes Low Socio-Economic Students, 
Limited English Proficient Students, and Minority Students as a 
component to be addressed by the evaluation. The evaluation of 
this component shall include: the overall improvement or 
decline in academic achievement for such students; the numbers 
and characteristics of such students excused from taking the 
assessments, and the number and type of modifications and 
accommodations extended to such students; changes in the rate 
of referral of such students to special education; changes in 
attendance patterns and dropout and graduation rates for such 
students; changes in rates at which such students are retained 
in grade level; changes in rates of transfer of such students 
to other schools or institutions; and the level of involvement 
of parents and families of low socio-economic students, and 
racial and ethnic minority students in the development and 
implementation of the assessments and the extent to which the 
parents and families are informed of assessment results and 
consequences.
    Section 9103--Reporting. New Section 9103 requires the 
Secretary to make public the results of the evaluation each 
year and to report the findings of the evaluation to Congress 
and to the States, not later than 2 months after completion of 
the evaluation.
    Section 9104--Definitions. New Section 9104 provides 
definitions for the terms ``High Stakes Assessment,'' and 
``Standardized Test''.
    Section 9105--Authorization of Appropriations. New Section 
9103 authorizes $4 million for fiscal year 2002. The funds 
shall remain available until expended.

                          IX. ADDITIONAL VIEWS

                              ----------                              


              ADDITIONAL VIEWS OF SENATOR MICHAEL B. ENZI

    First, I want to applaud the entire Committee for 
unanimously advancing this important bill before the full 
Senate. We invested tremendous resources in attempting to 
reauthorize ESEA last year, and I am pleased that we have made 
it our first priority this year. I am also impressed with the 
support of the new Administration in seeing President Bush's 
number one priority take the next step in the legislative 
process.
    This education reform bill reflects an understanding of the 
variation in needs between urban, suburban, and rural schools. 
The bill arguably addresses the concerns of all stakeholders in 
our children's education, and it does so in a bipartisan way. I 
believe the bill has struck a meaningful compromise and 
reflects a strong but appropriate role for the federal 
partnership in elementary and secondary education.
    The state of Wyoming has invested tremendous amounts of 
time and money in developing high standards of learning, 
reliable assessments, strong parental involvement initiatives 
and other research-based education innovations. This bill 
builds upon that work and solidifies the shared commitment to 
academic achievement for all children.
    However, the state of Wyoming is currently facing a crisis 
in education--a teacher shortage. It's not about class size, 
though. It's about teacher salaries and a dwindling supply of 
qualified educators, particularly in light of the high new 
standards which students must meet. But, this is a problem 
where there is a federal role in the solution. Under Title II 
of our bill, the focus is not only on preparing teachers, but 
on helping schools recruit and retain high quality teachers. 
Reducing class sizes will be an allowable use of funds under 
this Title, if that's the unique need of a particular school.
    The bill also emphasizes the need to improve access to 
education technology and to USE it in the process of improving 
academic achievement. The goal of eliminating the duplicative 
administrative application process and allowing schools to have 
one pot of funds for the range of technology uses, including 
teacher and administrative staff training, will make a 
difference. The digital divide will shrink and technology will 
become even more relevant as an educational tool.
    Very importantly, the bill clarifies the purpose of the 
President's requirement that states expand existing assessments 
and take on the new practice of participating annually in the 
NAEP test (National Assessment of Educational Progress). Those 
clarifications go a long way in addressing the fundamental 
concern by all parties that the federal government not enact 
additional unfunded mandates, and that the states continue to 
retain the flexibility to design their own standards of 
learning for students, versus nationalized standards or 
assessments.
    And, while not a part of this reauthorization, we would be 
remiss in meeting our commitment to the education of all 
children if we do not also prioritize full funding of the 
Individuals with Disabilities Education Act as we advocate for 
meaningful education reform. I look forward to this Committee's 
continued support for strong increases in funding for IDEA. 
Funding this important but costly federal requirement is as 
critical as requiring academic success in our classrooms.
    I look forward to seeing this bill through the legislative 
process and am committed to enacting a reform measure that puts 
children first.
    Additional Views of Senators Kennedy, Harkin, Bingaman, Murray, 
         Edwards, Dodd, Mikulski, Wellstone, Reed, and Clinton

    Ninety percent of American children attend public schools. 
We owe it to them to ensure that every public school and every 
teacher is able to help all school children in the nation reach 
their full potential.
    Few issues are as important as education. Democrats believe 
Congress should help all children meet high standards of 
achievement by strengthening federal support for innovative 
reforms and demanding tough accountability for results for our 
children.
    Seven years ago, Congress and President Clinton took urgent 
steps to turn around failing schools. With passage of the GOALS 
2000 legislation in 1994, and the reauthorization of the 
Elementary and Secondary Education Act that same year, we 
established bold new goals for schools to prepare children to 
succeed in today's world by mastering the basics and reaching 
high standards of achievement.
    These were important actions that launched changes in 
schools across America. Now we need to build on this progress. 
More change is necessary--much more--if we are to turn around 
failing schools and give our children the education they need 
and deserve.
    Democrats and Republicans alike agree that no child should 
be left behind--regardless of background, race, or gender, or 
whether a child is homeless, a child of a migrant worker, or an 
immigrant. Every child has the right to a high-quality 
education.
    We commend President Bush for identifying education as one 
of his early priorities, and for encouraging Congress to act on 
needed reforms. We share the Administration's goals of greater 
help for local schools to meet the most urgent needs, and 
holding schools accountable for the results.
    As we move forward on today's reforms, Democrats believe 
that we need to meet five important goals:
          Targeting resources to high-need districts;
          Holding schools accountable for substantial progress 
        and improved student achievement;
          Providing our children and teachers with smaller 
        classes in safe, modern school buildings;
          Ensuring that our children will have qualified 
        teachers in every classroom and a qualified principal 
        in every school;
          Helping communities and schools provide research-
        based programs that support learning--such as parent 
        involvement, after-school programs, technology in the 
        classroom and early reading programs.
    In approving the BEST Act, we believe the Committee took a 
major step towards strengthening and expanding the federal 
helping hand to support these kinds of innovations, and to help 
all children meet high standards of achievement. The 
centerpiece of the bill is new testing and accountability 
measures that will help parents, educators, and community 
members gauge how well our children are learning.
    The Committee took a major step forward in adopting the 
essential elements of Senator Bingaman's accountability bill 
and President Bush's testing and accountability plan.
    We are also pleased that the bill includes dedicated funds 
for turning around failing schools--a strong step towards 
ensuring that more underserved children get the extra 
assistance they need to succeed in school. We know that these 
reforms can work and we want to ensure every school succeeds.
    But, we must remember that tests and accountability are 
simply the measure of reforms--they are not the reforms 
themselves. Tests don't put a qualified teacher in the 
classroom. Tests don't reduce class size. Tests don't make 
schools safer or stop a building from crumbling.
    Therefore, as this legislation moves forward, it is 
essential to strengthen it through measures to provide students 
and teachers with the support they need to succeed. We must 
ensure that teachers are guaranteed funding for professional 
development and mentoring; that communities are guaranteed 
funds to continue to reduce class sizes; and that communities 
get the continued help they need to meet their most urgent 
repair and renovation needs.
    But, we know that to achieve these much needed reforms, 
communities require additional resources to implement reform. 
We must ensure that our efforts to authorize additional 
resources will not become an empty promise when it's time to 
make tough choices on the national budget and in the 
appropriations process. Real change in education requires real 
investments.
    We are deeply concerned that the President's budget 
contains little more than a cost of living increase for our 
nation's schools, and few new investments to improve them.
    Democrats hope that as the full Senate acts on education in 
the coming weeks, we will put ourselves to the test to work 
together to pass a bipartisan reauthorization of ESEA and a 
bipartisan budget that significantly increases funding for 
education. We should hold ourselves to a high standard of 
accountability for achieving those goals.
    Public education is one of the finest achievements of 
American democracy, and one of the most critical investments we 
can make to ensure a bright future for the nation's children. 
We look forward to working with the President and colleagues on 
both sides of the aisle to move forward on strong reforms with 
solid support. We owe the nation's children no less.

Strengthening accountability for better student achievement

    We applaud the bill's adoption of new requirements for 
statewide accountability systems based on each state's 
standards and assessments. The Committee also adopted 
Democratic proposals to hold states, districts, and schools 
accountable for real achievement progress for all students, and 
to require states, districts, and schools to set specific, 
measurable goals for improvement that ensure that all students 
will be proficient on state standards within 10 years. The bill 
also requires school report cards to inform parents about the 
quality of their schools and the progress toward meeting 
student achievement goals. Report cards are required at the 
state, district, and school levels on the results of the 
assessments as well as the number of students excluded from 
assessments. We are concerned that the bill did not adopt our 
proposal to report the results for prior years so that parents 
could clearly monitor a school's progress, or to report teacher 
qualifications and drop out rates.
    Another significant addition to the bill that will help 
shine the light on the efforts of our states and districts to 
turn around failing schools is the requirement that states 
report the names and numbers of low-performing schools, and the 
steps that states are taking to meet their responsibility to 
help such schools improve. This is an important and common-
sense provision to address the fact that the Department of 
Education does not have an exact accounting of this type of 
information. We also support measures in Title I that provide 
parents the right to know the qualifications of their 
children's teachers.
    Importantly, the bill adopts the President's and our 
proposal to require that assessment results be disaggregated 
for various student groups. Disaggregation of results ensures 
that existing achievement gaps are closed between disabled 
students, students with limited English proficiency, migrant 
students, or minority students and the rest of the student 
population.
    We are also pleased that the Committee has adopted the 
essential elements of Senator Edwards' School Support and 
Improvement Act of 2001. We believe that appointing specially 
trained support or assistance teams is a proven effective 
practice to help low-performing schools get back on track. By 
requiring states to make these teams a priority in their 
efforts to turn around their low-performing schools, we can 
help ensure that every child across the nation has access to a 
quality public school.
    Democrats also have serious concerns that the bill does not 
effectively address the issue of the quality of assessments. 
The Independent Review Panel on Title I has reported to 
Congress that ``many states use assessment results from a 
single test--often traditional multiple choice tests. Although 
these tests may have an important place in state assessment 
systems, they rarely capture the depth and breadth of student 
knowledge reflected in state content standards.'' The report 
goes on to say that ``better assessments for instructional and 
accountability purposes are urgently needed.''
    Democrats are concerned that there is insufficient emphasis 
in this bill on ensuring that states develop the high quality 
assessments that are so critical to any accountability system. 
We believe that it is most important to ensure that quality, 
rather than quantity or speed in completing assessments, should 
be the top priority in this legislation because accountability 
systems will only be as effective as the measurements they 
include. In order to ensure that tests are of high quality, 
states should be required to present evidence that the 
assessments they use are of adequate technical quality for 
every purpose for which they are used including high stakes 
purposes for individual students.
    It is also critical that states align assessments with 
their standards and curriculum. The best assessments measure 
the range and depth of student knowledge and should include 
more than just multiple choice questions. They should also 
include performance-based approaches to testing in all subjects 
assessed to measure higher order thinking skills and 
understanding.
    Democrats believe that an important element of the 
Committee bill is the manner in which it measures ``annual 
yearly progress.'' Under the bill, we are pleased that such 
progress is measured not only by test results, but also reduced 
drop-out rates and other measures of student achievement. 
States should do all they can to obtain a complete picture of 
student achievement and school success by using multiple 
indicators of student achievement.
    In addition, we are pleased that the Committee adopted 
Senator Wellstone's amendment authorizing a National Research 
Council study on the impact of high stakes tests on students, 
teachers, and curricula. As the use of high stakes tests 
becomes more widespread, it is critical for policy makers to 
understand better how they effect student learning.
    However, the Democrats believe strongly that assessments 
and accountability are critical, but they are only a part of 
education reform. Assessments must be accompanied by 
significant investments in the programs we know work, so that 
students have the opportunity to do well on the tests and 
schools have the resources to address the learning gaps the 
tests reveal. We will not be able to achieve real education 
reform unless we do much more to fund schools' capacity to 
teach students well and to help those who are not doing well.

Targeting funds to the neediest students

    We believe that providing every child with a world-class, 
high quality education requires both a serious investment in 
school reform and a rigorous insistence on educational results. 
The Committee-reported BEST Act makes significant strides in 
insisting on results. But much more work remains to be done by 
Congress to ensure an adequate investment in school reform.
    The federal investment in school reform should be of 
sufficient size and focus to provide disadvantaged children the 
best chance at educational success. Children can learn to high 
standards, but not all children face the same challenges in 
achieving that goal.
    Targeting education resources to high-need areas is a 
necessity. Since its inception more than 35 years ago, Title I 
has recognized that children in poverty are at a unique 
educationaldisadvantage. What has become increasingly clear 
since ESEA was first enacted is that poor children living in 
poor communities are at an even larger disadvantage. They have 
heightened educational needs and their schools have fewer 
resources to meet those needs.
    If we fail to invest sufficient resources in high-need 
schools and districts, we support the status quo and support 
failure. We can and should do better. The Committee bill 
provides the authority for Congress to make significant 
investments in proven effective reforms targeted to the 
neediest communities. Now we must ensure that Congress and the 
Administration actually provide those investments.

Focusing on reading well early

    We commend President Bush and Chairman Jeffords for their 
leadership in making child literacy a priority and developing 
this strong legislation. We also commend the First Lady for her 
remarkable commitment to helping all children learn to read.
    Learning to read well is the cornerstone of every child's 
education. We know that reading skills are fundamental to 
effective learning in all subjects. The ability to read 
effectively is the gateway to opportunity and success 
throughout life.
    Many successful programs are helping children learn to read 
well. But too often, the best programs are not available to all 
children. As a result, large numbers of children are denied the 
opportunity to learn to read well. Forty percent of 4th grade 
students do not achieve the basic reading level, and 70 percent 
of 4th graders are not proficient in reading.
    Children who fail to acquire basic reading skills early in 
life are at a disadvantage throughout their education and later 
careers. They are more likely to drop out of school and to be 
unemployed. We need to do more to ensure that all children 
learn to read well--and learn to read well early--so they have 
a greater chance for successful lives and careers.
    In October 1996, President and Mrs. Clinton initiated a new 
effort to call national attention to child literacy by 
proposing the ``America Reads Challenge.'' Many of us in 
Congress strongly supported their call for increased aid for 
reading tutors and other steps to improve child literacy. 
Today, over 1,000 colleges and universities are committed to 
the ``America Reads Work Study Program,'' and 59 of these 
institutions are in Massachusetts.
    Their efforts led to the successful bipartisan passage of 
the Reading Excellence Act in 1998 that gave priority to 
professional development in research-based techniques for 
improving children's reading skills.
    The committee bill builds on the Reading Excellence Act and 
is a major step toward meeting the goal of helping every child 
learn to read early in life. It embraces President Bush's 
proposal to expand the Reading Excellence Act by tripling 
funding for it, and by creating a new Early Reading First pilot 
program to help children get the reading skills they need 
before they are of school age. It provides children, parents, 
schools, and communities with the resources and opportunities 
they need to improve child and family literacy--and the help 
can't come a minute too soon.
    The BEST Act recognizes that teachers must have adequate 
resources and proper training to teach reading well. Teachers 
often must provide special assistance to children who are 
having difficulty learning to read. Too often, teachers lack 
the time, the skills, and the resources to provide children 
with that assistance. The act creates new opportunities for 
teachers to obtain the training they need to teach reading 
effectively.
    The committee bill encourages local school districts to 
build partnerships and work in cooperation with community 
organizations and state agencies. It ensures that local, State, 
and national efforts to improve literacy are coordinated, and 
that the most effective resources and practices are used to 
meet the needs of children. It also provides communities with 
support to provide children with trained tutors to give them 
the opportunity to practice reading with adults.
    Children whose parents are involved in their education, who 
read to them, and who work with them on language skills are 
more likely to become successful readers. They achieve higher 
test scores. They have better school attendance records. They 
graduate at higher rates. And they are more likely to go to 
college. But children whose parents lack a strong educational 
foundation are less likely to do so.
    Funds will continue to be made available to the National 
Institute for Literacy to gather and disseminate information 
about the best practices for improving child literacy, so that 
every school and community can take advantage of them.
    This bill targets funds for literacy programs on schools 
where the needs are greatest. Children in poor schools are more 
likely to live in homes with parents who have not completed 
high school and are unemployed. Children from such homes are 5 
to 6 times more likely to drop out of school than other 
children. We should help ensure that they get the opportunities 
they need to learn to read well.
    The bill will help provide children with the readiness 
skills and support they need to learn to read once they enter 
school. It will help teach every child to read in these early 
years--from preschool though the 3rd grade. And it will improve 
the instructional practices of teachers and other staff in 
elementary schools with the greatest need for extra help.
    The BEST Act ensures that the best methods and resources 
are more widely available to schools, families, and children 
across the country, and we are pleased to support it.

Meeting the national need to support school libraries

    However, we cannot increase the literacy skills of 
America's students without providing students with access to an 
adequate supply of up-to-date reading materials. Indeed, 
research has documented a clear connection between well-
equipped, well-staffed school libraries and increased literacy, 
reading achievement, and overall academic success. 
Unfortunately, schools across the Nation are still dependent on 
collections purchased in the mid-1960's and 1970's with 
dedicated funding provided under the Elementary and Secondary 
Education Act of 1965. Since 1981, when this funding was folded 
into what is currently the title VI block grant, school 
libraries have suffered. This 20-year experiment in leaving 
school library funding to States and school districts has 
failed. Consequently, school library shelves are filled with 
inaccurate books which pre-date the landing of manned 
spacecraft on the moon, the breakup of the Soviet Union, the 
end of apartheid, the Internet, and advances in scientific 
research.
    At the committee markup, Senator Reed presented clear 
examples of old school library books filled with outdated facts 
and offensive stereotypes that line our school library shelves. 
We are dismayed that the committee failed to restore funding 
for school libraries or to increase student access to up-to-
date school library materials. The needs of school libraries 
have been unaddressed for too long. We urge the restoration of 
funding to update and improve the Nation's school libraries. 
Otherwise, our goal of eliminating illiteracy will be thwarted.

Public school repair and renovation

    The facts about the condition of our Nation's schools are 
well known. The average age of our Nation's schools is 42 years 
and 14 million children attend classes in buildings that are 
unsafe or inadequate. In addition, the National Center for 
Education Statistics estimates that $127 billion is needed 
simply to bring our nation's schools up to overall good 
condition.
    In March, the American Society of Civil Engineers issued a 
Report Card for America's Infrastructure which reported serious 
problems with the physical infrastructure in our nation. Once 
again, school buildings received the lowest grade of all 
facilities in the Nation--a D minus.
    Clearly, this is a national problem that deserves a 
comprehensive national response. However, the committee bill 
does not address this pressing national concern.
    Last year, we made substantial progress on this issue by 
including a new school repair and renovation program in the 
education appropriations bill. The fiscal year 2001 
appropriations bill included a $1.2 billion bipartisan 
initiative to help communities address their most urgent repair 
and renovation needs. This legislation was agreed to by the 
House, the Senate and the White House.
    In Committee, Senators Harkin and Reed offered a bipartisan 
amendment to reauthorize the school repair and renovation 
program and increase the authorization to $1.6 billion. The 
amendment continued the split between school modernization and 
IDEA as negotiated in last year's appropriations bill. Seventy-
five percent of the funds would be used to finance urgent 
repairs such as fixing leaky roofs, replacing faulty wiring or 
making repairs to bring schools up to local safety and fire 
codes. The remaining funding would support activities related 
to IDEA Part B or technology related to school construction.
    The school repair program is a key component in a two-prong 
strategy to modernize the Nation's schools. Some schools have 
simply outlived their usefulness and need to be replaced. In 
addition, the record enrollment in our nation's public schools 
has caused overcrowding that can only be remedied by building 
new schools. That's why we hope Congress will also pass much-
needed legislation to provide interest-free school 
modernization bonds that will finance at least $25 in new 
construction.
    Nearly three-quarters of the nation's schools are over 30 
years old. According to the National Center for Education 
Statistics, when a school is between 20 and 30 years of age, 
frequent replacement of equipment is necessary. Between 30 and 
40 years, all of the original equipment should have been 
replaced including the roof and electrical systems. After 40 
years, a school begins to deteriorate rapidly and after 60 
years most schools are abandoned.
    There is a legitimate federal role to help fix our nation's 
crumbling schools, and we can do so without undermining local 
control of education. We were disappointed by the defeat of the 
Harkin-Reed Amendment on a 10-10 party line vote, and hope the 
Senate will adopt the program on the floor with bipartisan 
support.

Reducing class size

    Smaller classes in the early grades can have a positive 
impact on students for years to come by ensuring students learn 
the basics, improve classroom discipline, providing more 
individual attention, and encouraging parents and teachers to 
work more closely together. By including the Class Size 
Reduction program in the appropriations bills over the last 
three years, Congress has taken an important, bipartisan step 
to ensure that the nation's students are learning in less 
crowded classrooms. Unfortunately, the committee bill does not 
include a guaranteed funding stream for Class Size Reduction, 
abandoning our bipartisan commitment to the teachers, parents, 
and students of this country.
    The party line vote rejecting Senator Murray's amendment to 
include the Class Size Reduction program in this bill is a 
rejection of sound education policy. Studies have shown what 
parents, students and teachers have always known: smaller 
classes make a difference. Despite numerous comprehensive, 
high-quality studies confirming the benefits of smaller classes 
in theearly grades, our Republican colleagues rejected the 
Class Size Reduction program.
    In small classes, students receive more individual 
attention and instruction. Students with learning disabilities 
are identified earlier, and their needs can be met without 
placing them in costly special education. In small classes, 
teachers are better able to maintain discipline, and parents 
and teachers can work together more effectively to support 
children's education. The Federal Government has always taken a 
special responsibility for disadvantaged students, the very 
students that studies show benefit the most from smaller 
classes in the early grades. A recent study found that if all 
children were in smaller classes in the early grades, that 
change alone could close the black/white gap in students taking 
college entrance exams by as much as 60 percent. But today, 
there are still too many students in overcrowded classrooms. 
The average class size in this country is over 22 students, 
with some of the most crowded classrooms in urban areas. Almost 
half of all elementary school teachers have class sizes of 25 
students or more.
    Teachers, parents, and students also want high-quality, 
well-prepared teachers. Including class size reduction as an 
allowable use of funds within a teacher quality block grant may 
foster the illusion of ``local control,'' but in reality it 
creates a false choice between investing in smaller classes and 
investing in professional development, mentoring, and 
recruiting activities. We know that good education reform 
includes both boosting teacher quality and reducing class 
sizes, and we should provide communities the support they need 
communities address both issues sufficiently by providing 
dedicated funding streams for both class size reduction and 
professional development.
    The current Class Size Reduction program is already 
flexible. Small school districts that do not receive enough 
Federal funding to pay a starting teacher's full salary may 
combine these funds with other funds to pay the salary of a 
full or part-time teacher, or may use the funds for 
professional development. Any school district that has already 
reduced class sizes in the early grades may use these funds to 
reduce class sizes in other grades, or to improve teacher 
quality. Districts can already use up to 25 percent of their 
Class Size Reduction funds for professional development, 
mentoring, or recruitment. The only qualification is that all 
teachers hired with Class Size Reduction funds must be fully 
qualified.
    The first year of Federal Class Size Reduction program has 
helped schools hire 29,000 teachers who are already teaching in 
smaller classes across the country. As a result, approximately 
1.7 million students are learning in classrooms that are no 
longer overcrowded. An additional 8,000 teachers will be hired 
with the funds provided by the fiscal year 2001 appropriations, 
creating smaller learning environments for hundreds of 
thousands of additional students. We should not abandon our 
commitment to teachers, parents, and students to help them 
reduce class sizes, and we hope the full Senate will adopt 
Senator Murray's amendment.

Ensuring a qualified teacher in every classroom and a qualified 
        principal in every school

    Over the next 10 years, we will need to recruit more than 2 
million teachers to teach the record number of elementary and 
secondary students in our public schools. Nothing in education 
is more important than ensuring a highly qualified teacher for 
every classroom. Research shows that what teachers know and can 
do is the most important influence on what students learn. 
Increased knowledge of academic content by teachers and 
effective teaching skills are associated with increases in 
students achievement.
    Research shows that current professional development 
activities often fail to generate significant improvements in 
teaching or even impact teaching practice. Moreover, a recent 
survey of teachers found that professional development is too 
short-term, with a majority of teachers participating in 
professional development activities that last only 1 to 8 hours 
a year. As a consequence, only about one in five teachers felt 
very well prepared to address the needs of students with 
limited English proficiency, those from culturally diverse 
backgrounds, and those with disabilities, or to integrate 
educational technology into the curriculum.
    The Committee bill includes strong definitions of 
professional development, mentoring, and highly qualified 
teacher, and contains strong accountability and application 
requirements. In particular, the bill contains many of the 
elements that research indicates constitute effective mentoring 
and professional development--sustained, intensive activities 
that focus on deepening teachers knowledge of content; 
collaborative working environments; and training that is 
aligned with standards and embedded in the daily work of the 
school.
    At the same time, however, the bill allows title II-A 
funding to be used for purposes other than professional 
development and mentoring. Accordingly, districts could spend 
all of the funding on signing bonuses, teacher tenure system 
reform, merit pay, and teacher testing. As a result, teachers 
would not get any of the professional development they need.
    An amendment was added in the markup to expand the 
allowable uses of funds to include merit pay for teachers, 
reform of tenure, and teacher testing. We underscore that this 
language in no way should be interpreted to interfere with or 
alter the integrity of existing local control or local 
collective bargaining agreements.
    We are particularly disappointed that the Committee failed 
to adopt Senator Kennedy's amendment to guarantee teachers that 
at least 50 percent of the title II-A funds will be used for 
the professional development of all teachers and mentoring of 
new teachers. The amendment would have made professional 
development and mentoring a top priority to ensure that 
teachers get the support they need to succeed in the classroom 
and help all children meet high standards of achievement.
    We don't disagree with any of the uses of funds under title 
II-A. However, the current structure of the Committee bill is a 
step backwards for teachers. Currently, teachers areguaranteed 
$485 million for professional development and mentoring 
activities--and its not enough to meet the need. Under the 
committee bill, a local school district could spend all the 
funding on recruitment activities, leaving current teachers out 
in the cold.
    We believe that local school districts should have 
flexibility in the use of funds, but not to the extent that 
they ignore the needs of teachers for on-going, high-quality, 
and locally designed professional development and mentoring 
activities.
    Such a requirement is absolutely critical if we are to meet 
the challenge of ensuring that teachers have the training, 
assistance, and support to sustain them throughout their 
careers and increase student achievement.
    It is also critical so that parents know that their child 
is being taught by a qualified teacher.
    Democrats believe the bill should have included this goal 
explicitly as a requirement in Title II with a timeline and a 
specific date for implementation. However, we are pleased that 
the committee agreed to include provisions in a floor manager's 
package addressing Senator Kennedy's teacher quality 
accountability amendment. His amendment to Title II-A would 
require that schools serving Title I students must have a 
highly qualified teacher in every classroom within 4 years. 
Senator Gregg and Senator Jeffords argued that the Committee 
should modify the amendment to focus the program on schools in 
which at least 50 percent of their students are in poverty.
    In addition, because qualified and well-prepared teachers 
are critical to improving student achievement, we hope that a 
compromise can be reached on the amendment proposed by Senator 
Reed to set a funding bar under Title I for professional 
development at the district level at 10 percent.
    Although the Committee bill includes a strong definition of 
professional development, it does not include language to 
ensure that recruitment activities are of the same high 
quality. It does little good to recruit teachers into schools 
and train them if we cannot retain them in the profession. 
Fifty percent of urban educators leave the profession within 5 
years. We want to ensure that federal funds support only those 
recruitment programs that are linked to or include activities 
that are proven effective in retaining teachers.
    The key elements for effective teacher retention were laid 
out by the National Commission on Teaching and America's Future 
in 1996. Effective programs organize professional development 
around standards for teachers and students; provide a year 
long, pre-service internship; include mentoring and strong 
evaluation of teacher skills; and offer stable, high quality 
professional development.
    Title II would be strengthened by including Senator 
Wellstone's amendment to ensure that any teacher recruitment 
programs funded by Federal dollars incorporate high quality 
retention practices, and we hope it will receive bipartisan 
support on the floor.
    There is widespread agreement that a good principal is the 
keystone of a good school. However, there is great concern that 
the supply of quality principals may not meet the increasing 
demand for quality school leadership. Moreover, principals 
often lack opportunities for high-quality professional 
development. Too often, such development is in the form of one-
day workshops not geared to the needs of most principals. We 
must do all we can to provide opportunities for mentoring and 
professional development for principals--and it must be of high 
quality, readily available, and geared toward the practical 
needs of principals as instructional leaders.
    We are pleased that the committee bill includes a National 
School Leadership program, which allows the Secretary to award 
grants for professional development activities for principals 
to develop and enhance their leadership skills. However, we 
need to do more if we are to send a strong signal to the 
Nation's communities that we will help provide stronger school 
leaders in every school. We hope that the bill will be 
strengthened by adding requirements for resources to be spent 
on professional development and leadership activities for 
principals, and including principals in professional 
development activities, as appropriate, throughout Title II.
    We should do all we can to ensure a qualified teacher in 
every classroom and a qualified principal in every school, 
particularly for the neediest children.

Expanding 21st Century Community Learning Centers

    By providing high quality after-school, weekend, and summer 
programs, 21st Century Community Learning Centers keep children 
safe, help parents work, and expand children's learning 
opportunities. Yet, demand for these programs continues to 
outpace supply. According to a report from the U.S. Census 
Bureau last year, almost 7 million children aged 5 to 14 are 
left unsupervised on a regular basis during the after-school 
hours.
    Research shows that children who are home alone after 
school hours report higher use of alcohol, cigarettes, and 
marijuana. Nearly 45 million children ages 14 years and younger 
are injured in their homes every year and most unintentional, 
injury-related deaths occur when children are out of school and 
unsupervised. Children home alone after school are also more 
likely to be victims of crime or to commit crimes themselves. 
Violent crimes by juveniles--murder, sexual assault, robbery 
and aggravated assault--peak between 3:00 p.m. and 6:00 p.m. 
The rate of juvenile violence during those hours is four times 
the rate during the standard teenage curfew hours of 10:00 p.m. 
to 6:00 a.m.
    Yet, despite the overwhelming evidence of need for more and 
better quality after-school alternatives, the Department of 
Education had sufficient resources last year to fund only 310 
of the over 2,000 applications it received under the 21st 
Century Community Learning Centers program. More than 1,000 
high-quality applications went unfunded.
    Given the critical shortage of high-quality after-school 
programs, we are pleased that the Committee voted unanimously 
to accept an amendment by Senator Dodd to increase the 
authorization for the 21st Century Community Learning Centers 
program from $846 million to $1.5 billion.
    With $1.5 billion in funding, over 2.1 million children 
across the nation would be provided extended learning 
opportunities in safe environments--approximately one million 
more children than can now be served. This level of investment 
would eliminate as much as a quarter of the Nation's ``latch-
key'' crisis. Although the amendment that was accepted is an 
authorization increase, and funding is still subject to annual 
appropriations, the Committee's unanimous approval of Senator 
Dodd's amendment sends a strong signal to the Administration 
and to the Appropriations Committee that the Committee places a 
high priority on funding for this program.
    We are also pleased that the Committee reached agreement 
during the Executive Session on allowing community-based 
organizations to apply for grants under the 21st Century 
Community Learning Centers program. Under the agreement, an 
equal priority will be given to applications from the following 
applicants: Title I-eligible schools; joint applications from 
community-based organizations and Title I-eligible schools; and 
community-based organizations serving Title I schools. 
Importantly, the agreement also provides that the locus of 21st 
Century Community Learning Centers programs will remain in 
public schools, unless the Secretary determines, on a case-by-
case basis, that requiring a particular program to operate in a 
school would undermine the program's effectiveness or limit its 
accessibility. In addition, it will clarify that a primary 
purpose of the 21st Century Community Learning Centers program 
is to enhance and increase extended learning time for students 
so that all children can meet high standards of achievement.

Increasing authorization of appropriations for Title I, Part A

    We are pleased that the Committee increased the 
authorization level for grants to local educational agencies 
under Title I, Part A to $15 billion for fiscal year 2002. But, 
we are disappointed that the Committee did not accept Senator 
Dodd's amendment to provide annual increases in the 
authorization levels for Title I over the next 7 years in order 
to reach full funding by fiscal year 2008. We believe that in 
this area, the Committee abdicated its responsibility to help 
ensure that all children meet high standards of achievement.
    Title I grants to local educational agencies are the 
primary method by which Congress helps low-income schools 
provide services to educationally at-risk students to enable 
them to meet challenging academic standards. It also helps 
States and communities to close the achievement gap between 
low-income and high-income schools, and turn around failing 
schools.
    Studies have shown that 80 percent of low-income school 
districts report that Title I is driving school reform and that 
reading and math performance has improved in low-income 
schools. The Department of Education's National Assessment of 
Title I--which was done in consultation with an independent 
review panel--found that since 1992, national reading 
performance has improved for 9-year olds in the highest poverty 
public schools and math achievement also has improved among 
students in the highest poverty public schools.
    Other studies show that since the 1994 reauthorization of 
ESEA, students receiving Title I services have increased their 
reading achievement in 21 of 24 urban districts studied, and 
increased their math achievement in 20 of 24 urban districts 
studied. Nevertheless, a significant gap remains between 
student achievement in low-income schools and high-income 
schools.
    The Committee bill would impose significant testing and 
accountability measures to help states and schools close this 
gap. We agree that it is important to measure student progress 
and hold States and schools accountable, but testing and 
accountability are not the reforms themselves. We must provide 
schools with the necessary resources to implement reforms, such 
as more intensive supplemental instruction and new research-
based curricula.
    However, Congress provides sufficient funding to meet only 
one-third of the need, as defined by the Title I formula. So, 
not only does Title I not serve all eligible children, but 
local educational agencies that receive Title I funds receive 
only about one-third of the amount that Congress has determined 
is necessary to help them close the achievement gap.
    Senator Dodd's amendment, although subject to annual 
appropriations, would have sent a strong signal that the 
Committee believes that Congress' goal must be to provide 
schools with the resources they need to provide all children 
with the education they need and deserve, and it should be a 
top national priority.

Meeting the needs of children with limited English proficiency

    The Committee bill marks a step forward in providing for 
the academic achievement of limited English proficient (LEP) 
students, and ensuring that these children are not left behind. 
Over the past decade, the Nation's overall school enrollment 
has grown by 14 percent. Over the same period, the LEP student 
population in our schools has grown by 104 percent, and LEP 
children now number over 3.5 million of the nation's 
schoolchildren. As this population grows, so too grows the need 
of the Nation's schools to ensure the academic success of LEP 
children.
    Democrats are pleased with provisions relating to LEP 
children in Title I, and view the disaggregation requirements 
included in the bill's accountability provisions as critical to 
ensuring that LEP students are not overlooked as states 
determine adequate yearly progress. Under the bill, states will 
set annual, numerical goals for the progress of LEP children, 
ensuring that schools no longer depend on average student 
achievement data in the aggregate to determine academic 
progress. These new provisions are critical to closing the 
achievement gap between LEP children and their English-speaking 
peers.
    Democrats are also pleased that the bill maintains and 
strengthens the Bilingual Education Act, and streamlines 
existing bilingual education programs while incorporating 
additional accountability measures for achievement in all 
academic content areas, as well as proficiency in English. We 
are pleased that provisions under Title III target funds to 
areas with large LEP student populations, and also provide 
assistance to areas that have limited or no experience in 
serving such populations.

Closing the digital divide

    Educational technology can enhance the classroom 
environment in ways that were unimaginable only a decade ago 
and can help students develop independent thinking and problem 
solving skills. We are pleased that the BEST Act includes a 
substantial investment in this important priority, and includes 
Senator Mikulski's national education goal to close the digital 
divide. We are also pleased with the requirement in the 
Committee bill that states and districts set aside 30 percent 
of technology funds for professional development for teachers. 
Our investment in technology infrastructure in schools will not 
be realized unless we ensure that teachers know how to use this 
important learning tool.
    Despite significant gains in technological capacity and 
connectivity, schools serving low-income children continuously 
lag behind in understanding how to integrate technology 
effectively into the curriculum. This ``digital divide'' is an 
issue of growing concern across the country. Children who are 
not exposed to technology and taught how to use it are at a 
disadvantage in their education and in the workplace. We know 
that low-income and minority students are less likely to own 
computers at home, making the accessibility of technology at 
school even more critical for these children. Also, many rural 
districts face challenges that technology is helping them to 
overcome. For example, districts that could never offer 
Advanced Placement or foreign language courses in the past are 
now able to do so through distance learning. Because of the 
federal government's special obligation to provide extra 
resources to our most disadvantaged children, we are pleased 
that the Committee accepted Senator Murray's amendment to 
target funds for technology to high-poverty districts, and to 
ensure an equitable distribution of funds among rural and urban 
districts. When faced with a digital divide, it is not time to 
abandon this role, but to reinforce it by ensuring federal 
dollars go where they are most needed. We also favor a federal 
commitment to research and development so that new innovations 
in the use of technology can continue to enrich the learning 
experiences of the Nation's children.

Improving school and community safety

    We are pleased that the bipartisan Safe and Drug-Free 
Schools and Communities Act, authored by Senator DeWine, 
Senator Dodd, and Senator Murray, is included in the Committee 
bill. Changes made to the act focus on improving accountability 
and enhancing the effectiveness of this program. The 
legislation requires states and schools to adhere to the 
``Principles of Effectiveness'' in the design, implementation, 
and evaluation of their programs. The bill also increases 
federal coordination, while providing states with the 
flexibility to better target these dollars.
    We are pleased with the adoption of Senator Wellstone's 
amendment concerning domestic violence and child abuse. 
Domestic violence and child abuse both are causes and 
predictors of juvenile violence, so this addition will 
significantly enhance the Safe and Drug-Free Schools and 
Communities Act. We also are pleased with the adoption of 
Senator Sessions' amendment concerning violence-prevention 
training and other allowable uses of funds.

Increasing parental involvement

    Research shows that regardless of economic, ethnic, or 
cultural background, parental involvement is a major factor in 
determining a child's academic success. Parental involvement 
contributes to better grades and test scores, higher homework 
completion rates, better attendance, and greater discipline. We 
are pleased that the bill takes many steps to bolster the 
existing parental involvement provisions in ESEA.
    In particular, the bill ensures that families of children 
in Title I schools can: access information on their children's 
progress and the performance of their children's school in 
terms they can understand; involves parents in school support 
teams to help in the process of turning around failing schools; 
ensures that parents are involved in violence and drug 
prevention programs so they can reinforce the safe and drug-
free message at home; requires states to collect and 
disseminate information about effective parental involvement 
practices; requires states and districts to annually review 
parental involvement activities of districts and schools to 
ensure the activities are effective; and requires technical 
assistance for Title I schools and districts that are having 
problems implementing parental involvement activities.
    We are also pleased that amendments proposed by Senator 
Reed to further strengthen parental involvement in the bill 
will be adopted as the bill moves to the Senate floor. These 
amendments support and encourage the use of technology to 
enhance parental involvement activities; add to the definition 
of professional development activities that encourage and 
enhancethe ability of teachers to provide instruction on how to 
work with and involve parents; add a requirement that districts 
describe how they will provide training to enable teachers to 
involve parents in their child's education; and revise the 
definition of parental involvement.
    But the bill does not go far enough. Too often, states, 
districts, and schools fail to adequately inform and involve 
parents because they lack the funding to do so. We are 
disappointed that Senator Reed's amendment, which would provide 
the needed resources, accountability, and flexibility to ensure 
that parental involvement activities are actually carried out, 
was not passed. Senator Reed's amendment would provide $500 
million to school districts, with strict accountability 
measures, to supplement and support recognized and proven 
initiatives that improve student achievement through parental 
involvement. In addition, the amendment would require states 
seeking funding under ESEA to: (1) describe, implement, and 
evaluate parental involvement policies and practices; and (2) 
provide public notice of its parental involvement policies in a 
manner and language understandable to parents, and to provide 
the opportunity for parents and others to comment on such 
policies.
    This amendment is critical, particularly in light of the 
bill's new requirement to test all students in grades 3 through 
8 every year. Given the proven connection between increased 
student achievement and parental involvement, we should not 
pass up this opportunity to provide all schools, teachers, and 
parents with the tools to increase parental involvement. As the 
bill moves to the floor, we urge the addition of these 
provisions.

Addressing the social, health, and other needs of children

    Beyond academic concerns, we recognize that children bring 
many social, health, and mental health problems to school that 
interfere with their ability to learn. Before children can turn 
their full attention to school, their basic needs must be met. 
Therefore, we are disappointed that the bill eliminates 
coordinated services under title XI and eliminates the 
Elementary School Counseling Demonstration Program.
    We are also disappointed that the Committee bill does not 
include Senator Reed's amendment which would authorize school-
community partnerships to provide children and families with 
links to existing community prevention and intervention 
services such as child care, health, mental health, nutrition, 
family support, literacy, parenting skills, and dropout 
prevention. Such services exist in a fragmented fashion in many 
communities, and families which would otherwise be eligible to 
receive the services cannot obtain them without coordination at 
a site housed under one familiar roof--their child's school. 
The coordination of these services not only removes barriers to 
a successful education, but promotes the overall health and 
well-being of the student as well. Without this amendment, 
along with Senator Harkin's amendment to establish and expand 
effective counseling programs in elementary and secondary 
schools, we will not achieve the improved academic results this 
bill demands.

Undermining accountability, targeting, and reform through block grants

    Senator Frist offered and withdrew an amendment to 
authorize Straight A's block grants. We believe that Straight 
A's would have undermined the bill, and created a tangled web 
of administrative chaos and policies that undermine national 
priorities in education, such as reducing class size, improving 
teacher quality, and closing the digital divide.
    Block grants undermine the targeting of resources to the 
neediest students and eliminate critical accountability 
provisions that help ensure better results for all children. 
The Straight A's proposal undermines the tough accountability 
and testing requirements championed by President Bush. While we 
support greater flexibility in education funding and the 
consolidation of many existing programs, block grants are the 
wrong direction for education, and do nothing to spur change in 
public schools.

Straight A's block grants are anti-local control, anti-accountability, 
        and pro-status quo

    The Academic Achievement for All Act--``Straight A's''--
abandons the national commitment to help the nation's most 
disadvantaged children get a good education through proven 
effective reforms of public schools. The amendment would give 
states a blank check for over $12 billion in current funding 
and over $22 billion in funding under the BEST Act--and then 
turns its back on holding states accountable for results.
    History shows that block grants haven't worked--and they 
won't work now. Block grants eliminate accountability. A 1997 
study by the Center on Budget and Policy Priorities found that 
the Maternal and Child Health Block Grant suffered from lack of 
accountability and illustrated the difficulty of tracking how 
states use funds and how many children were reached. Under the 
Straight A's proposal, states are not held accountable for 
educational results until after 5 years. By that time, many 
students will have lost five years of potential gains in 
student achievement.
    Under the amendment, states must only demonstrate statewide 
performance. They can ignore individual failing schools if a 
few schools excel--and increase the statewide average. A state 
could demonstrate statewide overall progress based on progress 
by wealthier communities, while a lack of progress in 
disadvantaged communities remains statistically hidden. States 
should have to demonstrate progress in student achievement in 
each school and each district, so that no community or child is 
left behind. This amendment is in direct conflict with 
President Bush's initiatives and the BEST Act provisions for 
annual accountability for improvement for disaggregated groups 
of children at the school, district, and state levels, annual 
report cards, rewards and sanctions based on annual progress, 
and for new annual tests.
    In addition, the accountability provisions in the 
Republican block grant proposal are oflittle significance. If 
states fail to make progress, the only required response is to 
prohibit the state from participating in the block grant 
program. Even this weak repercussion is unlikely to be 
implemented, because the states define progress without any 
federal or local input or general legislative parameters. Under 
the BEST Act, states set goals for student performance, but 
these goals are reviewed by the Secretary of Education and must 
be set within the context of the goal that all students attain 
proficiency within 10 years. Annual, numeric goals must be set 
for improved performance, as well as separate goals for low-
income and minority students, in order to ensure that 
achievement gaps are eliminated. If schools or districts fail 
to meet these goals, districts and states, respectively, must 
take action to assist the school or district, and supplemental 
resources are provided. Research-based school improvement 
strategies must be implemented. If the school or district 
continues to fail, sanctions are imposed.
    But under Straight A's, none of these requirements apply. 
There is no real accountability for closing the achievement gap 
in the Republican block grant proposals. Although the proposals 
require states to set goals for certain groups, as mentioned 
above, goals for student performance are set at the state level 
and there is little consequence for failure. In addition, the 
proposal would free participants from requirements in current 
law to include all students in state assessments. Under the 
Republican block grant proposal, ``all students'' is defined as 
``all students attending public or charter schools that are 
participating in the state's assessment system.'' There are no 
provisions requiring states to include all students in that 
assessment system. Therefore, a state could exclude students 
from assessments without any accountability for their 
performance.
    Block grants threaten funding for education. Historically, 
Congress increases funding for programs targeted on national 
priorities, not block grants. This is no time to reduce our 
investment in education. We should increase it. According to a 
1995 GAO study, total funding for nine block grants created in 
1981 declined by 12 percent, or $1 billion, in 1982. Funding 
for title VI (formerly Chapter 2) has decreased by 50 percent 
since FY82, when the block grant was created. In FY82, $708 
million (in 1999 dollars) was appropriated for the programs. In 
FY99, $375 million was appropriated.
    In contrast, because Title I, technology, and other Federal 
programs are targeted to important national priorities, 
appropriations for these programs have increased over time. For 
example, funding for Title I has almost doubled since FY82, 
from $4.1 billion (in FY99 dollars) to $7.9 billion in fiscal 
year 2000. Unfortunately, even with the increases, these 
programs are still underfunded.
    In addition, some of the programs that were originally 
consolidated, such as grants for professional development, 
magnet schools, and gifted and talented education, were later 
re-created as separate Federal programs. After submerging these 
programs in a block grant, Congress--on a bipartisan basis--
decided that these needs were not being met at the state and 
local levels and remained priorities of national importance.
    Block grants leave the door open for waste and abuse--and 
provide no focus on proven effective strategies to improve 
schools. Last year, Senator DeWine, in urging increased 
accountability measures, noted the poor history of states and 
local districts in spending Safe and Drug-Free Schools and 
Communities funds; he characterized those dollars as being 
``raided'' for pet projects or to support ineffective methods. 
School districts and schools could use scarce public tax 
dollars to support fads and gimmicks with no basis in research 
or proven practice. They could even use the money to support 
the football team, to buy computer games, or to buy new office 
furniture, if they decide that these uses serve ``educational 
purposes.'' In short, the Act provides no assurance that 
federal funds will go to improve instruction and teacher 
quality, strengthen curriculum, reduce class size, provide 
extended learning opportunities, or support other proven 
strategies for helping all students learn to high standards.
    Under Straight A's, there is no accountability at the 
school district or school level. Only the state must show that 
it has substantially--not entirely--met its own goals. If a 
state does not partially meet its goals, the only penalty is 
that after five years, it can no longer block grant the 
programs. There is no requirement for reporting at the district 
or school level on progress in improving student achievement, 
and there is no requirement for helping to improve low-
performing schools.
    History also shows that block grants allow the misdirection 
of funds. When states and localities received billions of 
dollars in the tobacco settlement, we heard their good 
intentions to use the funds to improve health care and stop 
children from smoking. Some state and local officials have kept 
that commitment. But many others have succumbed to the pressure 
to use the tobacco funds to build new sidewalks, provide new 
tax breaks, build new prisons, and, in the case of Los Angeles, 
pay the legal settlement costs in the recent police corruption 
cases. The tobacco funds do not have the limitations that would 
apply to this education bill. But we all know that there will 
be large pressures on the states to use the education block 
grant proposed in this bill for activities that do very little 
to enhance the quality of public schools.
    The block grants authorized by the amendment harken back to 
mistakes made during the early days of Title I. A 1969 report 
on how the 1965 Title I program funds were spent--when Title I 
was a state block grant--shows that states seriously misused 
the funds. State bureaucracies were fattened with funds that 
were supposed to go to schools. States and districts used funds 
to purchase football and band uniforms. Some purchased swimming 
pools. We cannot afford to go back to those days. We must 
insist that Federal funds are spent on improving the academic 
achievement of all students.
    Block grants also undermine targeting to disadvantaged 
communities. The Straight A's program holds school districts 
harmless for the amount of funding they received under Title I 
inthe previous year. Therefore, any new money appropriated 
could be reallocated to wealthier districts and schools. Needy 
districts would no longer be assured the additional funding 
they should get due to increased enrollments of poor children. 
In addition, the amendment does not protect any within-district 
targeting provisions under Title I. At FY2001 funding levels 
other than title I, over $4.3 billion could be spent in any 
district without a single dime going to needy schools.
    We acknowledge the pressures that state governments face in 
funding education. But we know that States don't target 
resources to the neediest schools and children who need 
additional help. Federal funds are significantly more targeted 
to low-income children than state funds. A recent General 
Accounting Office (GAO) report found that state formulas are 
less targeted on high-need children and school districts than 
federal formulas. GAO found that states provide an additional 
62 cents for each needy child for every dollar for all 
children, while the federal investment provided $4.73 per poor 
child for every dollar for all children.
    The Straight A's program also undermines local control. The 
amendment concentrates educational decision-making at the state 
level. By authorizing the state to decide whether it will enter 
into a performance agreement, the Act gives the state ultimate 
authority to determine the parameters of the agreement, 
including which schools and school districts will receive funds 
and how funds may be spent. Far from giving local districts 
flexibility, as policies and waiver provisions under current 
law have, Straight A's would increase the power of governors 
over local education policy at the expense of local districts, 
local school officials, and parents.
    Proponents of Straight A's argue that block grants are 
needed to return control of education to local communities. The 
reality is that there is already significant local control of 
education, and the 1994 ESEA reauthorization provided even more 
flexibility to local authorities in how they spend Title I 
dollars. States and communities provide 92 percent of funding 
for education. The federal government--which provides only 8 
percent of all K-12 education funding--cannot run local 
schools. What Washington can do, however, is help local 
communities meet education reform priorities when their budgets 
are stretched too thin. Washington can also target scarce 
public tax dollars on areas of national need, serve as a strong 
partner in education reform, and help establish a system that 
holds all officials accountable for children's academic 
progress.
    GAO found that for major federal elementary and secondary 
education programs, the Department of Education sent over 99 
cents of every dollar to states, and states, in turn, sent 94 
cents to local school districts. There is no massive waste or 
federal bureaucracy in federal education programs.
    The Straight A's block grants also deny special populations 
of students guaranteed help for meeting high standards. 
Migrant, homeless, and immigrant students would no longer be 
assured the extra help they need to stay in school and succeed 
in school.
    States could use the money for any ``educational 
purposes,'' including private school vouchers that would drain 
funds away from public schools. In the Committee mark up last 
year, Senator Gregg confirmed that funds under Straight A's 
could be used to support private school vouchers if a state 
approved them. Billions of public tax dollars could be diverted 
to private and religious schools, with no accountability for 
raising students' academic achievement. This diversion would 
represent a major shift in priorities for the role of the 
federal government in education.
    Finally, Straight A's abdicates our responsibility in a 
reauthorization to examine and improve federal efforts. If 
there are issues with federal programs, we should fix them--not 
just hand them off to the states and local communities.
    We would have staunchly opposed the Straight A's amendment 
in Committee had it been offered, and we will oppose it if it 
is offered on the floor.

Undermining standards-based reform under Title I and diverting scarce 
        public dollars from needy public schools to private schools 
        through vouchers

    Currently, Title I is funded at approximately $8.6 billion, 
only one-third of the level needed to fully fund the program. 
We are pleased that the Committee maintained Senator Dodd's 
amendment to increase the Title I authorization from $10 
billion to $15 billion that was adopted unanimously last year. 
However, at the same time that we signaled strong support for 
the program and standards-based reform, Senator Gregg's 
amendment to make Title I ``portable'' would have undermined 
them.
    The portability proposal gives students and parents false 
hope by promising increased educational support for low-income 
students. ``Portability'' under Senator Gregg's amendment would 
allocate a per-child share of Title I funds to virtually every 
school in a district, regardless of whether a school contains 
the concentration of need presently required to receive a Title 
I allocation. Because Title I funding levels are only 
sufficient to serve about one-third of eligible students, this 
provision would result in an immediate and drastic cut in the 
level and quality of supplementary educational services 
provided to low-achieving children.
    Under portability, the targeting of Title I funds on 
schools and pupils with the greatest need for assistance would 
be substantially reduced. Districts in the highest poverty 
quartile currently receive 43 percent of Title I funds, but 
only 23 percent of state and local funds. This amendment would 
enable states to distribute Title I funds in a way that creates 
further inequities in spending and result in a significant 
reduction in Title I resources for the neediest recipients and 
the highest poverty schools.
    For decades, Congress has recognized that schools enrolling 
high concentrations of children living in poverty face the most 
difficult challenges, and are much more likely to have higher 
proportions of children who are failing to meet state academic 
standards. As a result, Title I grants have been historically 
concentrated on the higher poverty schools, and they should 
continue to be targeted in this way if they are to address the 
greatest needs. If Title I funds are dispersed among public 
schools regardless of need, or to numerous private outside 
providers, the program will not be able to function as 
intended. The solution to ensuring that all eligible children 
are served by Title I is not an unworkable portability scheme, 
but it is for Congress to fully fund Title I. The Congressional 
Research Service has estimated that it would cost over $24 
billion to fully serve all eligible children--three times the 
current funding level.
    Redistributing funds through portability hurts poor 
children. The Congressionally-mandated Prospects Study strongly 
suggests that the need for Federal assistance is greatest in 
schools with high concentrations of poverty. As shown before, 
children can be given more public school choice, without 
destroying the targeting of funds to schools with high 
concentrations of poverty.
    Portability would also provide too little money to purchase 
educational services on an individual basis, or in schools with 
small numbers of Title I students. When funds are combined and 
concentrated on a substantial number of low-income pupils, 
however, they are far more effective. In fact, the bill already 
recognizes this important fact. Section 1001 (Statement of 
Purpose) states that one of the purposes of Title I is 
accomplished by ``. . . distributing resources sufficient to 
make a difference to local education agencies and schools where 
the needs are greatest.'' Under Senator Gregg's amendment, if 
students opt to take their allotment to an outside provider, 
what happens to the students who remain in the original school? 
The school will not be able to maintain the same level of 
services with only a fraction of what it had been receiving. 
Further, what if a parent requests supplemental services from 
an outside provider but also elects to stay in the home school 
and continue to receive Title I services there?
    Portability undermines reform. Since the 1994 
reauthorization, states, districts and schools have been 
restructuring their Title I programs with a focus on helping 
all children achieve to high state standards. The National 
Assessment of Title I reports that these changes are beginning 
to show results and are contributing to increased student 
achievement. Portability would wreak havoc on this process by 
disrupting program funding in current Title I schools. The 
current average Title I per-pupil expenditure of $775 can 
provide a significant amount of resources and services, but 
only if combined to help a substantial number of students in a 
school. Tying Title I dollars to individual students diminishes 
the benefits and success of schoolwide programs and research-
based school reform models.
    Portability reduces or eliminates Title I program 
accountability for the achievement of eligible students. 
Current provisions hold schools accountable for improved 
student achievement. Under this proposal, parents of eligible 
children could use their Title I funds to purchase 
supplementary educational services from a wide variety of 
providers, including private and religious schools and for-
profit businesses. There is no mechanism to ensure such 
providers provide quality services to children, and no 
accountability measures are required of these providers.
    Portability also opens the door to private school vouchers, 
at a time when courts are again rejecting these questionable 
policies enacted at the state and local levels. Public schools 
would be required at the request of parents to contract with a 
tutorial assistance provider, which could include private and 
religious schools and other religious entities. The proposal 
would allow public money to pay such entities for provision of 
private educational services. Since the public school 
administers the program, will the public school also be 
responsible for assuring that a child's academic achievement is 
improving, even if the students are receiving services at 
nonpublic schools?
    Portability doesn't guarantee any child a better education. 
Allowing children to take their portable grant to a private 
school or an off-campus after-school program does not 
necessarily mean they will receive a better education. Unless 
private schools are required to publicly report student 
achievement data in the same manner as public schools, we have 
no information regarding the quality of education in those 
schools. It would be irresponsible to send public dollars into 
``mystery'' institutions of questionable quality.
    We know that standards-based reform and schoolwide programs 
are making a difference. For example, approximately 80 percent 
of the students at Baldwin Elementary School in Boston, 
Massachusetts are identified as low income and many of the 
students are recent immigrants. With a strong focus on 
professional development and high standards and with Title I 
funds, test scores increased substantially from 1996 to 2000 
when 96 percent of third graders and 91 percent of fifth 
graders passed the reading test. Sixty percent of third graders 
and 39 percent of fifth graders scored at the proficient or 
advanced levels.
    At Gladys Noon Spellman Elementary in Cheverly, Maryland, 
in 1994, only 17 percent of third graders scored at or above 
the satisfactory level on the state test. Title I funds were 
used to implement reform. Each teacher was paired with another 
staff member to provide small group instruction during a 90 
minute reading and language arts block in the mornings. All 
staff utilized their specialties as a basis for language 
instruction and were provided with professional development. By 
1999, 73 percent of third-graders performed at or above 
satisfactory on the state test.
    Democrats strongly believe that Title I and other Federal 
programs should be focused on the neediest students, and should 
provide consequences for failure. Portability and voucher 
schemes undermine those efforts and support the status quo.
    We believe that we must change the status quo for children 
attending failing schools. We must invest additional resources 
in programs that work to improve student achievement. We must 
hold schools, districts, and states accountability for better 
results. We must require schools to change when they are 
failing their students and to offer parents public school 
choice options. The Committee bill meets these goals. We should 
strengthen school reform, not undermine it.

Conclusion

    The Committee bill represents important progress in 
strengthening and improving public schools in every community. 
This progress includes a strong federal helping hand, 
accountability for results, targeting to the neediest 
communities, and a clear focus on priority areas of national 
need. The nation's children deserve no less.

                                   Edward M. Kennedy.
                                   Tom Harkin.
                                   Jeff Bingaman.
                                   Patty Murray.
                                   John Edwards.
                                   Christopher J. Dodd.
                                   Barbara A. Mikulski.
                                   Paul D. Wellstone.
                                   Jack Reed.
                                   Hillary Clinton.
                       X. Changes in Existing Law

    In compliance with rule XXVI paragraph 12 of the Standing 
Rules of the Senate, the following provides a print of the 
statute or the part or section thereof to be amended or 
replaced (existing law proposed to be omitted is enclosed in 
black brackets, new matter is printed in italic, existing law 
in which no change is proposed is shown in roman):

BETTER EDUCATION FOR STUDENTS AND TEACHERS ACT

           *       *       *       *       *       *       *


SECTION 1. [20 U.S.C. 6301 NOTE] [TABLE OF CONTENTS] SHORT TITLE.

           *       *       *       *       *       *       *


SEC. 2. PURPOSE.

    It is the purpose of this Act to support programs and 
activities that will improve the Nation's schools and enable 
all children to achieve high standards.

SEC. 3. 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 such school 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 
                such other data.
                  (C) Special rule.--If the local educational 
                agency in which a child resides makes a tuition 
                or other payment for the free public education 
                of the child in a school located in another 
                school district, the Secretary shall, for 
                purposes of this Act--
                          (i) consider the child to be in 
                        attendance at a school of the agency 
                        making such payment; and
                          (ii) not consider the child to be in 
                        attendance at a school of the agency 
                        receiving such 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 purposes of this 
                Act, consider such child to be in attendance at 
                a school of the agency making such 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 such 
                        agencies; divided by
                  (B) the aggregate number of children in 
                average daily attendance to whom such agencies 
                provided free public education during such 
                preceding year.
          (3) Child.--The term ``child'' means any person 
        within the age limits for which the State provides free 
        public education.
          (4) 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.
          (5) Consolidated local application.--The term 
        ``consolidated local application'' means an application 
        submitted by a local educational agency pursuant to 
        section 5505.
          (6) Consolidated local plan.--The term ``consolidated 
        local plan'' means a plan submitted by a local 
        educational agency pursuant to section 5505.
          (7) Consolidated state application.--The term 
        ``consolidated State application'' means an application 
        submitted by a State educational agency pursuant to 
        section 5502.
          (8) Consolidated state plan.--The term ``consolidated 
        State plan'' means a plan submitted by a State 
        educational agency pursuant to section 5502.
          (9) 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.
          (10) Covered program.--The term ``covered program'' 
        means each of the programs authorized by--
                  (A) part A of title I;
                  (B) part C of title I;
                  (C) part C of title II;
                  (D) part A of title IV (other than section 
                4114); and
                  (E) subpart 4 of part B of title V.
          (11) 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 
                subpart 4 of part B of title V.
          (12) Department.--The term ``Department'' means the 
        Department of Education.
          (13) 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.
          (14) 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.
          (15) 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 such term does not include any 
                education provided beyond grade 12.
          (16) 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 performance capability in 
        areas such as intellectual, creative, artistic, or 
        leadership capacity, or in specific academic fields, 
        and who require services or activities not ordinarily 
        provided by the school in order to fully develop such 
        capabilities.
          (17) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in section 101 of the Higher Education 
        Act of 1965.
          (18) 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 for such combination 
                of school districts or counties as are 
                recognized in a State as an administrative 
                agency for the State's public elementary 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 such inclusion makes such school 
                eligible for programs for which specific 
                eligibility is not provided to such school in 
                another provision of law and such 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 such school shall not be subject to 
                the jurisdiction of any State educational 
                agency other than the Bureau of Indian Affairs.
          (19) Mentoring.--The term ``mentoring'', when used 
        with respect to mentoring other than teacher mentoring, 
        means a program in which an adult works with a child or 
        youth on a 1-to-1 basis, establishing a supportive 
        relationship, providing academic assistance, and 
        introducing the child or youth to new experiences that 
        enhance the child or youth's ability to excel in school 
        and become a responsible citizen.
          (20) Other staff.--The term ``other staff'' means 
        pupil services personnel, librarians, career guidance 
        and counseling personnel, education aides, and other 
        instructional and administrative personnel.
          (21) Outlying area.--The term ``outlying area'' means 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, and 
        for the purpose of section 1121 and any other 
        discretionary grant program under this Act, the 
        Republic of the Marshall Islands, the Federated States 
        of Micronesia, and the Republic of Palau.
          (22) Parent.--The term ``parent'' includes a legal 
        guardian or other person standing in loco parentis.
          (23) Parental involvement.--The term ``parental 
        involvement'' means the participation of parents on all 
        levels of a school's operation, including all of the 
        activities described in section 1118.
          (24) Public telecommunications entity.--The term 
        ``public telecommunication entity'' has the same 
        meaning given to such term in section 397 of the 
        Communications Act of 1934.
          (25) 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 such 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.
          (26) Scientifically based research.--The term 
        ``scientifically based research'' used with respect to 
        an activity or a program, means an activity based on 
        specific strategies and implementation of such 
        strategies that, based on theory, research and 
        evaluation, are effective in improving student 
        achievement and performance and other program 
        objectives.
          (27) 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 such term does not include any 
        education beyond grade 12.
          (28) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (29) 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.
          (30) State educational agency.--The term ``State 
        educational agency'' means the agency primarily 
        responsible for the State supervision of public 
        elementary schools and secondary schools.
          (31) Teacher mentoring.--The term ``teacher 
        mentoring'' means activities that--
                  (A) consist of structured guidance and 
                regular and ongoing support for beginning 
                teachers, that--
                          (i) are designed to help the teachers 
                        continue to improve their practice of 
                        teaching and to develop their 
                        instructional skills; and
                          (ii) as part of a multiyear, 
                        developmental induction process--
                                  (I) involve the assistance of 
                                a mentor teacher and other 
                                appropriate individuals from a 
                                school, local educational 
                                agency, or institution of 
                                higher education; and
                                  (II) may include coaching, 
                                classroom observation, team 
                                teaching, and reduced teaching 
                                loads; and
                  (B) may include the establishment of a 
                partnership by a local educational agency with 
                an institution of higher education, another 
                local educational agency, a teacher 
                organization, or another organization.
          (32) Technology.--The term ``technology'' means 
        state-of-the-art technology products and services, such 
        as closed circuit television systems, educational 
        television and radio programs and services, cable 
        television, satellite, copper and fiber optic 
        transmission, computer hardware and software, video and 
        audio laser and CD-ROM discs, video and audio tapes, 
        web-based learning resources, including online classes, 
        interactive tutorials, and interactive tools and 
        virtual environments for problem-solving, hand-held 
        devices, wireless technology, voice recognition 
        systems, and high-quality digital video, distance 
        learning networks, visualization, modeling, and 
        simulation software, and learning focused digital 
        libraries and information retrieval systems.

      [TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

[SEC. 1001. [20 U.S.C. 6301] DECLARATION OF POLICY AND STATEMENT OF 
                    PURPOSE.

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

[SEC. 1002. [20 U.S.C. 6302] AUTHORIZATION OF APPROPRIATIONS.

    [(a) Local Educational Agency Grants.--For the purpose of 
carrying out part A, other than section 1120(e), there are 
authorized to be appropriated $7,400,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four 
succeeding fiscal years.
    [(b) Even Start.--For the purpose of carrying out part B, 
there are authorized to be appropriated $118,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the 
four succeeding fiscal years.
    [(c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$310,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
    [(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--For the 
purpose of carrying out part D, there are authorized to be 
appropriated $40,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.
    [(e) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$41,434,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
    [(f) Additional Assistance for School Improvement.--For the 
purpose of providing additional needed assistance to carry out 
sections 1116 and 1117, there are authorized to be appropriated 
such sums as may be necessary for fiscal year 1996 and each of 
the three succeeding fiscal years.
    [(g) Federal Activities.--
          [(1) Section 1501.--For the purpose of carrying out 
        section 1501, there are authorized to be appropriated 
        $9,000,000 for fiscal year 1995 and such sums as may be 
        necessary for each of the four succeeding fiscal years.
          [(2) Sections 1502 and 1503.--For the purpose of 
        carrying out sections 1502 and 1503, there are 
        authorized to be appropriated $50,000,000 for fiscal 
        year 1995 and such sums as may be necessary for each of 
        the four succeeding fiscal years.

[SEC. 1003. [20 U.S.C. 6303] RESERVATION AND ALLOCATION FOR SCHOOL 
                    IMPROVEMENT.

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

SEC. 1001. STATEMENT OF PURPOSE.

  The purpose of this title is to enable schools to provide 
opportunities for children served under this title to acquire 
the knowledge and skills contained in the challenging State 
content standards and to meet the challenging State student 
performance standards developed for all children. This purpose 
should be accomplished by--
          (1) ensuring high standards for all children and 
        aligning the efforts of States, local educational 
        agencies, and schools to help children served under 
        this title to reach such standards;
          (2) providing children an enriched and accelerated 
        educational program, including the use of schoolwide 
        programs or additional services that increase the 
        amount and quality of instructional time so that 
        children served under this title receive at least the 
        classroom instruction that other children receive;
          (3) promoting schoolwide reform and ensuring access 
        of children (from the earliest grades, including 
        prekindergarten) to effective instructional strategies 
        and challenging academic content that includes 
        intensive complex thinking and problem-solving 
        experiences;
          (4) significantly elevating the quality of 
        instruction by providing staff in participating schools 
        with substantial opportunities for professional 
        development;
          (5) coordinating services under all parts of this 
        title with each other, with other educational services, 
        and to the extent feasible, with other agencies 
        providing services to youth, children, and families 
        that are funded from other sources;
          (6) affording parents substantial and meaningful 
        opportunities to participate in the education of their 
        children at home and at school;
          (7) distributing resources in amounts sufficient to 
        make a difference to local educational agencies and 
        schools where needs are greatest;
          (8) improving and strengthening accountability, 
        teaching, and learning by using State assessment 
        systems designed to measure how well children served 
        under this title are achieving challenging State 
        student performance standards expected of all children; 
        and
          (9) providing greater decisionmaking authority and 
        flexibility to schools and teachers in exchange for 
        greater responsibility for student performance.

SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

  (a) Local Educational Agency Grants.--For the purpose of 
carrying out part A, other than section 1120(e), there are 
authorized to be appropriated $15,000,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
  (b) Reading First.--
          (1) Even start.--For the purpose of carrying out 
        subpart 1 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 6 succeeding 
        fiscal years.
          (2) Reading first.--For the purpose of carrying out 
        subpart 2 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 6 succeeding 
        fiscal years.
          (3) Early reading first.--For the purpose of carrying 
        out subpart 3 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 6 succeeding 
        fiscal years.
  (c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$400,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
  (d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--For the 
purpose of carrying out part D, there are authorized to be 
appropriated $50,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.
  (e) Capital Expenses.--For the purpose of carrying out 
section 1120(e), there are authorized to be appropriated 
$15,000,000 for fiscal year 2002, $15,000,000 for fiscal year 
2003, and $5,000,000 for fiscal year 2004.
  (f) Federal Activities.--
          (1) Section 1501.--For the purpose of carrying out 
        section 1501, there are authorized to be appropriated 
        $10,000,000 for fiscal year 2002 and such sums as may 
        be necessary for each of the 6 succeeding fiscal years.
          (2) Section 1502.--For the purpose of carrying out 
        section 1502, there are authorized to be appropriated 
        $25,000,000 for fiscal year 2002 and such sums as may 
        be necessary for each of the 6 succeeding fiscal years.
  (g) 21st Century Learning Centers.--For the purpose of 
carrying out part F, there are authorized to be appropriated 
$1,500,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
  (h) Comprehensive School Reform.--For the purpose of carrying 
out part G, there are authorized to be appropriated 
$250,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
  (i) School Dropout Prevention.--For the purpose of carrying 
out part H, there are authorized to beappropriated $250,000,000 
for fiscal year 2002 and such sums as may be necessary for each 
of the 6 succeeding fiscal years, of which--
          (1) 10 percent shall be available to carry out 
        subpart 1 of part H for each fiscal year; and
          (2) 90 percent shall be available to carry out 
        subpart 2 of part H for each fiscal year.

SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

  (a) State Reservation.--Each State educational agency shall 
reserve 3.5 percent of the amount the State educational agency 
receives under subpart 2 of part A for each of the fiscal years 
2002 and 2003, and 5 percent of that amount for each of the 
fiscal years 2004 through 2008, to carry out subsection (b) and 
to carry out the State educational agency'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 shall make 
available not less than 50 percent of that amount directly to 
local educational agencies for schools identified for school 
improvement, corrective action, or reconstitution under section 
1116(c).

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


                 Subpart 1--Basic Program Requirements


SEC. 1111. [20 U.S.C. 6311] STATE PLANS.

    [(a) Plans Required.--
        [(1) In general.--Any State desiring to receive a grant 
        under this part shall submit to the Secretary a plan, 
        developed in consultation with local educational 
        agencies, teachers, pupil services personnel, 
        administrators, other staff, and parents, that 
        satisfies the requirements of this section and that is 
        coordinated with other programs under this Act, the 
        Goals 2000: Educate America Act, and other Acts, as 
        appropriate, consistent with section 14306.
          [(2) Consolidation plan.--A State plan submitted 
        under paragraph (1) may be submitted as part of a 
        consolidation plan under section 143.02.
    (b) Standards and Assessments.--
          [(1) Challenging standards.--(A) Each State plan 
        shall demonstrate that the State has developed or 
        adopted challenging content standards and challenging 
        student performance standards that will be used by the 
        State, its local educational agencies, and its schools 
        to carry out this part, except that a State shall not 
        be required to submit such standards to the Secretary.
          [(B) If a State has State content standards or State 
        student performance standards developed under title III 
        of the Goals 2000: Educate America Act and an aligned 
        set of assessments for all students developed under 
        such title, or, if not developed under such title, 
        adopted under another process, the State shall use such 
        standards and assessments, modified, if necessary, to 
        conform with the requirements of subparagraphs (A) and 
        (D) of this paragraph, and paragraphs (2) and (3).
          [(C) If a State has not adopted State content 
        standards and State student performance standards for 
        all students, the State plan shall include a strategy 
        and schedule for developing State content standards and 
        State student performance standards for elementary and 
        secondary school children served under this part in 
        subjects as determined by the State, but including at 
        least mathematics and reading or language arts by the 
        end of the one-year period described in paragraph (6), 
        which standards shall include the same knowledge, 
        skills, and levels of performance expected of all 
        children.
          [(D) Standards under this paragraph shall include--
                  [(i) challenging content standards in 
                academic subjects that--
                          [(I) specify what children are 
                        expected to know and be able to do;
                          [(II) contain coherent and rigorous 
                        content; and
                          [(III) encourage the teaching of 
                        advanced skills;
                  [(ii) challenging students performance 
                standards that--
                          [(I) are aligned with the State's 
                        content standards;
                          [(II) describe two levels of high 
                        performance, proficient and advanced, 
                        that determine how well children are 
                        mastering the material in the State 
                        content standards; and
                          [(III) describe a third level of 
                        performance, partially proficient, to 
                        provide complete information about the 
                        progress of the lower performing 
                        children toward achieving to the 
                        proficient and advanced levels of 
                        performance.
          [(E) For the subjects in which students will be 
        served under this part, but for which a State is not 
        required by subparagraphs (A), (B), and (C) to develop, 
        and has not otherwise developed such standards, the 
        State plan shall describe a strategy for ensuring that 
        such students are taught the same knowledge and skills 
        and held to the same expectations as are all children.
          [(2) Yearly progress.--
                  [(A) Each State plan shall demonstrate, based 
                on assessments described under paragraph (3), 
                what constitutes adequate yearly progress of--
                          [(i) any school served under this 
                        part toward enabling children to meet 
                        the State's student performance 
                        standards; and
                          [(ii) any local educational agency 
                        that received funds under this part 
                        toward enabling children in schools 
                        receiving assistance under this part to 
                        meet the State's student performance 
                        standards.
                  [(B) Adequate yearly progress shall be 
                defined in a manner--
                          [(i) that is consistent with 
                        guidelines established by the Secretary 
                        that result in continuous and 
                        substantial yearly improvement of each 
                        local educational agency and school 
                        sufficient to achieve the goal of all 
                        children served under this part meeting 
                        the State's proficient and advanced 
                        levels of performance, particularly 
                        economically disadvantaged and limited 
                        English proficient children; and
                          [(ii) that links progress primarily 
                        to performance on the assessments 
                        carried out under this section while 
                        permitting progress to be established 
                        in part through the use of other 
                        measures.
          [(3) Assessments.--Each State plan shall demonstrate 
        that the State has developed or adopted a set of high-
        quality, yearly student assessments, including 
        assessments in at least mathematics and reading or 
        language arts, that will be used as the primary means 
        of determining the yearly performance of each local 
        educational agency and school served under this part in 
        enabling all children served under this part to meet 
        the State's student performing standards. Such 
        assessments shall--
                  [(A) be the same assessments used to measure 
                the performance of all children, if the State 
                measures the performance of all children;
                  [(B) be aligned with the State's challenging 
                content and student performance standards and 
                provide coherent information about student 
                attainment of such standards;
                  [(C) be used for purposes for which such 
                assessments are valid and reliable, and be 
                consistent with relevant, nationally recognized 
                professional and technical standards for such 
                assessments;
                  [(D) measures the proficiency of students in 
                the academic subjects in which a State has 
                adopted challenging content and student 
                performance standards and be administered at 
                some time during--
                          [(i) grades 3 through 5;
                          [(ii) grades 6 through 9; and
                          [(iii) grades 10 through 12;
                  [(E) involve multiple up-to-date measures of 
                student performance, including measures that 
                assess higher order thinking skills and 
                understanding;
                  [(F) provide for--
                          [(i) the participation in such 
                        assessments of all students;
                          [(ii) the reasonable adaptations and 
                        accommodations for students with 
                        diverse learning needs, necessary to 
                        measure the achievement of such 
                        students relative to State content 
                        standards; and
                          [(iii) the inclusion of limited 
                        English proficient students who shall 
                        be assessed, to the extent practicable, 
                        in the language and form most likely to 
                        yield accurate and reliable information 
                        on what such students know and can do, 
                        to determine such students' mastery of 
                        skills in subjects other than English;
                  [(G) include students who have attended 
                schools in a local educational agency for a 
                full academic year but have not attended a 
                single school for a full academic year, however 
                the performance of students who have attended 
                more than one school in the local educational 
                agency in any academic year shall be used only 
                in determining the progress of the local 
                educational agency;
                  [(H) provide individual student interpretive 
                and descriptive reports, which shall include 
                scores, or other information on the attainment 
                of student performance standards; and
                  [(I) enable results to be disaggregated 
                within each State, local educational agency, 
                and school by gender, by each major racial and 
                ethnic group, by English proficiency status, by 
                migrant status, by students with disabilities 
                as compared to nondisabled students, and by 
                economically disadvantaged students are 
                compared to students who are not economically 
                disadvantaged.
          [(4) Special rule.--Assessment measures that do not 
        meet the requirements of paragraph (3)(C) may be 
        included as one of the multiple measures, if a State 
        includes in the State plan information regarding the 
        State's efforts to validate such measures.
          [(5) Language assessments.--Each State plan shall 
        identify the languages other than English that are 
        present in the participating student population and 
        indicate the languages for which yearly student 
        assessments are not available and are needed. The State 
        shall make every effort to develop such assessments and 
        may request assistance from the Secretary if 
        linguistically accessible assessment measures are 
        needed. Upon request, the Secretary shall assist with 
        the identification of appropriate assessment measures 
        in the needed languages through the Office of Bilingual 
        Education and Minority Languages Affairs.
          [(6) Standard and assessment development.--(A) A 
        State that does not have challenging State content 
        standards and challenging State student performance 
        standards, in at least mathematics and reading or 
        language arts, shall develop such standards within one 
        year of receiving funds under this part after the first 
        fiscal year for which such State receives such funds 
        after the date of enactment of the Improving America's 
        Schools Act of 1994.
          [(B) A state that does not have assessments that meet 
        the requirements of paragraph (3) in at least 
        mathematics and reading or language arts shall develop 
        and test such assessments within four years (one year 
        of which shall be used for field testing such 
        assessment), of receiving funds under this part after 
        the first fiscal year for which such State receives 
        such funds after the date of enactment of the Improving 
        America's Schools Act of 1994 and shall develop 
        benchmarks of progress toward the development of such 
        assessments that meet the requirements of paragraph 
        (3), including periodic updates.
          [(C) The Secretary may extend for one additional year 
        the time for testing new assessments under subparagraph 
        (B) upon the request of the State and the submission of 
        a strategy to correct problems identified in the field 
        testing of such new assessments.
          [(D) If, after the one-year period described in 
        subparagraph (A), a State does not have challenging 
        State content and challenging student performance 
        standards in at least mathematics and reading or 
        language arts, a State shall adopt a set of standards 
        in these subjects such as the standards and assessments 
        contained in other State plans the Secretary has 
        approved.
          [(E) If, after the four-year period described in 
        subparagraph (B), a State does not have assessments, in 
        at least mathematics and reading or language arts, that 
        meet the requirement of paragraph (3), and is denied an 
        extension under subparagraph (C), a State shall adopt 
        an assessment that meets the requirement of paragraph 
        (3) such as one contained in other State plans the 
        Secretary has approved.
          [(7) Transitional assessments.--(A) If a State does 
        not have assessments that meet the requirements of 
        paragraph (3) and proposes to develop such assessments 
        under paragraph(6)(B), the State may propose to use a 
        transitional set of yearly statewide assessments that 
        will assess the performance of complex skills and 
        challenging subject matter.
          [(B) For any year in which a State uses transitional 
        assessments, the State shall devise a procedure for 
        identifying local educational agencies under paragraphs 
        (3) and (7) of section 116(d), and schools under 
        paragraphs (1) and (7) of section 116(c), that rely on 
        accurate information about the academic progress of 
        each such local educational agency and school.
          [(8) Requirement.--Each State plan shall describe--
                  [(A) how the State educational agency will 
                help each local educational agency and school 
                affected by the State plan develop the capacity 
                to comply with each of the requirements of 
                sections 1112(c)(1)(D), 1114(b), and 1115(c) 
                that is applicable to such agency or schools; 
                and
                  [(B) such other factors the State deems 
                appropriate to provide students an opportunity 
                to achieve the knowledge and skills described 
                in the challenging content standards adopted by 
                the State.
    [(c) Other Provisions to Support Teaching and Learning.--
Each State plan shall contain assurances that--
          [(1)(A) the State educational agency will implement a 
        system to school support teams under section 1117(c), 
        including provision of necessary professional 
        development for those teams;
          [(B) the State educational agency will work with 
        other agencies, including educational service agencies 
        or other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under 
        section 1119 and technical assistance under section 
        1117; and
          [(C)(i) where educational service agencies exist, the 
        State educational agency will consider providing 
        professional development and technical assistance 
        through such agencies; and
          [(ii) where educational service agencies do not 
        exist, the State educational agency will consider 
        providing professional development and technical 
        assistance through other cooperative agreements such as 
        through a consortium of local educational agencies;
          [(2) the State educational agency will notify local 
        educational agencies and the public of the standards 
        and assessments developed under this section, and of 
        the authority to operate schoolwide programs, and will 
        fulfill the State educational agency improvement and 
        school improvement under section 1116, including such 
        corrective actions as are necessary;
          [(3) the State educational agency will provide the 
        least restrictive and burdensome regulations for local 
        educational agencies and individual schools 
        participating in a program assisted under this part;
          [(4) the State educational agency will encourage the 
        use of funds from other Federal, State, and local 
        sources for schoolwide reform in schoolwide programs 
        under section 114;
          [(5) the Committee of Practitioners established under 
        section 1603(b) will be substantially involved in the 
        development of the plan and will continue to be 
        involved in monitoring the plan's implementation by the 
        State; and
          [(6) the State will coordinate activities funded 
        under this part with school-to-work, vocational 
        education, cooperative education and mentoring 
        programs, and apprenticeship programs involving 
        business, labor, and industry, as appropriate.
    (d) Peer Review and Secretarial Approval.--
          [(1) In general.--The Secretary shall--
                  [(A) establish a peer review process to 
                assist in the review and recommendations for 
                revision of State plans;
                  [(B) appoint individuals to the peer review 
                process who are representative of State 
                educational agencies, local educational 
                agencies, teachers, and parents;
                  [(C) following an initial peer review, 
                approve a State plan the Secretary determines 
                meets the requirements of subsections (a), (b), 
                and (c);
                  [(D) if the Secretary determines that the 
                State plan does not meet the requirements of 
                subsection (a), (b), or (c), immediately notify 
                the State of such determination and the reasons 
                for such determination;
                  [(E) not decline to approve a State's plan 
                before--
                          [(i) offering the State an 
                        opportunity to revise its plan;
                          [(ii) providing technical assistance 
                        in order to assist the State to meet 
                        the requirements under subsections (a), 
                        (b), and (c); and
                          [(iii) providing a hearing; and
                  [(F) have the authority to disapprove a State 
                plan for not meeting the requirements of this 
                part, but shall not have the authority to 
                require a State, as a condition of approval of 
                the State plan, to include in, or delete from, 
                such plan one or more specific elements of the 
                State's content standards or to use specific 
                assessment instruments or items.
          [(2) Withholding.--The Secretary may withhold funds 
        for State administration and activities under section 
        1117 until the Secretary determines that the State plan 
        meets the requirements of this section.
    (e) Duration of the Plan.--
          (1) In general.--Each State plan shall--
                  [(A) remain in effect for the duration of the 
                State's participation under this part; and
                  [(B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
          [(2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption 
        of new State content standards and State student 
        performance standards,new assessments, or a new 
        definition of adequate progress, the State shall submit 
        such information to the Secretary.
    [(f) Limitation on Conditions.--Nothing in this part shall 
be construed to authorize an officer or employee of the Federal 
Government to mandate, direct, or control a State, local 
educational agency, or school's specific instructional content 
or student performance standards and assessments, curriculum, 
or program of instruction, as a condition of eligibility to 
receive funds under this part.
    [(g) Special Rule.--If the aggregate State expenditure by a 
State educational agency for the operation of elementary and 
secondary education programs in the State is less than such 
agency's aggregate Federal expenditure for the State operation 
of all Federal elementary and secondary education programs, 
then the State plan shall include assurances and specific 
provisions that such State will provide State expenditures for 
the operation of elementary and secondary education programs 
equal to or exceeding the level of Federal expenditures for 
such operation by October 1, 1998.]

SEC. 1111. STATE PLANS.

  (a) Plans Required.--
          (1) In general.--Any State desiring to receive a 
        grant under this part shall submit to the Secretary, by 
        March 1, 2002, a plan 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 
        Adult Education and Family Literacy Act, and the Head 
        Start Act.
          (2) Consolidation plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a 
        consolidation plan under section 5506.
  (b) Standards, Assessments, and Accountability.--
          (1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has adopted challenging 
        content standards and challenging student performance 
        standards that will be used by the State, its local 
        educational agencies, and its schools to carry out this 
        part, except that a State shall not be required to 
        submit such standards to the Secretary.
          (B) The standards required by subparagraph (A) shall 
        be the same standards that the State applies to all 
        schools and children in the State.
          (C) The State shall have the standards described in 
        subparagraph (A) for all public elementary school and 
        secondary school children served under this part in 
        subjects determined by the State, but including at 
        least mathematics, reading or language arts, history, 
        and science, which shall include the same knowledge 
        skills, and levels of achievement expected of all 
        children, except that no State shall be required to 
        meet the requirements under this part relating to 
        history or science standards until the beginning of the 
        2005-2006 school year.
          (D) Standards under this paragraph shall include--
                  (i) challenging content standards in academic 
                subjects that--
                          (I) specify what children are 
                        expected to know and be able to do;
                          (II) contain coherent and rigorous 
                        content; and
                          (III) encourage the teaching of 
                        advanced skills; and
                  (ii) challenging student performance 
                standards that--
                          (I) are aligned with the State's 
                        content standards;
                          (II) describe 2 levels of high 
                        performance, proficient and advanced, 
                        that determine how well children are 
                        mastering the material in the State 
                        content standards; and
                          (III) describe a third level of 
                        performance, partially proficient, to 
                        provide complete information about the 
                        progress of the lower performing 
                        children toward achieving to the 
                        proficient and advanced levels of 
                        performance.
          (E) For the subjects in which students served under 
        this part will be taught, but for which a State is not 
        required by subparagraphs (A), (B), and (C) to develop 
        standards, and has not otherwise developed standards, 
        the State plan shall describe a strategy for ensuring 
        that such students are taught the same knowledge and 
        skills and held to the same expectations as are all 
        children.
          (2) Accountability.--(A) Each State plan shall 
        demonstrate that the State has developed and is 
        implementing a single, statewide State accountability 
        system that has been or will be effective in ensuring 
        that all local educational agencies, elementary 
        schools, and secondary schools make adequate yearly 
        progress as defined under subparagraph (B). Each State 
        accountability system shall--
                  (i) be based on the standards and assessments 
                adopted under paragraphs (1) and (3) and take 
                into account the performance of all students;
                  (ii) be used for all schools or all local 
                educational agencies in the State, except that 
                schools and local educational agencies not 
                participating under this part are not subject 
                to the requirements of section 1116(c);
                  (iii) include performance indicators for 
                local educational agencies and schools to 
                measure student performance consistent with 
                subparagraph (B); and
                  (iv) include sanctions and rewards, such as 
                bonuses or recognition, the State will use to 
                hold local educational agencies and schools 
                accountable for student achievement and 
                performance and for ensuring that the agencies 
                and schools make adequate yearly progress in 
                accordance with the State's definition under 
                subparagraph (B).
          (B) Each State plan shall demonstrate, based on 
        assessments described in paragraph (3), what 
        constitutes adequate yearly progress of the State, and 
        of schools and local educational agencies in the State, 
        toward enabling all students to meet the State's 
        student performance standards. Adequate yearly progress 
        shall be defined by the State in a manner that--
                  (i) applies the same high standards of 
                academic performance to all 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 schools and 
                local educational agencies based primarily on 
                the assessments described in paragraph (3);
                  (v) includes annual measurable objectives for 
                continuing and significant improvement in--
                          (I) the achievement of all students; 
                        and
                          (II) the achievement of economically 
                        disadvantaged students, students with 
                        disabilities, students with limited 
                        English proficiency, migrant students, 
                        students by racial and ethnic group, 
                        and students by gender, except that 
                        such disaggregation shall not be 
                        required in any case in which the 
                        number of students in a category is 
                        insufficient to yield statistically 
                        reliable information or the results 
                        would reveal individually identifiable 
                        information about an individual 
                        student;
                  (vi) includes a timeline for ensuring that 
                each group of students described in clause (v) 
                meets or exceeds the State's proficient level 
                of performance on the State assessment used for 
                the purposes of this section and section 1116 
                within 10 years from the date of enactment 
                ofthe Better Education for Students and 
                Teachers Act; and
                  (vii) includes school completion or dropout 
                rates and at least 1 other academic indicator, 
                as determined by the States, except that 
                inclusion of such indicators shall not decrease 
                the number of schools or local educational 
                agencies that would otherwise be subject to 
                identification for improvement or corrective 
                action if the discretionary indicators were not 
                included.
          (C) Each State shall ensure that in developing its 
        plan, the State diligently seeks public comment from a 
        range of institutions and individuals in the State with 
        an interest in improved student achievement and 
        performance, including parents, teachers, local 
        educational agencies, pupil services personnel, 
        administrators (including those described in other 
        parts of this title), and other staff, and that the 
        State will continue to make a substantial effort to 
        ensure that information under this part is widely known 
        and understood by the public, parents, teachers, and 
        school administrators throughout the State. Such 
        efforts shall include, at a minimum, publication of 
        such information and explanatory text, broadly to the 
        public through such means as the Internet, the media, 
        and public agencies.
          (D) If a State educational agency provides evidence, 
        which is satisfactory to the Secretary, that neither 
        the State educational agency nor any other State 
        government official, agency, or entity has sufficient 
        authority, under State law, to adopt curriculum content 
        and student performance standards, and assessments 
        aligned with such standards, which will be applicable 
        to all students enrolled in the State's public schools, 
        the State educational agency may meet the requirements 
        of this subsection by--
                  (i) adopting standards and assessments that 
                meet the requirements of this subsection, on a 
                statewide basis, and limiting the applicability 
                of the standards and assessments to students 
                served under this part; or
                  (ii) adopting and implementing policies that 
                ensure that each local educational agency in 
                the State which receives a grant under this 
                part will adopt curriculum content and student 
                performance standards, and assessments aligned 
                with such standards, which meet all of the 
                criteria of this subsection.
          (E) Each State plan shall describe the standard the 
        State will use for judging statistically significant 
        educational progress for purposes of implementing the 
        reconstitution provisions contained in section 1116 
        and, in so doing, describe how the State will take into 
        account issues such as the size of a school and the 
        mobility of the students in a school.
          (3) Assessments.--Each State plan shall demonstrate 
        that the State, in consultation with local educational 
        agencies, has a system of high-quality, yearly student 
        assessments in subjects that include, at a minimum, 
        mathematics, reading or language arts, and science that 
        will be used as the primary means of determining the 
        yearly performance of each local educational agency and 
        school in enabling all children to meet the State's 
        student performance 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. Such assessments shall--
                  (A) be the same assessments used to measure 
                the performance of all children;
                  (B) be aligned with the State's challenging 
                content and student performance standards and 
                provide coherent information about student 
                attainment of such standards;
                  (C) be used for purposes for which such 
                assessments are valid and reliable, and be 
                consistent with relevant, nationally recognized 
                professional and technical standards for such 
                assessments;
                  (D) measure the proficiency of students in 
                the academic subjects in which a State has 
                adopted challenging content and student 
                performance standards and be administered not 
                less than 1 or more times during--
                          (i) grades 3 through 5;
                          (ii) grades 6 through 9; and
                          (iii) grades 10 through 12;
                  (E) involve multiple up-to-date measures of 
                student performance, including measures that 
                assess higher order thinking skills and 
                understanding;
                  (F) beginning not later than school year 
                2005-2006, measure the annual performance of 
                students against the challenging State content 
                and student performance standards in grades 3 
                through 8 in at least mathematics and reading 
                or language arts, except that--
                          (i) 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 local educational 
                        agency or school, prevented full 
                        implementation of the assessments by 
                        that deadline and that the State will 
                        complete the implementation within the 
                        additional 1-year period; and
                          (ii) a State shall not be required to 
                        conduct any assessments under this 
                        subparagraph, that were not required on 
                        the day preceding the date of enactment 
                        of the Better Education for Students 
                        and Teachers Act, in any school year, 
                        if the amount made available to the 
                        State under section 6403(a) for use in 
                        that school year for such assessments 
                        is less than 50 percent of the costs of 
                        administering such assessments by the 
                        State in the previous school year, or 
                        if such assessments were not 
                        administered in the previous school 
                        year (in accordance with this clause), 
                        in the most recent school year in which 
                        such assessments were administered;
                  (G) provide for--
                          (i) the participation in such 
                        assessments of all students;
                          (ii) the reasonable adaptations and 
                        accommodations for students with 
                        disabilities defined under section 
                        602(3) of the Individuals with 
                        Disabilities Education Act necessary to 
                        measure the achievement of such 
                        students relative to State content and 
                        State student performance standards;
                          (iii) the inclusion of limited 
                        English proficient students who shall 
                        be assessed, to the extent practicable, 
                        in the language and form most likely to 
                        yield accurate and reliable information 
                        on what such students know and can do 
                        in content areas; and
                          (iv) notwithstanding clause (iii), 
                        the assessment (using tests written in 
                        English) of reading or language arts of 
                        any student who has attended school in 
                        the United States (excluding the 
                        Commonwealth of Puerto Rico) for 3 or 
                        more consecutive school years, except 
                        that--
                                  (I) if the local educational 
                                agency determines, on a case-
                                by-case individual basis, that 
                                assessments in another language 
                                and form would likely yield 
                                more accurate and reliable 
                                information on what such 
                                student knows and can do, the 
                                local educational agency may 
                                assess such student in the 
                                appropriate language other than 
                                English for 1 additional year; 
                                or
                                  (II) in extraordinary 
                                situations, if the local 
                                educational agency determines, 
                                on a case-by-case individual 
                                basis, that assessments in 
                                another language and form would 
                                likely yield more accurate and 
                                reliable information, the local 
                                educational agency may assess 
                                such student in the appropriate 
                                language for additional years;
                  (H) 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;
                  (I) produce individual student interpretive 
                and descriptive reports to be provided to 
                parents of all students, which shall include 
                scores, or other information on the attainment 
                of student performance standards, such as 
                measures of student course work over time, 
                student attendance rates, student dropout 
                rates, and student participation in advanced 
                level courses; and
                  (J) enable results to be disaggregated within 
                each State, local educational agency, and 
                school by gender, by racial and ethnic group, 
                by English proficiency status, by migrant 
                status, by students with disabilities as 
                compared to nondisabled students, and by 
                economically disadvantaged students as compared 
                to students who are not economically 
                disadvantaged, except that in the case of a 
                local educational agency or a school such 
                disaggregation shall not be required in a case 
                in which the number of students in a category 
                is insufficient to yield statistically reliable 
                information or the results would reveal 
                individually identifiable information about an 
                individual student.
          (4) Special rules.--(A) Additional measures that do 
        not meet the requirements of paragraph (3)(C) may be 
        included in the assessments if a State includes in the 
        State plan information regarding the State's efforts to 
        validate such measures.
          (B) States may measure the proficiency of students in 
        the academic subjects in which a State has adopted 
        challenging content and student performance standards 1 
        or more times during grades kindergarten through 2.
          (5) Language assessments.--Each State plan shall 
        identify the languages other than English that are 
        present in the participating student population and 
        indicate the languages for which yearly student 
        assessments are not available and are needed. The State 
        shall make every effort to develop such assessments and 
        may request assistance from the Secretary if 
        linguistically accessible assessment measures are 
        needed. Upon request, the Secretary shall assist with 
        the identification of appropriate assessment measures 
        in the needed languages but shall not mandate a 
        specific assessment or mode of instruction.
          (6) Requirement.--Each State plan shall describe--
                  (A) how the State educational agency will 
                help each local educational agency and school 
                affected by the State plan to develop the 
                capacity to comply with each of the 
                requirements of sections 1112(c)(4), 1114(b), 
                and 1115(c) that is applicable to such agency 
                or school; and
                  (B) such other factors the State deems 
                appropriate to provide students an opportunity 
                to achieve the knowledge and skills described 
                in the challenging content standards adopted by 
                the State.
          (7) Ed-flex.--A State shall not be eligible for 
        designation under the Ed-Flex Partnership Act of 1999 
        until the State develops assessments aligned with the 
        State's content standards in at least mathematics and 
        reading or language arts.
  (c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
          (1) the State will meet the requirements of 
        subsection (i)(1) and, beginning with the 2002-2003 
        school year, will produce the annual State report cards 
        described in such subsection;
          (2) the State will, beginning in school year 2002-
        2003, participate in annual State assessments of 4th 
        and 8th grade reading and mathematics under the 
        National Assessment of Educational Progress carried out 
        under section 411(b)(2) of the National Education 
        Statistics Act of 1994 if the Secretary pays the costs 
        of administering such assessments;
          (3) the State educational agency will work with other 
        agencies, including educational service agencies or 
        other local consortia, and institutions to provide 
        technical assistance to local educational agencies and 
        schools to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under 
        section 1119, technical assistance under section 1117, 
        and parental involvement under section 1118;
          (4)(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;
          (5) the State educational agency will notify local 
        educational agencies and the public of the content and 
        student performance standards and assessments developed 
        under this section, and of the authority to operate 
        schoolwide programs, and will fulfill the State 
        educational agency's responsibilities regarding local 
        educational agency improvement and school improvement 
        under section 1116, including such corrective actions 
        as are necessary;
          (6) 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;
          (7) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at 
        all, hinder the ability of States to hold local 
        educational agencies and schools accountable for 
        student academic performance;
          (8) 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;
          (9) 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;
          (10) the State educational agency has involved the 
        committee of practitioners established under section 
        1903(b) in developing the plan and monitoring its 
        implementation;
          (11) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under subpart 3 of part B 
        of title V and, if the State is an Ed-Flex Partnership 
        State, waivers under the Education Flexibility 
        Partnership Act of 1999; and
          (12) the State will coordinate activities funded 
        under this part with other Federal activities as 
        appropriate.
  (d) Parental Involvement.--Each State plan shall describe how 
the State will support the collection and dissemination to 
local educational agencies and schools of effective parental 
involvement practices. Such practices shall--
          (1) be based on the most current research on 
        effective parental involvement that fosters achievement 
        to high standards for all children; and
          (2) be geared toward lowering barriers to greater 
        participation in school planning, review, and 
        improvement experienced by parents.
  (e) Peer Review and Secretarial Approval.--
          (1) Secretarial duties.--The Secretary shall--
                  (A) establish a peer review process to assist 
                in the review of State plans;
                  (B) appoint individuals to the peer review 
                process who are representative of parents, 
                teachers, State educational agencies, local 
                educational agencies, and who are familiar with 
                educational standards, assessments, 
                accountability, and other diverse educational 
                needs of students;
                  (C) approve a State plan within 120 days of 
                its submission unless the Secretary determines 
                that the plan does not meet the requirements of 
                this section;
                  (D) if the Secretary determines that the 
                State plan does not meet the requirements of 
                subsection (a), (b), or (c), immediately notify 
                the State of such determination and the reasons 
                for such determination;
                  (E) not decline to approve a State's plan 
                before--
                          (i) offering the State an opportunity 
                        to revise its plan;
                          (ii) providing technical assistance 
                        in order to assist the State to meet 
                        the requirements under subsections (a), 
                        (b), and (c); and
                          (iii) providing a hearing; and
                  (F) have the authority to disapprove a State 
                plan for not meeting the requirements of this 
                part, but shall not have the authority to 
                require a State, as a condition of approval of 
                the State plan, to include in, or delete from, 
                such plan 1 or more specific elements of the 
                State's content standards or to use specific 
                assessment instruments or items.
          (2) State revisions.--States shall revise their plans 
        if necessary to satisfy the requirements of this 
        section.
    (f) Provision of Testing Results to Parents and Teachers.--
Each State plan shall demonstrate how the State educational 
agency will assist local educational agencies in assuring that 
results from the assessments required under this section will 
be provided to parents and teachers as soon as is practicably 
possible after the test is taken, in a manner and form that is 
understandable and easily accessible to parents and teachers.
    (g) Duration of the Plan.--
          (1) In general.--Each State plan shall--
                  (A) remain in effect for the duration of the 
                State's participation under this part; and
                  (B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
          (2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption 
        of new State content standards and State student 
        performance standards, new assessments, or a new 
        definition of adequate progress, the State shall submit 
        such information to the Secretary.
    (h) Limitation on Conditions.--Nothing in this part shall 
be construed to authorize an officer or employee of the Federal 
Government to mandate, direct, or control a State, local 
educational agency, or school's specific instructional content 
or student performance standards and assessments, curriculum, 
or program of instruction, as a condition of eligibility to 
receive funds under this part.
    (i) Penalty.--If a State fails to meet the statutory 
deadlines for demonstrating that it has in place challenging 
content standards and student performance standards, and a 
system for measuring and monitoring adequate yearly progress, 
the Secretary shall withhold funds for State administration and 
activities under section 1117 until the Secretary determines 
that the State plan meets the requirements of this section.
    (j) Reports.--
          (1) Annual state report card.--
                  (A) In general.--Not later than the beginning 
                of the 2002-2003 school year, a State that 
                receives assistance under this Act shall 
                prepare and disseminate an annual State report 
                card.
                  (B) Implementation.--The State report card 
                shall be--
                          (i) concise; and
                          (ii) presented in a format and manner 
                        that parents can understand, and which, 
                        to the extent practicable, shall be in 
                        a language the parents can understand.
                  (C) Public dissemination.--The State shall 
                widely disseminate the information described in 
                subparagraph (D) to all schools and local 
                educational agencies in the State and make the 
                information broadly available through public 
                means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies.
                  (D) Required information.--The State shall 
                include in its annual State report card--
                          (i) information, in the aggregate, on 
                        student achievement and performance at 
                        each proficiency level on the State 
                        assessments described in subsection 
                        (b)(3)(F) (disaggregated by race, 
                        ethnicity, gender, disability status, 
                        migrant status, English proficiency, 
                        and socioeconomic status);
                          (ii) the percentage of students not 
                        tested (disaggregated by the same 
                        categories described in clause (i));
                          (iii) such other information (such as 
                        dropout, graduation, and school 
                        attendance rates, completion of 
                        advanced placement courses, 
                        professional qualifications of 
                        teachers, and average class size by 
                        grade level) as the State believes will 
                        best provide parents, students, and 
                        other members of the public with 
                        information on the progress of each of 
                        the State's public schools;
                          (iv) the number and names of each 
                        school identified for school 
                        improvement, including schools 
                        identified under section 1116(c); and
                          (v) information on the performance of 
                        local educational agencies in the State 
                        regarding making adequate yearly 
                        progress, including the number and 
                        percentage of schools in the State that 
                        did not make adequate yearly progress.
          (2) Annual local educational agency report cards.--
                  (A) In general.--Not later than the beginning 
                of the 2002-2003 school year, a local 
                educational agency that receives assistance 
                under this Act shall prepare and disseminate an 
                annual local educational agency report card.
                  (B) Minimum requirements.--The State shall 
                ensure that each local educational agency 
                collects appropriate data and includes in the 
                local educational agency's annual report the 
                information described in paragraph (1)(D) 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 and how long 
                                they have been so identified, 
                                including schools identified 
                                under section 1116(c); and
                                  (II) information that shows 
                                how students served by the 
                                local educational agency 
                                perform on the statewide 
                                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 
                                performed on the statewide 
                                assessment 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 reports any 
                other appropriate information whether or not 
                such information is included in the annual 
                State report.
                  (D) Data.--A local educational agency or 
                school shall only include in its annual local 
                educational agency report card data that is 
                sufficient to yield statistically reliable 
                information, as determined by the State, and 
                does not reveal individually identifiable 
                information about an individual student.
                  (E) Public dissemination.--The local 
                educational agency shall, not later than the 
                beginning of the 2002-2003 school year, 
                publicly disseminate the information described 
                in this paragraph to all schools in the school 
                district and to all parents of students 
                attending those schools, and make the 
                information broadly available through public 
                means, such as posting on the Internet, 
                distribution to the media, and distribution 
                through public agencies, except that if a local 
                educational agency issues a report card for all 
                students, the local educational agency may 
                include the information under this section as 
                part of such report.
          (3) Preexisting report cards.--A State or local 
        educational agency that was providing public report 
        cards on the performance of students, schools, local 
        educational agencies, or the State, may continue to use 
        those reports for the purpose of this subsection, if 
        such report is modified, as may be necessary, to 
        contain the information required by this subsection.
          (4) Annual state report to the secretary.--Each State 
        receiving assistance under this Act shall report 
        annually to the Secretary, and make widely available 
        within the State--
                  (A) beginning with school year 2001-2002, 
                information on the State's progress in 
                developing and implementing the assessments 
                described in subsection (b)(3);
                  (B) beginning not later than school year 
                2004-2005, information on the achievement of 
                students on the assessments required by that 
                section, including the disaggregated results 
                for the categories of students identified in 
                subsection (b)(2)(B)(v)(II);
                  (C) the number and names of each school 
                identified for school improvement, including 
                schools identified under section 1116(c), the 
                reason why each school was so identified, and 
                the measures taken to address the performance 
                problems of such schools; and
                  (D) in any year before the State begins to 
                provide the information described in 
                subparagraph (B), information on the results of 
                student assessments (including disaggregated 
                results) required under this section.
          (5) Parents right-to-know.--
                  (A) Qualifications.--A local educational 
                agency that receives funds under this part 
                shall provide and notify the parents of each 
                student attending any school receiving funds 
                under this part that the parents may request, 
                and will be provided on request, information 
                regarding the professional qualifications of 
                the student's classroom teachers, including, at 
                a minimum, the following:
                          (i) Whether the teacher has met State 
                        qualification and licensing criteria 
                        for the grade levels and subject areas 
                        in which the teacher provides 
                        instruction.
                          (ii) Whether the teacher is teaching 
                        under emergency or other provisional 
                        status through which State 
                        qualification or licensing criteria 
                        have been waived.
                          (iii) The baccalaureate degree major 
                        of the teacher and any other graduate 
                        certification or degree held by the 
                        teacher, and the field of discipline of 
                        the certification or degree.
                          (iv) Whether the child is provided 
                        services by paraprofessionals and the 
                        qualifications of such 
                        paraprofessional.
                  (B) Additional information.--A school that 
                receives funds under this part shall provide to 
                parents information on the level of 
                performance, of the individual student for whom 
                they are the parent, in each of the State 
                assessments as required under this part.
                  (C) Format.--The notice and information 
                provided to parents shall be in an 
                understandable and uniform format.
  (k) Privacy.--Information collected under this section shall 
be collected and disseminated in a manner that protects the 
privacy of individuals.
  (l) Technical Assistance.--The Secretary shall provide a 
State educational agency, at the State educational agency's 
request, technical assistance in meeting the requirements of 
this section, including the provision of advice by experts in 
the development of high-quality assessments and other relevant 
areas.

SEC. 1112. [20 U.S.C. 6312] LOCAL EDUCATIONAL AGENCY PLANS.

    (a) Plans Required.--
          (1) Subgrants.--A local educational agency may 
        receive a subgrant under this part for any fiscal year 
        only if such agency has on file with the State 
        educational agency a plan, approved by the State 
        educational agency, that is coordinated with other 
        programs under this Act, [the Goals 2000: Educate 
        America Act, and other Acts, as appropriate, as 
        specified in section 14306.] the Individuals with 
        Disabilities Education Act, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        Head Start Act, and other Acts, as appropriate
          (2) Consolidated application.--The plan may be 
        submitted as part of a consolidated application under 
        section [14304] 5504.
    (b) Plan Provisions.--Each local educational agency plan 
shall include--

           *       *       *       *       *       *       *

                  (B) assist in diagnosis, teaching, and 
                learning in the classroom in ways that best 
                enable children served under this part to meet 
                State standards and do well in the local 
                curriculum; [and]
                  (C) determine what revisions are needed to 
                projects under this part so that such children 
                will meet the State's student performance 
                standards; and
                  (D) determine the literacy levels of first 
                graders and their needs for interventions, 
                including a description of how the agency will 
                ensure that any such assements--
                          (i) are developmentally appropriate;
                          (ii) use multiple measures to provide 
                        information about the variety of skills 
                        that research has identified as leading 
                        to early reading; and
                          (iii) are administered to students in 
                        the language most likely to yield valid 
                        results;

           *       *       *       *       *       *       *

          (3) a description of the strategy the local 
        educational agency will use to provide professional 
        development for teachers, and, where appropriate, pupil 
        services personnel, administrators, parents and other 
        staff, including local educational agency level staff 
        in accordance with section 1119, which strategy shall 
        be coordinated with activities under title II if the 
        local educational agency receives funds under title II;

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

          [(9) where appropriate, description of how the local 
        educational agency will use funds under this part to 
        support pre-school programs for children, particularly 
        children participating in a Head Start or Even Start 
        program, which services may be provided directly by the 
        local educational agency or through a subcontract with 
        the local Head Start agency designated by the Secretary 
        of Health and Human Services under section 641 of the 
        Head Start Act, agencies operating Even Start programs, 
        or another comparable public early childhood 
        development program.]
          (9) where appropriate, a description of how the local 
        educational agency will use funds under this part to 
        support early childhood education programs under 
        section 1120B; and
          (10) a description of the strategy the local 
        educational agency will use to implement effective 
        parental involvement under section 1118.
      [(c) Assurances.--
          [(1) In general.--Each local educational agency plan 
        shall provide assurances that the local educational 
        agency will--
                  [(A) inform eligible schools and parents of 
                schoolwide project authority;
                  [(B) provide technical assistance and support 
                to schoolwide programs;
                  [(C) work in consultation with schools as the 
                schools develop the schools' plans pursuant to 
                section 1114 and assist schools as the schools 
                implement such plans or undertake activities 
                pursuant to section 1115 so that each school 
                can make adequate yearly progress toward 
                meeting the State content standards and State 
                student performance standards;
                  [(D) fulfill such agency's school improvement 
                responsibilities under section 1116, including 
                taking corrective actions under section 
                1116(c)(4);
                  [(E) coordinate and collaborate, to the 
                extent feasible and necessary as determined by 
                the local educational agency, with other 
                agencies providing services to children, youth, 
                and families, including health and social 
                services;
                  [(F) provide services to eligible children 
                attending private elementary and secondary 
                schools in accordance with section 1120, and 
                timely and meaningful consultation with private 
                school officials regarding such services;
                  [(G) take into account the experience of 
                model programs for the educationally 
                disadvantaged, and the findings of relevant 
                research indicating that services may be most 
                effective if focused on students in the 
                earliest grades at schools that receive funds 
                under this part; and
                  [(H) beginning in fiscal year 1997 and in the 
                case that a local educational agency chooses to 
                use funds under this part to provide early 
                childhood development services to low-income 
                children below the age of compulsory school 
                attendance, ensure that such services comply 
                with the performance standards established 
                under section 641A(a) of the Head Start Act or 
                under section 651 of such Act, as such section 
                651 was in effect on the day preceding the date 
                of enactment of the Human Services Amendments 
                of 1994.
          [(2) Special rule.--In carrying out subparagraph (H) 
        of paragraph (1) the Secretary--
                  [(A) in fiscal year 1995, shall consult with 
                the Secretary of Health and Human Services on 
                the implementation of such subparagraph and 
                shall establish procedures (taking into 
                consideration existing State and local laws, 
                and local teacher contracts) to assist local 
                educational agencies to comply with such 
                subparagraph; and
                  [(B) in fiscal year 1996, shall disseminate 
                to local educational agencies the Head Start 
                Performance Standards revised pursuant to 
                section 641A(a) of the Head Start Act, and such 
                agencies effected by such subparagraph shall 
                plan for the implementation of such 
                subparagraph (taking into consideration 
                existing State and local laws, and local 
                teacher contracts), including pursuing the 
                availability of other Federal, State, and local 
                funding sources to assist in compliance with 
                such subparagraph.
          [(3) Inapplicability.--The provisions of this 
        subsection shall not apply to preschool programs using 
        the Even Start model or to Even Start programs which 
        are expanded through the use of funds under this part.]
    (c) Assurances.--Each local educational agency plan shall 
provide assurances that the local educational agency will--
          (1) inform eligible schools and parents of schoolwide 
        project authority;
          (2) provide technical assistance and support to 
        schoolwide programs;
          (3) work in consultation with schools as the schools 
        develop the schools' plans pursuant to section 1114 and 
        assist schools as the schools implement such plans or 
        undertake activities pursuant to section 1115 so that 
        each school can make adequate yearly progress toward 
        meeting the State content standards and State student 
        performance standards;
          (4) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking 
        corrective actions under section 1116(c)(5);
          (5) work in consultation with schools as the schools 
        develop and implement their plans or activities under 
        sections 1118 and 1119;
          (6) coordinate and collaborate, to the extent 
        feasible and necessary as determined by the local 
        educational agency, with other agencies providing 
        services to children, youth, and families, including 
        health and social services;
          (7) provide services to eligible children attending 
        private elementary and secondary schools in accordance 
        with section 1120, and timely and meaningful 
        consultation with private school officials regarding 
        such services;
          (8) take into account the experience of model 
        programs for the educationally disadvantaged, and the 
        findings of relevant research indicating that services 
        may be most effective if focused on students in the 
        earliest grades at schools that receive funds under 
        this part;
          (9) comply with the requirements of section 1119 
        regarding professional development;
          (10) inform eligible schools of the local educational 
        agency's authority to obtain waivers on the school's 
        behalf under subpart 3 of part B of title V, and if the 
        State is an Ed-Flex Partnership State, waivers under 
        the Education Flexibility Partnership Act of 1999;
          (11) 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;
          (12) use the results of the student 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 title to 
        determine whether or not all of the schools are making 
        the annual progress necessary to ensure that all 
        students will meet the State's proficient level of 
        performance on the State assessments described in 
        section 1111(b)(3) within 10 years of the date of 
        enactment of the Better Education for Students and 
        Teachers Act;
          (13) ensure that the results from the assessments 
        required under section 1111 will be provided to parents 
        and teachers as soon as is practicably possible after 
        the test is taken, in a manner and form that is 
        understandable and easily accessible to parents and 
        teachers.

           *       *       *       *       *       *       *

    (e) State Approval.--
          (1) In general.--Each local educational agency plan 
        shall be filed according to a schedule established by 
        the State educational agency[, except that a local 
        educational agency shall have not more than one year 
        after the date of enactment of the Improving America's 
        Schools Act of 1994 to have such plan provisionally 
        approved by the State educational agency and not more 
        than two years after the date of enactment of such Act 
        to have such plan finally approved by the State 
        educational agency].

           *       *       *       *       *       *       *

          (3) Review.--The State educational agency shall 
        review the local educational agency's plan to determine 
        if such agency's [professional development] activities 
        are in accordance with [section 1119] sections 1118 and 
        1119.

           *       *       *       *       *       *       *


SEC. 1113. [20 U.S.C. 6313] ELIGIBLE SCHOOL ATTENDANCE AREAS.

    (a) Determination.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (B) use funds received under this part in a 
                school that is not an eligible school 
                attendance area, if the percentage of children 
                from low-income families enrolled in the school 
                is equal to or greater than the percentage of 
                such children in a participating school 
                attendance area of such agency; [and]
                  (C) elect not to serve an eligible school 
                attendance area or eligible school that has a 
                higher percentage of children from low-income 
                families if--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) the funds expended from such 
                        other sources equal or exceed the 
                        amount that would be provided under 
                        this part[.]; and
                  (D) designate and serve a school attendance 
                area or school that is not an eligible school 
                attendance area under subsection (a)(2), but 
                that was an eligible school attendance area and 
                was served in the fiscal year preceding the 
                fiscal year for which the determination is 
                made, but only for 1 additional fiscal year.

           *       *       *       *       *       *       *


SEC. 1114. [20 U.S.C. 6314] SCHOOLWIDE PROGRAMS.

    (a) Use of Funds for Schoolwide Programs.--
          [(1) In general.--A local educational agency may use 
        funds under this part, in combination with other 
        Federal, State, and local funds, in order to upgrade 
        the entire educational program in a school described in 
        subparagraph (A) or (B) if, for the initial year of the 
        schoolwide program, the school meets either of the 
        following criteria:
                  [(A) For the school year 1995-1996--
                          [(i) the school serves an eligible 
                        school attendance area in which not 
                        less than 60 percent of the children 
                        are from low-income families; or
                          [(ii) not less than 60 percent of the 
                        children enrolled in the school are 
                        from such families.
                  [(B) For the school year 1996-1997 and 
                subsequent years--
                          [(i) the school serves an eligible 
                        school attendance area in which not 
                        less than 50 percent of the children 
                        are from low-income families; or
                          [(ii) not less than 50 percent of the 
                        children enrolled in the school are 
                        from such families.]
          (1) In General.--A local educational agency may use 
        funds under this part, together with other Federal, 
        State, and local funds, 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, for the initial year 
        of the schoolwide program.

           *       *       *       *       *       *       *

          (4) [Special rule.--Exemption from statutory and 
        regulatory requirements.--(A) Except as provided in 
        subsection (b), the Secretary may through publication 
        of a notice in the Federal Register, exempt schoolwide 
        programs under this section from statutory or 
        regulatory provisions of any other noncompetitive 
        formula grant program administered by the Secretary, or 
        any discretionary grant program administered by the 
        Secretary (other than formula or discretionary grant 
        programs under the Individuals with Disabilities 
        Education Act), to support schoolwide programs, if the 
        intent and purposes of such other programs are met.

           *       *       *       *       *       *       *

                   (C) A school that chooses to use funds from 
                such other 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 programs that were consolidated to support 
                the schoolwide program.
    (b) Components of a Schoolwide Program.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                          (vii) are consistent with, and are 
                        designed to implement, the State and 
                        local improvement plans[, if any, 
                        approved under title III of the Goals 
                        2000: Educate America Act].

           *       *       *       *       *       *       *

                  (E) Strategies to increase parental 
                involvement[, such as family literary services] 
                (including activities described in section 
                1118), such as family literacy services, in-
                school volunteer opportunities, or parent 
                membership on school-based leadership or 
                management teams.

           *       *       *       *       *       *       *

          (2) Plan.--(A) Any eligible school that desires to 
        operate a schoolwide program shall first develop (or 
        amend a plan for such a program that was in existence 
        before the date of enactment of the [Improving 
        America's Schools Act of 1994] Better Education for 
        Students and Teachers Act), in consultation with the 
        local educational agency and its school support team or 
        other technical assistance provider under subsections 
        (c)(1) and (e) of section 1117, a comprehensive plan 
        for reforming the total instructional program in the 
        school that--

           *       *       *       *       *       *       *

                  (iv) describes how the school will provide 
                individual student assessment results in a 
                language the family can understand, including 
                an interpretation of those results, to the 
                parents of a child who participates in the 
                assessment required by section 1111(b)(3);

           *       *       *       *       *       *       *

          (C) The comprehensive plan shall be--
                  (i) developed during a one-year period, 
                unless--

           *       *       *       *       *       *       *

                          (II) the school is operating a 
                        schoolwide program on the day preceding 
                        the date of enactment of the [Improving 
                        America's Schools Act of 1999] Better 
                        Education for Students and Teachers 
                        Act, in which case such school may 
                        continue to operate such program, but 
                        shall develop a new plan during the 
                        first year of assistance under such Act 
                        to reflect the provisions of this 
                        section;
                  (v) where appropriate, developed in 
                coordination with programs under [the School-
                to-Work Opportunities Act of 1994,] the Carl D. 
                Perkins Vocational and Technical Education Act 
                of 1998, and the National and Community Service 
                Act of 1990.

           *       *       *       *       *       *       *


SEC. 1115. [20 U.S.C. 6315] TARGETED ASSISTANCE SCHOOLS.

    (a) In General.--* * *

           *       *       *       *       *       *       *

                          (ii) children who are not yet at a 
                        grade level where the local education 
                        agency provides a free public 
                        education[, yet are of an age at which 
                        such children can benefit from an 
                        organized instructional program 
                        provided in a school or other 
                        educational setting].

           *       *       *       *       *       *       *

                  (B) A child who, at any time in the two years 
                preceding the year for which the determination 
                is made, participated in a Head Start or Even 
                Start program, or in early childhood education 
                services under this title, is eligible for 
                services under this part.
                  (C)(i) A child who, at any time in the two 
                years preceding the year for which the 
                determination is made, received services under 
                the program for youth who are neglected, 
                delinquent, or at risk of dropping out [under 
                part D (or its predecessor authority)] may be 
                eligible for services under this part.

           *       *       *       *       *       *       *

                  [(G) in accordance with subsection (e)(3) and 
                section 1119, provide opportunities for 
                professional development with resources 
                provided under this part, and from other 
                sources to the extent feasible, for 
                administrators and for teachers and other 
                school staff who work with participating 
                children in programs under this section or in 
                the regular education program; and]
                  (G) provide opportunities for professional 
                development with resources provided under this 
                part, and to the extent practicable, from other 
                sources, for teachers, principals, 
                administrators, paraprofessionals, pupul 
                services personnel, and parents, who work with 
                participating children in programs under this 
                section or in the regular education program; 
                and
                  (H) provide strategies to increase parental 
                involvement[, such as family literary 
                services.] (including activities described in 
                section 1118), such as family literacy 
                services, in-school volunteer opportunities, or 
                parent membership on school-based leadership or 
                management teams.

           *       *       *       *       *       *       *


SEC. 1115B. PUPIL SAFETY AND FAMILY SCHOOL CHOICE.

    (a) In General.--If a student is eligible to be served 
under section 1115(b), or attends a school eligible for a 
schoolwide program under section 1114, and--
          (1) becomes a victim of a violent criminal offense 
        while in or on the grounds of a public elementary 
        school or secondary school that the student attends and 
        that receives assistance under this part, then the 
        local educational agency shall allow such student to 
        transfer to another public school or public charter 
        school in the same State as the school where the 
        criminal offense occurred, that is selected by the 
        student's parent unless allowing such transfer is 
        prohibited--
                  (A) under the provisions of a State or local 
                law; or
                  (B) by a local educational agency policy that 
                is approved by a local school board; or
          (2) the public school that the student attends and 
        that receives assistance under this part has been 
        designated as an unsafe public school, then the local 
        educational agency may allow such student to transfer 
        to another public school or public charter school in 
        the same State as the school where the criminal offense 
        occurred, that is selected by the student's parent.
    (b) State Educational Agency Determinations.--
          (1) The State educational agency shall determine, 
        based upon State law, what actions constitute a violent 
        criminal offense for purposes of this section.
          (2) The State educational agency shall determine 
        which schools in the State are unsafe public schools.
          (3) The term ``unsafe public schools'' means a public 
        school that has serious crime, violence, illegal drug, 
        and discipline problems, as indicated by conditions 
        that may include high rates of--
                  (A) expulsions and suspensions of students 
                from school;
                  (B) referrals of students to alternative 
                schools for disciplinary reasons, to special 
                programs or schools for delinquent youth, or to 
                juvenile court;
                  (C) victimization of students or teachers by 
                criminal acts, including robbery, assault and 
                homicide;
                  (D) enrolled students who are under court 
                supervision for past criminal behavior;
                  (E) possession, use, sale or distribution of 
                illegal drugs;
                  (F) enrolled students who are attending 
                school while under the influence of illegal 
                drugs or alcohol;
                  (G) possession or use of guns or other 
                weapons;
                  (H) participation in youth gangs; or
                  (I) crimes against property, such as theft or 
                vandalism.
    (c) Transportation Costs.--The local educational agency 
that serves the public school in which the violent criminal 
offense occurred or that serves the designated unsafe public 
school may use funds provided under this part to provide 
transportation services or to pay the reasonable costs of 
transportation for the student to attend the school selected by 
the student's parent.
  (d) Special Rule.--Any school receiving assistance provided 
under this section shall comply with title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d et seq.) and not 
discriminate on the basis of race, color, or national origin.
  (e) Part B of the Individuals With Disabilities Education 
Act.--Nothing in this section shall be construed to affect the 
requirements of part B of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411 et seq.).
    (f) Maximum Amount.--Notwithstanding any other provision of 
this section, the amount of assistance provided under this part 
for a student who elects a transfer under this section shall 
not exceed the per pupil expenditures for elementary or 
secondary school students as provided by the local educational 
agency that serves the school involved in the transfer.

[SEC, 116, [20 U.S.C. 6317] ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND 
                    SCHOOL IMPROVEMENT.

    [(a) Local Review.--Each local educational agency receiving 
funds under this part shall--
          [(1) use the State assessments described in the State 
        plan;
          [(2) use any additional measures or indicators 
        described in the local educational agency's plant to 
        review annually the progress of each school served 
        under this part to determine whether the school is 
        meeting, or making adequate progress as defined in 
        section 1111(b)(2)(A)(i) toward enabling its students 
        to meet the State's student performance standards 
        described in the State plan;
          [(3) publicize and disseminate to teachers and other 
        staff, parents, students, and the community, the 
        results of the annual review under paragraph (2) of all 
        schools served under this part in individual school 
        performance profiles that include statistically sound 
        disaggregated results as required by section 
        1111(b)(3)(I); and
          [(4) provide the results of the local annual review 
        to schools so that the schools can continually refine 
        the program of instruction to help all children served 
        under this part in those schools meet the State's 
        student performance standards.
    [(b) Designation of Distinguished Schools.--Each State 
educational agency and local educational agency receiving funds 
under this part shall designate distinguished schools in 
accordance with section 1117.
    [(c) School Improvement.--
          [(1) In general.--A local educational agency shall 
        identify for school improvement any school served under 
        this part that--
                  [(A) has been in program improvement under 
                section 1020 of the Elementary and Secondary 
                Education Act of 1965 (as such section was in 
                effect on the day preceding the date of 
                enactment of the Improving America's Schools 
                Act of 1994), for at least two consecutive 
                school years prior to such day;
                  [(B) has not made adequate progress as 
                defined in the State's plan under section 
                1111(b)(2)(A)(i) for two consecutive school 
                years, except that--
                          [(i) this subparagraph shall not 
                        apply to a school if almost every 
                        student in such school is meeting the 
                        State's advanced level of performance; 
                        or
                          [(ii) in the case of a targeted 
                        assistance school, such school may be 
                        reviewed on the progress of only those 
                        students that have been or are served 
                        under this part; or
                  [(C) has failed to meet the criteria 
                established by the State through the State's 
                transitional procedure under section 
                1111(b)(7)(B) for two consecutive years.
          [(2) Requirement.--(A) Each school identified under 
        paragraph (1) shall--
                  [(i) in consultation with parents, the local 
                educational agency, and the school support 
                team, develop or revise a school plan in ways 
                that have the greatest likelihood of improving 
                the performance of participating children in 
                meeting the State's student performance 
                standards; and
                  [(ii) submit the plan or revised plan to the 
                local educational agency for approval.
          [(B) Before identifying a school for school 
        improvement under paragraph (1), the local educational 
        agency shall provide the school with an opportunity to 
        review the school-level data, including assessment 
        data, on which such identification is based. If the 
        school believes that such identification for school 
        improvement is in error for statistical or other 
        substantive reasons, such school may provide evidence 
        to the local educational agency to support such belief.
          [(C) During the first year immediately following such 
        identification, the school shall implement such 
        school's plan or revised plan.
          [(3) Professional development.--(A) Each school 
        identified under paragraph (1) shall, as part of the 
        school plan under paragraph (2), improve the skills of 
        its staff by providing effective professional 
        development activities. A school shall demonstrate such 
        school's compliance with this paragraph by--
                  [(i) devoting to such activities, over two 
                consecutive years, an amount equivalent to at 
                least 10 percent of the funds received by the 
                school under this part during one fiscal year; 
                or
                  [(ii) otherwise demonstrating that such 
                school is effectively carrying out professional 
                development activities.
          [(B) A school may use funds from any source to meet 
        the requirements of this subsection.
          [(C) Decisions about how to use the funds made 
        available under this part which the school makes 
        available for professional development shall be made by 
        teachers, principals, and other school staff in that 
        school.
          [(4) Technical assistance.--(A) For each school 
        identified under paragraph (1), the local educational 
        agency shall provide technical or other assistance as 
        the school develops an implements such school's plan or 
        revised plan, such as a joint plan between the local 
        educational agency and school that addresses specific 
        elements of student performance problems and that 
        specifies school and local educational agency 
        responsibilities under the plan, and waivers or 
        modifications of requirements of local educational 
        agency policy or regulation that impede the ability of 
        the school to educate students.
          [(B) Such technical assistance may be provided 
        directly by the local educational agency, through 
        mechanisms authorized under section 1117, or with the 
        local educational agency's approval, by an institution 
        of higher education, a private non-profit organization, 
        an educational service agency, a comprehensive regional 
        assistance center under part A of title XIII, or other 
        entities with experience in helping schools improve 
        achievement.
          [(5) Corrective action.--(A) Except as provided in 
        sub-paragraph (C), after providing technical assistance 
        pursuant to paragraph (4) and taking other remediation 
        measures, the local educational agency may take 
        corrective action at any time against a school that has 
        been identified under paragraph (1), but, during the 
        third year following identification under paragraph 
        (1), shall take such action against any school that 
        still fails to make adequate progress.
          [(B)(i) Corrective actions are those, consistent with 
        State and local law, determined and made public and 
        disseminated by the local educational agency, which may 
        include--
                  [(I) withholding funds;
                  [(II) interagency collaborative agreements 
                between the school and other public agencies to 
                provide health, counseling, and other social 
                services needed to remove barriers to learning;
                  [(III) revoking authority for a school to 
                operate a schoolwide program;
                  [(IV) decreasing decisionmaking authority at 
                the school level;
                  [(V) making alternative governance 
                arrangements such as the creation of a public 
                charter school;
                  [(VI) reconstituting the school staff; and
                  [(VII) authorizing students to transfer, 
                including transportation costs, to other public 
                schools served by the local educational agency.
          [(ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this part shall not include the 
        actions described in subclause (I), (III), (IV), (VI), 
        or (VII) of clause (i) until the State has developed 
        assessments that meet the requirements of subparagraph 
        (C) of section 1111(b)(3).
          [(C) Prior to implementing any corrective action, the 
        local educational agency may refrain from such 
        corrective action for one additional year to the extent 
        that the failure to make progress can be attributed to 
        extenuating circumstances as determined by the local 
        educational agency.
          [(D) A school that is no longer operating its 
        schoolwide program due to a corrective action may not 
        resume operation of such a program until the local 
        educational agency determines that the school has 
        adequately reformed its schoolwide program plan to 
        enable the school to make adequate progress toward 
        meeting the State's challenging student performance 
        standards.
          [(6) State educational agency responsibilities.--The 
        State educational agency shall--
                  [(A) make technical assistance under section 
                1117 available to the schools farthest from 
                meeting the State's challenging student 
                performance standards, if requested by the 
                school or local educational agency; and
                  [(B) if such agency determines that a local 
                educational agency failed to carry out the 
                local educational agency's responsibilities 
                under paragraphs (4) and (5), take such 
                corrective actions as the State educational 
                agency deems appropriate and which are in 
                compliance with State law.
          [(7) Special rule.--Schools that, for at least two of 
        the three years following identification under 
        paragraph (1), make adequate progress toward meeting 
        the State's proficient and advanced levels of 
        performance shall no longer need to be identified for 
        school improvement.
    [(d) State Review and Local Educational Agency 
Improvement.--
          [(1) In general.--A State educational agency shall--
                  [(A) annually review the progress of each 
                local educational agency receiving funds under 
                this part to determine whether schools 
                receiving assistance under this part are making 
                adequate progress as defined in section 
                1111(b)(2)(A)(ii) toward meeting the State's 
                student performance standards; and
                  [(B) publicize and disseminate to local 
                educational agencies, teachers and other staff, 
                parents, students, and the community the 
                results of the State review, 
                includingstatistically sound disaggregated 
                results, as required by section 1111(b)(3)(I).
          [(2) Rewards.--In the case of a local educational 
        agency that for three consecutive years has met or 
        exceeded the State's definition of adequate progress as 
        defined in section 1111(b)(2)(A)(ii), the State may 
        make institutional and individual rewards of the kinds 
        described for individual schools in paragraph (2) of 
        section 1117(c).
          [(3) Identification.--(A) A State educational agency 
        shall identify for improvement any local educational 
        agency that--
                  [(i) for two consecutive years, is not making 
                adequate progress as defined in section 
                1111(b)(2)(A)(ii) in schools served under this 
                part toward meeting the State' student 
                performance standards, except that schools 
                served by the local educational agency that are 
                operating targeted assistance programs may be 
                reviewed on the basis of the progress of only 
                those students served under this part; or
                  [(ii) has failed to meet the criteria 
                established by the State through such State's 
                transitional procedure under section 
                1111(b)(7)(B) for two consecutive years.
          [(B) Before identifying a local educational agency 
        for improvement under paragraph (1), the State 
        educational agency shall provide the local educational 
        agency with an opportunity to review the school-level 
        data, including assessment data, on which such 
        identification is based. If the local educational 
        agency believes that such identification for 
        improvement is in error due to statistical or other 
        substantive reasons, such local educational agency may 
        provide evidence to the State educational agency to 
        support such belief.
          [(4) Local educational agency revisions.--(A) Each 
        local educational agency identified under paragraph (3) 
        shall, in consultation with schools, parents, and 
        educational experts, revise its local educational 
        agency plan under section 1112 in ways that have the 
        greatest likelihood of improving the performance of 
        schools served by the local educational agency under 
        this part in meeting the State's student performance 
        standards.
          [(B) Such revision shall include determining why the 
        local educational agency's plan failed to bring about 
        increased achievement.
          [(5) State educational agency responsibility.--(A) 
        For each local educational agency identified under 
        paragraph (3), the State educational agency shall--
                  [(i) provide technical or other assistance, 
                if requested, as authorized under section 1117, 
                to better enable the local educational agency 
                to--
                          [(I) develop and implement the local 
                        educational agency's revised plan; and
                          [(II) work with schools needing 
                        improvement; and
                  [(ii) make available to the local educational 
                agencies farthest from meeting the State's 
                standards, if requested, assistance under 
                section 1117.
          [(B) Technical or other assistance may be provided by 
        the State educational agency directly, or by an 
        institution of higher education, a private nonprofit 
        organization, an educational service agency or other 
        local consortium, a technical assistance center, or 
        other entities with experience in assisting local 
        educational agencies improve achievement, and may 
        include--
                  [(i) interagency collaborative agreements 
                between the local educational agency and other 
                public agencies to provide health, pupil 
                services, and other social services needed to 
                remove barriers to learning; and
                  [(ii) waivers or modification of requirements 
                of State law or regulation (in States in which 
                such waivers are permitted) that impede the 
                ability of a local educational agency to 
                educate students.
          [(6) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (5) and taking other remediation 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency that has been identified under 
        paragraph (3) but during the fourth year following 
        identification under paragraph (3), shall take such 
        action against any local educational agency that still 
        fails to make adequate progress.
          [(B)(i) Corrective actions are those actions, 
        consistent with State law, determined and made public 
        and disseminated by the State educational agency, which 
        may include--
                  [(I) the withholding of funds;
                  [(II) reconstitution of school district 
                personnel;
                  [(III) removal of particular schools from the 
                jurisdiction of the local educational agency 
                and establishment of alternative arrangements 
                for public governance and supervision of such 
                schools;
                  [(IV) appointment by the State educational 
                agency of a receiver or trustee to administer 
                the affairs of the local educational agency in 
                place of the superintendent and school board;
                  [(V) the abolition or restructuring of the 
                local educational agency;
                  [(VI) the authorizing of students to transfer 
                from a school operated by one local educational 
                agency to a school operated by another local 
                educational agency; and
                  [(VII) a joint plan between the State and the 
                local educational agency that addresses 
                specific elements of student performance 
                problems and that specifies State and local 
                responsibilities under the plan.
          [(ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this part shall not include the 
        actions described in subclauses (I), (II), and (III) of 
        clause (i) until the State has developed assessments 
        that meet the requirements of paragraph (3)(C) of 
        section 1111(b).
          [(C) Prior to implementing any corrective action, the 
        State educational agency shall provide due process and 
        a hearing (if State law provides for such due process 
        and a hearing) to any local educational agency 
        identified under paragraph (3) and may refrain from 
        such corrective action for one year after the four-year 
        period described in subparagraph (A) to the extent that 
        the failure to make progress can be attributed to such 
        extenuating circumstances as determined by the State 
        educational agency.
          [(7) Special rule.--Local educational agencies that 
        for at least two of the three years following 
        identification under paragraph (3) make adequate 
        progress toward meeting the State's standards no longer 
        need to be identified for local educational agency 
        improvement.
    [(e) 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.]

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

    (a) Local Review.--Each local educational agency receiving 
funds under this part shall--
          (1) use the State assessments described in the State 
        plan;
          (2) use any additional measures or indicators 
        described in the local educational agency's plan to 
        review annually the progress of each school served 
        under this part to determine whether the school is 
        meeting, or making adequate progress as defined in 
        section 1111(b)(2)(B) toward enabling its students to 
        meet the State's student performance standards 
        described in the State plan;
          (3) provide the results of the local annual review to 
        schools so that the schools can continually refine the 
        program of instruction to help all children served 
        under this part in those schools meet the State's 
        student performance standards; and
          (4) annually review the effectiveness of the actions 
        and activities the schools are carrying out under this 
        part with respect to parental involvement activities 
        under section 1118, professional development activities 
        under section 1119, and other activities assisted under 
        this Act.
    (b) Designation of Distinguished Schools.--Each State 
educational agency and local educational agency receiving funds 
under this part shall designate distinguished schools in 
accordance with section 1117.
    (c) School Improvement.--
          (1) School improvement.--(A) Subject to subparagraph 
        (B), a local educational agency shall identify for 
        school improvement any elementary school or secondary 
        school served under this part that--
                  (i) fails, for any year, to make adequate 
                yearly progress as defined in the State's plan 
                under section 1111(b)(2)(B); or
                  (ii) was in school improvement status under 
                this section on the day preceding the date of 
                enactment of the Better Education for Students 
                and Teachers Act.
          (B) Subparagraph (A) shall not apply to a school if 
        almost every student in such school is meeting the 
        State's proficient level of performance.
          (C) 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 under this 
        subsection, 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.
          (2) Opportunity to review and present evidence; time 
        limit.--(A) Before identifying an elementary school or 
        a secondary school for school improvement under 
        paragraph (1), for corrective action under paragraph 
        (6), or for reconstitution under paragraph (7), the 
        local educational agency shall provide the school with 
        an opportunity to review the school-level data, 
        including assessment data, on which such identification 
        is based.
          (B) If the principal of a school proposed for 
        identification under paragraph (1), (6), or (7) 
        believes that the proposed identification is in error 
        for statistical or other substantive reasons, the 
        principal may provide supporting evidence to the local 
        educational agency, which shall consider that evidence 
        before making a final determination.
          (C) Not later than 30 days after a local educational 
        agency makes an initial determination concerning 
        identifying a school under paragraph (1), (6), or (7), 
        the local educational agency shall make public a final 
        determination on the status of the school.
          (3) School plan.--(A) 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, the local school board, and other outside 
        experts, for approval by such local educational agency. 
        The school plan shall cover a 2-year period and--
                  (i) incorporate scientifically based research 
                strategies that strengthen the core academic 
                subjects in the school and address the specific 
                academic issues that caused the school to be 
                identified for school improvement;
                  (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)(B)(v)(II) and enrolled in the school 
                will meet the State's proficient level of 
                performance on the State assessment described 
                in section 1111(b)(3) within 10 years after the 
                date of enactment of the Better Education for 
                Students and Teachers Act;
                  (iii) provide an assurance that the school 
                will reserve not less than 10 percent of the 
                funds made available to the school under this 
                part for each fiscal year that the school is in 
                school improvement status, for the purpose of 
                providing to the school's teachers and 
                principal high-quality professional development 
                that--
                          (I) directly addresses the academic 
                        performance problem that caused the 
                        school to be identified for school 
                        improvement; and
                          (II) meets the requirements for 
                        professional development activities 
                        under section 1119;
                  (iv) specify how the funds described in 
                clause (iii) will be used to remove the school 
                from school improvement status;
                  (v) establish specific annual, objective 
                goals for continuous and significant progress 
                by each group of students specified in section 
                1111(b)(2)(B)(v)(II) and enrolled in the school 
                that will ensure that all such groups of 
                students will meet the State's proficient level 
                of performanceon the State assessment described 
                in section 1111(b)(3) within 10 years after the 
                date of enactment of the Better Education for 
                Students and Teachers Act;
                  (vi) identify how the school will provide 
                written notification about the identification 
                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;
                  (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
                  (viii) include strategies to promote 
                effective parental involvement in the school.
          (B) The local educational agency may condition 
        approval of a school plan on inclusion of 1 or more of 
        the corrective actions specified in paragraph 
        (6)(D)(ii).
          (C) A school shall implement the school plan 
        (including a revised plan) expeditiously, but not later 
        than the beginning of the school year following the 
        school year in which the school was identified for 
        school improvement.
          (D) The local educational agency, within 45 days 
        after receiving a school plan, shall--
                  (i) establish a peer-review process to assist 
                with review of a school plan prepared by a 
                school served by the local educational agency; 
                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) For each school 
        identified for school improvement under paragraph (1), 
        the local educational agency serving the school shall 
        provide technical assistance as the school develops and 
        implements the school plan.
          (B) Such technical assistance--
                  (i) shall include assistance in analyzing 
                data from the assessments required under 
                section 1111(b)(3), and other samples of 
                student work, to identify and address 
                instructional problems and solutions;
                  (ii) shall include assistance in identifying 
                and implementing instructional strategies and 
                methods that are tied to 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 resources are more effectively allocated 
                for the activities most likely to increase 
                student performance 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 (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 
                        performance.
          (C) 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) Notification to parents.--A local educational 
        agency shall promptly provide parents (in a format and, 
        to the extent practicable, in a language they can 
        understand) of each student in an elementary school or 
        a secondary school identified for school improvement--
                  (A) an explanation of what the school 
                improvement identification means, and how the 
                school identified for school improvement 
                compares in terms of academic performance 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 performance;
                  (D) an explanation of what the local 
                educational agency or State educational agency 
                is doing to help the school address the 
                performance problem; and
                  (E) an explanation of how parents described 
                in this paragraph can become involved in 
                addressing the academic issues that caused the 
                school to be identified for school improvement.
          (6) Corrective action.--(A) In this subsection, the 
        term `corrective action' means action, consistent with 
        State and local 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 problem in the 
                        school; and
                  (ii) is designed to increase substantially 
                the likelihood that students enrolled in the 
                school identified for corrective action will 
                perform at the State's proficient and advanced 
                levels of performance on the State assessment 
                described in section 1111(b)(3).
          (B) In order to help students served under this part 
        meet challenging State standards, each local 
        educational agency shall implement a system of 
        corrective action in accordance with subparagraphs (C) 
        through (F) and paragraph (7).
          (C) After providing technical assistance under 
        paragraph (4), the local educational agency--
                  (i) may identify for corrective action and 
                take corrective action with respect to any 
                school served by the local educational agency 
                under this part that fails to make adequate 
                yearly progress, as defined by the State under 
                section 1111(b)(2)(B), at the end of the first 
                year after the school year in which the school 
                was identified under paragraph (1);
                  (ii) shall identify for corrective action and 
                take corrective action with respect to any 
                school served by the local educational agency 
                under this part that--
                          (I) fails to make adequate yearly 
                        progress, as defined by the State under 
                        section 1111(b)(2)(B), at the end of 
                        the second year after the school year 
                        in which the school was identified 
                        under paragraph (1); or
                          (II) was in program-improvement 
                        status for 2 years or in corrective-
                        action status under this subsection on 
                        the day preceding the date of enactment 
                        of the Better Education for Students 
                        and Teachers Act;
                  (iii) shall continue to provide technical 
                assistance while instituting any corrective 
                action under clause (i) or (ii); and
                  (iv) shall promptly notify parents of the 
                option to transfer their child to another 
                public school under subparagraph (D)(i).
          (D) In the case of a school described in subparagraph 
        (C)(ii), the local educational agency shall--
                  (i) provide all students enrolled in the 
                school with the option to transfer to another 
                public school within the local educational 
                agency, including a public charter school, that 
                has not been identified for school improvement 
                under paragraph (1), unless--
                          (I) such an option is prohibited by 
                        State law or local law (which includes 
                        a policy adopted by the school board); 
                        or
                          (II) the local educational agency 
                        demonstrates to the satisfaction of the 
                        State educational agency that the local 
                        educational agency lacks the capacity 
                        toprovide that option to all students 
                        in the school who request it, in which 
                        case it shall permit as many students 
                        as possible (selected by the agency on 
                        an equitable basis) to make such a 
                        transfer; and
                  (ii) take at least 1 of the following 
                corrective actions:
                          (I) Make alternative governance 
                        arrangements, such as reopening the 
                        school as a public charter school.
                          (II) Replace the relevant school 
                        staff.
                          (III) Institute and fully implement a 
                        new curriculum, including providing 
                        appropriate professional development 
                        for all relevant staff, that is tied to 
                        scientifically based research and 
                        offers substantial promise of improving 
                        educational performance for low-
                        performing students.
          (E) A local educational agency may delay, for a 
        period not to exceed 1 year, implementation of 
        corrective action only if the school's failure to make 
        adequate yearly progress was justified due to 
        exceptional or uncontrollable circumstances, such as a 
        natural disaster or a precipitous and unforeseen 
        decline in the financial resources of the local 
        educational agency or school.
          (F) 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 a format and, to the extent 
                practicable, in a language that the parents can 
                understand; and
                  (iii) through such means as the Internet, the 
                media, and public agencies.
          (7) Reconstitution.--(A) If, after 1 additional year, 
        a school subject to corrective action under paragraph 
        (6) continues to fail to make adequate yearly progress 
        and students in the school who are from economically 
        disadvantaged families are not making statistically 
        significant progress in the subjects included in the 
        State's definition of adequate yearly progress, the 
        local educational agency shall--
                  (i) provide all students enrolled in the 
                school with the option to transfer to another 
                public school within the local educational 
                agency, including a public charter school, that 
                has not been identified for school improvement 
                under paragraph (1), including affording each 
                such student the same right to attend any such 
                school as is afforded to any child who is a new 
                resident of that school's attendance area; and
                  (ii) prepare a plan and make necessary 
                arrangements to carry out subparagraph (B).
          (B) 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 1 of the following 
        alternative governance arrangements for the school:
                  (i) Reopening the school as a public charter 
                school.
                  (ii) Replacing all or most of the school 
                staff.
                  (iii) Making alternative governance 
                arrangements.
          (C) The local educational agency shall provide prompt 
        notice to teachers and parents whenever subparagraph 
        (A) or (B) applies, shall provide the teachers and 
        parents adequate opportunity to comment before taking 
        any action under those paragraphs and to participate in 
        developing any plan under subparagraph (A)(ii), and 
        shall provide parents an explanation of the option 
        under subparagraph (A)(i).
          (8) Transportation.--In any case described in 
        paragraph (6)(D)(i) or (7)(A)(i), the local educational 
        agency shall provide, or shall pay for the provision 
        of, transportation for the student to the school the 
        child attends, provided that payments for such purpose 
        do not exceed 15 percent of the local educational 
        agency's allocation under this part.
          (9) Duration of reconstitution.--If any school 
        identified for reconstitution under paragraph (7) makes 
        adequate yearly progress for 2 consecutive years and 
        children in that school from economically disadvantaged 
        families are making statistically significant 
        educational progress over that 2-year period, then the 
        local educational agency need no longer subject the 
        school to corrective action or identify the school as 
        in need of improvement.
          (10) State educational agency responsibilities.--The 
        State educational agency shall--
                  (A) make technical assistance under section 
                1117 available to all schools identified for 
                school improvement and corrective action 
                underthis subsection, to the extent possible 
                with funds reserved under section 1003; and
                  (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 
                appropriate and in compliance with State law.
    (d) State Review and Local Educational Agency 
Improvement.--
          (1) In general.--A State educational agency shall 
        review annually--
                  (A) the progress of each local educational 
                agency receiving funds under this part to 
                determine whether schools receiving assistance 
                under this part are making adequate progress as 
                defined in section 1111(b)(2)(B) toward meeting 
                the State's student performance standards and 
                to determine whether each local educational 
                agency is carrying out its responsibilities 
                under section 1116 and section 1117; and
                  (B) the effectiveness of the activities 
                carried out under this part by each local 
                educational agency that receives funds under 
                this part and is served by the State 
                educational agency with respect to parental 
                involvement, professional development, and 
                other activities assisted under this part.
          (2) Rewards.--In the case of a local educational 
        agency that for 3 consecutive years has met or exceeded 
        the State's definition of adequate progress as defined 
        in section 1111(b)(2)(B), the State may make 
        institutional and individual rewards of the kinds 
        described for individual schools in paragraph (2) of 
        section 1117(c).
          (3) Identification.--(A) A State educational agency 
        shall identify for improvement any local educational 
        agency that for 2 consecutive years, is not making 
        adequate progress as defined in section 1111(b)(2)(B) 
        in schools served under this part toward meeting the 
        State's student performance standards, except that 
        schools served by the local educational agency that are 
        operating targeted assistance programs may be reviewed 
        on the basis of the progress of only those students 
        served under this part.
          (B) Before identifying a local educational agency for 
        improvement under paragraph (1), the State educational 
        agency shall provide the local educational agency with 
        an opportunity to review the school-level data, 
        including assessment data, on which such identification 
        is based. If the local educational agency believes that 
        such identification for improvement is in error due to 
        statistical or other substantive reasons, such local 
        educational agency may provide evidence to the State 
        educational agency to support such belief.
          (4) Local educational agency revisions.--(A) Each 
        local educational agency identified under paragraph (3) 
        shall, not later than 3 months after being so 
        identified, revise a local educational agency plan as 
        described under section 1112. The plan shall--
                  (i) include specific State-determined yearly 
                progress requirements in subjects and grades to 
                ensure that all students will meet proficient 
                levels of performance within 10 years;
                  (ii) address the fundamental teaching and 
                learning needs in the schools of that agency, 
                and the specific academic problems of low-
                performing students including a determination 
                of why the local educational agency's prior 
                plan failed to bring about increased student 
                achievement and performance;
                  (iii) incorporate scientifically based 
                research strategies that strengthen the core 
                academic program in the local educational 
                agency;
                  (iv) address the professional development 
                needs of the instructional staff by committing 
                to spend not less than 10 percent of the funds 
                received by the school under this part during 1 
                fiscal year for professional development, which 
                funds shall supplement and not supplant 
                professional development that instructional 
                staff would otherwise receive, and which 
                professional development shall increase the 
                content knowledge of teachers and build the 
                capacity of the teachers to align classroom 
                instruction with challenging content standards 
                and to bring all students to proficient or 
                advanced levels of performance as determined by 
                the State;
                  (v) identify specific goals and objectives 
                the local educational agency will undertake for 
                making adequate yearly progress, which goals 
                and objectives shall be consistent with State 
                standards;
                  (vi) identify how the local educational 
                agency will provide written notification to 
                parents in a format, and to the extent 
                practicable, in a language that the parents can 
                understand;
                  (vii) specify the responsibilities of the 
                State educational agency and the local 
                educational agency under the plan; and
                  (viii) include strategies to promote 
                effective parental involvement in the school.
          (5) State educational agency responsibility.--(A) For 
        each local educational agency identified under 
        paragraph (3), the State educational agency shall--
                  (i) provide technical or other assistance, if 
                requested, as authorized under section 1117, to 
                better enable the local educational agency to--
                          (I) develop and implement the local 
                        educational agency's revised plan; and
                          (II) work with schools needing 
                        improvement; and
                  (ii) make available to the local educational 
                agencies farthest from meeting the State's 
                standards, if requested, assistance under 
                section 1117.
          (B) Technical assistance provided under this section 
        by the State educational agency oran entity authorized 
        by such agency shall be supported by effective methods 
        and scientifically based research instructional 
        strategies. 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.
          (6) Corrective action.--(A) Except as provided in 
        subparagraph (C), after providing technical assistance 
        pursuant to paragraph (5) and taking other remediation 
        measures, the State educational agency may take 
        corrective action at any time against a local 
        educational agency that has been identified under 
        paragraph (3), but, during the fourth year following 
        identification under paragraph (3), shall take such 
        action against any local educational agency that still 
        fails to make adequate progress.
          (B)(i) Consistent with State and local law, in order 
        to help students served under this part meet 
        challenging State and local standards, each State 
        educational agency shall implement a corrective action 
        system in accordance with the following:
                  (I) After providing technical assistance as 
                described under paragraph (5), the State 
                educational agency--
                          (aa) may take corrective action at 
                        any time with respect to a local 
                        educational agency that has been 
                        identified under paragraph (3);
                          (bb) shall take corrective action 
                        with respect to any local educational 
                        agency that fails to make adequate 
                        yearly progress, as defined by the 
                        State; and
                          (cc) shall continue to provide 
                        technical assistance while implementing 
                        any corrective action.
                  (II) Consistent with State and local law, in 
                the case of a local educational agency 
                described under subclause (I), the State 
                educational agency shall not take less than 1 
                of the following corrective actions:
                          (aa) Instituting and fully 
                        implementing a new curriculum that is 
                        based on State and local standards, 
                        including appropriate scientifically 
                        based research professional development 
                        for all relevant staff that offers 
                        substantial promise of improving 
                        educational achievement for low-
                        performing students.
                          (bb) Restructuring the local 
                        educational agency.
                          (cc) Developing and implementing a 
                        joint plan between the State 
                        educational agency and the local 
                        educational agency that addresses 
                        specific elements of student 
                        performance problems and that specifies 
                        the responsibilities of the State 
                        educational agency and the local 
                        educational agency under the plan.
                          (dd) Reconstituting school district 
                        personnel.
                          (ee) Making alternative governance 
                        arrangements.
                  (III) Consistent with State and local law, in 
                the case of a local educational agency 
                described under subclause (I), the State 
                educational agency may take 1 of the following 
                corrective actions:
                          (aa) Deferring, reducing, or 
                        withholding funds.
                          (bb) Restructuring or abolishing the 
                        local educational agency.
                          (cc) Removal of particular schools 
                        from the jurisdiction of the local 
                        educational agency and establishment of 
                        alternative arrangements for public 
                        governance and supervision of such 
                        schools.
                          (dd) Appointment by the State 
                        educational agency of a receiver or 
                        trustee to administer the affairs of 
                        the local educational agency in place 
                        of the superintendent and school board.
          (ii) Notwithstanding clause (i), corrective actions 
        taken pursuant to this section shall not include the 
        actions described in subclauses (I), (II), and (III) of 
        clause (i) until the State has developed assessments 
        that meet the requirements of paragraph (3) of section 
        1111(b).
          (C) Hearing.--Prior to implementing any corrective 
        action, 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.
          (D) Notification to parents.--The State educational 
        agency shall publish, and disseminate toparents and the 
        public, any corrective action the State educational 
        agency takes under this paragraph through a widely read 
        or distributed medium.
          (E) Delay.--A State educational agency may delay, for 
        a period not to exceed 1 year, implementation of 
        corrective action if--
                  (i) the State educational agency determines 
                that the local educational agency is meeting 
                the State-determined yearly progress 
                requirements in subjects and grades included in 
                the State assessments; and
                  (ii) the schools within the local educational 
                agency will meet the State's criteria for 
                improvement within 1 year.
          (F) Waivers.--The State educational agency shall 
        review any waivers approved prior to the date of 
        enactment of the Better Education for Students and 
        Teachers Act for a local educational agency designated 
        for improvement or corrective action and shall 
        terminate any waiver approved by the State under the 
        Educational Flexibility Partnership Act of 1999 if the 
        State determines, after notice and an opportunity for a 
        hearing, that the waiver is not helping the local 
        educational agency make yearly progress to meet the 
        objectives and specific goals described in the local 
        educational agency's improvement plan.
          (7) Special rule.--Local educational agencies that 
        for at least 2 of the 3 years following identification 
        under paragraph (3) make adequate progress toward 
        meeting the State's standards no longer need to be 
        identified for local educational agency improvement.
  (e) 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.

SEC. 117. [20 U.S.C. 6318] STATE ASSISTANCE FOR SCHOOL SUPPORT AND 
                    IMPROVEMENT.

    (a) System for Support.--
          (1) State support.--* * *

           *       *       *       *       *       *       *

          (3) Priorities.--In carrying out this section, a 
        State educational agency shall--
                  (A) first, provide support and assistance to 
                local educational agencies subject to 
                corrective action described in section 1116 and 
                assist schools, in accordance with section 
                1116, for which a local educational agency has 
                failed to carry out its responsibilities under 
                section 1116;
                  (B) second, provide support and assistance to 
                other local educational agencies and schools 
                identified as in need of improvement under 
                section 1116; and
                  (C) third, provide support and assistance to 
                other local educational agencies and schools 
                participating under this part that need support 
                and assistance in order to achieve the purpose 
                of this part.

           *       *       *       *       *       *       *

    (b) Regional Centers.--Such a statewide system shall work 
with and receive support and assistance from [the comprehensive 
regional technical assistance centers under part A of title 
XIII and] comprehensive regional technical assistance centers, 
and the educational regional laboratories under section 941(h) 
of the Educational Research, Development, Dissemination, and 
Improvement Act of 1994.
    (c) Provisions.--The system shall include at a minimum, the 
following:
          [(1) School support teams.--
                  [(A) Each State educational agency, in 
                consultation with local educational agencies 
                and schools, shall establish a system of school 
                support teams to provide information and 
                assistance to schoolwide programs and to assist 
                such programs in providing an opportunity to 
                all students to meet the State's student 
                performance standards.
                  [(B) If funds are sufficient, school support 
                teams shall provide information and assistance 
                to--
                          [(i) schools--
                                  [(I) in which the number of 
                                students in poverty is equal to 
                                or greater than 75 percent of 
                                the total number of students 
                                enrolled in such school; and
                                  [(II) identified as in need 
                                of improvement under section 
                                1116(c)(1); and
                          [(ii) other schools in need of 
                        improvement.
                  [(C) Each such team shall be composed of 
                persons, including teachers, pupil services 
                personnel, representatives of organizations 
                knowledgeable about successful schoolwide 
                projects or comprehensive school reform 
                (especially distinguished educators described 
                in paragraph (3)), and other persons who are 
                knowledgeable about research and practice on 
                teaching and learning, particularly about 
                strategies for improving the educational 
                opportunities for low-achieving students 
                (including alternative and applied learning), 
                such as representatives of institutions of 
                higher education, regional educational 
                laboratories or research centers, and outside 
                consultant groups.
                  [(D) A school support team shall work 
                cooperatively with each school and make 
                recommendations as the school develops the 
                school's schoolwide program plan or school 
                improvement plan, review each plan, and make 
                recommendations to the school and the local 
                educational agency.
                  [(E) During the operation of the schoolwide 
                program or during school improvement 
                activities, a school support team shall--
                          [(i) periodically review the progress 
                        of the school in enabling children in 
                        the school to meet the State's student 
                        performance standards under this part;
                          [(ii) identify problems in the design 
                        and operation of the instructional 
                        program; and
                          [(iii) make recommendations for 
                        improvement to the school and the local 
                        educational agency.]
          (1) Approaches.--
                  (A) In general.--In order to achieve the 
                purpose described in subsection (a), each such 
                system shall give priority to using funds made 
                available to carry out this section--
                          (i) to establish school support teams 
                        for assignment to and working in 
                        schools in the State that are described 
                        in subsection (a)(3)(A); and
                          (ii) to provide such support as the 
                        State educational agency determines to 
                        be necessary and available to assure 
                        the effectiveness of such teams.
                  (B) Composition.--Each school support team 
                shall be composed of persons knowledgeable 
                about successful schoolwide projects, school 
                reform, and improving educational opportunities 
                for low-achieving students, including--
                          (i) teachers;
                          (ii) pupil services personnel;
                          (iii) parents;
                          (iv) distinguished teachers or 
                        principals;
                          (v) representatives of institutions 
                        of higher education;
                          (vi) regional educational 
                        laboratories or research centers;
                          (vii) outside consultant groups; or
                          (viii) other individuals as the State 
                        educational agency, in consultation 
                        with the local educational agency, may 
                        determine appropriate.
                  (C) 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 performances in 
                        that school;
                          (ii) collaborate, with 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 
                        (including the need for additional 
                        resources, professional development, or 
                        compensation) 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 and resources 
                        that are needed by the school or the 
                        school support team.
                  (D) Continuation of assistance.--After 1 
                school year, the school support team may 
                recommend that the school support team continue 
                to provide assistance to the school, or that 
                the local educational agency or the State 
                educational agency, as appropriate, take 
                alternative actions with regard to the school.
          (2) Distinguished schools.--
                  (A) Each State shall designate as a 
                distinguished school any school served under 
                this [part which, for three consecutive years, 
                has exceeded the State's definition of adequate 
                progress as defined in section 
                1111(b)(2)(A)(i), and, any school in which--
                          (i) virtually all students have met 
                        the State's ad-vanced level of student 
                        performance; and
                          (ii) equity in participation and 
                        achievement of students by sex has been 
                        achieved or significantly improved.] 
                        part.

           *       *       *       *       *       *       *

                  (C) States shall use funds reserved under 
                section 1003(a) and funds made available under 
                section 1001(f) to allow schools identified 
                under this paragraph to carry out the 
                activities described in subparagraph (B) [and 
                may] and may use such funds to provide awards 
                to such schools to further such school's 
                education programs under this part, provide 
                additional incentives for continued success, 
                and reward individuals or groups in the school 
                for [exemplary performance.] exemplary 
                performance.

           *       *       *       *       *       *       *

          (3) Distinguished [educators] Teachers and 
        Principals.--
                  [(A) In order to provide assistance to 
                schools and local educational agencies 
                identified as needing improvement and schools 
                participating in schoolwide programs, each 
                State, in consultation with local educational 
                agencies and using funds reserved under section 
                1003(a) and made available under section 
                1002(f), shall establish a corps of 
                distinguished educators.] (A) The State may 
                also recognize and provide financial awards to 
                teachers or principals in a school described in 
                paragraph (2) whose students consistently make 
                significant gains in academic achievement.
                  (B) When possible, distinguished [educators] 
                teachers and principals shall be chosen from 
                schools served under this part that have been 
                especially successful in enabling children to 
                meet or make outstanding progress toward 
                meeting the State's student performance 
                standards, such as the schools described in 
                paragraph (2).
                  [(C) Distinguished educators shall provide, 
                as part of the statewide system, intensive and 
                sustained assistance to the schools and local 
                educational agencies farthest from meeting the 
                State's student performance standards and to 
                schoolwide programs as such programs develop 
                and imple-ment their plans, including 
                participation in the support teams described in 
                paragraph (1).]

           *       *       *       *       *       *       *


SEC. 1118. [20 U.S.C. 6319] PARENTAL INVOLVEMENT.

    (a) Local Educational Agency Policy.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (B) provide the coordination, technical 
                assistance, and other support necessary to 
                assist participating schools activities to 
                improve student achievement and student and 
                school performance in planning and implementing 
                effective parent [involvement];

           *       *       *       *       *       *       *

    (b) School Parental Involvement Policy.--
          (1) In general.-- Each school served under this part 
        shall jointly develop with, and distribute (in a 
        language parents can understand) to parents of 
        participating children a written parental involvement 
        policy, agreed upon by such parents, that shall 
        describe the means for carrying out the requirements of 
        subsections (c) through (f). Such policy shall be made 
        available to the local community and shall be updated 
        periodically to meet the changing needs of parents and 
        the school.

           *       *       *       *       *       *       *

    (e) Building Capacity for Involvement.-- To ensure 
effective involvement of parents and to support a partnership 
among the school, parents, and the community to improve student 
achievement, each school and local educational agency--
          (1) shall provide assistance to [participating 
        parents in such areas as understanding the National 
        Education Goals,] parents of children served by the 
        school or local educational agency, as appropriate, in 
        understanding the State's content standards, and State 
        student performance standards, the provisions of 
        section 1111(b)(8), State and local assessments, the 
        requirements of this part, and how to monitor a child's 
        progress and work with educators to improve the 
        performance of their children as well as information on 
        how parents can participate in decisions relating to 
        the education of their children;
          (2) shall provide materials and training, such as--
                  (A) coordinating necessary literacy training 
                from other sources to help parents work with 
                their children to improve their children's 
                achievement; [and]
                  (B) training to help parents to work with 
                their children to improve their children's 
                achievement; and
                  (C) using technology, as appropriate, to 
                foster parental involvement;

           *       *       *       *       *       *       *

          (14) may adopt and implement model approaches to 
        improving parental involvement, such as Even Start; 
        [and]
          [(15) shall provide such other reasonable support for 
        parental involvement activities under this section as 
        parents may request.]
          (15) may establish a school district wide parent 
        advisory council to advise the school and local 
        educational agency on all matters related to parental 
        involvement in programs supported under this section; 
        and
          (16) shall provide such other reasonable support for 
        parental involvement activities under this section as 
        parents may request, which may include emerging 
        technologies.
    (f) Accessibility.--In carrying out the parental 
involvement requirements of this part, local educational 
agencies and schools, to the extent practicable, shall provide 
full opportunities for the participation of parents with 
limited English proficiency [or with], parents of migratory 
children, or parent with disabilities, including providing 
information and school profiles in a language and form such 
parents understand.
    [(g) Parental Information and Resource Centers.--In States 
where parental information and resource centers have been 
established pursuant to section 401 of the Goals 2000: Educate 
America Act of 1994 (to provide training, information, and 
support to parents and individuals who work with parents), 
local educational agencies and schools receiving assistance 
under this part shall assist parents and parent organizations 
by informing such parents and organizations of the existence 
and purpose of such centers, providing such parents and 
organizations with a description of services and programs 
provided by such centers, advising parents on how to use such 
centers, and helping parents to contact such centers.]
    (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 school or local educational agency 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, providing such parents and 
organizations with a description of the services and programs 
provided by such centers, advising parents on how to use such 
centers, and helping parents to contact 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. [20 U.S.C. 6301] PROFESSIONAL DEVELOPMENT.

    (a) Program Requirements.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  [(A) support instructional practices that are 
                geared to challenging State content standards 
                and create a school environment conducive to 
                high achievement in the academic subjects:]
                  (A) support professional development 
                activities that give teachers, principals, 
                administrators, paraprofessionals, pupil 
                services personnel, and parents the knowledge 
                and skills to provide students with the 
                opportunity to meet challenging State or local 
                content standards and student performance 
                standards;
                  (B) advance teacher understanding of 
                effective instructional strategies, based on 
                research for improving student achievement, at 
                a minimum in reading or language arts and 
                mathematics;
                  (C) be of sufficient intensity and duration 
                (not to include 1-day or short-term workshops 
                and conferences) to have a positive and lasting 
                impact on the teacher's performance in the 
                classroom, except that this subparagraph shall 
                not apply to an activity if such activity is 1 
                component of a long-term comprehensive 
                professional development plan established by 
                the teacher and the teacher's supervisor based 
                upon an assessment of the needs of the teacher, 
                the needs of students, and the needs of the 
                local educational agency;
                  [(B)](D) support local educational agency 
                plans under section 1112 and school plans under 
                section 1114;
                  [(C)](E) draw on resources available under 
                this part, title III of the Goals 2000: Educate 
                America Act, [Title II of this Act,] and from 
                other sources;
                  [(D)](F) where appropriate, as determined by 
                the local educational agency, include 
                strategies for developing curricula and 
                teaching methods that integrate academic and 
                vocational instruction (including applied 
                learning and team teaching strategies); [and]
                  [(E)](G) include strategies for identifying 
                and eliminating gender and racial bias in 
                instructional materials, methods, and 
                practices[.];
                  (H) to the extent appropriate, provide 
                training for teachers in the use of technology 
                and the applications of technology that are 
                effectively used--
                          (i) in the classroom to improve 
                        teaching and learning in the 
                        curriculum; and
                          (ii) in academic content areas in 
                        which the teachers provide instruction; 
                        and
                  (I) be regularly evaluated for their impact 
                on increased teacher effectiveness and improved 
                student performance and achievement, with the 
                findings of such evaluations used to improve 
                the quality of professional development.

           *       *       *       *       *       *       *

    (g) 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, [title 
III of the Goals 2000: Educate America Act] other Acts and 
other sources.

           *       *       *       *       *       *       *


SEC. 1120. [20 U.S.C. 6321] PARTICIPATION OF CHILDREN ENROLLED IN 
                    PRIVATE SCHOOLS.

    (a) General Requirement.--
          (1) In general.--To the extent consistent with the 
        number of eligible children identified under section 
        1115(b) in a local educational agency who are enrolled 
        in private elementary and secondary schools, a local 
        educational agency shall, after timely and meaningful 
        consultation with appropriate private school officials, 
        provide such children, on an equitable basis, special 
        educational services or other benefits under this part 
        (such as dual enrollment, educational radio and 
        television, computer equipment and materials, other 
        technology, and mobile educational services and 
        equipment that address their needs, and shall ensure 
        that teachers and families of such children 
        participate, on an equitable basis, in services and 
        activities under sections 1118 and 1119).

           *       *       *       *       *       *       *

          (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 as determined by 
        the local educational agency each year or every 2 
        years.

           *       *       *       *       *       *       *

    (b) Consultation.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (C) how [and where], where, and by whom the 
                services will be provided;
                  [(D) how the services will be assessed; and]
                  (D) how the services will be assessed and how 
                the results of that assessment will be used to 
                improve those services;
                  (E) the size and scope of the equitable 
                services to be provided to the eligible private 
                school children, and what is the proportion of 
                funds allocated under subsection (a)(4) for 
                such services[.]; and
                  (F) how and when the local educational agency 
                will make decisions about the delivery of 
                services to eligible private school children, 
                including a thorough consideration and analysis 
                of the views of private school officials 
                regarding the provision of contract services 
                through potential third party providers, and if 
                the local educational agency disagrees with the 
                views of the private school officials on such 
                provision of services, the local educational 
                agency shall provide in writing to such private 
                school officials an analysis of the reasons why 
                the local educational agency has chosen not to 
                so provide such services.

           *       *       *       *       *       *       *

          (4) Consultation.--Each local educational agency 
        shall provide to the State educational agency, and 
        maintain in the local educational agency's records, a 
        written affirmation signed by officials of each 
        participating private school that the consultation 
        required by this section has occurred. If a private 
        school declines in writing to have eligible children in 
        the private school participate in services provided 
        under this section, the local educational agency is not 
        required to further consult with the private school 
        officials or to document the local educational agency's 
        consultation with the private school officials until 
        the private school officials request in writing such 
        consultation. The local educational agency shall inform 
        the private school each year of the opportunity for 
        eligible children to participate in services provided 
        under this section.
          (5) Compliance.--A private school official shall have 
        the right to appeal to the State educational agency the 
        decision of a local educational agency as to whether 
        consultation provided for in this section was 
        meaningful and timely, and whether due consideration 
        was given to the views of the private school official. 
        If the private school official wishes to appeal the 
        decision, the basis of the claim of noncompliance with 
        this section by the local educational agencies shall be 
        provided 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 private school children, 
        ages 5 through 17, who are low-income 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; or
                  (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.
          (2) Complaint process.--Any dispute regarding low-
        income data for private school students shall be 
        subject to the complaint process authorized in section 
        8.
    [(c)](d) Public Control of Funds.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

    [(d)](e) Standards for a Bypass.--[If a]
          ``(1) In General.--If a local educational agency is 
        prohibited by law from providing for the participation 
        on an equitable basis of eligible children enrolled in 
        private elementary and secondary schools or if the 
        Secretary determines that a local educational agency 
        has substantially failed or is unwilling to provide for 
        such participation, as required by this section, the 
        Secretary shall--
          [(1)](A) waive the requirements of this section for 
        such local educational agency; and
          [(2)](B) arrange for the provision of services to 
        such children through arrangements that shall be 
        subject to the requirements of this section and 
        sections [14505 and 14506] 8 and 9.
          (2) Determination.--In making the determination under 
        paragraph (1), the Secretary shall consider 1 or more 
        factors, including the quality, size, scope, or 
        location of the program, or the opportunity of eligible 
        children to participate in the program.
    [(e)](f) Capital Expenses.--
          [(1) In general.--(A) From the amount appropriated 
        for this subsection under section 1002(e) for any 
        fiscal year, each State is eligible to receive an 
        amount that bears the same ratio to the amount so 
        appropriated as the number of private school children 
        who received services under this part in the State in 
        the most recent years for which data satisfactory to 
        the Secretary are available bears to the number of such 
        children in all States in that same year.
          [(B) The Secretary shall reallocate any amounts 
        allocated under subparagraph (A) that are not used by a 
        State for the purpose of this subsection to other 
        States on the basis of their respective needs, as 
        determined by the Secretary.
          [(2) Capital expenses.--(A) A local educational 
        agency may apply to the State educational agency for 
        payments for capital expenses consistent with this 
        subsection.
          [(B) State educational agencies shall distribute such 
        funds under this subsection to local educational 
        agencies based on the degree of need set forth in their 
        respective applications for assistance under this 
        subsection.
          [(3) Uses of funds.--Any funds appropriated to carry 
        out this subsection shall be used only for capital 
        expenses incurred to provide equitable services for 
        private school children under this section.
          [(4) Definition.--For the purpose of this subsection, 
        the term ``capital expenses'' means--
                  [(A) expenditures for noninstructional goods 
                and services, such as the purchase, lease, or 
                renovation of real and personal property, 
                including mobile educational units and leasing 
                of natural sites or spaces;
                  [(B) insurance and maintenance costs;
                  [(C) transportation; and
                  [(D) other comparable goods and services.]

SEC. 1120A. [20 U.S.C. 6322] FISCAL REQUIREMENTS.

    (a) Maintenance of Effort.--A local educational agency may 
receive funds under this part for any fiscal year only if the 
State educational agency finds that the local educational 
agency has maintained its fiscal effort in accordance with 
section [14501 of this Act] 4.

           *       *       *       *       *       *       *


[SEC. 1120B. [20 U.S.C. 6323] COORDINATION REQUIREMENTS.] SEC. 1120B. 
                    COORDINATION REQUIREMENTS; EARLY CHILDHOOD 
                    EDUCATION SERVICES.

    (a) In General.--* * *

           *       *       *       *       *       *       *

    (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 Amendments of 1994] Head 
Start Amendments of 1998.
  (d) Early Childhood Services.--A local educational agency may 
use funds received under this part to provide preschool 
services--
          (1) directly to eligible preschool children in all or 
        part of its school district;
          (2) through any school participating in the local 
        educational agency's program under this part; or
          (3) through a contract with a local Head Start 
        agency, an eligible entity operating an Even Start 
        program, a State-funded preschool program, or a 
        comparable public early childhood development program.
  (e) Early Childhood Education Programs.--Early childhood 
education programs operated with funds provided under this part 
may be operated and funded jointly with Even Start programs 
under part B of this title, Head Start programs, or State-
funded preschool programs. Early childhood education programs 
funded under this part shall--
          (1) focus on the developmental needs of participating 
        children, including their social, cognitive, and 
        language-development needs, and use scientifically 
        based research approaches that build on competencies 
        that lead to school success, particularly in language 
        and literacy development and in reading;
          (2) teach children to understand and use language in 
        order to communicate for various purposes;
          (3) enable children to develop and demonstrate an 
        appreciation of books; and
          (4) in the case of children with limited English 
        proficiency, enable the children to progress toward 
        acquisition of the English language.

                        [Subpart 2--Allocations


[SEC. 1121. [20 U.S.C. 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), the Secretary shall reserve a total of 1 percent to 
provide assistance to--
          [(1) the outlying areas on the basis of their 
        respective need for such assistance according to such 
        criteria as the Secretary determines will best carry 
        out the purpose of this part; and
          [(2) the Secretary of the Interior in the amount 
        necessary to make payments pursuant to subsection (c).
    [(b) Assistance to the Outlying Areas.--
          [(1) In general.--From amounts made available under 
        subsection (a) in each fiscal year the Secretary shall 
        make grants to local educational agencies in the 
        outlying areas (other than the outlying areas assisted 
        under paragraph (3)).
          [(2) Competitive grants.--(A) The Secretary shall 
        reserve $5,000,000 from the amounts made available 
        under subsection (a) in each fiscal year to award 
        grants on a competitive basis, to local educational 
        agencies in the Federated States of Micronesia, the 
        Republic of the Marshall Islands, and the Republic of 
        Palau. The Secretary shall award such grants according 
        to the recommendations of the Pacific Region 
        Educational Laboratory which shall conduct a 
        competition for such grants.
          [(B) Except as provided in subparagraph (D), grant 
        funds awarded under this part only may be used for 
        programs described in this Act, including teacher 
        training, curriculum development, instructional 
        materials, or general school improvement and reform.
          [(C) Grant funds awarded under this paragraph only 
        may be used to provide direct educational services.
          [(D) The Secretary may provide 5 percent of the 
        amount made available for grants under this paragraph 
        to pay the administrative costs of the Pacific Region 
        Educational Laboratory regarding activities assisted 
        under this paragraph.
    [(c) Allotment to the Secretary of the Interior.--
          [(1) In general.--The amount allotted for payments to 
        the Secretary of the Interior under subsection (a)(2) 
        for any fiscal year shall be, as determined pursuant to 
        criteria established by the Secretary, the amount 
        necessary to meet the special educational needs of--
                  [(A) Indian children on reservations served 
                by elementary and secondary schools for Indian 
                children operated or supported by the 
                Department of the Interior; and
                  [(B) out-of-State Indian children in 
                elementary and secondary schools in local 
                educational agencies under special contracts 
                with the Department of the Interior.
          [(2) Payments.--From the amount allotted for payments 
        to the Secretary of the Interior under subsection 
        (a)(2), the Secretary of the Interior shall make 
        payments to local educational agencies, upon such terms 
        as the Secretary determines will best carry out the 
        purposes of this part, with respect to out-of-State 
        Indian children described in paragraph (1). The amount 
        of such payment may not exceed, for each such child, 
        the greater of--
                  [(A) 40 percent of the average per pupil 
                expenditure in the State in which the agency is 
                located; or
                  [(B) 48 percent of such expenditure in the 
                United States.

[SEC. 1122. [20 U.S.C. 6332] ALLOCATIONS TO STATES.

    [(a) In General.--
          [(1) Fiscal year 1995.--For fiscal year 1995, 
        appropriations for this part shall be allocated 
        according to the provisions of sections 1005, except 
        subsection (a)(3), and 1006, part A of chapter 1 of 
        title I, Elementary and Secondary Education Act of 
        1965, as in effect on September 30, 1994, except that 
        the State minimum for section 1005 shall be the lesser 
        of 0.25 percent of total appropriations or the average 
        of 0.25 percent of total appropriations and 150 percent 
        of the national average grant per child counted for 
        grants under section 1005 multiplied by the State's 
        number of children counted for such grants, and for 
        grants under section 1006, the State minimum shall be 
        the lesser of--
                  [(A) 0.25 percent of total appropriations; 
                and
                  [(B) the average of--
                          [(i) 0.25 percent of total 
                        appropriations; and
                          [(ii) the greater of 150 percent of 
                        the national average grant per child 
                        counted for grants under such section 
                        1006 multiplied by the State total 
                        number of such children, or $340,000.
          [(2) Succeeding fiscal years.--For fiscal years 1996 
        through 1999, an amount of the appropriations for this 
        part equal to the appropriation for fiscal year 1995 
        for section 1005, shall be allocated in accordance with 
        section 1124, and an amount equal to the appropriation 
        for fiscal year 1995 for section 1006 shall be 
        allocated in accordance with section 1124A. Any 
        additional appropriations under section 1002(a) for any 
        fiscal year after application of the preceding 
        sentence, shall be allocated in accordance with section 
        1125.
    [(b) Adjustment Where Necessitated by Appropriations.--
          [(1) In general.--If the sums available under this 
        part for any fiscal year are insufficient to pay the 
        full amounts that all local educational agencies in 
        States are eligible to receive under sections 1124, 
        1124A, and 1125 for such year, the Secretary shall 
        ratably reduce the allocations to such local 
        educational agencies, subject to subsections (c) and 
        (d) of this section.
          [(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 
        1124A, and 1125 for such fiscal year, allocations that 
        were reduced under paragraph (1) shall be increased on 
        the same basis as they were reduced.
    [(c) Hold-Harmless Amounts.--
          [(1) In general.--For fiscal year 1995, 
        notwithstanding subsection (b) and without regard to 
        amounts available fordelinquent children under subpart 
        2 of part D, the amount made available to each local 
        educational agency under such section 1005 shall be at 
        least 85 percent of the amount such local educational 
        agency received for the preceding year under such 
        section 1005.
          [(2) Fiscal year 1996.--Notwithstanding subsection 
        (b) and without regard to amounts available for 
        delinquent children under subpart 2 of part D, for 
        fiscal year 1996 the total amount made available to 
        each local educational agency under each of sections 
        1124 and 1124A for any fiscal year shall be at least 
        100 percent of the total amount such local educational 
        agency was allocated under such sections (or their 
        predecessor authorities) for the preceding fiscal year.
          [(3) Fiscal years 1997-1999.--For fiscal years 1997 
        through 1999, not withstanding subsection (b) and 
        without regard to amounts available for delinquent 
        children under subpart 2 of part D, the amount made 
        available to each local educational agency under each 
        of sections 1124 and 1125 shall be at least 95 percent 
        of the previous year's amount if the number of children 
        counted for grants under section 1124 is at least 30 
        percent of the total number of children aged 5 to 17 
        years, inclusive, in the local educational agency, 90 
        percent of the previous year amount if this percentage 
        is between 15 percent and 30 percent, and 85 percent if 
        this percentage is below 15 percent. For fiscal years 
        1997 and 1998, in calculating grants on the basis of 
        population data for counties, the Secretary shall apply 
        the hold-homeless percentages in the preceding sentence 
        to counties. For fiscal years 1996 through 1998, if the 
        Secretary's allocation for a county is not sufficient 
        to meet the hold-harmless requirements of this 
        paragraph for every local educational agency within 
        that county, then the State educational agency shall 
        reallocate funds proportionately from all other local 
        educational agencies in the State that are receiving 
        funds in excess of the hold-harmless amounts specified 
        in this paragraph.
    [(d) Ratable Reductions.--
          [(1) In general.--If the sums made available under 
        this part for any fiscal year are insufficient to pay 
        the full amounts that all States are eligible to 
        receive under subsection (c) for such year, the 
        Secretary shall ratably reduce such amounts for such 
        year.
          [(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for 
        such fiscal year, amounts that were reduced under 
        paragraph (1) shall be increased on the same basis as 
        such amounts reduced.
    [(e) Definition.--For the purpose of this section and 
sections 1124 and 1125, the term State means each of the 50 
states, the District of Columbia, and the Commonwealth of 
Puerto Rico.

[SEC 1124. [20 U.S.C. 6333] BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    [(a) Amount of Grants.--
          [(1) Grants for local educational agencies and puerto 
        rico.--The grant which a local educational agency in a 
        State is eligible to receive under this subpart for a 
        fiscal year shall (except as provided in section 1126), 
        be determined by multiplying the number of children 
        counted under subsection (c) by 40 percent of the 
        amount determined under the next sentence. The amount 
        determined under this sentence shall be the average per 
        pupil expenditure in the State except that--
                  [(A) if the average per pupil expenditure in 
                the State is less than 80 percent of the 
                average per pupil expenditure in the United 
                States, such amount shall be 80 percent of the 
                average per pupil expenditure in the United 
                States; or
                  [(B) if the average per pupil expenditure in 
                the State is more than 120 percent of the 
                average per pupil expenditure in the United 
                States, such amount shall be 120 percent of the 
                average per pupil expenditure in the United 
                States.
          [(2) Basis for calculating grants.--For fiscal years 
        1995 through 1998, grants shall be calculated by the 
        Secretary on the basis of the number of children 
        counted under subsection (c) for counties, and State 
        educational agencies shall suballocate county amounts 
        to local educational agencies, in accordance with 
        regulations published by the Secretary. In any State in 
        which a large number of local educational agencies 
        overlap county boundaries, the State educational agency 
        may apply to the Secretary for authority during any 
        particular fiscal year to make the allocations under 
        this part (other than section 1124A) directly to local 
        educational agencies without regard to the counties. If 
        the Secretary approves an application of a State 
        educational agency for a particular year under this 
        subparagraph, the State educational agency shall 
        provide assurances that--
                  [(A) such allocations will be made using 
                precisely the same factors for determining a 
                grant as are used under this part;
                  [(B) such allocations will be made using 
                alternative data approved by the Secretary that 
                the State determines best reflects the 
                distribution of children in poor families and 
                is adjusted to be equivalent in proportion to 
                the number of children determined in accordance 
                with subsection (c); or
                  [(C) such allocations will be made using data 
                that the State educational agency submits to 
                the Secretary for approval that more accurately 
                target poverty.
        In addition, the State educational agency shall provide 
        assurances that a procedure will be established through 
        which local educational agencies dissatisfied with the 
        determinations made by the State educational agency may 
        appeal directly to the Secretary for a final 
        determination. Beginning in fiscal year 1999, grants 
        shall be calculated by the Secretary on the basis of 
        population data compiled for local educational 
        agencies, unless the Secretary and the Secretary of 
        Commerce determine that use of the updated population 
        data would be inappropriate or unreliable taking into 
        consideration the recommendations of the study to be 
        conducted by the National Academy ofSciences. If the 
        Secretary and the Secretary of Commerce determine that 
        some or all of the data referred to in this paragraph 
        are inappropriate or unreliable, the Secretaries shall 
        jointly issue a report setting forth their reasons in 
        detail. In years when grants are calculated by the 
        Secretary on the basis of local educational agency 
        data, for each local educational agency serving an area 
        with a total population of at least 20,000 persons, the 
        grant under this section shall be the amount determined 
        by the Secretary. For local educational agencies 
        servicing areas with total populations of fewer than 
        20,000 persons, the State educational agency may 
        either--
                  [(i) distribute to such local educational 
                agencies grants under this section equal to the 
                amounts determined by the Secretary; and
                  [(ii) use an alternative method, approved by 
                the Secretary, to distribute the share of the 
                State's total grants under this section that is 
                based on local educational agencies with total 
                populations of fewer than 20,000 persons. Such 
                an alternative method of distributing grants 
                under this section among a State's local 
                educational agencies serving areas with total 
                populations of fewer than 20,000 persons shall 
                be based upon population data that the State 
                educational agency determines best reflect the 
                current distribution of children in poor 
                families among the State's local educational 
                agencies serving areas with total populations 
                of fewer than 20,000 persons. If a local 
                educational agency serving an area with total 
                population of less than 20,000 persons is 
                dissatisfied with the determination of its 
                grant by the State education agency, then such 
                local educational agency may appeal this 
                determination to the Secretary. The Secretary 
                must respond to this appeal within 45 days of 
                receipt.
          [(3) Puerto rico.--For each fiscal year, the 
        Secretary shall determine the percentage which the 
        average per pupil expenditure in the Commonwealth of 
        Puerto Rico is of the lowest average per pupil 
        expenditure of any of the 50 States. The grant which 
        the Commonwealth of Puerto Rico shall be eligible to 
        receive under this section for a fiscal year shall be 
        the amount arrived at by multiplying the number of 
        children counted under subsection (c) for the 
        Commonwealth of Puerto Rico by the product of--
                  [(A) the percentage determined under the 
                preceding sentence; and
                  [(B) 32 percent of the average per pupil 
                expenditure in the United States.
          [(4) Definition.--For purposes of this subsection, 
        the term ``State'' does not include Guam, American 
        Samoa, the Virgin Islands, the Northern Mariana 
        Islands, and Palau.
    [(b) Minimum Number of Children To Qualify.--Subject to the 
succeeding sentence, a local educational agency shall be 
eligible for a basic grant for a fiscal year under this subpart 
only if the number of children counted under subsection (c) in 
the school district of such local educational agency is at 
least 10. Beginning in fiscal year 1996, no local educational 
agency shall be eligible for a grant under this section if the 
number of children counted for grants under this section is 
equal to 2 percent or less of the total school age population 
in the local educational agency. For fiscal years 1996 though 
1998, grants not made as a result of applying the preceding 
sentence shall be reallocated by the State educational agency 
to other eligible local education agencies in the State in 
proportion to the distribution of other funds under this 
section.
    [(c) Children To Be Counted.--
          [(1) Categories of children.--The number of children 
        to be counted for purposes of this section is the 
        aggregate of--
                  [(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the 
                poverty level as determined under paragraph 
                (2);
                  [(B) the number of children aged 5 to 17, 
                inclusive, in the school district of such 
                agency from families above the poverty level as 
                determined under paragraph (5); and
                  [(C) the number of children aged 5 to 17, 
                inclusive, in the school district of such 
                agency in institutions for neglected and 
                delinquent children (other than such 
                institutions operated by the United States), 
                but not counted pursuant to subpart 1 of part D 
                for the purposes of a grant to a State agency, 
                or being supported in foster homes with public 
                funds.
          [(2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine 
        the number of children aged 5 to 17, inclusive, from 
        families below the poverty level on the basis of the 
        most recent satisfactory data, described in paragraph 
        (3), available from the Department of Commerce. For 
        fiscal year 1999 and beyond, the District of Columbia 
        and the Commonwealth of Puerto shall be treated as 
        individual local educational agencies. If a local 
        educational agency contains two or more counties in 
        their entirety, then each county will be treated as if 
        such county were a separate local educational agency 
        for purposes of calculating grants under this part. The 
        total of grants for such counties shall be allocated to 
        such a local educational agency, which local 
        educational agency shall distribute to schools in each 
        county within such agency a share of the local 
        educational agency's total grant that is no less than 
        the county's share of the population counts used to 
        calculate the local educational agency's grant.
          [(3) Population updates.--In fiscal year 1997 and 
        every 2 years thereafter, the Secretary shall use 
        updated data on the number of children, aged 5 to 17, 
        inclusive, from families below the poverty level for 
        counties or local educational agencies, published by 
        the Department of Commerce, unless the Secretary and 
        the Secretary of Commerce determine that use of the 
        updated population data would be inappropriate or 
        unreliable, taking into consideration the 
        recommendations of the study to be conducted by the 
        National Academy of Sciences. If the Secretary and the 
        Secretary of Commerce determine that some or all of the 
        data referred to in this paragraph are inappropriateor 
        unreliable, they shall jointly issue a report setting 
        forth their reasons in detail. In determining the 
        families which are below the poverty level, the 
        Secretary shall utilize the criteria of poverty used by 
        the Bureau of the Census in compiling the most recent 
        decennial census, in such form as those criteria have 
        been updated by increases in the Consumer Price Index 
        for all urban consumers, published by the Bureau of 
        Labor Statistics.
          [(4) Study.--(A) The Secretary of Education shall, 
        within 30 days after the date of enactment of the 
        Improving America's School's Act of 1994, contract with 
        the National Academy of Sciences (hereafter in this 
        section referred to as the ``Academy'') to study the 
        program to produce intercensal poverty data for small 
        geographic areas and certain age cohorts being 
        developed by the Bureau of the Census.
          [(B) In conducting its study, the Academy shall 
        consider such matters as--
                  [(i) the methodology used to produce and 
                publish intercensal poverty data, and possible 
                alternative methods to improve the usefulness 
                of the data for Federal program purposes;
                  [(ii) the availability of alternative 
                indicators of poverty for small geographic 
                areas, against which the poverty data produced 
                and published by the Bureau of the Census could 
                be compared;
                  [(iii) the reliability of the poverty data 
                produced and published by the Bureau of the 
                Census, particularly for less populous 
                geographic areas;
                  [(iv) the reliability of intercensal poverty 
                data produced and published by the Bureau of 
                the Census, as compared over time to similar 
                data produced by the Bureau of the Census 
                during the most recent decennial census; and
                  [(v) the usefulness of poverty data produced 
                and published by the Bureau of the Census for 
                Federal programs that allocate funds to State 
                and subState areas based, in whole or in part, 
                on such data.
          [(C) The Academy shall submit to the Secretary and 
        the Secretary of Commerce, as well as to the Committee 
        on Education and Labor and the Committee on Post Office 
        and Civil Service of the House of Representatives and 
        the Committee on Labor and Human Resources and the 
        Committee on Governmental Affairs of the Senate--
                  [(i) not later than 18 months after the date 
                on which a contract is entered into under 
                subsection (a), and not later than every 18 
                months thereafter, such interim reports on the 
                Academy's activities under this Act that the 
                Academy deems appropriate, including a detailed 
                statement of the Academy's findings and 
                conclusions with respect to any poverty data 
                which the Bureau of the Census publishes and 
                produces, within 90 days of such publication; 
                and
                  [(ii) not later than December 31, 1998, a 
                final report which shall include a more 
                detailed statement of the Acad-emy's findings 
                and conclusions with respect to the use of any 
                intercensal poverty data produced and published 
                by the Bureau of the Census as the basis for 
                allocating Federal funds under this Act.
          [(D) Of the funds appropriated under section 1002(f) 
        of this Act, the Secretary shall use such sums as are 
        necessary in each of fiscal years 1995, 1996, 1997, 
        1998, and 1999 to carry out the provisions of this 
        paragraph.
          [(5) Other children to be counted.--For purposes of 
        this section, the Secretary shall determine the number 
        of children aged 5 to 17, inclusive, from families 
        above the poverty level on the basis of the number of 
        such children from families receiving an annual income, 
        in excess of the current criteria of poverty, from 
        payments under a State program funded under part A of 
        title IV of the Social Security Act; and in making such 
        determinations the Secretary shall utilize the criteria 
        of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census for a family 
        of 4 in such form as those criteria have been updated 
        by increases in the Consumer Price Index for all urban 
        consumers, published by the Bureau of Labor Statistics. 
        The Secretary shall determine the number of such 
        children and the number of children of such ages living 
        in institutions for neglected or delinquent children, 
        or being supported in foster homes with public funds, 
        on the basis of the caseload data for the month of 
        October of the preceding fiscal year (using, in the 
        case of children described in the preceding sentence, 
        the criteria of poverty and the form of such criteria 
        required by such sentence which were determined for the 
        calendar year preceding such month of October) or, to 
        the extent that such data are not available to the 
        Secretary before January of the calendar year in which 
        the Secretary's determination is made, then on the 
        basis of the most recent reliable data available to the 
        Secretary at the time of such determination. The 
        Secretary of Health and Human Services shall collect 
        and transmit the information required by this 
        subparagraph to the Secretary not later than January 1 
        of each year.
          [(6) Estimate.--When requested by the Secretary, the 
        Secretary of Commerce shall make a special updated 
        estimate of the number of children of such ages who are 
        from families below the poverty level (as determined 
        under subparagraph (A) of this paragraph) in each 
        school district, and the Secretary is authorized to pay 
        (either in advance or by way of reimbursement) the 
        Secretary of Commerce the cost of making this special 
        estimate. The Secretary of Commerce shall give 
        consideration to any request of the chief executive of 
        a State for the collection of additional census 
        information. For purposes of this section, the 
        Secretary shall consider all children who are in 
        correctional institutions to be living in institutions 
        for delinquent children.
    [(d) State Minimum.--Notwithstanding subsection (b)(1) or 
(d) of section 1122, the aggregate amount allotted for all 
local educational agencies within a State may not be less than 
the lesser of--
          [(1) 0.25 percent of total grants under this section; 
        or
          [(2) the average of--
                  [(A) one-quarter of 1 percent of the total 
                amount available for such fiscal year under 
                this section; and
                  [(B) the number of children in such State 
                counted under subsection (c) in the fiscal year 
                multiplied by 150 percent of the national 
                average per pupil payment made with funds 
                available under this section for that year.

[SEC. 1124A. [20 U.S.C. 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, in a 
        State other than Guam, American Samoa, the Virgin 
        Islands, the Commonwealth of the Northern Mariana 
        Islands, and Palau, which is eligible for a grant under 
        this part for any fiscal year shall be eligible for an 
        additional grant under this section for that fiscal 
        year if--
                  [(i) the number of children counted under 
                section 1124(c) in the county (for fiscal years 
                1996 through 1998), or local educational agency 
                (for fiscal years beginning with 1999) for the 
                fiscal year exceeds 6,500; or
                  [(ii) the number of children counted under 
                section 1124(c) exceeds 15 percent of the total 
                number of children aged 5 to 17, inclusive, in 
                the county (for fiscal years 1996 through 
                1998), or local educational agency (for fiscal 
                years beginning with 1999) in that fiscal year.
          [(B) Notwithstanding such subsections (b)(1) and (d) 
        of section 1122, no State described in subparagraph (A) 
        shall receive less than the lesser of--
                  [(i) 0.25 percent of total grants; or
                  [(ii) the average of--
                          [(I) one-quarter of 1 percent of the 
                        sums available to carry out this 
                        section for such fiscal year; and
                          [(II) the greater of--
                                  [(aa) $340,000; or
                                  [(bb) the number of children 
                                in such State counted for 
                                purposes of this section in 
                                that fiscal year multiplied by 
                                150 percent of the national 
                                average per pupil payment made 
                                with funds available under this 
                                section for that year.
          [(2) Special rule.--For each county or local 
        educational agency eligible to receive an additional 
        grant under this section for any fiscal year the 
        Secretary shall determine the product of--
                  [(A) the number of children counted under 
                section 1124(c) for that fiscal year; and
                  [(B) the quotient resulting from the division 
                of the amount determined for those agencies 
                under section 1124(a)(1) for the fiscal year 
                for which the determination is being made 
                divided by the total number of children counted 
                under section 1124(c) for that agency for 
                fiscal year.
          [(3) Amount.--The amount of the additional grant for 
        which an eligible local educational agency or county is 
        eligible under this section for any fiscal year shall 
        be an amount which bears the same ratio to the amount 
        available to carry out this section for that fiscal 
        year as the product determined under paragraph (2) for 
        such local educational agency for that fiscal year 
        bears to the sum of such products for all local 
        educational agencies in the United States for that 
        fiscal year.
          [(4) Suballocation.--For fiscal years 1996 through 
        1998, county amounts shall be suballocated to local 
        educational agencies meeting the criteria of paragraph 
        (1)(A) by State educational agencies, in accordance 
        with regulations published by the Secretary. For fiscal 
        years 1995 through 1998, grants shall be calculated by 
        the Secretary on the basis of the number of children 
        counted under section 1124(c) for counties, and State 
        educational agencies shall suballocate county amounts 
        to local educational agencies, in accordance with 
        regulations published by the Secretary. In any State in 
        which a large number of local educational agencies 
        overlap county boundaries, the State educational agency 
        may apply to the Secretary for authority during any 
        particular fiscal year to make the allocations under 
        this part (other than this section) directly to local 
        educational agencies without regard to the counties. If 
        the Secretary approves an application of a State 
        educational agency for a particular year under this 
        paragraph, the State educational agency shall provide 
        assurances that--
                  [(A) such allocations will be made using 
                precisely the same factors for determining a 
                grant as are used under this part;
                  [(B) such allocations will be made using 
                alternative data approved by the Secretary that 
                the State determines best reflects the 
                distribution of children in poor families and 
                is adjusted to be equivalent in proportion to 
                the number of children determined in accordance 
                with section 1124(c); or
                  [(C) such allocations will be made using data 
                that the State educational agency submits to 
                the Secretary for approval that more accurately 
                target poverty.
        In addition, the State educational agency shall provide 
        assurances that a procedure will be established through 
        which local educational agencies dissatisfied with the 
        determinations made by the State educational agency may 
        appeal directly to the Secretary for a final 
        determination. A State may reserve not more than 2 
        percent of its allocations in fiscal years 1996 through 
        1998 under this section for the purpose of making 
        grants to local educational agencies that meet the 
        criteria of clause (i) or (ii) of paragraph (1)(A), but 
        are in ineligible counties. For fiscal years beginning 
        with 1999, for each local educational agency serving an 
        area with a total population of at least 20,000 
        persons, the grant under this section shall be the 
        amount determined by the Secretary. For local 
        educational agencies serving areas with total 
        populations of fewer than 20,000 persons, the State 
        educational agency may either (i) distribute to such 
        local educational agencies grants under this section 
        equal to the amounts determined by the Secretary; or 
        (ii) use an alternative method, approved by the 
        Secretary, to distribute the share of the State's total 
        grants under this section that is based on 
        localeducational agencies with total populations of 
        fewer than 20,000 persons. Such an alternative method 
        of distributing grants under this section among a 
        State's local educational agencies serving areas with 
        total populations of fewer than 20,000 persons shall be 
        based upon population data that the State educational 
        agency determines best reflects the current 
        distribution of children in poor families among the 
        State's local educational agencies serving areas with 
        total populations of fewer than 20,000 persons and 
        meeting the eligibility criteria of paragraph (1)(A). 
        If a local educational agency serving an area with 
        total population of less than 20,000 persons is 
        disatisfied with the determination of its grant by the 
        State educational agency, then such local educational 
        agency may appeal this determination to the Secretary. 
        The Secretary shall respond to this appeal within 45 
        days of receipt. The Secretary shall consult with the 
        Secretary of Commerce regarding whether available data 
        on population for local educational agencies service 
        areas with total populations of fewer than 20,000 
        persons are sufficiently reliable to be used to 
        determine final grants to such areas meeting the 
        eligibility criteria of paragraph (1)(A).
    [(b) Reservation of Funds.--Of the total amount of funds 
available for this section and sections 1124 and 1125, an 
amount equal to the appropriation for fiscal year 1995 for 
section 1006 of this Act (as such section was in effect on the 
day preceding the date of enactment of this Act) shall be 
available to carry out this section.
    [(c) Ratable Reduction Rule.--If the sums available under 
subsection (b) for any fiscal year for making payments under 
this section are not sufficient to pay in full the total 
amounts which all States are eligible to receive under 
subsection (a) for such fiscal year, the maximum amounts which 
all States are eligible to receive under subsection (a) for 
such fiscal year shall be ratably reduced. In the case that 
additional funds become available for making such payments for 
any fiscal year during which the preceding sentence is 
applicable, such reduced amounts shall be increased on the same 
basis as they were reduced.
    [(d) States Receiving Minimum Grants.--In States that 
receive the minimum grant under subsection (a)(1)(B), the State 
educational agency shall allocate such funds among the local 
educational agencies in each State either--
          [(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
          [(2) based on their respective concentrations and 
        numbers of children counted under section 1124(c), 
        except that only those local educational agencies with 
        concentrations or numbers of children counted under 
        section 1124(c) that exceed the statewide average 
        percentage of such children or the statewide average 
        number of such children shall receive any funds on the 
        basis of this paragraph.

[SEC. 1125. [20 U.S.C. 6335] TARGETED GRANTS TO LOCAL EDUCATIONAL 
                    AGENCIES.

    [(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted 
grant under this section for any fiscal year if the number of 
children in the local educational agency counted under 
subsection 1124(c), before application of the weighting factor 
described in subsection (c) is at least 10, and if the number 
of children counted for grants under section 1124 is at least 5 
percent of the total population aged 5 to 17 years, inclusive, 
in the local educational agency. Funds made available as a 
result of applying this subsection shall be reallocated by the 
State educational agency to other eligible local educational 
agencies in the State in proportion to the distribution of 
other funds under this section.
    [(b) Grants for Local Educational Agencies, the District of 
Columbia, and Puerto Rico.--
          [(1) In general.--The amount of the grant that a 
        local educational agency in a State or that the 
        District of Columbia is eligible to receive under this 
        section for any fiscal year shall be the product of--
                  [(A) the weighted child count determined 
                under subsection (c); and
                  [(B) the amount in the second of subparagraph 
                1124(a)(1)(A).
          [(2) Puerto rico.--For each fiscal year, the amount 
        of the grant for which the Commonwealth of Puerto Rico 
        is eligible under this section shall be equal to the 
        number of children counted under subsection (c) for 
        Puerto Rico, multiplied by the amount determined in 
        subparagraph 1124(a)(3).
      [(c) Weighted Child Count.--
          [(1) Fiscal years 1966-1998.--
                  [(A) In general.--The weighted child count 
                used to determine a county's allocation under 
                this section is the larger of the two amounts 
                determined under clause (i) or (ii), as 
                follows:
                          [(i) By percentage of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) for that county 
                                constituting up to 12.20 
                                percent, inclusive, of the 
                                county's total population aged 
                                5 to17, inclusive, multiplied 
                                by 1.0;
                                  [(II) the number of such 
                                children constituting more than 
                                12.20 percent, but not more 
                                than 17.70 percent, of such 
                                population, multiplied by 1.75;
                                  [(III) the number of such 
                                children constituting more than 
                                17.70 percent, but not more 
                                than 22.80 percent, of such 
                                population, multiplied by 2.5;
                                  [(IV) the number of such 
                                children constituting more than 
                                22.80 percent, but not more 
                                than 29.70 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  [(V) the number of such 
                                children constituting more than 
                                29.70 percent, of such 
                                population, multiplied by 4.0.
                          [(ii) By number of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) constituting up to 
                                1,917, inclusive,of the 
                                county's total population aged 
                                5 to 17, inclusive, multiplied 
                                by 1.0;
                                  [(II) the number of such 
                                children between 1,918 and 
                                5,938, inclusive, in such 
                                population, multiplied by 1.5;
                                  [(III) the number of such 
                                children between 5,939 and 
                                20,199, inclusive, in such 
                                population, multiplied by 2.0;
                                  [(IV) the number of such 
                                children between 20,200 and 
                                77,999, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  [(V) the number of such 
                                children in excess of 77,999 in 
                                such population, multiplied by 
                                3.0.
                  [(B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for 
                Puerto Rico under this paragraph shall not be 
                greater than the total number of children 
                counted under subsection 1124(c) multiplied by 
                1.72.
          [(2) Fiscal years after 1999.--
          [(A) In general.--For each fiscal year beginning with 
        fiscal year 1999 for which the Secretary uses local 
        educational agency data, the weighted child count used 
        to determine a local educational agency's grant under 
        this section is the larger of the two amounts 
        determined under clauses (i) and (ii), as follows:
                          [(i) By percentage of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) for that local 
                                educational agency constituting 
                                up to 14.265 percent, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  [(II) the number of such 
                                children constituting more than 
                                14.265 percent, but not more 
                                than 21.553 percent, of such 
                                population, multiplied by 1.75;
                                  [(III) the number of such 
                                children constituting more than 
                                21.553 percent, but not more 
                                than 29.223 percent, of such 
                                population, multiplied by 2.5:
                                  [(IV) the number of such 
                                children constituting more than 
                                29.223 percent, but not more 
                                than 36.538 percent, of such 
                                population, multiplied by 3.25; 
                                and
                                  [(V) the number of such 
                                children constituting more than 
                                36,538 percent of such 
                                population, multiplied by 4.0.
                          [(ii) By number of children.--This 
                        amount is determined by adding--
                                  [(I) the number of children 
                                determined under section 
                                1124(c) constituting up to 575, 
                                inclusive, of the agency's 
                                total population aged 5 to 17, 
                                inclusive, multiplied by 1.0;
                                  [(II) the number of such 
                                children between 576 and 1,870, 
                                inclusive, in such population, 
                                multiplied by 1.5;
                                  [(III) the number of such 
                                children between 1,871 and 
                                6,910, inclusive, in such 
                                population, multiplied by 2.0;
                                  [(IV) the number of such 
                                children between 6,911 and 
                                42,000, inclusive, in such 
                                population, multiplied by 2.5; 
                                and
                                  [(V) the number of such 
                                children in excess of 42,000 in 
                                such population, multiplied by 
                                3.0.
                  [(B) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for 
                Puerto Rico under this paragraph shall not be 
                greater than the total number of children 
                counted under section 1124(c) multiplied by 
                1.72.
    [(d) Local Educational Agency Allocations.--For fiscal 
years 1995 through 1998, grants shall be calculated by the 
Secretary on the basis of the number of children counted under 
section 1124 for counties, and State educational agencies shall 
suballocate county amounts to local educational agencies, in 
accordance with regulations published by the Secretary. In any 
State in which a large number of local educational agencies 
overlap county boundaries, the State educational agency may 
apply to the Secretary for authority during any particular 
fiscal year to make the allocations under this part (other than 
section 1124A) directly to local educational agencies without 
regard to the counties. If the Secretary approves an 
application of a State educational agency for a particular year 
under this subparagraph, the State educational agency shall 
provide assurances that--
          [(1) such allocations will be made using precisely 
        the same factors for determining a grant as are used 
        under this part;
          [(2) such allocations will be made using alternative 
        data approved by the Secretary that the State 
        determines best reflects the distribution of children 
        in poor families and is adjusted to be equivalent in 
        proportion to the number of children determined in 
        accordance with section 1124(c); or
          [(3) such allocations will be made using data that 
        the State educational agency submits to the Secretary 
        for approval that more accurately target poverty.
In addition, the State educational agency shall provide 
assurances that a procedure will be established through which 
local educational agencies dissatisfied with the determinations 
made by the State educational agency may appeal directly to the 
Secretary for a final determination. For fiscal years beginning 
in 1999, for each local educational agency serving an area with 
a total population of at least 20,000 persons, the grant under 
this section shall be the amount determined by the Secretary. 
For local educational agencies serving areas with total 
populations of fewer than 20,000 persons, the State educational 
agency may either (1) distribute to such local educational 
agencies grants under this section equal to the amounts 
determined by the Secretary; or (2) use an alternative method, 
approved by the Secretary, to distribute the share of the 
State's total grants under this section that is based on local 
educational agencies with total populations of fewer than 
20,000sons. Such an alterative method of distributing grants 
under this section among a State's local educational agencies 
serving areas with total populations of fewer than 20,000 
persons shall be based upon population data that the State 
educational agency determines best reflects the current 
distribution of children in poor families among the State's 
local educational agencies serving areas with total populations 
of fewer than 20,000 persons. If a local educational agency 
serving an area with total populations of less than 20,000 
persons is dissatisfied with the determination of its grant by 
the State educational agency, then the local educational agency 
may appeal this determination to the Secretary. The Secretary 
shall respond to this appeal within 45 days of receipt.
    [(e) State Minimum.--Notwithstanding any other provision of 
this section or subsection (b)(1) of (d) of section 1122, from 
the total amount available for any fiscal year to carry out 
this section, each State shall be allotted at least the lesser 
of--
          [(1) 0.25 percent of total appropriations; or
          [(2) the average of--
                  [(A) one-quarter of 1 percent of the total 
                amount available to carry out this section; and
                  [(B) 150 percent of the national average 
                grant under this section per child described in 
                section 1124(c), without application of a 
                weighting factor, multiplied by the State's 
                total number of children described in section 
                1124(c), without application of a weighting 
                factor.

[SEC. 1125A. [20 U.S.C. 6336] EDUCATION FINANCE INCENTIVE PROGRAM.

    [(a) Grants.--The Secretary is authorized to make grants to 
States from the sums appropriated pursuant to subsection (e) to 
carry out the purposes of this part.
    [(b) Distribution Based Upon Fiscal Effort and Equity.--
          [(1) In general.--Funds appropriated pursuant to 
        subsection (e) shall be allotted to each State based 
        upon the number of children aged 5 to 17, inclusive, of 
        such State multiplied by the product of--
                  [(A) such State's effort factor described in 
                paragraph (2); multiplied by
                  [(B) 1.30 minus such State's equity factor 
                described in paragraph (3),
        except that for each fiscal year no State shall receive 
        less than one-quarter of 1 percent of the total amount 
        appropriated pursuant to subsection (e) for such fiscal 
        year.
          [(2) Effort factor.--(A) 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 .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 three-year 
        average per-pupil expenditure in the State multiplied 
        by the three-year average per capita income in the 
        United States and the denominator of which is the 
        product of the three-year average per capita income in 
        such State multiplied by the three-year average per-
        pupil expenditure in the United States.
          [(B) 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)(i) 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)(I) 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), (IV), and (V).
          [(II) 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 in the local educational 
        agency.
          [(III) In determining the number of pupils under this 
        paragraph in each local educational agency and each 
        State, the Secretary shall multiply the number of 
        children from low-income families by 1.4 under this 
        paragraph.
          [(IV) In computing coefficients of variation, the 
        Secretary shall include only those local educational 
        agencies with an enrollment of more than 200 students.
          [(V) The Secretary shall compute separate 
        coefficients of variation for elementary, secondary, 
        and unified local educational agencies and shall 
        combine such coefficients into a single weighted 
        average coefficient for the State by multiplying each 
        coefficient by the total enrollments of the local 
        educational agencies in each group, adding such 
        products, and dividing such sum by the total 
        enrollments of the local educational agencies in the 
        State.
          [(B) The equity factor for a State that meets the 
        disparity standard described in section 222.64 of title 
        34, Code of Federal Regulations (as such section was in 
        effect on the day preceding the date of enactment of 
        this Act) or a State with only one local educational 
        agency shall be not greater than .10.
          [(C) The Secretary may revise each State's equity 
        factor as necessary based on the advice of independent 
        education finance scholars to reflect other need-based 
        costs of local educational agencies in addition to low-
        income student enrollment, such as differing geographic 
        costs, costs associated with students with 
        disabilities, children with limited-English proficiency 
        or other meaningful educational needs, which deserve 
        additional support. In addition and also with the 
        advice of independent education finance scholars, the 
        Secretary may revise each State's equity factor to 
        incorporate other valid and accepted methods to achieve 
        adequacy of educational opportunity that may not be 
        reflected in a coefficient of variation method.
    [(c) Use of Funds.--All funds awarded to each State under 
this section shall be allocated to local educational agencies 
and schools on a basis consistent with the distribution of 
other funds to such agencies and schools under sections 1124, 
1124A, and 1125 to carry out activities under this part.
    [(d) 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 part for any fiscal year if the 
        Secretary finds that either the combined fiscal effort 
        per student or the aggregate expendi-tures within the 
        State with respect to the provision of free pub-lic 
        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 deter-mination is made.
          [(2) Reduction of funds.--The Secretary shall reduce 
        the amount of the 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 ef-
        fort required under paragraph (1) for subsequent years.
          [(3) Waivers.--The Secretary may waive, for one 
        fiscal year only, the requirements of this subsection 
        if the Secretary deter-mines 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.
    [(e) Authorization of Appropriations.--For the purpose of 
making grants under this section, there are authorized to be 
appro-priated $200,000,000 for fiscal year 1996 and such sums 
as may be necessary for each of the three succeeding fiscal 
years.

[SEC. 1126. [20 U.S.C. 6337] 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 un-willing to provide for the special 
        educational needs of children who are living in 
        institutions for neglected children as de-scribed in 
        subparagraph 1124(c)(1)(C), the State educational 
        agency shall, if such agency assumes responsibility for 
        the spe-cial educational needs of such children, 
        receive the portion of such local educational agency's 
        allocation under sections 1124, 1124A, and 1125 that is 
        attributable to such children.
          [(2) Special rule.--If the State educational agency 
        does not assume such responsibility, any other State or 
        local public agency that does assume such 
        responsibility shall receive that portion of the local 
        educational agency's allocation.
    [(b) Allocations Among Local Educational Agencies.--The 
State educational agency may allocate the amounts of grants 
under sections 1124, 1124A, and 1125 among the affected local 
edu-cational 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 edu-cational 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 re-ceive under sections 1124, 1124A, and 1125 is 
more than such local agency will use, the State educational 
agency shall make the excess amount available to other local 
educational agencies in the State that need additional funds in 
accordance with criteria established by the State educational 
agency.

[SEC. 1127. [20 U.S.C. 6338] CARRYOVER AND WAIVER.

    [(a) Limitation on Carryover.--Notwithstanding section 421 
of the General Education Provisions Act or any other provision 
of law, not more than 15 percent of the funds allocated to a 
local edu-cational agency for any fiscal year under this 
subpart (but not in-cluding funds received through any 
reallocation under this subpart) may remain available for 
obligation by such agency for one addi-tional fiscal year.
    [(b) Waiver.--A State educational agency may, once every 
three years, waive the percentage limitation in subsection (a) 
if--
          [(1) the agency determines that the request of a 
        local edu-cational 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 education agency that receives 
less than $50,000 under this subpart for any fiscal year.]

                         Subpart 2--Allocations

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

    (a) Reservation of Funds.--From the amount appropriated for 
any fiscal year under section 1002(a), the Secretary shall 
reserve a total of 1 percent to provide assistance to--
          (1) the outlying areas on the basis of their 
        respective need for such assistance according to such 
        criteria as the Secretary determines will best carry 
        out the purpose of this part; and
          (2) the Secretary of the Interior in the amount 
        necessary to make payments pursuant to subsection (c).
    (b) Assistance to the Outlying Areas.--
          (1) In general.--From amounts made available under 
        subsection (a)(1) in each fiscal year the Secretary 
        shall make grants to local educational agencies in the 
        outlying areas.
          (2) Competitive grants.--
                  (A) In general.--For fiscal year 2002 and 
                each of the 6 succeeding fiscal years, the 
                Secretary shall reserve $5,000,000 from the 
                amounts made available under subsection (a)(1) 
                to award grants, on a competitive basis, to 
                local educational agencies in the Freely 
                Associated States. The Secretary shall award 
                such grants according to the recommendations of 
                the Pacific Region Educational Laboratory which 
                shall conduct a competition for such grants.
                  (B) Uses.--Except as provided in subparagraph 
                (C), grant funds awarded under this paragraph 
                only may be used--
                          (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.
                  (C) Administrative costs.--The Secretary may 
                provide 5 percent of the amount made available 
                for grants under this paragraph to the Pacific 
                Region Educational Laboratory to pay the 
                administrative costs of the Pacific Region 
                Educational Laboratory regarding activities 
                assisted under this paragraph.
      (c) Allotment to the Secretary of the Interior.--
          (1) In general.--The amount reserved 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 reserved for payments 
        to the Secretary of the Interior under subsection 
        (a)(2), the Secretary of the Interior shall make 
        payments to local educational agencies, upon such terms 
        as the Secretary determines will best carry out the 
        purposes of this part, with respect to out-of-State 
        Indian children described in paragraph (1)(B). The 
        amount of such payment may not exceed, for each such 
        child, the greater of--
                  (A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is 
                located; or
                  (B) 48 percent of such expenditure in the 
                United States.

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

    (a) In General.--For each of the fiscal years 2002 through 
2008--
          (1) the amount appropriated to carry out this part 
        that is less than or equal to the amount appropriated 
        to carry out section 1124 for fiscal year 2001, shall 
        be allocated in accordance with section 1124;
          (2) the amount appropriated to carry out this part 
        that is not used under paragraph (1) that equals the 
        amount appropriated to carry out section 1124A for 
        fiscal year 2001, shall be allocated in accordance with 
        section 1124A; and
          (3) any amount appropriated to carry out this part 
        for the fiscal year for which the determination is made 
        that is not used to carry out paragraphs (1) and (2) 
        shall be allocated in accordance with section 1125.
    (b) Adjustments Where Necessitated by Appropriations.--
          (1) In general.--If the sums made available under 
        this part for any fiscal year are insufficient to pay 
        the full amounts that all local educational agencies in 
        States are eligible to receive under sections 1124, 
        1124A, and 1125 for such year, the Secretary shall 
        ratably reduce the allocations to such local 
        educational agencies, subject to subsections (c) and 
        (d).
          (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 the allocations were reduced.
    (c) Hold-Harmless Amounts.--
          (1) In general.--For each fiscal year the amount made 
        available to each local educational agency under each 
        of sections 1124, 1124A, and 1125 shall be not less 
        than--
                  (A) 95 percent of the amount made available 
                to the local educational agency under each such 
                section for the preceding fiscal year if 
                thenumber 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, served by the local educational 
                agency;
                  (B) 90 percent of the amount made available 
                to the local educational agency under each such 
                section for the preceding fiscal year if such 
                percentage is not less than 15 percent and not 
                more than 30 percent; and
                  (C) 85 percent of the amount made available 
                to the local educational agency under each such 
                section for the preceding fiscal year if such 
                percentage is less than 15 percent.
          (2) Special rules.--If sufficient funds are 
        appropriated, the hold-harmless amounts described in 
        paragraph (1) shall be paid to all local educational 
        agencies that received grants under section 1124, 
        1124A, or 1125 for the preceding fiscal year, 
        regardless of whether the local educational agency 
        meets the minimum eligibility criteria provided in 
        section 1124(b), 1124A(a)(1)(A), or 1125(a), 
        respectively, except that a local educational agency 
        that does not meet such minimum eligibility criteria 
        for 5 consecutive years shall no longer be eligible to 
        receive a hold-harmless amount under this subsection.
          (3) County calculation basis.--For any fiscal year 
        for which the Secretary calculates grants on the basis 
        of population data for counties, the Secretary shall 
        apply the hold-homeless 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, then the 
        State educational agency shall reallocate funds 
        proportionately from all other local educational 
        agencies in the State that receive funds for the fiscal 
        year in excess of the hold-harmless amounts specified 
        in this paragraph.
    (d) Ratable Reductions.--
          (1) In general.--If the sums made available under 
        this part for any fiscal year are insufficient to pay 
        the full amounts that all States are eligible to 
        receive under subsection (c) for such year, the 
        Secretary shall ratably reduce such amounts for such 
        year.
          (2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for 
        such fiscal year, amounts that were reduced under 
        paragraph (1) shall be increased on the same basis as 
        such amounts were reduced.

SEC. 1123. DEFINITIONS.

    In this subpart:
          (1) Freely associated states.--The term ``Freely 
        Associated States'' means the Republic of the Marshall 
        Islands, the Federated States of Micronesia, and the 
        Republic of Palau.
          (2) Outlying areas.--The term ``outlying areas'' 
        means the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana 
        Islands.
          (3) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.

SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    (a) Amount of Grants.--
          (1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (4) and in 
        section 1126, the grant that a local educational agency 
        is eligible to receive under this section for a fiscal 
        year is the amount determined by multiplying--
                  (A) the number of children counted under 
                subsection (c); and
                  (B) 40 percent of the average per-pupil 
                expenditure in the State, except that the 
                amount determined under this subparagraph shall 
                not be less than 32 percent, and not more than 
                48 percent, of the average per-pupil 
                expenditure in the United States.
          (2) Calculation of grants.--
                  (A) Allocations to local educational 
                agencies.--The Secretary shall calculate grants 
                under this section on the basis of the number 
                of children counted under subsection (c) for 
                local educational agencies, unless the 
                Secretary and the Secretary of Commerce 
                determine that some or all of those data are 
                unreliable or that their use would be otherwise 
                inappropriate, in which case--
                          (i) the Secretary and the Secretary 
                        of Commerce shall publicly disclose the 
                        reasons for their determination in 
                        detail; and
                          (ii) paragraph (3) shall apply.
                  (B) Allocations to large and small local 
                educational agencies.--
                          (i) Large local educational 
                        agencies.--In the case of an allocation 
                        under this section to a large local 
                        educational agency, the amount of the 
                        grant under this section for the large 
                        local educational agency shall be the 
                        amount determined under paragraph (1).
                          (ii) Small local educational 
                        agencies.--
                                  (I) In general.--In the case 
                                of an allocation under this 
                                section to a small local 
                                educational agency the State 
                                educational agency may--
                                          (aa) distribute 
                                        grants under this 
                                        section in amounts 
                                        determined by the 
                                        Secretary under 
                                        paragraph (1); or
                                          (bb) 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 
                                        local educational 
                                        agencies.
                                  (II) Alternative method.--An 
                                alternative method under 
                                subclause (I)(bb) 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 minimum number of children 
                                to qualify described in 
                                subsection (b).
                                  (III) Appeal.--If a small 
                                local educational agency is 
                                dissatisfied with the 
                                determination of the amount of 
                                its grant by the State 
                                educational agency under 
                                subclause (I)(bb), the small 
                                local educational agency may 
                                appeal the determination to the 
                                Secretary, who shall respond 
                                within 45 days of receiving the 
                                appeal.
                          (iii) Definitions.--In this 
                        subparagraph--
                                  (I) the term ``large local 
                                educational agency'' means a 
                                local educational agency 
                                serving a school district with 
                                a total population of 20,000 or 
                                more; and
                                  (II) the term ``small local 
                                educational agency'' means a 
                                local educational agency 
                                serving a school district with 
                                a total population of less than 
                                20,000.
          (3) Allocations to counties.--
                  (A) In general.--For any fiscal year to which 
                this paragraph applies, the Secretary shall 
                calculate grants under this section on the 
                basis of the number of children counted under 
                section 1124(c) for counties, and State 
                educational agencies shall allocate county 
                amounts to local educational agencies, in 
                accordance with regulations promulgated by the 
                Secretary.
                  (B) Application.--In any State in which a 
                large number of local educational agencies 
                overlap county boundaries, or for which the 
                State believes the State has data that would 
                better target funds than allocating the funds 
                by county, the State educational agency may 
                apply to the Secretary for authority to make 
                the allocations under this part for a 
                particular fiscal year directly to local 
                educational agencies without regard to 
                counties.
                  (C) Allocations to local educational 
                agencies.--If the Secretary approves its 
                application under subparagraph (B), the State 
                educational agency shall provide the Secretary 
                an assurance that the allocations will be 
                made--
                          (i) using precisely the same factors 
                        for determining a grant as are used 
                        under this section; 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 a 
                procedure is or will be established through 
                which local educational agencies that are 
                dissatisfied with determinations under 
                subparagraph (B) may appeal directly to the 
                Secretary for a final determination.
          (4) Puerto rico.--For each fiscal year, the Secretary 
        shall determine the percentage which the average per-
        pupil expenditure in the Commonwealth of Puerto Rico is 
        of the lowest average per-pupil expenditure of any of 
        the 50 States. The grant which the Commonwealth of 
        Puerto Rico shall be eligible to receive under this 
        section for a fiscal year shall be the amount arrived 
        at by multiplying the number of children counted under 
        subsection (c) for the Commonwealth of Puerto Rico by 
        the product of--
                  (A) the percentage determined under the 
                preceding sentence; and
                  (B) 32 percent of the average per-pupil 
                expenditure in the United States.
  (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--
          (1) 10 or more; and
          (2) more than 2 percent of the total school-age 
        population in the school district of the local 
        educational agency.
    (c) Children To Be Counted.--
          (1) Categories of children.--The number of children 
        to be counted for purposes of this section is the 
        aggregate of--
                  (A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the 
                poverty level as determined under paragraphs 
                (2) and (3);
                  (B) the number of children aged 5 to 17, 
                inclusive, in the school district of such 
                agency from families above the poverty level as 
                determined under paragraph (4); and
                  (C) the number of children determined under 
                paragraph (4) for 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 and youth 
                (other than such institutions operated by the 
                United States), but not counted pursuant to 
                chapter 1 of subpart 1 of part D for the 
                purposes of a grant to a State agency, or being 
                supported in foster homes with public funds.
          (2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine 
        the number of children aged 5 to 17, inclusive, from 
        families below the poverty level on the basis of the 
        most recent satisfactory data, described in paragraph 
        (3), available from the Department of Commerce. The 
        District of Columbia and the Commonwealth of Puerto 
        Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains 2 or 
        more counties in their entirety, then each county shall 
        be treated as if such county were a separate local 
        educational agency for purposes of calculating grants 
        under this part. The total of grants for such counties 
        shall be allocated to such a local educational agency, 
        which local educational agency shall distribute to 
        schools in each county within such agency a share of 
        the local educational agency's total grant that is no 
        less than the county's share of the population counts 
        used to calculate the local educational agency's grant.
          (3) Population updates.--In fiscal year 2001 and 
        every 2 years thereafter, the Secretary shall use 
        updated data on the number of children, aged 5 to 17, 
        inclusive, from families below the poverty level for 
        counties or local educational agencies, published by 
        the Department of Commerce, unless the Secretary and 
        the Secretary of Commerce determine that use of the 
        updated population data would be inappropriate or 
        unreliable. If the Secretary and the Secretary of 
        Commerce determine that some or all of the data 
        referred to in this paragraph are inappropriate or 
        unreliable, the Secretary and the Secretary of Commerce 
        shall publicly disclose their reasons. In determining 
        the families which are below the poverty level, the 
        Secretary shall utilize the criteria of poverty used by 
        the Bureau of the Census in compiling the most recent 
        decennial census, in such form as those criteria have 
        been updated by increases in the Consumer Price Index 
        for all urban consumers, published by the Bureau of 
        Labor Statistics.
          (4) Other children to be counted.--For purposes of 
        this section, the Secretary shall determine the number 
        of children aged 5 to 17, inclusive, from families 
        above the poverty level on the basis of the number of 
        such children from families receiving an annual income, 
        in excess of the current criteria of poverty, from 
        payments under a State program funded under part A of 
        title IV of the Social Security Act. In making such 
        determinations the Secretary shall utilize the criteria 
        of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census for a family 
        of 4 in such form as those criteria have been updated 
        by increases in the Consumer Price Index for all urban 
        consumers, published by the Bureau of Labor Statistics. 
        The Secretary shall determine the number of such 
        children and the number of children 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 
        themonth of October of the preceding fiscal year 
        (using, in the case of children described in the 
        preceding sentence, the criteria of poverty and the 
        form of such criteria required by such sentence which 
        were determined for the calendar year preceding such 
        month of October) or, to the extent that such data are 
        not available to the Secretary before January of the 
        calendar year in which the Secretary's determination is 
        made, then on the basis of the most recent reliable 
        data available to the Secretary at the time of such 
        determination. The Secretary of Health and Human 
        Services shall collect and transmit the information 
        required by this subparagraph to the Secretary not 
        later than January 1 of each year. 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 (2)) 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 made available 
        to carry out this section for such fiscal year; or
          (2) the average of--
                  (A) 0.25 percent of the total amount made 
                available to carry out this section for such 
                fiscal year; 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 fiscal 
                year.

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

    (a) Eligibility for and Amount of Grants.--
          (1) Eligibility.--
                  (A) In general.--Except as otherwise provided 
                in this paragraph, each local educational 
                agency in a State that 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) who are 
                served by the agency exceeds--
                          (i) 6,500; or
                          (ii) 15 percent of the total number 
                        of children aged 5 through 17 served by 
                        the agency.
                  (B) Minimum.--Notwithstanding section 1122, 
                no State shall receive under this section an 
                amount that is less than the lesser of--
                          (i) 0.25 percent of the total amount 
                        made available to carry out this 
                        section for such fiscal year; or
                          (ii) the average of--
                                  (I) 0.25 percent of the sums 
                                available to carry out this 
                                section for such fiscal year; 
                                and
                                  (II) the greater of--
                                          (aa) $340,000; or
                                          (bb) the number of 
                                        children in such State 
                                        counted for purposes of 
                                        this section in that 
                                        fiscal year multiplied 
                                        by 150 percent of the 
                                        national average per-
                                        pupil payment made with 
                                        funds available under 
                                        this section for that 
                                        fiscal 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 
                all States except the Commonwealth of Puerto 
                Rico, and the amount in section 1124(a)(3) 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 that bears the same ratio to the amount 
        available to carry out this section for that fiscal 
        year as the product determined underparagraph (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) In general.--Grant amounts under this 
                section shall be calculated in the same manner 
                as grant amounts are calculated under section 
                1124(a) (2) and (3).
                  (B) Special rule.--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 the amount 
                made available to the State under this section 
                for any fiscal year to make grants to local 
                educational agencies that meet the criteria in 
                paragraph (1)(A) (i) or (ii) but that are in 
                ineligible counties.
    (b) Ratable Reduction Rule.--If the sums available under 
subsection (a) for any fiscal year for making payments under 
this section are not sufficient to pay in full the total 
amounts which all States are eligible to receive under 
subsection (a) for such fiscal year, the maximum amounts that 
all States are eligible to receive under subsection (a) for 
such fiscal year shall be ratably reduced. In the case that 
additional funds become available for making such payments for 
any fiscal year during which the preceding sentence is 
applicable, such reduced amounts shall be increased on the same 
basis as they were reduced.
    (c) States Receiving 0.25 Percent or Less.--In States that 
receive 0.25 percent or less of the total amount made available 
to carry out this section for a fiscal year, the State 
educational agency shall allocate such funds among the local 
educational agencies in the State--
          (1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
          (2) based on their respective concentrations and 
        numbers of children counted under section 1124(c), 
        except that only those local educational agencies with 
        concentrations or numbers of children counted under 
        section 1124(c) that exceed the statewide average 
        percentage of such children or the statewide average 
        number of such children shall receive any funds on the 
        basis of this paragraph.

SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    (a) Eligibility of Local Educational Agencies.--
          (1) In general.--A local educational agency in a 
        State is eligible to receive a targeted grant under 
        this section for any fiscal year if--
                  (A) the number of children in the local 
                educational agency counted under section 
                1124(c), before application of the weighted 
                child count described in subsection (c), is at 
                least 10; and
                  (B) if the number of children counted for 
                grants under section 1124(c), before 
                application of the weighted child count 
                described in subsection (c), is at least 5 
                percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district 
                of the local educational agency.
          (2) Special rule.--For any fiscal year for which the 
        Secretary allocates funds under this section on the 
        basis of counties, funds made available as a result of 
        applying this subsection shall be reallocated by the 
        State educational agency to other eligible local 
        educational agencies in the State in proportion to the 
        distribution of other funds under this section.
    (b) Grants for Local Educational Agencies, the District of 
Columbia, and the Commonwealth of Puerto Rico.--
          (1) In general.--The amount of the grant that a local 
        educational agency in a State (other than the 
        Commonwealth of Puerto Rico) is eligible to receive 
        under this section for any fiscal year shall be the 
        product of--
                  (A) the weighted child count determined under 
                subsection (c); and
                  (B) the amount determined under section 
                1124(a)(1)(B).
          (2) Puerto rico.--For each fiscal year, the amount of 
        the grant the Commonwealth of Puerto Rico is eligible 
        to receive under this section shall be equal to the 
        number of children counted under subsection (c) for the 
        Commonwealth of Puerto Rico, multiplied by the amount 
        determined in section 1124(a)(4) for the Commonwealth 
        of Puerto Rico.
    (c) Weighted Child Count.--
          (1) Weights for allocations to counties.--
                  (A) In general.--For each fiscal year for 
                which the Secretary uses county population data 
                to calculate grants, the weighted childcount 
                used to determine a county's allocation under 
                this section is the larger of the 2 amounts 
                determined under subparagraphs (B) and (C).
                  (B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) for that county 
                        who constitute not more than 15.00 
                        percent, inclusive, of the county's 
                        total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                          (ii) the number of such children who 
                        constitute more than 15.00 percent, but 
                        not more than 19.00 percent, of such 
                        population, multiplied by 1.75;
                          (iii) the number of such children who 
                        constitute more than 19.00 percent, but 
                        not more than 24.20 percent, of such 
                        population, multiplied by 2.5;
                          (iv) the number of such children who 
                        constitute more than 24.20 percent, but 
                        not more than 29.20 percent, of such 
                        population, multiplied by 3.25; and
                          (v) the number of such children who 
                        constitute more than 29.20 percent of 
                        such population, multiplied by 4.0.
                  (C) By number of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) who constitute 
                        not more than 2,311, inclusive, of the 
                        county's total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                          (ii) the number of such children 
                        between 2,312 and 7,913, inclusive, in 
                        such population, multiplied by 1.5;
                          (iii) the number of such children 
                        between 7,914 and 23,917, inclusive, in 
                        such population, multiplied by 2.0;
                          (iv) the number of such children 
                        between 23,918 and 93,810, inclusive, 
                        in such population, multiplied by 2.5; 
                        and
                          (v) the number of such children in 
                        excess of 93,811 in such population, 
                        multiplied by 3.0.
                  (D) Puerto rico.--Notwithstanding 
                subparagraph (A), the weighting factor for the 
                Commonwealth of Puerto Rico under this 
                paragraph shall not be greater than the total 
                number of children counted under section 
                1124(c) multiplied by 1.72.
          (2) Weights for allocations to local educational 
        agencies.--
                  (A) In general.--For each fiscal year for 
                which the Secretary uses local educational 
                agency data, the weighted child count used to 
                determine a local educational agency's grant 
                under this section is the larger of the 2 
                amounts determined under subparagraphs (B) and 
                (C).
                  (B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined 
                by adding--
                          (i) the number of children determined 
                        under section 1124(c) for that local 
                        educational agency who constitute not 
                        more than 15.233 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 15.233 percent, 
                        but not more than 22.706 percent, of 
                        such population, multiplied by 1.75;
                          (iii) the number of such children who 
                        constitute more than 22.706 percent, 
                        but not more than 32.213 percent, of 
                        such population, multiplied by 2.5;
                          (iv) the number of such children who 
                        constitute more than 32.213 percent, 
                        but not more than 41.452 percent, of 
                        such population, multiplied by 3.25; 
                        and
                          (v) the number of such children who 
                        constitute more than 41.452 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 710, inclusive, of the 
                        agency's total population aged 5 to 17, 
                        inclusive, multiplied by 1.0;
                          (ii) the number of such children 
                        between 711 and 2,384, inclusive, in 
                        such population, multiplied by 1.5;
                          (iii) the number of such children 
                        between 2,385 and 9,645, inclusive, in 
                        such population, multiplied by 2.0;
                          (iv) the number of such children 
                        between 9,646 and 54,600, inclusive, in 
                        such population, multiplied by 2.5; and
                          (v) the number of such children in 
                        excess of 54,600 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 1.72.
    (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 not less than 0.5 percent of the total amount made 
available to carry out this section for such fiscal year.

SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    (a) Grants.--From funds appropriated under subsection (e) 
the Secretary is authorized to make grants to States, from 
allotments under subsection (b), to carry out the purposes 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 (e) shall be allotted to each 
                State based upon the number of children counted 
                under section 1124(c) in such State multiplied 
                by the product of--
                          (i) such State's effort factor 
                        described in paragraph (2); multiplied 
                        by
                          (ii) 1.30 minus such State's equity 
                        factor described in paragraph (3).
                  (B) Minimum.--For each fiscal year no State 
                shall receive under this section less than 0.5 
                percent of the total amount appropriated under 
                subsection (e) for the fiscal year.
          (2) Effort factor.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State 
                shall be determined in accordance with the 
                succeeding sentence, except that such factor 
                shall not be less than 0.95 nor greater than 
                1.05. The effort factor determined under this 
                sentence shall be a fraction the numerator of 
                which is the product of the 3-year average per-
                pupil expenditure in the State multiplied by 
                the 3-year average per capita income in the 
                United States and the denominator of which is 
                the product of the 3-year average per capita 
                income in such State multiplied by the 3-year 
                average per-pupil expenditure in the United 
                States.
                  (B) Commonwealth of puerto rico.--The effort 
                factor for the Commonwealth of Puerto Rico 
                shall be equal to the lowest effort factor 
                calculated under subparagraph (A) for any 
                State.
          (3) Equity factor.--
                  (A) Determination.--
                          (i) In general.--Except as provided 
                        in subparagraph (B), the Secretary 
                        shall determine the equity factor under 
                        this section for each State in 
                        accordance with clause (ii).
                          (ii) Computation.--
                                  (I) In general.--For each 
                                State, the Secretary shall 
                                compute a weighted coefficient 
                                of variation for the per-pupil 
                                expenditures of local 
                                educational agencies in 
                                accordance with subclauses 
                                (II), (III), and (IV).
                                  (II) Variation.--In computing 
                                coefficients of variation, the 
                                Secretary shall weigh the 
                                variation between per-pupil 
                                expenditures in each local 
                                educational agency and the 
                                average per-pupil expenditures 
                                in the State according to the 
                                number of pupils served by the 
                                local educational agency.
                                  (III) Number of pupils.--In 
                                determining the number of 
                                pupils under this paragraph 
                                served by each local 
                                educational agency and in each 
                                State, the Secretary shall 
                                multiply the number of children 
                                from low-income families by a 
                                factor of 1.4.
                                  (IV) Enrollment 
                                requirement.--In computing 
                                coefficients of variation, the 
                                Secretary shall include only 
                                those local educational 
                                agencieswith 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 Better Education for Students 
                and Teachers Act) or a State with only 1 local 
                educational agency shall be not greater than 
                0.10.
                  (C) Revisions.--The Secretary may revise each 
                State's equity factor as necessary based on the 
                advice of independent education finance 
                scholars to reflect other need-based costs of 
                local educational agencies in addition to low-
                income student enrollment, such as differing 
                geographic costs, costs associated with 
                students with disabilities, children with 
                limited English-proficiency or other meaningful 
                educational needs, which deserve additional 
                support. In addition, after obtaining the 
                advice of independent education finance 
                scholars, the Secretary may revise each State's 
                equity factor to incorporate other valid and 
                accepted methods to achieve adequacy of 
                educational opportunity that may not be 
                reflected in a coefficient of variation method.
    (c) Use of Funds.--All funds awarded to each State under 
this section shall be allocated to local educational agencies 
and schools on a basis consistent with the distribution of 
other funds to such agencies and schools under sections 1124, 
1124A, and 1125 to carry out activities under this part.
    (d) 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.
    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $200,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of 
the 6 succeeding fiscal years.

SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

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

SEC. 1127. CARRYOVER AND WAIVER.

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

             [PART B--EVEN START FAMILY LITERACY PROGRAMS]


               PART B_LITERACY FOR CHILDREN AND FAMILIES


   Subpart 1_William F. Goodling Even Start Family Literacy Programs


SEC. 1201. [20 U.S.C. 6361] STATEMENT OF PURPOSE.

    It is the purpose of [this part] this subpart to help break 
the cycle of poverty and illiteracy by 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''. 
The program shall--

           *       *       *       *       *       *       *


SEC. 1202. [20 U.S.C. 6362] 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) for programs, under such terms 
        and conditions as the Secretary shall establish, that 
        are consistent with the purpose of [this part], this 
        subpart and according to their relative needs, for--

           *       *       *       *       *       *       *

    (c) Reservation for Grants.--
          (1) Grants authorized.--From funds reserved under 
        section 2260(b)(3), the Secretary shall award grants, 
        on a competitive basis, to States to enable such States 
        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 part], 
        this subpart. Such coordination and integration shall 
        include funds available under the Adult Education and 
        Family Literacy Act, the Head Start Act, [this part] 
        this subpart, part A of this title, and part A of title 
        IV of the Social Security Act.

           *       *       *       *       *       *       *

    (e) Definitions.--For the purpose of [this part] this 
subpart--

           *       *       *       *       *       *       *


SEC. 1204. [20 U.S.C. 6364] USES OF FUNDS.

    (a) In General.--* * *

           *       *       *       *       *       *       *

    (b) Federal Share Limitation.--
          (1) In general.--(A) Except as provided in paragraph 
        (2), the Federal share under [this part] this subpart 
        may not exceed--
                  (i) 90 percent of the total cost of the 
                program in the first year that such program 
                receives assistance under [this part] this 
                subpart or its predecessor authority.

           *       *       *       *       *       *       *

                  (B) The remaining cost of a program assisted 
                under [this part] 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.

           *       *       *       *       *       *       *

                  (A) demonstrates that such entity otherwise 
                would not be able to participate in the program 
                assisted under [this part] this subpart and

           *       *       *       *       *       *       *

          (3) Prohibition.--Federal funds provided under [this 
        part] this subpart may not be used for the indirect 
        costs of a program assisted under [this part] this 
        subpart except that the Secretary may waive this 
        paragraph if an eligible recipient of funds reserved 
        under section 1202(a)(1)(C) demonstrates to the 
        Secretary's satisfaction that such recipient otherwise 
        would not be able to participate in the program 
        assisted under [this part] this subpart.

SEC. 1205. [20 U.S.C. 6365] PROGRAM ELEMENTS.

    Each program assisted under [this part] this subpart 
shall--
          (1) include the identification and recruitment of 
        families most in need of services provided under [this 
        part] 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 such 
        parents to participate fully in the activities and 
        services provided under [this part] 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 such services are 
        unavailable from other sources, necessary for 
        participation in the activities assisted under [this 
        part] this subpart, such as--

           *       *       *       *       *       *       *

                  (B) child care for the period that parents 
                are involved in the program provided under 
                [this part] this subpart; and
                  (C) transportation for the purpose of 
                enabling parents and their children to 
                participate in programs authorized by [this 
                part] this subpart;

           *       *       *       *       *       *       *

          (5) 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 part] 
        this subpart;

           *       *       *       *       *       *       *

          (9) ensure that the programs will serve those 
        families most in need of the activities and services 
        provided by [this part] this subpart; and

           *       *       *       *       *       *       *


SEC. 1206. [20 U.S.C. 6366] ELIGIBLE PARTICIPANTS.

    (a) In General.--* * *

           *       *       *       *       *       *       *

                  (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 part] this subpart; and

           *       *       *       *       *       *       *

    (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 part] this subpart, when appropriate to serve the 
        purpose of [this part] this subpart.

           *       *       *       *       *       *       *

          (2) Special rule.--Any family participating in a 
        program assisted under [this part] this subpart that 
        becomes ineligible for such participation as a result 
        of one or more members of the family becoming 
        ineligible for such participation may continue to 
        participate in the program until all members of the 
        family become ineligible for such participation, 
        which--

           *       *       *       *       *       *       *


SEC. 1207. [20 U.S.C. 6367] APPLICATIONS.

    (a) Submission.--To be eligible to receive a subgrant under 
[this part] 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.

           *       *       *       *       *       *       *

          (1) to develop, administer, and implement an Even 
        Start program under [this part] this subpart; and

           *       *       *       *       *       *       *

                          (i) to ensure that the programs will 
                        serve families most in need of the 
                        activities and services provided by 
                        [this part] this subpart;
                          (ii) to provide services under [this 
                        part] this subpart to individuals with 
                        special needs, such as individuals with 
                        limited English proficiency and 
                        individuals with disabilities; and

           *       *       *       *       *       *       *

                  (A) remain in effect for the duration of the 
                eligible entity's participation under [this 
                part] this subpart; and

           *       *       *       *       *       *       *


SEC. 1208. [20 U.S.C. 6368] AWARD OF SUBGRANTS.

    (a) Selection Process.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

    (b) Duration.--
          (1) In general.--Subgrants under [this part] this 
        subpart may be awarded for a period not to exceed four 
        years.

           *       *       *       *       *       *       *

          (3) Continuing eligibility.--In awarding subgrant 
        funds to continue a program under [this part] this 
        subpart for the second, third, or fourth year, the 
        State educational agency shall evaluate the program 
        based on the indicators of program quality developed by 
        the State under section 1210. Such evaluation shall 
        take place after the conclusion of the startup period, 
        if any.

           *       *       *       *       *       *       *

          (5) Grant renewal.--(A) An eligible entity that has 
        pre-viously received a subgrant under [this part] this 
        subpart may reapply under this part for additional 
        subgrants. An eligible recipient may receive funds 
        under [this part] this subpart for a period not to 
        exceed eight years.

           *       *       *       *       *       *       *


SEC. 1209. [20 U.S.C. 6369] EVALUATION.

    From funds reserved under section 1202(b)(1), the Secretary 
shall provide for an independent evaluation of programs 
assisted under [this part] this subpart--
          (1) to determine the performance and effectiveness of 
        pro-grams assisted under [this part] this subpart;
          (2) to identify effective Even Start programs 
        assisted under [this part] this subpart that can be 
        duplicated and used in providing technical assistance 
        to Federal, State, and local programs; and
          (3) to provide States and eligible entities receiving 
        a subgrant under [this part] 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 local evaluations undertaken under 
        section 1205(10) provide accurate information on the 
        effectiveness of programs assisted under [this part] 
        this subpart.

SEC. 1210. [20 U.S.C. 6369A] INDICATORS OF PROGRAM QUALITY.

    Each State receiving funds under [this part] this subpart 
shall develop, based on the best available research and 
evaluation data, indicators of program quality for programs 
assisted under [this part] this subpart. Such indicators shall 
be used to monitor, evaluate, and improve such programs within 
the State. Such indicators shall include the following:

           *       *       *       *       *       *       *


SEC. 1211. [20 U.S.C. 6369B] RESEARCH.

    (a) In General.--* * *

           *       *       *       *       *       *       *

          (1) to improve the quality of existing programs 
        assisted under [this part] this subpart or other family 
        literacy programs carried out under this Act or the 
        Adult Education and Family Literacy Act; and

           *       *       *       *       *       *       *

    (b) Dissemination.--The National Institute for Literacy 
shall disseminate, pursuant to section 2258, the results of the 
research described in subsection (a) to States and recipients 
of subgrants under [this part] this subpart.

SEC. 1212. [20 U.S.C. 6370] CONSTRUCTION.

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

           *       *       *       *       *       *       *


                        Subpart 2--Reading First

SEC. 1221. PURPOSES.

    The purposes of this subpart are as follows:
          (1) To provide assistance to States and local 
        educational agencies in establishing reading programs 
        for students in grades kindergarten through 3 that are 
        grounded in scientifically based reading research, in 
        order to ensure that every student can read at grade 
        level or above by the end of the third grade.
          (2) To provide assistance to States and local 
        educational agencies in preparing 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 
        effectively to help their student to learn to read.
          (3) To provide assistance to States and local 
        educational agencies in selecting or developing 
        rigorous diagnostic reading assessments that document 
        the effectiveness of this subpart in improving 
        students' reading and in holding grant and subgrant 
        recipients accountable for their results.
          (4) To provide assistance to States and local 
        educational agencies in selecting or developing 
        effective instructional materials, programs, and 
        strategies to implement methods that have been proven 
        to prevent or remediate reading failure within a State 
        or States.
          (5) To strengthen coordination among schools, early 
        literacy programs, and family literacy programs in 
        order to improve reading achievement for all children.

SEC. 1222. FORMULA GRANTS TO STATES; COMPETITIVE SUBGRANTS TO LOCAL 
                    AGENCIES.

    (a) In General.--In the case of each State that in 
accordance with section 1224 submits to the Secretary an 
application for a 5-year period, the Secretary, subject to the 
application's approval, shall make a grant to the State 
educational agency for the uses specified in subsections (c) 
and (d). The grant shall consist of the allotment determined 
for the State under subsection (b).
      (b) Determination of Amount of Allotment.--
          (1) In general.--From the total amount made available 
        to carry out this subpart for any fiscal year and not 
        reserved under section 1225, the Secretary shall allot 
        75 percent under this section among each of the 50 
        States, the District of Columbia, and the Commonwealth 
        of Puerto Rico.
          (2) State allotments.--The Secretary shall allot the 
        amount made available under paragraph (1) for a fiscal 
        year among the States in proportion to the amount all 
        local educational agencies in a State would receive 
        under section 1124.
          (3) Reallotment.--If any State does not apply for an 
        allotment under this section for any fiscal year, or if 
        the State's application is not approved, the Secretary 
        shall reallot such amount to the remaining States in 
        accordance with paragraph (2).
    (c) Subgrants to Local Educational Agencies.--
          (1) Distribution of subgrants.--The Secretary may 
        make a grant to a State under this section only if the 
        State 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 this subsection, 
        competitive subgrants to eligible local educational 
        agencies.
          (2) Notice.--A State 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.
          (3) Local application.--To be eligible to receive a 
        subgrant under this subsection, an eligible local 
        educational agency shall submit an application to the 
        State at such time, in such manner, and containing such 
        information as the State may reasonably require.
          (4) Definition of eligible local educational 
        agency.--In this subpart the term ``eligible local 
        educational agency'' means a local educational agency 
        that--
                  (A) has a high percentage of students in 
                grades kindergarten through 3 reading below 
                grade level; 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 at least 1 
                        school that is identified for school 
                        improvement under section 1116(c); or
                          (iii) a high percentage of children 
                        who are counted under section 1124(c), 
                        in comparison to other local 
                        educational agencies in the State.
          (5) State requirement.--In distributing subgrant 
        funds to local educational agencies, a State shall 
        provide the funds in sufficient amounts to enable local 
        educational agencies to improve reading, as measured by 
        scores on rigorous diagnostic reading assessments.
          (6) Local priority.--In distributing subgrant funds 
        under this subsection a local educational agency shall 
        give priority to providing the funds to schools that--
                  (A) have a high percentage of students in 
                grades kindergarten through 3 reading below 
                grade level;
                  (B) are identified for school improvement 
                under section 1116(c); or
                  (C) have a high percentage of children 
                counted under section 1124(c).
          (7) Local uses of funds.--Subject to paragraph (8), a 
        local educational agency that receives a subgrant under 
        this subsection shall use the funds provided under the 
        subgrant to carry out the following activities:
                  (A) Selecting or developing, and 
                administering, a rigorous diagnostic reading 
                assessment.
                  (B) Selecting or developing, and 
                implementing, a program or programs of reading 
                instruction grounded on scientifically based 
                reading research that--
                          (i) includes the major components of 
                        reading instruction; and
                          (ii) provides such instruction to all 
                        children, including children who--
                                  (I) may have reading 
                                difficulties;
                                  (II) are at risk of being 
                                referred to special education 
                                based on these difficulties;
                                  (III) have been evaluated 
                                under section 614 of the 
                                Individuals with Disabilities 
                                Education Act but, in 
                                accordance with section 
                                614(b)(5) of such Act, and have 
                                not been identified as being a 
                                child with a disability (as 
                                defined in section 602 of such 
                                Act);
                                  (IV) 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 such Act) 
                                related to reading; or
                                  (V) are identified as having 
                                limited English proficiency (as 
                                defined in section 3501).
                  (C) Procuring and implementing instructional 
                materials grounded on scientifically based 
                reading research.
                  (D) Providing professional development for 
                teachers of grades kindergarten through 3 
                that--
                          (i) will prepare these teachers in 
                        all of the major components of reading 
                        instruction;
                          (ii) shall include--
                                  (I) information on 
                                instructional materials, 
                                programs, strategies, and 
                                approaches grounded on 
                                scientifically based reading 
                                research, including early 
                                intervention and reading 
                                remediation materials, 
                                programs, and approaches; and
                                  (II) instruction in the use 
                                of rigorous diagnostic reading 
                                assessments and other 
                                procedures that effectively 
                                identify students who may be at 
                                risk for reading failure or who 
                                are having difficulty reading; 
                                and
                          (iii) may be provided by eligible 
                        professional development providers or 
                        otherwise.
                  (E) Promoting reading and library programs 
                that provide access to engaging reading 
                material.
                  (F) Providing training to individuals who 
                volunteer to be reading tutors for students to 
                enable the volunteers to support instructional 
                practices that are based on scientific reading 
                research and being used by the student's 
                teacher.
                  (G) Assisting parents, through the use of 
                materials, programs, strategies and approaches, 
                that are based on scientific reading research, 
                to help support their children's reading 
                development.
                  (H) Collecting and summarizing data from 
                rigorous diagnostic reading assessments--
                          (i) to document the effectiveness of 
                        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 the significant gains in 
                        reading achievement.
                  (I) Reporting data in the same manner as data 
                is reported under section 1116(c).
          (8) Local planning and administration.--A local 
        educational agency that receives a subgrant under this 
        subsection may use not more than 5 percent of the funds 
        provided under the subgrant for planning and 
        administration.
    (d) Other State Uses of Funds.--
          (1) In general.--A State that receives a grant under 
        this section may expend not more than a total of 20 
        percent of the grant funds to carry out the activities 
        described in paragraphs (3), (4), and (5).
          (2) Priority.--A State shall give priority to 
        carrying out the activities described in paragraphs 
        (3), (4), and (5) for schools described in subsection 
        (c)(6).
          (3) Professional development.--A State that receives 
        a grant under this section may expend not more than 15 
        percent of the amount of the funds provided under the 
        grant to develop and implement a program of 
        professional development for teachers of grades 
        kindergarten through 3 that--
                  (A) will prepare these teachers in all of the 
                major components of reading instruction;
                  (B) shall include--
                          (i) information on instructional 
                        materials, programs, strategies, and 
                        approaches grounded on scientifically 
                        based reading research, including early 
                        intervention and reading remediation 
                        materials, programs, and approaches; 
                        and
                          (ii) instruction in the use of 
                        rigorous diagnostic reading assessments 
                        and other procedures that effectively 
                        identify students who may be at risk 
                        for reading failure or who are having 
                        difficulty reading; and
                  (C) may be provided by eligible professional 
                development providers or otherwise.
          (4) Technical assistance for local educational 
        agencies and schools.--A State that receives a grant 
        under this section may expend not more than 5 percent 
        of the amount of the funds provided under the grant for 
        one or more of the following authorized State 
        activities:
                  (A) Assisting local educational agencies in 
                accomplishing the tasks required to design and 
                implement a program under this subpart, 
                including--
                          (i) selecting and implementing a 
                        program or programs of reading 
                        instruction grounded on scientifically 
                        based reading research;
                          (ii) selecting or developing rigorous 
                        diagnostic reading assessments; and
                          (iii) identifying eligible 
                        professional development providers to 
                        help prepare reading teachers to teach 
                        students using the programs and 
                        assessments described in subparagraphs 
                        (A) and (B).
                  (B) Providing expanded opportunities to 
                students in grades kindergarten through 3 
                within eligible local educational agencies for 
                receiving reading assistance from alternative 
                providers that includes--
                          (i) a rigorous diagnostic reading 
                        assessment; and
                          (ii) instruction in the major 
                        components of reading that is based on 
                        scientific reading research.
          (3) Planning, administration, and reporting.--
                  (A) In general.--A State that receives a 
                grant under this section shall expend not more 
                than 5 percent of the amount of the funds 
                provided under the grant for the activities 
                described in this paragraph.
                  (B) Planning and administration.--A State 
                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 local 
                        educational agencies under sections 
                        1222 and 1223.
                          (ii) Collecting and summarizing data 
                        from rigorous diagnostic reading 
                        assessments--
                                  (I) to document the 
                                effectiveness of this subpart 
                                in individual local educational 
                                agencies and in the State as a 
                                whole; and
                                  (II) to stimulate and 
                                accelerate improvement by 
                                identifying the local 
                                educational agencies that 
                                produce significant gains in 
                                reading achievement.
                  (C) Annual reporting.--
                          (i) In general.--A State that 
                        receives a grant under this section 
                        shall expend funds provided under the 
                        grant to provide the Secretary annually 
                        with a report on the implementation of 
                        this subpart. The report shall include 
                        evidence that the State is fulfilling 
                        its obligations under thissubpart. The 
                        report shall also include the data 
                        required under subsection (c)(7)(H) to 
                        be reported to the State by local 
                        educational agencies. The report shall 
                        include a specific identification of 
                        those local educational agencies that 
                        report significant gains in reading 
                        achievement overall and such gains 
                        based on disaggregated data, reported 
                        in the same manner as data is reported 
                        under section 1116(c).
                          (ii) Privacy protection.--Data in the 
                        report shall be reported in a manner 
                        that protects the privacy of 
                        individuals.
                          (iii) Contract.--To the extent 
                        practicable, a State shall enter into a 
                        contract with an entity that conducts 
                        scientifically based reading research, 
                        under which contract the entity will 
                        assist the State in producing the 
                        reports required to be submitted under 
                        this subparagraph.

SEC. 1223. COMPETITIVE GRANTS TO STATES; COMPETITIVE SUBGRANTS TO LOCAL 
                    AGENCIES.

    (a) In General.--In the case of a State that in accordance 
with section 1224 submits to the Secretary an application, the 
Secretary may award a grant, on a competitive basis, to the 
State for the use specified in subsection (c). The grant shall 
consist of the allotment determined for the State under 
subsection (b).
      (b) Determination of Amount of Allotment.--
          (1) In general.--From the total amount made available 
        to carry out this subpart for any fiscal year referred 
        to in subsection (a) that is neither used under section 
        1222 nor reserved under section 1225, the Secretary may 
        allot such remaining amount under this section among 
        each of the 50 States, the District of Columbia, and 
        the Commonwealth of Puerto Rico.
          (2) State allotments.--
                  (A) In general.--In carrying out paragraph 
                (1), the Secretary shall allot such funds to 
                those States that demonstrate the most 
                effective implementation of this subpart, as 
                determined by the peer review panel convened 
                under section 1224 based upon the application 
                contents described in subparagraph (B).
                  (B) Application contents.--A State that 
                desires to receive a grant under this section 
                shall include in its application the following:
                          (i) Evidence that the State has 
                        carried out its obligations under this 
                        subpart.
                          (ii) Evidence that the State has 
                        increased significantly the percentage 
                        of students reading at grade level or 
                        above by the end of the third grade.
                          (iii) Evidence that the State has 
                        been successful in reducing the reading 
                        deficit in terms of the percentage of 
                        students in ethnic, racial, and low-
                        income populations who are reading at 
                        grade level or above by the end of the 
                        third grade.
                          (iv) The amount of funds being 
                        requested by the State and a 
                        description of the criteria the State 
                        intends to use in distributing 
                        subgrants to local educational agencies 
                        under this section to continue or 
                        expand activities under this subpart.
                          (v) Any additional evidence that 
                        demonstrates success in the 
                        implementation of this subpart.
    (c) Subgrants to Local Educational Agencies.--
          (1) In general.--The Secretary may make a grant to a 
        State under this section only if the State 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 local 
        educational agencies.
          (2) Notice.--A State 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.
          (3) Application.--To apply for a subgrant under this 
        subsection, an eligible local educational agency shall 
        submit an application to the State at such time, in 
        such manner, and containing such information as the 
        State may reasonably require.
          (4) Distribution.--A State shall distribute funds 
        under this section, on a competitive basis, based on 
        the following criteria:
                  (A) Evidence that a local educational agency 
                has carried out its obligations under this 
                subpart.
                  (B) Evidence that a local educational agency 
                has increased significantly the percentage of 
                students reading at grade level or above by the 
                end of the third grade.
                  (C) Evidence that a local educational agency 
                has been successful in reducing the reading 
                deficit in terms of the percentage of students 
                in ethnic, racial, and low-income populations 
                who are reading at grade level or above by the 
                end of the third grade.
                  (D) The amount of funds being requested by a 
                local educational agency in its application 
                under paragraph (3) and the description in such 
                application of how such funds will be used to 
                support the continuation or expansion of the 
                agency's programs under this subpart.
                  (E) Evidence that the local educational 
                agency will work with other eligible local 
                educational agencies in the State who have not 
                received a subgrant under this subsection to 
                assist such nonreceiving agencies in increasing 
                the reading achievement of students.
                  (F) Any additional evidence in a local 
                educational agency's application under 
                paragraph (3) that demonstrates success in the 
                implementation of this subpart.
          (5) Local uses of funds.--A local educational agency 
        that receives a subgrant under this subsection shall 
        use the funds provided under the subgrant to carry out 
        the activities described in subparagraphs (A) through 
        (G) of section 1222(c)(7).

SEC. 1224. STATE APPLICATIONS.

    (a) In General.--A State that desires to receive a grant 
under this subpart 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).
      (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's activities under this 
                subpart.
          (2) A description of a strategy to expand, continue, 
        or modify activities commenced under part C of title II 
        of this Act (as such part was in effect on the day 
        before the date of the enactment of the Better 
        Education for Students and Teachers Act).
          (3) An assurance that the State will submit to the 
        Secretary, at such time and in such manner as the 
        Secretary may reasonably require, a State plan 
        containing a description of the following:
                  (A) How the State will assist local 
                educational agencies in identifying rigorous 
                diagnostic reading assessments.
                  (B) How the State will assist local 
                educational agencies in identifying 
                instructional materials, programs, strategies, 
                and approaches, grounded on scientifically 
                based reading research, including early 
                intervention and reading remediation materials, 
                programs and approaches.
                  (C) How the State educational agency will 
                ensure that professional development activities 
                related to reading instruction and provided 
                under this subpart are--
          (i) coordinated with other State and local level 
        funds and used effectively to improve instructional 
        practices for reading; and
          (ii) based on scientifically based reading research.
                  (D) How the activities assisted under this 
                subpart will address the needs of teachers and 
                other instructional staff in schools receiving 
                assistance under this subpart and will 
                effectively teach students to read.
                  (E) The extent to which the activities will 
                prepare teachers in all the major components of 
                reading instruction.
                  (F) How subgrants made by the State 
                educational agency under this subpart will meet 
                the requirements of this subpart, including how 
                the State educational agency will ensure that 
                local educational agencies receiving subgrants 
                under this subpart will use practices based on 
                scientifically based reading research.
                  (G) How the State educational agency will, to 
                the extent practicable, make grants to 
                subgrantees in both rural and urban areas.
                  (H) How the State educational agency--
                          (i) will build on, and promote 
                        coordination among, literacy programs 
                        in the State (including federally 
                        funded programs such as the Adult 
                        Education and Family Literacy Act and 
                        the Individuals with Disabilities 
                        Education Act), in order to increase 
                        the effectiveness of the programs in 
                        improving reading for adults and 
                        children and to avoid duplication of 
                        the efforts of the program; and
                          (ii) will assess and evaluate, on a 
                        regular basis, local educational agency 
                        activities assisted under this subpart, 
                        with respect to whether they have been 
                        effective in achieving the purposes of 
                        this subpart.
    (c) Approval of Applications.--
          (1) In general.--The Secretary shall approve an 
        application of a State under this section only if such 
        application meets the requirement of this section.
          (2) Peer review.--
                  (A) In general.--The Secretary, in 
                consultation with the National Institute for 
                Literacy, shall convene a panel to evaluate 
                applications under this section. At a minimum, 
                the panel shall include--
                          (i) 3 individuals selected by the 
                        Secretary;
                          (ii) 3 individuals selected by the 
                        National Institute for Literacy;
                          (iii) 3 individuals selected by the 
                        National Research Council of the 
                        National Academy of Sciences; and
                          (iv) 3 individuals selected by the 
                        National Institute of Child Health and 
                        Human Development.
                  (B) Experts.--The panel shall include experts 
                who are competent, by virtue of their training, 
                expertise, or experience, to evaluate 
                applications under this section, and experts 
                who provide professional development to 
                teachers of reading to children and adults, and 
                experts who provide professional development to 
                other instructional staff, based on 
                scientifically based reading research.
                  (C) Recommendations.--The panel shall 
                recommend grant applications from States under 
                this section to the Secretary for funding or 
                for disapproval.
    (d) Reading and Literacy Partnerships.--
          (1) Required participants.--In order for a State to 
        receive a grant under this subpart, the Governor of the 
        State, in consultation with the State educational 
        agency, shall establish a reading and literacy 
        partnership consisting of at least 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 local educational agency that is 
                eligible to receive a subgrant under section 
                1222.
                  (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.
                  (G) A parent of a public or private school 
                student or a parent who educates their child or 
                children in their home, selected jointly by the 
                Governor and the chief State school officer.
                  (H) A teacher who successfully teaches 
                reading and an 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.
          (2) Optional participants.--A 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 
                based on scientifically based reading research 
                in the State;
                  (B) a local educational agency;
                  (C) a private nonprofit or for-profit 
                eligible professional development provider 
                providing instruction based on scientifically 
                based reading research;
                  (D) an adult education provider;
                  (E) a volunteer organization that is involved 
                in reading programs; or
                  (F) a school library or a public library that 
                offers reading or literacy programs for 
                children or families.
          (3) Preexisting partnership.--If, before the date of 
        the enactment of the Better Education for Students and 
        Teachers Act, a State 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 the 
        enactment of the Better Education for Students and 
        Teachers Act), that consortium, partnership, or body 
        may be considered a reading and literacy partnership 
        for purposes of this subpart notwithstanding that it 
        does not satisfy the requirements of paragraph (1).

SEC. 1225. RESERVATIONS FROM APPROPRIATIONS.

    From the amounts appropriated to carry out this subpart for 
a fiscal year, the Secretary--
          (1) may reserve not more than 1 percent to carry out 
        section 1226 (relating to national activities); and
          (2) shall reserve $5,000,000 to carry out section 
        1227 (relating to information dissemination).

SEC. 1226. NATIONAL ACTIVITIES.

    From funds reserved under section 1225(1), the Secretary--
          (1) through grants or contracts, shall conduct an 
        evaluation of the program under this subpart using 
        criteria recommended by the peer review panel convened 
        under section 1224; and
          (2) may provide technical assistance in achieving the 
        purposes of this subpart to States, local educational 
        agencies, and schools requesting such assistance.

SEC. 1227. INFORMATION DISSEMINATION.

    (a) In General.--From funds reserved under section 1225(2), 
the National Institute for Literacy, in collaboration with the 
Departments of Education and Health and Human Services, 
including 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 States that 
        effectively developed and implemented reading programs 
        that meet the requirements of this subpart, including 
        those effective States, local educational agencies, and 
        schools identified through the evaluation and peer 
        review provisions of this subpart; and
          (3) support the continued identification of 
        scientifically based reading research that can lead to 
        improved reading outcomes for children, youth, and 
        adults through evidenced-based assessments of the 
        scientific research literature.
    (b) Dissemination and Coordination.--At a minimum, the 
National Institute for Literacy shall disseminate such 
information to recipients of Federal financial assistance under 
titles I and III, the Head Start Act, the Individuals With 
Disabilities Education Act, and the Adult Education and Family 
Literacy Act. In carrying out this section, the National 
Institute for Literacy shall, to the extent practicable, 
utilize existing information and dissemination networks 
developed and maintained through other public and private 
entities.
    (c) Use of Funds.--The National Institute for Literacy may 
use not more than 5 percent of the funds made available under 
section 1225(2) for administrative purposes directly related to 
carrying out of activities authorized by this section.

SEC. 1228. DEFINITIONS.

    For purposes of this subpart:
          (1) Eligible professional development provider.--The 
        term ``eligible professional development provider'' 
        means a provider of professional development in reading 
        instruction to teachers that is based on scientifically 
        based reading research.
          (2) 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.
          (3) Major components of reading instruction.--The 
        term ``major components of reading instruction'' means 
        systematic instruction that includes--
                  (A) phonemic awareness;
                  (B) phonics;
                  (C) vocabulary development;
                  (D) reading fluency; and
                  (E) reading comprehension strategies.
          (4) 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.
          (5) Rigorous diagnostic reading assessment.--The term 
        ``rigorous diagnostic reading assessment'' means a 
        diagnostic reading assessment that--
                  (A) is valid, reliable, and grounded in 
                scientifically based reading research;
                  (B) measures progress in phonemic awareness 
                and phonics, vocabulary development, reading 
                fluency, and reading comprehension; and
                  (C) identifies students who may be at risk 
                for reading failure or who are having 
                difficulty reading.
          (6) Scientifically based reading research.--The term 
        ``scientifically based reading research''--
                  (A) means research that applies rigorous, 
                systematic, and objective procedures to obtain 
                valid knowledge relevant to reading 
                development, reading instruction, and reading 
                difficulties; and
                  (B) shall include research that--
                          (i) employs systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                          (ii) involves rigorous data analyses 
                        that are adequate to test the stated 
                        hypotheses and justify the general 
                        conclusions drawn;
                          (iii) relies on measurements or 
                        observational methods that provide 
                        valid data across evaluators and 
                        observers and across multiple 
                        measurements and observations; and
                          (iv) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.

                     Subpart 3--Early Reading First

SEC. 1241. PURPOSES.

    The purposes of this subpart are as follows:
          (1) To support local efforts to enhance the school 
        readiness of young children, particularly those from 
        low-income families, through scientific, research-based 
        strategies and professional development that are 
        designed to enhance the early language and literacy 
        development of children aged 3 through 5.
          (2) To provide children aged 3 through 5 with 
        cognitive learning opportunities in high-quality 
        language and literature-rich environments, so that they 
        can attain the fundamental knowledge necessary for 
        optimal reading development in kindergarten and beyond.
          (3) To integrate these learning opportunities with 
        family literacy services.
          (4) To demonstrate research-based language and 
        literacy activities, which can be integrated with 
        existing preschool programs, that support the age-
        appropriate development of letter knowledge, letter 
        sounds and blending of sounds, words, the use of books, 
        and the understanding and use of an increasingly 
        complex and rich spoken vocabulary, developed in part 
        through teacher-read stories, as well as other 
        activities that build a strong foundation for learning 
        to read.

SEC. 1242. LOCAL EARLY READING FIRST GRANTS.

    (a) Program Authorized.--From amounts appropriated under 
section 1002(b)(3), the Secretary shall award grants, on a 
competitive basis, for periods of not more than 4 years, to 
eligible applicants to enable the eligible applicants to carry 
out activities that are consistent with the purposes of this 
subpart.
    (b) Definition of Eligible Applicant.--In this subpart the 
term ``eligible applicant'' means--
          (1) one or more local educational agencies that are 
        eligible to receive a subgrant under subpart 2;
          (2) one or more public or private organizations, 
        acting on behalf of 1 or more programs that serve 
        preschool age children (such as a program at a Head 
        Start center or a family literacy program), which 
        organizations shall be located in a community served by 
        a local educational agency described in paragraph (1); 
        or
          (3) one or more local educational agencies described 
        in paragraph (1) in collaboration with one or more 
        organizations described in paragraph (2).
    (c) 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 children enrolled in the programs;
          (2) 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 research, for 
        children ages 3 through 5;
          (3) how the proposed project will provide services 
        and utilize materials that are based on scientifically 
        based research on early language acquisition, 
        prereading activities, and the development of spoken 
        vocabulary skills;
          (4) how the proposed project will help staff in the 
        programs to meet the diverse needs of children in the 
        community better, including children with limited 
        English proficiency, disabilities, or other special 
        needs;
          (5) how the proposed project will help children, 
        particularly children experiencing difficulty with 
        spoken language, prereading, and literacy skills, to 
        make the transition from preschool to formal classroom 
        instruction in school;
          (6) if the eligible applicant has received a subgrant 
        under subpart 2, how the activities conducted under 
        this subpart will be coordinated with the eligible 
        applicant's activities under subpart 2 at the 
        kindergarten through third-grade level;
          (7) how the proposed project will determine the 
        success of the activities supported under this subpart 
        in enhancing the early language and literacy 
        development of children served by the project; and
          (8) such other information as the Secretary may 
        require.
    (d) Approval of Applications.--The Secretary shall select 
applicants for funding under this subpart onthe basis of the 
quality of the applications, in consultation with the National 
Institute for Child Health and Human Development, the National 
Institute for Literacy, and the National Academy of Sciences. 
The Secretary shall select applications for approval under this 
subpart on the basis of a peer review process.
    (e) Award Amounts.--The Secretary may establish a maximum 
award amount, or ranges of award amounts, for grants under this 
subpart.

SEC. 1243. FEDERAL ADMINISTRATION.

    The Secretary shall consult with the Secretary of Health 
and Human Services in order to coordinate the activities 
undertaken under this subpart with early childhood programs 
administered by the Department of Health and Human Services.

SEC. 1244. INFORMATION DISSEMINATION.

    From the funds the National Institute for Literacy receives 
under section 1227, the National Institute for Literacy, in 
consultation with the Secretary, shall disseminate information 
regarding projects assisted under this subpart that have proven 
effective.

SEC. 1245. 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.

SEC. 1246. EVALUATIONS.

    From the total amount appropriated under section 1002(b)(3) 
for the period beginning October 1, 2002 and ending September 
30, 2008, the Secretary shall reserve not more than $5,000,000 
to conduct an independent evaluation of the effectiveness of 
this subpart.

SEC. 1247. ADDITIONAL RESEARCH.

    From the amount appropriated under section 1002(b)(3) for 
each of the fiscal years 2002 through 2006, the Secretary shall 
reserve not more than $3,000,000 to conduct, in consultation 
with National Institute for Child Health and Human Development, 
the National Institute for Literacy, and the Department of 
Health and Human Services, additional research on language and 
literacy development for children aged 3 through 5.

                PART C--EDUCATION OF MIGRATORY CHILDREN


SEC. 1301. [20 U.S.C. 6391] PROGRAM PURPOSE.

    It is the purpose of this part to assist States to--
          (1) * * *

           *       *       *       *       *       *       *

          (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 student performance and content 
        standards;
          [(2)](3) ensure that migratory children are provided 
        with appropriate education services (including 
        supportive services) that address their special needs 
        in a coordinated and efficient manner;
          [(3)](4) ensure that migratory children have the 
        opportunity to meet the same challenging State content 
        standards and challenging State student performance 
        standards that all children are expected to meet;
          [(4)](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
          [(5)](6) ensure that migratory children benefit from 
        State and local systemic reforms[.]; and
          (7) ensure that migratory children receive full and 
        appropriate opportunities to meet the same challenging 
        State content and student performance standards that 
        all children are expected to meet.

           *       *       *       *       *       *       *


SEC. 1304. [20 U.S.C. 6394] STATE APPLICATIONS; SERVICE.

    (a) Application Required.-- * * *

           *       *       *       *       *       *       *

    (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 education needs of 
        migratory children, including preschool migratory 
        children are identified and addressed through [a 
        comprehensive plan for needs assessment and service 
        delivery that meets the requirements of section 1306;] 
        the full range of services that are available for 
        migratory children from appropriate local, State, and 
        Federal educational programs;
          (2) a description of joint planning efforts that will 
        be made with respect to programs assisted under this 
        Act, local, State, and Federal programs, and bilingual 
        education programs under subpart 1 of part A of title 
        III;
          [(2)](3) a description of the steps the State is 
        taking to provide all migratory students with the 
        opportunity to meet the same challenging State content 
        standards and challenging State student performance 
        standards that all children are expected to meet;
          [(3)](4) a description of how the State will use 
        funds received under this part to promote interstate 
        and intrastate coordination of services for migratory 
        children, including how, consistent with procedures the 
        Secretary may require, the State will provide for 
        educational continuity through the timely transfer of 
        pertinent school records, including information on 
        health, when children move from one school to another, 
        whether or not such move occurs during the regular 
        school year;
          [(4)](5) 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)](6) a description of how the State will 
        determine the amount of any subgrants the State will 
        award to local operating agencies, taking into account 
        the requirements of paragraph (1); and
          [(6)](7) such budgetary and other information as the 
        Secretary may require.
    (c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
          (1) funds received under this part will be used 
        only--

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *


SEC. 1306. [20 U.S.C. 6396] COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-
                    DELIVERY PLAN; AUTHORIZED ACTIVITIES.

    (a) Comprehensive Plan.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

                  (A) is integrated with other programs under 
                this Act, [the Goals 2000: Educate America Act] 
                or other Acts, as appropriate, consistent with 
                section [14306] 5506;
                  (B) may be submitted as a part of 
                consolidated application under section [14302] 
                5502, if--
                          (i) the special needs of migratory 
                        children are specifically addressed in 
                        the comprehensive State plan;
                          (ii) the comprehensive State plan is 
                        developed in collaboration with parents 
                        of migratory children; and
                          (iii) the comprehensive State 
                        planning is not used to supplant State 
                        efforts regarding, or administrative 
                        funding for, this part;

           *       *       *       *       *       *       *

    (b) Authorized Activities.--
          (1) In general.-- * * *

           *       *       *       *       *       *       *

    [(b) Assistance and Reportint.--
          (3) Special rule.--Notwithstanding sectino 1114, a 
        school that received funds under this part shall 
        continue to address the identified needs described in 
        paragraph (a)(A), and shall meet the special 
        educational needs of migrant children before using 
        funds under this part for schoolwide programs under 
        section 1114.

SEC. 1308. [20 U.S.C. 6398] COORDINATION OF MIGRANT EDUCATION 
                    ACTIVITIES.

    (a) Improvement of Coordination.--
          (1) In general.--* * *

           *       *       *       *       *       *       *

          [(1) Student records.--(A) The Secretary shall 
        solicit information on how student records are 
        transferred from one school to another and shall 
        solicit recommendations on whether new procedures and 
        technologies for record transfer should be employed to 
        better meet the needs of the migrant population.
          [(B) The Secretary shall also seek recommendations on 
        the most effective means for determining the number of 
        students or full-time equivalent students in each State 
        for the purpose of allocating funds under this part.
          [(2) Report to congress.--(A) Not later than April 
        30, 1995, the Secretary shall report to the Committee 
        on Labor and Human Resources of the Senate and the 
        Committee on Education and Labor of the House of 
        Representatives the Secretary's findings and 
        recommendations, and shall include in this report, 
        recommendations for interim measures that may be taken 
        to ensure continuity of services in this program.
          [(B) The Secretary shall assist States in developing 
        effective methods for the transfer of student records 
        and in determining the number of students or full-time 
        equivalent students in each State if such interim 
        measures are required.]
    (b) Access to Information on Migrant Students.--
          (1) Information system.--(A) The Secretary shall 
        establish an information system for electronically 
        exchanging, among the States, health and educational 
        information regarding all students served under this 
        part. Such information may include--
                  (i) immunization records and other health 
                information;
                  (ii) elementary and secondary academic 
                history (including partial credit), credit 
                accrual, and results from State assessments 
                required under this title;
                  (iii) other academic information essential to 
                ensuring that migrant children achieve to high 
                standards; and
                  (iv) eligibility for services under the 
                Individuals with Disabilities Education Act.
          (B) The Secretary shall publish, not later than 120 
        days after the date of enactment of the Better 
        Education for Students and Teachers Act, a notice in 
        the Federal Register seeking public comment on the 
        proposed data elements that each State receiving funds 
        under this part shall be required to collect for 
        purposes of electronic transfer of migrant student 
        information, the requirements for immediate electronic 
        access to such information, and the educational 
        agencies eligible to access such information.
          (C) Such system of electronic access to migrant 
        student information shall be operational not later than 
        1 year after the date of enactment of the Better 
        Education for Students and Teachers Act.
          (D) For the purpose of carrying out this subsection 
        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.
          (2) Report to congress.--(A) 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 services under this part, and 
        shall include in this report, recommendations for the 
        interim measures that may be taken to ensure continuity 
        of services under this part.
          (B) The Secretary shall assist States in developing 
        effective methods for the transfer of student records 
        and in determining the number of students or full-time 
        equivalent students in each State if such interim 
        measures are required.
    (c) Availability of Funds.--For the purpose of carrying out 
this section in any fiscal year, the Secretary shall reserve 
not more than [$6,000,000] $10,000,000 of the amount 
appropriated to carry out this part for such year.
    (d) Incentive Grants.--
          (1) In general.--From the amounts made available to 
        carry out this section, the Secretary shall reserve not 
        more than [$1,500,000] $3,000,000 to award, on a 
        competitive basis, grants in the amount of not more 
        than $250,000 to State educational agencies with 
        consortium agreements under section 1303(d).

           *       *       *       *       *       *       *

    (e) Data Collection.--The Secretary shall direct the 
National Center for Education Statistics to collect data on 
migratory children.

           *       *       *       *       *       *       *


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


[SEC. 1401. [20 U.S.C. 6421] FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

    [(a) Findings.--Congress finds the following:
          [(1) A large percentage of youth in the juvenile 
        justice system have poor academic achievement, are a 
        year or more behind grade level, and have dropped out 
        of school.
          [(2) There is a strong correlation between academic 
        failure and involvement in delinquent activities.
          [(3) Preventing students from dropping out of local 
        schools and addressing the educational needs of 
        delinquent youth can help reduce the dropout rate and 
        involvement in delinquent activities at the same time.
          [(4) Many schools and correctional facilities fail to 
        communicate regarding a youth's academic needs and 
        students often return to their home school ill-prepared 
        to meet current curriculum requirements.
          [(5) Schools are often reluctant to deal with youth 
        returning from facilities and receive no funds to deal 
        with the unique educational and other needs of such 
        youth.
          [(6) A continuing need exists for activities and 
        programs to reduce the incidence of youth dropping out 
        of school.
          [(7) Federal dropout prevention programs have 
        demonstrated effectiveness in keeping children and 
        youth in school.
          [((8) Pregnant and parenting teens are a high at-risk 
        group for dropping out of school and should be targeted 
        by dropout prevention programs.
          [(9) Such youth need a strong dropout prevention 
        program which provides such youth with high level 
        skills and which provides supports to youth returning 
        from correctional facilities in order to keep such 
        youth in school.
    [(b) Purpose.--It is the purpose of this part--
          [(1) to improve educational services to children in 
        local and State institutions for neglected or 
        delinquent children and youth so that such children and 
        youth have the opportunity to meet the same challenging 
        State content standards and challenging State student 
        performance standards that all children in the State 
        will be expected to meet;
          [(2) to provide such children and youth the services 
        needed to make a successful transition from 
        institutionalization to further schooling or 
        employment; and
          [(3) to prevent at-risk youth from dropping out of 
        school and to provide dropouts and youth returning from 
        institutions with a support system to ensure their 
        continued education.
    [(c) Program Authorized.--In order to carry out the purpose 
of this part 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 or delinquent 
children and youth at risk of dropping out of school before 
graduation.

[SEC. 1402. [20 U.S.C. 6422] 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 amounts necessary to make 
subgrants to State agencies.
    [(b) Local Subgrants.--Each State shall retain, for 
purposes of subpart 2, funds generated throughout the State 
under part A based on youth residing in local correctional 
facilities, or attending community day programs for delinquent 
children and youth.
    [(c) Use of Remaining Funds.--Each State shall use any 
funds remaining after allocations are made under subsection 
(a).

                    Subpart 1--State Agency Programs


[SEC. 1411. [20 U.S.C. 6431] ELIGIBILITY.

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

SEC. 1412. [20 U.S.C. 6432] 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 part, for each fiscal year, 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; or
                                  [(II) in community day 
                                programs for neglected or 
                                delinquent children; and
                  [(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, or 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 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.--For each 
fiscal year, the amount of the subgrant for which a State 
agency in the Commonwealth of Puerto Rico is eligible under 
this part shall be equal to--
          [(1) the number of children and youth counted under 
        subsection (a)(1) for the Commonwealth of Puerto Rico; 
        multiplied by
          [(2) the product of--
                  [(A) the percentage that the average per-
                pupil expendi-ture in the Commonwealth of 
                Puerto Rico is of the lowest average per-pupil 
                expenditure of any of 50 States; and
                  [(B) 32 percent of the average per-pupil 
                expenditure in the United States.
    [(c) Ratable Reductions in Case of Insufficient Appropria-
tions.--If the amount appropriated for any fiscal year for sub-
grants under subsections (a) and (b) is insufficient to pay the 
full amount for which all agencies are eligible under such 
subsections, the Secretary shall ratably reduce each such 
amount.

SEC. 1413. [20 U.S.C. 6433] 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 part for any fiscal 
year, the State edu-cational 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 edu-cational agency shall determine.

[SEC. 1414. [20 U.S.C. 6434] STATE PLAN AND STATE AGENCY APPLICA-TIONS.

    [(a) State Plan.--
          [(1) In general.--Each State educational agency that 
        de-sires to receive a grant under this part shall 
        submit, for ap-proval by the Secretary, a plan for 
        meeting the needs of ne-glected and delinquent youth 
        and, where applicable, youth at risk of dropping out of 
        school which is integrated with other programs under 
        this Act, the Goals 2000: Education America Act, or 
        other Acts, as appropriate, consistent with section 
        14306.
          [(2) Contents.--Each such State plan shall--
                  [(A) describe the program goals, objectives, 
                and per-formance measures established by the 
                State that will be used to assess the 
                effectiveness of the program in improv-ing 
                academic and vocational skills of children in 
                the pro-gram;
                  [(B) provide that, to the extent feasible, 
                such children will have the same opportunities 
                to learn as such children would have if such 
                children were in the schools of local 
                educational agencies in the State; and
                  [(C) contain assurances that the State 
                educational agency will--
                          [(i) ensure that programs assisted 
                        under this part will be carried out in 
                        accordance with the State plan 
                        described in this subsection;
                          [(ii) carry out the evaluation 
                        requirements of sec-tion 1416;
                          [(iii) ensure that the State agencies 
                        receiving sub-grants under this subpart 
                        comply with all applicable statutory 
                        and regulatory requirements; and
                          [(iv) provide such other information 
                        as the Sec-retary may reasonably 
                        require.
          [(3) Duration of the plan.--Each such State plan 
        shall--
                  [(A) remain in effect for the duration of the 
                State's par-ticipation under this part; and
                  [(B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                part.
    [(b) Secretarial Approval; Peer Review.--
          [(1) In general.--The Secretary shall approve each 
        State plan that meets the requirements of this part.
          [(2) Peer review.--The Secretary may review any State 
        plan with the assistance and advice of individuals with 
        relevant expertise.
    [c State Agency Applications.--Any State agency that de-
sires to receive funds to carry out a program under this part 
shall submit an application to the State educational agency 
that--
          [(1) describes the procedures to be used, consistent 
        with the State plan under section 1111, to assess the 
        educational needs of the children to be served;
          [(2) provides assurances that in making services 
        available to youth in adult correctional facilities, 
        priority will be given to such youth who are likely to 
        complete incarceration within a 2-year period;
          [(3) describes the program, including a budget for 
        the first year of the program, with annual updates to 
        be provided to the State educational agency;
          [(4) describes how the program will meet the goals 
        and objectives of the State plan under this subpart;
          [(5) describes how the State agency will consult with 
        ex-perts and provide the necessary training for 
        appropriate staff, to ensure that the planning and 
        operation of institution-wide projects under section 
        1416 are o high quality;
          [(6) describes how the agency will carry out the 
        evaluation requirements of section 14701 and how the 
        results of the most recent evaluation are used to plan 
        and improve the program;
          [(7) includes data showing that the agency has 
        maintained fiscal effort required of a local 
        educational agency, in accord-ance with section 14501 
        of this title;
          [(8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as pro-grams under the Job Training Partnership Act or 
        title I of the Workforce Investment Act of 1998, 
        vocational education pro-grams, State and local dropout 
        prevention programs, and spe-cial education programs;
          [(9) describes how appropriate professional 
        development will be provided to teachers and other 
        staff;
          [(10) designates an individual in each affected 
        institution to be responsible for issues relating to 
        the transition of children and youth from the 
        institution to locally operated programs;
          [(11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring 
        for participating youth;
          [(12) provides assurances that the agency will assist 
        in locating alternative programs through which students 
        can continue their education if students are not 
        returning to school after leaving the correctional 
        facility;
          [(13) provides assurances that the agency will work 
        with parents to secure parents' assistance in improving 
        the educational achievement of their children and 
        preventing their children's further involvement in 
        delinquent activities;
          [(14) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that 
        the agency will notify the youth's local school if such 
        youth--
                  [(A) is identified as in need of special 
                education services while the youth is in the 
                facility; and
                  [(B) intends to return to the local school;
          [(15) provides assurances that the agency will work 
        with youth who dropped out of school before entering 
        the facility to encourage the youth to reenter school 
        once the term of the youth has been completed or 
        provide the youth with the skills necessary to gain 
        employment, continue the education of the youth or 
        achieve a secondary school diploma or the recognized 
        equivalent if the youth does not intend to return to 
        school;
          [(16) provides assurances that teachers and other 
        qualified staff are also trained to work with children 
        with disabilities and other students with special needs 
        taking into consideration the unique needs of such 
        students;
          [(17) describes any additional services provided to 
        youth, such as career counseling, and assistance in 
        securing student loans and grants; and
          [(18) provides assurances that the program under this 
        subpart will be coordinated with any programs operated 
        under the Juvenile Justice and Delinquency Prevention 
        Act of 1974 or other comparable programs, if 
        applicable.

[SEC. 1415. [20 U.S.C. 6435] USE OF FUNDS.

    [(a) In General.--
          [(1) Uses.--A State agency shall use funds received 
        under this subpart only for programs and projects 
        that--
                  [(A) are consistent with the State plan under 
                section 1414(a); and
                  [(B) concentrate on providing participants 
                with the knowledge and skills needed to make a 
                successful transition to secondary school 
                completion, further education, or employment.
          [(2) Programs and projects.--Such programs and 
        projects--
                  [(A) may include the acquisition of 
                equipment;
                  [(B) shall be designed to support educational 
                services that--
                          [(i) except for institution-wide 
                        projects under section 1416, are 
                        provided to children identified by the 
                        State agency is failing, or most at 
                        risk of failing, to meet the State's 
                        challenging State content standards and 
                        challenging State student performance 
                        standards;
                          [(ii) supplement and improve the 
                        quality of the educational services 
                        provided to such children by the State 
                        agency; and
                          [(iii) afford such children an 
                        opportunity to learn to such 
                        challenging State standards;
                  [(C) shall be carried out in a manner 
                consistent with section 1120A and part F of 
                this title; and
                  [(D) may include the costs of meeting the 
                evaluation requirements of section 14701.
    [(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 without regard to the subject 
areas in which instruction is given during those hours.

[SEC. 1416 [20 U.S.C. 6436] INSTITUTION-WIDE PROJECTS.

    [A State agency that provides free public education for 
children and youth in an institution for neglected or 
delinquent children (other than an adult correctional 
institution) or attending a community-day program for such 
children may use funds received under this part 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 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 two-year period;
          [(3) describes the steps the State agency has taken, 
        or will take, to provide all children under age 21 with 
        the opportunity to meet challenging State content 
        standards and challenging State student performance 
        standards in order to improve the likelihood that the 
        students will complete secondary school, attain 
        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 students;
          [(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 personnel from the 
        State educational agency; and
          [(8) includes an assurance that the State agency has 
        provided for appropriate training for teachers and 
        other instructional and administrative personnel to 
        enable such teachers and personnel to carry out the 
        project effectively.

[SEC. 1417. [120 U.S.C. 6437] THREE-YEAR PROGRAMS OR PROJECTS.

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

[SEC. 1418. [20 U.S.C. 6438] TRANSITION SERVICES.

    [(a) Transition Services.--Each State agency shall reserve 
not more than 10 percent of the amount such agency receives 
under this subpart for any fiscal year to support projects that 
facilitate the transition of children from State-operated 
institutions to local educational agencies.
    [(b) Conduct of Projects.--A project support 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) Limitation.--Any funds reserved under subsection (a) 
shall be used only to provide transitional educational 
services, which may include pupil services and mentoring, to 
neglected and delinquent children in schools other than State-
operated institutions.
    [(d) Construction.--Nothing in this section shall be 
construed to prohibit a school that receives funds under 
subsection (a) from serving neglected and delinquent children 
simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

                   [Subpart 2--Local Agency Programs


[SEC. 1421. [20 U.S.C. 6451] PURPOSE.

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

[SEC. 1422. [20 U.S.C. 6452] PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
                    AGENCIES.

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

[SEC. 1423. [20 U.S.C. 6453] LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    [Eligible local educational agencies desiring assistance 
under this section shall submit an application as to the State 
educational agency, containing 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 between--
                  [(A) the local educational agency; and
                  [(B) correctional facilities and alternative 
                school programs serving youth involved with the 
                juvenile justice system to operate programs for 
                delinquent youth;
          [(3) as appropriate, a description of how 
        participating schools will coordinate with facilities 
        working with delinquent youth to ensure that such youth 
        are participating in an education program comparable to 
        one operating in the local school such youth would 
        attend;
          [(4) as appropriate, a description of the dropout 
        prevention program operated by participating schools 
        and the types of services such schools will provide to 
        at-risk youth in participating schools and youth 
        returning from correctional facilities;
          [(5) as appropriate, a description of the youth 
        expected to be served by the dropout prevention program 
        and how the school will be coordinating existing 
        educational programs to meet unique education needs;
          [(6) as appropriate, a description of how schools 
        will coordinate with existing social and health 
        services to meet the needs of students at risk of 
        dropping out of school and other participating 
        students, including prenatal health care and nutrition 
        services related to the health of the parent and child, 
        parenting and child development classes, child care, 
        targeted re-entry and outreach programs, referrals to 
        community resources, and scheduling flexibility;
          [(7) as appropriate, a description of any 
        partnerships with local businesses to develop training 
        and mentoring services for participating students;
          [(8) as appropriate, a description of how the program 
        will involve parents in efforts to improve the 
        educational achievementof their children, assist in 
        dropout prevention activities, and prevent the 
        involvement of their children in delinquent activities;
          [(9) a description of how the program under this 
        subpart will be coordinated with other Federal, State, 
        and local programs, such as programs under the Job 
        Training Partnership Act or title I of the Workforce 
        Investment Act of 1998 and vocational education 
        programs serving this at-risk population of youth;
          [(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 youth returning from correctional 
        facilities;
          [(12) a description of efforts participating schools 
        will make to ensure correctional facilities working 
        with youth are aware of a child's existing 
        individualized education program; and
          [(13) as appropriate, a description of the steps 
        participating schools will take to find alternative 
        placements for youth interested in continuing their 
        education but unable to participate in a regular public 
        school program.

[SEC 1424. [20 U.S.C. 6454] USES OF FUNDS.

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

[SEC. 1425. [20 U.S.C. 6455] PROGRAM REQUIREMENTS FOR CORRECTIONAL 
                    FACILITIES RECEIVING FUNDS UNDER THIS SECTION.

    [Each correctional facility entering into an agreement with 
a local educational agency under section 1422(a) to provide 
services to youth under this section shall--
          [(1) where feasible, ensure educational programs in 
        juvenile facilities are coordinated with the student's 
        home school, particularly with respect to special 
        education students with an individualized education 
        program;
          [(2) notify the local school of a youth if the youth 
        is identified as in need of special education services 
        while in the facility;
          [(3) where feasible, provide transition assistance to 
        help the youth stay in school, including coordination 
        of services for the family, counseling, assistance in 
        accessing drug and alcohol abuse prevention programs, 
        tutoring, and family counseling;
          [(4) provide support programs which encourage youth 
        who have dropped out to reenter school once their term 
        has been completed or provide such youth with the 
        skills necessary for such youth to gain employment or 
        seek a secondary school diploma or its recognized 
        equivalent;
          [(5) work to ensure such facilities are staffed with 
        teachers and other qualified staff who are trained to 
        work with children with disabilities and other students 
        with special needs taking into consideration the unique 
        needs of such children and students;
          [(6) ensure educational programs in correctional 
        facilities are related to assisting students meet high 
        educational standards;
          [(7) use, to the extent possible, technology to 
        assist in coordinating educational programs between the 
        juvenile 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 program 
        with other local, State, and Federal funds available to 
        provide services to participating youth, such as funds 
        made available under the Job Training Partnership Act 
        or title I of the Workforce Investment Act of 1998, and 
        vocational 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 and mentoring programs for 
        participating youth.

[SEC. 1426. [20 U.S.C. 6456] ACCOUNTABILITY.

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

                     [Subpart 3--General Provisions


[SEC. 1431. [20 U.S.C. 6471] PROGRAM EVALUATIONS.

    [(a) Scope of Evaluation.--Each State agency or local 
educational agency that conducts a program under subpart 1 or 2 
shall evaluate the program, disaggregating data on 
participation by sex, and if feasible, by race, ethnicity, and 
age, not less than one every three years to determine the 
program's impact on the ability of participants to--
          [(1) maintain and improve educational achievement;
          [(2) accrue school credits that meet State 
        requirements for grade promotion and secondary school 
        graduation;
          [(3) make the transition to a regular program or 
        other education program operated by a local educational 
        agency; and
          [(4) complete secondary school (or secondary school 
        equivalency requirements) and obtain employment after 
        leaving the institution.
    [(b) 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.
    [(c) Evaluation Results.--Each State agency and local 
educational agency shall--
          [(1) submit evaluation results to the State 
        educational agency; and
          [(2) use the results of evaluations under this 
        section to plan and improve subsequent programs for 
        participating children and youth.

[SEC. 1432. [20 U.S.C. 6472] DEFINITIONS.

    [For the purpose of this part:
          [(1) The term ``adult correctional institution'' 
        means a facility in which persons are confined as a 
        result of a conviction for a criminal offense, 
        including persons under 21 years of age.
          [(2) The term ``at-risk youth'' means school aged 
        youth who are at risk of academic failure, have drug or 
        alcohol problems, are pregnant or are parents, have 
        come into contact with the juvenile justice system in 
        the past, are at least one year behind the expected 
        grade level for the age of the youth, have limited-
        English proficiency, are gang members, have dropped out 
        of school in the past, or have high absenteeism rates 
        at school.
          [(3) The term ``community day program'' means a 
        regular program of instruction provided by a State 
        agency at a community day school operated specifically 
        for neglected or delinquent children.
          [(4) The term ``institution for delinquent children 
        and youth'' means a public or private residential 
        facility for the care of children who have been 
        adjudicated to be delinquent or in need of supervision.
          [(5) The term ``institution for neglected children'' 
        means 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.]

    PART D--INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK YOUTH

Subpart 1--Prevention and Intervention Programs for Children and Youth 
       Who Are Neglected, Delinquent, or at Risk of Dropping Out

SEC. 1401. PURPOSE; PROGRAM AUTHORIZED.

  (a) Purpose.--It is the purpose of this subpart--
          (1) to improve educational services for children in 
        local and State institutions for neglected or 
        delinquent children and youth so that such children and 
        youth have the opportunity to meet the same challenging 
        State content standards and challenging State student 
        performance standards that all children in the State 
        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 youth returning from 
        institutions with a support system to ensure their 
        continued education.
  (b) Program Authorized.--In order to carry out the purpose of 
this subpart 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 or delinquent 
children and youth at risk of dropping out of school before 
graduation.

SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS SUBPART.

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

                    CHAPTER 1--STATE AGENCY PROGRAMS

SEC. 1411. ELIGIBILITY.

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

SEC. 1412. ALLOCATION OF FUNDS.

  (a) Subgrants to State Agencies.--
          (1) In general.--Each State agency described in 
        section 1411 (other than an agency in the Commonwealth 
        of Puerto Rico) is eligible to receive a subgrant under 
        this chapter, for each fiscal year, 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.--For each 
fiscal year, the amount of the subgrant for which a State 
agency in the Commonwealth of Puerto Rico is eligible under 
this chapter shall be equal to--
          (1) the number of children and youth counted under 
        subsection (a)(1)(A) for the Commonwealth of Puerto 
        Rico; multiplied by
          (2) the product of--
                  (A) the percentage that the average per-pupil 
                expenditure in the Commonwealth ofPuerto 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.
    (c) Ratable Reductions in Case of Insufficient 
Appropriations.--If the amount appropriated for any fiscal year 
for subgrants under subsections (a) and (b) is insufficient to 
pay the full amount for which all State agencies are eligible 
under such subsections, the Secretary shall ratably reduce each 
such amount.

SEC. 1413. STATE REALLOCATION OF FUNDS.

    If a State educational agency determines that a State 
agency does not need the full amount of the subgrant for which 
such State agency is eligible under this chapter 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 subpart, 
in such amounts as the State educational agency shall 
determine.

SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

    (a) State Plan.--
          (1) In general.--Each State educational agency that 
        desires to receive a grant under this chapter shall 
        submit, for approval by the Secretary, a plan for 
        meeting the needs of neglected and delinquent children 
        and youth and, where applicable, children and youth at 
        risk of dropping out of school, that is integrated with 
        other programs under this Act, or other Acts, as 
        appropriate, consistent with section 5506.
          (2) Contents.--Each such State plan shall--
                  (A) describe the program goals, objectives, 
                and performance measures established by the 
                State that will be used to assess the 
                effectiveness of the program in improving 
                academic and vocational skills of children in 
                the program;
                  (B) provide that, to the extent feasible, 
                such children will have the same opportunities 
                to learn as such children would have if such 
                children were in the schools of local 
                educational agencies in the State; and
                  (C) contain assurances that the State 
                educational agency will--
                          (i) ensure that programs assisted 
                        under this subpart will be carried out 
                        in accordance with the State plan 
                        described in this subsection;
                          (ii) carry out the evaluation 
                        requirements of section 1431;
                          (iii) ensure that the State agencies 
                        receiving subgrants under this chapter 
                        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 State plan shall--
                  (A) remain in effect for the duration of the 
                State's participation under this subpart; and
                  (B) be periodically reviewed and revised by 
                the State, as necessary, to reflect changes in 
                the State's strategies and programs under this 
                subpart.
    (b) Secretarial Approval; Peer Review.--
          (1) In general.--The Secretary shall approve each 
        State plan that meets the requirements of this part.
          (2) Peer review.--The Secretary may review any State 
        plan with the assistance and advice of individuals with 
        relevant expertise.
  (c) State Agency Applications.--Any State agency that desires 
to receive funds to carry out a program under this chapter 
shall submit an application to the State educational agency 
that--
          (1) describes the procedures to be used, consistent 
        with the State plan under section 1111, to assess the 
        educational needs of the children to be served;
          (2) provides assurances that in making services 
        available to youth in adult correctional institutions, 
        priority will be given to such youth who are likely to 
        complete incarceration within a 2-year period;
          (3) describes the program, including a budget for the 
        first year of the program, with annual updates to be 
        provided to the State educational agency;
          (4) describes how the program will meet the goals and 
        objectives of the State plan;
          (5) describes how the State agency will consult with 
        experts and provide the necessary training for 
        appropriate staff, to ensure that the planning and 
        operation of institution-wide projects under section 
        1416 are of high quality;
          (6) describes how the agency will carry out 
        evaluation activities and how the results of the most 
        recent evaluation are used to plan and improve the 
        program;
          (7) includes data showing that the agency has 
        maintained the fiscal effort required of a local 
        educational agency, in accordance with section 4;
          (8) describes how the programs will be coordinated 
        with other appropriate State and Federal programs, such 
        as programs under title I of the Workforce Investment 
        Act of 1998, vocational education programs, State and 
        local dropout prevention programs, and special 
        education programs;
          (9) describes how appropriate professional 
        development will be provided to teachers and other 
        staff;
          (10) designates an individual in each affected 
        institution to be responsible for issues relating to 
        the transition of children and youth from the 
        institution to locally operated programs;
          (11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring 
        for participating children and youth;
          (12) provides assurances that the agency will assist 
        in locating alternative programs through which students 
        can continue their education if students are not 
        returning to school after leaving the correctional 
        facility;
          (13) provides assurances that the agency will work 
        with parents to secure parents' assistance in improving 
        the educational achievement of their children and 
        preventing their children's further involvement in 
        delinquent activities;
          (14) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that 
        the agency will notify the youth's local school if the 
        youth--
                  (A) is identified as in need of special 
                education services while the youth is in the 
                facility; and
                  (B) intends to return to the local school;
          (15) provides assurances that the agency will work 
        with youth who dropped out of school before entering 
        the facility to encourage the youth to reenter school 
        once the term of the youth has been completed or 
        provide the youth with the skills necessary to gain 
        employment, continue the education of the youth, or 
        achieve a secondary school diploma or its recognized 
        equivalent if the youth does not intend to return to 
        school;
          (16) provides assurances that teachers and other 
        qualified staff are also trained to work with children 
        with disabilities and other students with special needs 
        taking into consideration the unique needs of such 
        students;
          (17) describes any additional services provided to 
        children and youth, such as career counseling, and 
        assistance in securing student loans and grants; and
          (18) provides assurances that the program under this 
        chapter will be coordinated with any programs operated 
        under the Juvenile Justice and Delinquency Prevention 
        Act of 1974 or other comparable programs, if 
        applicable.

SEC. 1415. USE OF FUNDS.

    (a) Uses.--
          (1) In general.--A State agency shall use funds 
        received under this chapter only for programs and 
        projects that--
                  (A) are consistent with the State plan under 
                section 1414(a); and
                  (B) concentrate on providing participants 
                with the knowledge and skills needed to make a 
                successful transition to secondary school 
                completion, 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 State 
                        content standards and challenging State 
                        student performance 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 learn to such 
                        challenging State standards;
                  (C) shall be carried out in a manner 
                consistent with section 1120A and part H of 
                title I; and
                  (D) may include the costs of evaluation 
                activities.
    (b) Supplement, Not Supplant.--A program under this chapter 
that supplements the number of hoursof instruction students 
receive from State and local sources shall be considered to 
comply with the supplement, not supplant requirement of section 
1120A without regard to the subject areas in which instruction 
is given during those hours.

SEC. 1416. INSTITUTION-WIDE PROJECTS.

    A State agency that provides free public education for 
children and youth in an institution for neglected or 
delinquent children and youth (other than an adult correctional 
institution) or attending a community-day program for such 
children may use funds received under this part 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 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 two-year period;
          (3) describes the steps the State agency has taken, 
        or will take, to provide all youth under age 21 with 
        the opportunity to meet challenging State content 
        standards and challenging State student performance 
        standards in order to improve the likelihood that the 
        youths 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 students;
          (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 personnel from the 
        State educational agency; and
          (8) includes an assurance that the State agency has 
        provided for appropriate training for teachers and 
        other instructional and administrative personnel to 
        enable such teachers and personnel to carry out the 
        project effectively.

SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

    If a State agency operates a program or project under this 
chapter in which individual children 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 
chapter for a period of not more than 3 years.

SEC. 1418. TRANSITION SERVICES.

    (a) Transition Services.--Each State agency shall reserve 
not more than 10 percent of the amount such agency receives 
under this chapter for any fiscal year to support projects that 
facilitate the transition of children and youth from State-
operated institutions to local educational agencies.
    (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) Limitation.--Any funds reserved under subsection (a) 
shall be used only to provide transitional educational 
services, which may include pupil services and mentoring, to 
neglected and delinquent children and youth in schools other 
than State-operated institutions.
    (d) 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.

                    CHAPTER 2--LOCAL AGENCY PROGRAMS

SEC. 1421. PURPOSE.

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

SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    (a) Local Subgrants.--With funds made available under 
section 1412(b), the State educational agency shall award 
subgrants to local educational agencies with high numbers or 
percentages of youth residing in locally operated (including 
county operated) correctional facilities for youth (including 
facilities involved in community day programs).
    (b) Special Rule.--A local educational agency which 
includes a correctional facility that operates a school is not 
required to operate a dropout prevention program if more than 
30 percent of the youth attending such facility will reside 
outside the boundaries of the local educational agency upon 
leaving such facility.
    (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 chapter.

SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    Eligible local educational agencies desiring assistance 
under this chapter shall submit an application to the State 
educational agency, containing such information as the State 
educational agency may require. Each such application shall 
include--
          (1) a description of the program to be assisted;
          (2) a description of formal agreements between--
                  (A) the local educational agency; and
                  (B) correctional facilities and alternative 
                school programs serving youth involved with the 
                juvenile justice system to operate programs for 
                delinquent youth;
          (3) as appropriate, a description of how 
        participating schools will coordinate with facilities 
        working with delinquent youth to ensure that such youth 
        are participating in an education program comparable to 
        one operating in the local school such youth would 
        attend;
          (4) as appropriate, a description of the dropout 
        prevention program operated by participating schools 
        and the types of services such schools will provide to 
        at-risk youth in participating schools and youth 
        returning from correctional facilities;
          (5) as appropriate, a description of the youth 
        expected to be served by the dropout prevention program 
        and how the school will coordinate existing educational 
        programs to meet unique education needs;
          (6) as appropriate, a description of how schools will 
        coordinate with existing social and health services to 
        meet the needs of students at risk of dropping out of 
        school and other participating students, including 
        prenatal health care and nutrition services related to 
        the health of the parent and child, parenting and child 
        development classes, child care, targeted re-entry and 
        outreach programs, referrals to community resources, 
        and scheduling flexibility;
          (7) as appropriate, a description of any partnerships 
        with local businesses to develop training and mentoring 
        services for participating students;
          (8) as appropriate, a description of how the program 
        will involve parents in efforts to improve the 
        educational achievement of their children, assist in 
        dropout prevention activities, and prevent the 
        involvement of their children in delinquent activities;
          (9) a description of how the program under this 
        chapter will be coordinated with other Federal, State, 
        and local programs, such as programs under title I of 
        the Workforce Investment Act of 1998 and vocational 
        education programs serving at-risk 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 youth returning from correctional 
        facilities;
          (12) a description of efforts participating schools 
        will make to ensure correctional facilities working 
        with youth are aware of a child's existing 
        individualized education program; and
          (13) as appropriate, a description of the steps 
        participating schools will take to find alternative 
        placements for youth interested in continuing their 
        education but unable to participate in a regular public 
        school program.

SEC. 1424. USES OF FUNDS.

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

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

    Each correctional facility having an agreement with a local 
educational agency under section 1423(2) to provide services to 
youth under this chapter shall--
          (1) where feasible, ensure educational programs in 
        juvenile facilities are coordinated with the student's 
        home school, particularly with respect to special 
        education students with an individualized education 
        program;
          (2) notify the local school of a youth if the youth 
        is identified as in need of special education services 
        while in the facility;
          (3) where feasible, provide transition assistance to 
        help the youth stay in school, including coordination 
        of services for the family, counseling, assistance in 
        accessing drug and alcohol abuse prevention programs, 
        tutoring, and family counseling;
          (4) provide support programs which encourage youth 
        who have dropped out of school to reenter school once 
        their term has been completed or provide such youth 
        with the skills necessary for such youth to gain 
        employment or seek a secondary school diploma or its 
        recognized equivalent;
          (5) work to ensure such facilities are staffed with 
        teachers and other qualified staff who are trained to 
        work with children with disabilities and other students 
        with special needs taking into consideration the unique 
        needs of such children and students;
          (6) ensure educational programs in correctional 
        facilities are related to assisting students to meet 
        high educational standards;
          (7) use, to the extent possible, technology to assist 
        in coordinating educational programs between the 
        juvenile 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 program with 
        other local, State, and Federal funds available to 
        provide services to participating youth, such as funds 
        made available under title I of the Workforce 
        Investment Act of 1998, and vocational education funds;
          (10) coordinate programs operated under this chapter 
        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 and mentoring programs for 
        participating youth.

SEC. 1426. ACCOUNTABILITY.

    The State educational agency may--
          (1) reduce or terminate funding for projects under 
        this chapter 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 juvenile facilities to demonstrate, after 
        receiving assistance under this chapter for 3 years, 
        that there has been an increase in the number of youth 
        returning to school, obtaining a secondary school 
        diploma or its recognized equivalent, or obtaining 
        employment after such youth are released.

                     CHAPTER 3--GENERAL PROVISIONS

SEC. 1431. PROGRAM EVALUATIONS.

  (a) Scope of Evaluation.--Each State agency or local 
educational agency that conducts a program under chapter 1 or 2 
shall evaluate the program, disaggregating data on 
participation by sex, and if feasible, by race, ethnicity, and 
age, not less than once every 3 years to determine the 
program's impact on the ability of participants to--
          (1) maintain and improve educational achievement;
          (2) accrue school credits that meet State 
        requirements for grade promotion and secondary school 
        graduation;
          (3) make the transition to a regular program or other 
        education program operated by a local educational 
        agency; and
          (4) complete secondary school (or secondary school 
        equivalency requirements) and obtain employment after 
        leaving the institution.
    (b) Evaluation Measures.--In conducting each evaluation 
under subsection (a), a State agency orlocal educational agency 
shall use multiple and appropriate measures of student 
progress.
    (c) Evaluation Results.--Each State agency and local 
educational agency shall--
          (1) submit evaluation results to the State 
        educational agency; and
          (2) use the results of evaluations under this section 
        to plan and improve subsequent programs for 
        participating children and youth.

SEC. 1432. DEFINITIONS.

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

            PART F--21ST CENTURY COMMUNITY LEARNING CENTERS

SEC. 1601. SHORT TITLE.

    This part may be cited as the ``21st Century Community 
Learning Centers Act''.

SEC. 1602. PURPOSE.

    It is the purpose of this part to provide opportunities for 
public schools, primarily in rural and inner-city communities, 
to collaborate with other public and nonprofit entities 
(including businesses and postsecondary institutions) to--
          (1) offer a broad selection of services that address 
        the needs of the communities served by such schools; 
        and
          (2) offer extended learning opportunities for 
        children, youth, and adults in the communities.

SEC. 1603. PROGRAM AUTHORIZATION.

    (a) Grants by the Secretary.--The Secretary is authorized, 
in accordance with the provisions of this part, to award grants 
to local educational agencies, and units of general purpose 
local government, on behalf of rural and inner-city public 
elementary schools or secondary schools, or consortia of such 
schools, to enable such schools or consortia to plan, 
implement, or to expand projects that benefit the educational, 
health, social service, cultural, and recreational needs of a 
rural or inner-city community.
    (b) Equitable Distribution.--In awarding grants under this 
part, the Secretary shall assure an equitable distribution of 
assistance among the States, among urban and rural areas of the 
United States, and among urban and rural areas of a State.
    (c) Grant Period.--The Secretary shall award grants under 
this part for a period not to exceed 3 years.
    (d) Amount.--The Secretary shall not award a grant under 
this part in any fiscal year in an amount less than $50,000.

SEC. 1604. ELIGIBILITY OF CERTAIN ORGANIZATIONS AND ENTITIES.

    (a) In General.--Notwithstanding any other provision of 
law--
          (1) the Secretary may award grants under this part to 
        community-based organizations, and public or private 
        entities, that have experience in providing before- and 
        after-school services, on the same basis as local 
        educational agencies described in section 1603; and
          (2) for purposes of this part--
                  (A) references to local educational agencies 
                shall be considered to include references to 
                organizations and entities described in 
                paragraph (1); and
                  (B) except as provided in subsection (c), 
                references to schools shall be considered to 
                include references to rural and inner-city 
                public elementary schools or secondary schools 
                served by organizations and entities described 
                in paragraph (1).
    (b) Priority.--In addition to giving priority to 
applications described in section 1605(b), in awarding grants 
under this part, the Secretary shall give priority to 
applications that--
          (1) describe projects that include academic 
        enrichment components; and
          (2) are submitted jointly by--
                  (A) organizations and entities described in 
                subsection (a)(1); and
                  (B) rural and inner-city public elementary 
                schools or secondary schools (including 
                consortia of such schools).
    (c) Waiver.--The Secretary may waive, for an organization 
or entity described in subsection (a)(1), any provision of this 
part that requires the o