HR 4141 RH

To amend the Elementary and Secondary Education Act of 1965, and for other purposes.

March 30, 2000

Mr. GOODLING (for himself, Mr. CASTLE, Mr. MCKEON, Mr. BALLENGER, Mr. PETRI, Mrs. ROUKEMA, Mr. BOEHNER, Mr. BARRETT of Nebraska, Mr. HILLEARY, Mr. GREENWOOD, Mr. DEMINT, Mr. ISAKSON, Mr. FLETCHER, Mr. MCINTOSH, Mr. NORWOOD, Mr. UPTON, and Mr. SAM JOHNSON of Texas) introduced the following bill; which was referred to the Committee on Education and the Workforce

May 4, 2000

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on March 30, 2000]

To amend the Elementary and Secondary Education Act of 1965, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Education Opportunities To Protect and Invest In Our Nation's Students (Education OPTIONS) Act'.

SEC. 2. TABLE OF CONTENTS.

The table of contents for this Act is as follows:

TITLE I--TRANSFERABILITY

Sec. 101. Short title.

Sec. 102. Purpose.

Sec. 103. Transferability.

TITLE II--DRUG AND VIOLENCE PREVENTION AND EDUCATION

Sec. 201. DRUG AND VIOLENCE PREVENTION AND EDUCATION

Sec. 202. Use of certain funds.

TITLE III--TECH FOR SUCCESS

Sec. 301. Tech for success.

TITLE IV--INNOVATIVE EDUCATION PROGRAMS

Sec. 401. Innovative education program strategies.

TITLE V--PROGRAMS OF NATIONAL SIGNIFICANCE

Part A--Fund for the Improvement of Education

Sec. 501. Fund for the improvement of education.

Part B--Arts Education

Sec. 511. Arts education.

Part C--Public Charter Schools

Sec. 521. Public charter schools.

Part D--Civic Education

Sec. 531. Civic education.

Part E--Allen J. Ellender Fellowship Program

Sec. 541. Allen J. Ellender Fellowship Program.

TITLE VI--GENERAL PROVISIONS

Sec. 601. General provisions.

Sec. 602. Repeals.

Sec. 603. Effective date.

SEC. 3. PURPOSE.

The purpose of this Act is to provide States and local school districts with--

(1) resources to provide safe learning environments for all students;

(2) flexibility in managing Federal elementary and secondary education programs and the option to transfer certain education funds between formula programs to more effectively serve their students;

(3) technologies to enhance academic coursework and prepare for the challenges of the 21st century; and

(4) less bureaucracy and paperwork and more dollars to the classroom for principals, teachers, and students.

TITLE I--TRANSFERABILITY

SEC. 101. SHORT TITLE.

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

SEC. 102. PURPOSE.

The purpose of this title is to grant flexibility to States and school districts to target--

(1) Federal funds to Federal programs that most effectively address the unique needs of States and localities; and

(2) additional Federal funds to title I programs.

SEC. 103. TRANSFERABILITY.

Part B of title XIV of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801 et seq.) is amended by adding at the end the following:

`SEC. 14206. TRANSFERABILITY.

`(a) STATE TRANSFER AUTHORITY-

`(1) IN GENERAL- A State may transfer up to 100 percent of nonadministrative State funds allocated to such State which are authorized to be used for State-level activities under any of the following provisions to the allocation of the State under any other of such provisions:

`(A) Title II (excluding national activities).

`(B) Subpart 2 of part A of title III.

`(C) Part A of title IV.

`(D) Title VI.

`(E) Part C of title VII.

`(F) Comprehensive school reform programs as authorized under section 1502 as described on pages 96-99 of the Joint Statement of the Committee of Conference included in House Report 105-390 (Conference Report on the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998).

`(2) SUPPLEMENTAL FUNDS FOR TITLE I- A State may transfer any funds allocated to the State under a provision listed in paragraph (1) to its allocation under title I.

`(b) LOCAL EDUCATIONAL AGENCY TRANSFER AUTHORITY-

`(1) TRANSFER OF FUNDS-

`(A) IN GENERAL- Subject to subparagraphs (C), (D), and (E), a local educational agency may transfer funds allocated to such agency under any of the provisions listed in paragraph (2).

`(B) SUPPLEMENTAL FUNDS FOR TITLE I- Subject to subparagraphs (C), (D), and (E), a local educational agency may transfer funds allocated to such agency under a provision listed in paragraph (2) to its allocation under title I.

`(C) UNDER 35 PERCENT- A transfer under subparagraph (A) or (B) of up to 35 percent of the funds allocated to a local educational agency under a provision listed in paragraph (2) in a fiscal year may be made without State approval.

`(D) OVER 35 PERCENT- Subject to paragraph (3), a transfer under subparagraph (A) or (B) in a fiscal year of funds allocated to a local educational agency under a provision listed in paragraph (2) in a fiscal year the amount of which, when added to the amount of other transfers by the agency of such funds in such fiscal year, is more than 35 percent of such funds may be made only with the approval of the State.

`(E) TITLE II TRANSFERS- If a local educational agency provides assurances that the amount of funds expended for professional development in mathematics and science under title II in a fiscal year will equal or exceed the amount of funds expended for the year preceding the date of enactment of the Education OPTIONS Act such agency may transfer funds allocated to it under title II.

`(2) APPLICABLE PROVISIONS- The provisions from which a local educational agency may transfer funds under this subsection are as follows:

`(A) Title II (excluding national activities).

`(B) Subpart 2 of part A of title III.

`(C) Part A of title IV.

`(D) Title VI.

`(E) Part C of title VII.

`(F) Section 310 of the Department of Education Act, 2000, included in the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2000 (as enacted into law by section 1004(a)(4) of Public Law 106-113).

`(3) SPECIAL APPROVAL- If a local educational agency submits to its State a written request to make a transfer under this subsection that requires State approval, the following applies:

`(A) 60 DAYS FOR APPROVAL- Such transfer shall be deemed approved by the State unless the State, within 60 days after receipt of such transfer request, disapproves such request or promptly notifies the agency in writing of such revisions as may be necessary before the State will approve the transfer.

`(B) CONSIDERATION FOR APPROVAL- When approving a local education agency request to transfer an amount greater than 35 percent, the State shall consider the degree to which the transfer accomplishes the following:

`(i) Enables the local educational agency to direct resources to a Federal program that more effectively addresses the needs of their students, particularly the most disadvantaged students.

`(ii) Allows the local educational agency to target or focus resources to address specific areas of need or priority when Federal requirements would otherwise prevent, or significantly impede, such an effort.

`(c) LIMITATION- A State or a local educational agency may not transfer any funds allocated to it under title I to any other program under this Act.

`(d) STATE PLAN AND APPLICATION MODIFICATION; PRENOTIFICATION- Each State transferring funds under this section shall--

`(1) modify any plan or application of the State that is applicable to such funds to account for such transfer and submit, within 30 days after the date of such transfer, a copy of such modified plan or application to the Department of Education; and

`(2) notify the Department of Education no less than 30 days before the effective date of such transfer.

`(e) LOCAL PLAN AND APPLICATION MODIFICATION; PRENOTIFICATION- Each local educational agency transferring funds under this section shall--

`(1) modify any plan or application of the agency that is applicable to such funds to account for such transfer and submit, within 30 days after the date of such transfer, a copy of such modified plan or application to the State; and

`(2) notify the State no less than 30 days before the effective date of such transfer.

`(f) APPLICABLE RULES- Except as otherwise provided in this subsection, when funds are transferred to an allocation under this section, they become funds of the allocation to which they are transferred and subject to all the requirements that are applicable to that allocation.'.

TITLE II--DRUG AND VIOLENCE PREVENTION AND EDUCATION

SEC. 201. DRUG AND VIOLENCE PREVENTION AND EDUCATION.

Title IV of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7101 et seq.) is amended to read as follows:

`TITLE IV--SUPPORTING DRUG AND VIOLENCE PREVENTION AND EDUCATION FOR STUDENTS AND COMMUNITIES

`SEC. 4001. SHORT TITLE.

`This title may be cited as the `Supporting Drug and Violence Prevention and Education for Students and Communities Act of 2000'.

`SEC. 4002. FINDINGS.

`Congress finds as follows:

`(1) Students need drug-free and safe schools and communities in order to maximize their academic performance and their future opportunities.

`(2) Drug use among children ages 12 through 17 doubled from the historic low year of 1992, when 5.3 percent of youth in that age group were current users, as compared to 11.4 percent in 1997. While youth use of some drugs, including hallucinogens, has slightly dropped since 1997, use of other drugs, such as ecstasy, has increased in 1999 (up 1.1 percent in use among 10th graders).

`(3) Drug use by youth increases the likelihood that a child will be delinquent, engage in high-risk sexual activity, not finish high school, and commit theft, violence, and vandalism.

`(4) Drug use among rural youth is higher than that of youth in large urban centers, and these rural youth abuse quite serious drugs, including methamphetamine and cocaine. Many rural communities have few resources for helping youth avoid drug use.

`(5) Drug and violence prevention programs and activities need to include efforts to prevent underage use of tobacco and alcohol, and are more likely to succeed when such efforts are included. Drug and violence prevention research calls for aggressive activities to prevent the use of these gateway drugs.

`(6) Students continue to face physical harm while at school. From 1993 to 1997, between 7 to 8 percent of students in grades 9 through 12 were threatened or injured with a weapon on school property over a 12-month period. Roughly 12 percent of students in grades 9 through 12 reported being in a physical fight on school property during a 12-month period between 1993 and 1997.

`(7) While schools statistically are one of the safest places for youth, students report an increase in their perception that they risk harm while at school, perhaps partly due to the recent instances of extreme violence in schools.

`(8) Drug and violence prevention programs that incorporate `protective factors' tend to reduce drug use and violence. Protective factors include a student feeling connected to parents and family, practicing religion and prayer, having parents present at key times of the day, having high educational expectations, feeling part of the school, and having high self-esteem.

`(9) After school programs, because they keep youth in supervised settings, prevent drug use and violence at least during the time of those programs. Research indicates that the juvenile crime rate triples between the hours of 3 p.m. and 6 p.m., and children in particular are most likely to be victims of a violent crime committed by a non-family member between 2 p.m. and 6 p.m.

`SEC. 4003. PURPOSE.

`The purpose of this title is to support programs that prevent the use of drugs, that prevent violence, that involve parents and communities, and that are coordinated with related Federal, State, and community efforts and resources to foster a learning environment in which students increase their academic achievement, through the provision of Federal assistance to--

`(1) States for grants to local educational agencies and consortia of such agencies to establish, operate, and improve local programs of drug and violence prevention in elementary and secondary schools;

`(2) States for grants to, and contracts with, community-based organizations and other public and private nonprofit and for-profit agencies and organizations for programs of drug and violence prevention and education;

`(3) States for grants to local educational agencies, community-based organizations, and private nonprofit and for-profit organizations for before and after school programs for youth and continuing educational opportunities for individuals of all ages; and

`(4) public and private nonprofit and for-profit organizations to conduct training, demonstrations, and evaluations, and to provide supplementary services for drug and violence prevention.

`SEC. 4004. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated--

`(1) $1,033,377,000 for fiscal year 2000, and such sums as may be necessary for each of the five succeeding fiscal years, for State grants under part A; and

`(2) $20,000,000 for fiscal year 2000, and for each of the five succeeding fiscal years, for national programs under part B.--

`PART A--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

`SEC. 4111. RESERVATIONS AND ALLOTMENTS.

`(a) RESERVATIONS- From the amount made available under section 4004(1) to carry out this part for each fiscal year, the Secretary--

`(1) shall reserve 0.5 percent (or $5,166,885, whichever is greater) of such amount for grants under this subpart to Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands, to be allotted in accordance with the Secretary's determination of their respective needs; and

`(2) shall reserve 0.5 (or $5,166,885, whichever is greater) of such amount for the Secretary of the Interior to carry out programs under this part for Indian youth.

`(b) STATE ALLOTMENTS-

`(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall, for each fiscal year, allocate among the States--

`(A) one-half of the remainder not reserved under subsection (a) according to the ratio between the school-aged population of each State and the school-aged population of all the States; and

`(B) one-half of such remainder according to the ratio between the amount each State received under part A of title I for the preceding year and the sum of such amounts received by all the States.

`(2) MINIMUM- For any fiscal year, no State shall be allotted under this subsection an amount that is less than one-half of 1 percent of the total amount allotted to all the States under this subsection.

`(c) REALLOTMENT OF UNUSED FUNDS- If any State does not apply for an allotment under this subpart for a fiscal year, the Secretary shall reallot the amount of the State's allotment to the remaining States in accordance with this section.

`SEC. 4112. WITHIN-STATE DISTRIBUTION.

`(a) GOVERNOR'S ALLOCATION-

`(1) IN GENERAL- The chief executive officer of a State may reserve not more than 10 percent of the total amount allocated to a State under section 4111 for each fiscal year for drug and violence prevention programs and activities in accordance with section 4115.

`(2) LAW ENFORCEMENT EDUCATION PARTNERSHIPS- The chief executive officer of a State shall use not less than 10 percent and not more than 20 percent of the amount described in paragraph (1) for each fiscal year for law enforcement education partnerships in accordance with section 4115(b)(3).

`(3) ADMINISTRATIVE COSTS- The chief executive officer of a State may use not more than 3 percent of the amount described in paragraph (1) for the administrative costs incurred in carrying out the duties of such officer under this section.

`(4) GRANT AWARDS- The chief executive officer of a State shall use the remainder of funds not reserved under paragraphs (2) and (3) to award competitive grants and contracts for programs or activities that improve comprehensive community-wide prevention efforts or provide direct services to youth at the local level. Such officer shall award grants based on--

`(A) the quality of the activity or program proposed; and

`(B) how closely the program or activity is aligned with the appropriate principles of effectiveness described in section 4115(a).

`(b) STATE FUNDS-

`(1) IN GENERAL- An amount equal to the total amount allotted to a State under section 4111, less the amount reserved under subsection (a) and paragraphs (2) and (3) of this subsection, for each fiscal year shall be made available to the State and its local educational agencies for drug and violence prevention activities in accordance with section 4115.

`(2) STATE ACTIVITIES- A State shall use not more than 2 percent of the amount available under paragraph (1) for State activities described in section 4115(c).

`(3) STATE ADMINISTRATION- A State may use not more than 2 percent of the amount made available under paragraph (1) for the administrative costs of carrying out its responsibilities under this part.

`(c) DISTRIBUTION TO LOCAL EDUCATIONAL AGENCY-

`(1) IN GENERAL- (A) A State shall distribute not less than 96 percent of the amount made available under subsection (b) for each fiscal year as follows:

`(i) 70 percent of such amount to local educational agencies, based on the relative enrollments in public and private nonprofit elementary and secondary schools within the boundaries of such agencies.

`(ii) 30 percent of such amount to local educational agencies that the State determines have the greatest need for additional funds to carry out drug and violence prevention programs in accordance with subparagraph (B), a portion of which shall be distributed in accordance with subparagraph (F).

`(B) In awarding funds under clause (ii) of subparagraph (A), a State shall give special consideration to agencies that pursue a comprehensive approach to drug and violence prevention by providing or incorporating mental health services in their programs.

`(C) Of the amount received under paragraph (1), a local educational agency may use not more than 2 percent for the administrative costs of carrying out its responsibilities under this part.

`(D) In determining which local educational agencies have the greatest need for additional funds, a State shall consider objective data such as--

`(i) high rates of drug use among youth;

`(ii) high rates of victimization of youth by violence and crime;

`(iii) high rates of arrests and convictions of youth for violent or drug related crime;

`(iv) high incidence of illegal gang activity;

`(v) high rates of referrals of youths to drug abuse treatment and rehabilitation programs;

`(vi) high rates of referrals of youths to juvenile court;

`(vii) high rates of expulsions and suspensions of students from schools;

`(viii) high rates of reported cases of child abuse and domestic violence;

`(ix) local fiscal capacity to fund drug and violence prevention activities and programs without Federal assistance;

`(x) high rates of drug related emergencies or deaths;

`(xi) high degree of geographically rural isolation; and

`(xii) local fiscal capacity to fund before and after school activities for youth without Federal assistance.

`(E) The distribution of funds shall reflect the geographical diversity of local educational agencies in the State.

`(F) Of the amount made available for distribution under paragraph (2)(A)(ii), a State shall distribute 30 percent of such amount for grants to local educational agencies in need of assistance to plan, implement, or expand alternative education programs (which may include in-school suspensions, Saturday school, alternative schools within schools, charter schools with a focus on alternative programs and services, and alternative schools) giving priority to programs or activities that serve students who have been suspended or expelled from school. Such programs and services may include--

`(i) programs and activities designed to reduce the incidence of suspensions and expulsions;

`(ii) mental health services;

`(iii) behavior management, social skills instruction and other programs and activities designed to increase a student's sense of community, such as service learning and character education;

`(iv) tutoring, mentoring, and other activities to improve academic performance;

`(v) support services to help a student transition back into regular school programs; and

`(vi) parental and family involvement activities.

`(2) RETURN OF FUNDS TO STATE; REALLOCATION-

`(A) RETURN- Except as provided in subparagraph (B), upon the expiration of the 1-year period beginning on the date that a local educational agency receives its allocation--

`(i) such agency shall return to the State any funds from such allocation that remain unobligated; and

`(ii) the State shall reallocate any such amount to local educational agencies that have plans for using such amount for programs or activities on a timely basis.

`(B) CARRYOVER- In any fiscal year, a local educational agency, may retain for obligation in the succeeding fiscal year--

`(i) an amount equal to not more than 25 percent of the allocation it received under this title for such fiscal year; or

`(ii) upon a demonstration of good cause by such agency or consortium and approval by the State, an amount that exceeds 25 percent of such allocation.

`SEC. 4113. STATE APPLICATION.

`(a) IN GENERAL- In order to receive an allotment under section 4111 for any fiscal year, a State shall submit to the Secretary, at such time as the Secretary may require, an application that--

`(1) describes how funds under this subpart will be coordinated with programs under this Act, and other drug and violence prevention programs, as appropriate, in accordance with the provisions of section 14306;

`(2) contains the results of the State's needs assessment for drug and violence prevention programs, which shall be based on the results of on-going State evaluation activities, including data on the incidence and prevalence of drug use and violence by youth in schools and communities;

`(3) contains assurances that the sections of the application concerning the funds provided to the chief executive officer and the State were developed in consultation and coordination with appropriate State officials and others, including the chief executive officer, the chief State school officer, the head of the State alcohol and drug abuse agency, the heads of the State health and mental health agencies, the head of the State criminal justice planning agency, the head of the State child welfare agency, the head of the State board of education, or their designees, and representatives of parents, students, and community-based organizations, including religious organizations;

`(4) contains an assurance that the State will cooperate with, and assist, the Secretary in conducting data collection as required by section 4116;

`(5) contains an assurance that the chief executive officer of the State and the chief State school officer will coordinate program administration and activities under this part and will coordinate with drug and violence prevention efforts established by other State agencies; and

`(6) contains an assurance that the local educational agencies in the State will comply with the provisions of section 14503 pertaining to the participation of private school children and teachers in the programs and activities under this part.

`(b) GOVERNOR'S APPLICATION- An application submitted under this section shall also contain a comprehensive plan for the use of funds under section 4115(b) by the chief executive officer that includes--

`(1) a statement of the chief executive officer's performance measures for drug and violence prevention. The chief executive officer's performance measures shall consist of--

`(A) performance indicators for drug and violence prevention, and;

`(B) levels of performance for each performance indicator;

`(2) a description of the procedures to be used for assessing and publicly reporting progress toward meeting such performance measures;

`(3) a description of how the chief executive officer will coordinate such officer's activities under this part with the chief State school officer and with State agencies and organizations involved with drug and violence prevention efforts;

`(4) a description of how funds allocated under section 4112(a) will be used--

`(A) to enhance the efforts of other State agencies and local educational agencies with regard to the provision of school-based drug and violence prevention efforts and services; and

`(B) to serve populations not normally served by the State educational agency, such as school dropouts and youth in detention centers;

`(5) a description of how the chief executive officer will award funds under section 4115(b) in order to support activities and programs that meet the principles of effectiveness and a plan for monitoring the performance of, and providing technical assistance to, recipients of such funds;

`(6) a description of the special outreach activities that will be carried out to maximize the participation of community-based organizations, including religious organizations;

`(7) a description of how funds will be used to support community-wide comprehensive drug and violence prevention planning, implementation strategies, and programs, including before and after school and continuing education programs; and

`(8) an assurance that drug prevention programs supported under this part convey a clear and consistent message that the use of drugs is wrong and harmful.

`(c) STATE APPLICATION- The State shall include in its application a comprehensive plan for the use of funds under section 4115(c), including the following:

`(1) A statement of the State's performance measures for drug and violence prevention that shall be developed in consultation between the State and local officials and that consist of--

`(A) performance indicators for drug and violence prevention; and

`(B) levels of performance for each performance indicator.

`(2) A description of the procedures the State will use for assessing and publicly reporting progress toward meeting those performance measures;

`(3) A plan for monitoring the implementation of, and providing technical assistance regarding, the drug and violence prevention programs conducted by local educational agencies in accordance with section 4115(d); and

`(4) A description of how the State educational agency will coordinate such agency's activities under this part with the chief executive officer's drug and violence prevention programs and with the drug and violence prevention efforts of other State agencies.

`(d) GENERAL APPROVAL- A State application submitted to the Secretary under this title shall be deemed to be approved by the Secretary unless the Secretary makes a written determination, prior to the expiration of the 90-day period beginning on the date that the Secretary receives the application, that the application is in violation of this title.

`(e) DISAPPROVAL- The Secretary shall not finally disapprove a State application, except after giving the State notice and opportunity for a hearing.

`SEC. 4114. LOCAL EDUCATIONAL AGENCY APPLICATION.

`(a) IN GENERAL- In order to be eligible to receive a distribution under section 4112(c) for any fiscal year, a local educational agency shall submit, at such time as the State requires, an application to the State. Such an application shall be amended, as necessary, to reflect changes in the activities and programs of the local educational agency.

`(b) DEVELOPMENT-

`(1) CONSULTATION- A local educational agency shall develop its application through timely and meaningful consultation with a local or substate regional advisory council, as described in subsection (c).

`(2) DESIGN AND DEVELOPMENT- To ensure timely and meaningful consultation, a local educational agency shall, in accordance with subsection (c), establish and consult with a local or substate regional advisory council on issues regarding the design and development of the program or activity, including efforts to meet the principles of effectiveness described in section 4115(a). Such meetings with the advisory council shall occur beginning at the initial stages of design and development of the program or activity.

`(c) ADVISORY COUNCIL-

`(1) REPRESENTATION- In establishing a local or substate regional advisory council, the local educational agency shall include, to the extent possible, representatives of local government, business, parents, students, teachers, pupil services personnel, appropriate State agencies, private schools, the medical profession, law enforcement, community-based organizations, private for-profit organizations, religious organizations, and other groups with interest and expertise in drug and violence prevention, including before and after school and continuing education programs.

`(2) DUTIES- In addition to assisting the local educational agency to develop an application under this section, the advisory council shall, on an ongoing basis--

`(A) disseminate information about drug and violence prevention programs and activities conducted within the boundaries of the local educational agency;

`(B) advise the local educational agency regarding--

`(i) how best to coordinate such agency's activities under this part with other related drug and violence prevention strategies, programs, and activities; and

`(ii) the agencies that administer such programs, projects, and activities; and

`(C) review program and activity evaluations and other relevant material and make recommendations to the local educational agency on how to improve such agency's drug and violence prevention programs and activities.

`(d) CONTENTS OF APPLICATIONS- An application submitted by a local educational agency under this section shall contain--

`(1) a detailed explanation of the local educational agency's comprehensive plan for drug and violence prevention, which shall include a description of--

`(A) how the plan will be coordinated with programs under this Act, and other Acts dealing with drug and violence prevention, as appropriate, in accordance with the provisions of section 14306;

`(B) the local educational agency's performance measures for drug and violence prevention, that shall consist of--

`(i) performance indicators for drug and violence prevention; and

`(ii) levels of performance for each performance indicator;

`(C) how such agency will assess and publicly report progress toward attaining its performance measures;

`(D) the drug and violence prevention activity or program (including before and after school programs and continuing education activities) to be funded, including how the activity or program will meet the principles of effectiveness described in section 4115(a), and the means of evaluating such activity or program;

`(E) how the local educational agency will coordinate such agency's activities and programs with community-wide efforts to achieve such agency's performance measures for drug and violence prevention;

`(F) how the local educational agency will coordinate such agency's activities and programs with other Federal, State, and local programs for youth drug and violence prevention, including before and after school programs and continuing education activities;

`(2) a certification that a meaningful assessment has been conducted to determine community needs, available resources in the private sector, and capacity in the private sector, the findings of such assessments, and a description of the mechanisms used to provide effective notice to the community of an intention to submit an application under this title;

`(3) an assurance that drug prevention programs supported under this part convey a clear and consistent message that the use of drugs is wrong and harmful; and

`(4) such other information and assurances as the State may reasonably require.

`(e) PEER REVIEW-

`(1) IN GENERAL- In reviewing local applications under this section, a State shall use a peer review process or other methods of assuring the quality of such applications.

`(2) CONSIDERATIONS- (A) In determining whether to approve the application of a local educational agency under this section, a State shall consider the quality of the local educational agency's comprehensive plan, including the degree to which the principles of effectiveness described in section 4115(a) are met.

`(B) GENERAL APPROVAL- A local educational agency's application submitted to the State under this title shall be deemed to be approved by the State unless the State makes a written determination, prior to the expiration of the 90-day period beginning on the date that the State receives the application, that the application is in violation of this title.

`(C) DISAPPROVAL- The State shall not finally disapprove a local educational agency application, except after giving such agency notice and opportunity for a hearing.

`SEC. 4115. AUTHORIZED ACTIVITIES.

`(a) PRINCIPLES OF EFFECTIVENESS-

`(1) IN GENERAL- For a program or activity developed pursuant to this part to meet the principles of effectiveness, such program or activity shall--

`(A) be based upon an assessment of objective data--

`(i) regarding the drug and violence problems in the elementary and secondary schools and communities to be served, including an objective analysis of the current conditions and consequences regarding drug use and violence, including delinquency and serious discipline problems, among students who attend such schools (including private school students who participate in the drug and violence prevention program) that is based on ongoing local assessment or evaluation activities;

`(ii) regarding the current drug and violence prevention strategies, programs, and activities, including before and after school programs and continuing education activities, in such schools and communities; and

`(iii) regarding student academic achievement and current programs and activities to increase student academic achievement;

`(B) be based upon an established set of performance measures aimed at ensuring that all elementary and secondary schools and communities served by the local educational agency have a drug-free, safe, and orderly learning environment; and

`(C) be based upon scientifically based research that provides evidence that the program to be used will prevent or reduce drug use and violence, including delinquency and serious discipline problems among youth.

`(2) PERIODIC EVALUATION- The program or activity shall undergo a periodic evaluation to assess its progress toward achieving its goals and objectives. The results shall be used to refine, improve, and strengthen the program, and to refine the performance measures. The results shall also be made available to the public upon request, with public notice of such availability provided.

`(3) WAIVER- A local educational agency or community-based organization may apply to the State for a waiver of the requirement of paragraph (1)(C) to allow innovative activities or programs that demonstrate substantial likelihood of success in drug and violence prevention or in beneficially serving the community.

`(b) GOVERNORS' ACTIVITIES-

`(1) IN GENERAL- A chief executive officer of a State shall use funds made available under section 4112(a) for competitive grants or contracts with local educational agencies, parent groups, community-based organizations, religious organizations, and other public entities and private organizations, including for-profit organizations, and consortia thereof, including community anti-drug coalitions--

`(A) to support drug and violence prevention strategies, programs, and activities, including before and after school activities, continuing education programs, and alternative education activities, that provide comprehensive community-wide prevention efforts or direct services to prevent drug use and violence in schools and communities; and

`(B) to reward drug and violence prevention programs of exceptional quality.

`(2) CONSIDERATIONS- In making such grants and contracts, a chief executive officer of a State--

`(A) shall require that any program or activity meet the principles of effectiveness;

`(B) shall give priority to programs and activities for populations that need special services or additional resources (such as youth in juvenile detention facilities, runaway or homeless children and youth, pregnant and parenting teenagers, and school dropouts); and

`(C) may require partnerships between local educational agencies and other groups or organizations, including religious organizations, in order to receive funds.

`(3) REQUIRED ACTIVITIES- A chief executive officer of a State shall use funds made available under section 4112(a)(2) to award grants to State, county or local law enforcement agencies (including district attorneys) in consortium with local educational agencies or community-based agencies for the purposes of carrying out drug and violence prevention activities, such as--

`(A) programs that provide classroom instruction by uniformed law enforcement officials designed to teach students to recognize and resist pressures to experiment with drugs and that meet the principles of effectiveness;

`(B) programs in which district attorneys provide classroom instruction in the law and legal system, which emphasizes interactive learning techniques such as mock trial competitions; or

`(C) partnerships between law enforcement and child guidance professionals, which may include mental health providers.

`(c) STATE ACTIVITIES- A State shall use the funds described in section 4112(b)(2) to plan, develop, and implement capacity building, technical assistance, accountability, program improvement services, and coordination activities for local educational agencies that are designed to support the implementation of drug and violence prevention programs, including before and after school programs and continuing education activities. A State may carry out these activities directly, or through grants and contracts.

`(d) LOCAL EDUCATIONAL AGENCY ACTIVITIES-

`(1) PROGRAM REQUIREMENTS- A local educational agency shall use funds described in section 4112(c) to develop, implement, and evaluate a comprehensive drug and violence prevention program, which is coordinated with other school and community-based services and programs, that shall--

`(A) be consistent with the principles of effectiveness described in subsection (a);

`(B) be designed to--

`(i) prevent or reduce drug use or violence, including through the prevention of delinquency, serious discipline problems and poor academic performance; and

`(ii) create a well disciplined environment conducive to learning, which includes consultation between teachers and school personnel to identify early warning signs of drug use and violence and to provide behavioral interventions as part of classroom management efforts;

`(C) include activities to promote the involvement of parents in the activity or program, to promote coordination with community groups and coalitions, including religious organizations, and government agencies, and to distribute information about the local educational agency's needs, goals, and programs under this part; and

`(D) address before and after school activities and continuing education needs of youth and adults in the community.

`(2) AUTHORIZED ACTIVITIES- Each local educational agency, or consortium of such agencies, that receives a subgrant under section 4112(c) may use such funds to carry out youth drug and violence prevention activities, including before and after school programs and continuing education activities, in the elementary and secondary schools and communities, such as--

`(A) developmentally appropriate drug and violence prevention programs that serve students in both elementary and secondary school and that incorporate a variety of prevention strategies and activities, which may include--

`(i) teaching students that most people do not use drugs;

`(ii) teaching students to recognize social and peer pressure to use drugs;

`(iii) teaching students skills for resisting drug use;

`(iv) engaging students in the learning process;

`(v) using developmentally appropriate teaching materials;

`(vi) incorporating activities in secondary schools that reinforce prevention activities implemented in elementary schools; and

`(vii) involving families and communities in setting clear expectations against drug use and enforcing consequences for drug use;

`(B) before and after school programs and continuing education opportunities for individuals of all ages, such as--

`(i) integrated educational, recreational, or cultural programs, including curriculum based entrepreneurial education programs, remedial education programs, and extended learning programs;

`(ii) literacy education programs (including family literacy services);

`(iii) youth science education programs;

`(iv) consumer, economic, and personal finance education programs;

`(v) senior citizen and adult education programs (including programs for individuals who leave school before graduating from secondary school, regardless of the age of such individual);

`(vi) parenting skills education programs;

`(vii) educational children's day care services;

`(viii) summer and weekend school programs in conjunction with recreation programs;

`(ix) expanded library service hours to serve community needs;

`(x) distance learning, technology, and Internet education programs for individuals of all ages;

`(xi) educational services for individuals with disabilities;

`(xii) peer resistance education; and

`(xiii) arts and music education;

`(C) training and development of school personnel in youth drug and violence prevention, including training in early identification, intervention, and prevention of threatening behavior;

`(D) parental involvement and training in youth drug and violence prevention, including early identification of potential youth violence;

`(E) community involvement activities pertaining to youth drug and violence prevention;

`(F) law enforcement and security activities, including the acquisition and installation of metal detectors and the hiring and training of security personnel, that are related to youth drug and violence prevention;

`(G) comprehensive school security assessments;

`(H) creating and maintaining safe zones of passage to and from school to prevent violence and drug use and trafficking;

`(I) counseling, mentoring, and referral services, and other student assistance practices and programs, including training of teachers by school-based mental health service providers in appropriate identification and intervention techniques for disciplining and teaching students at risk of violent behavior;

`(J) services and activities that reduce the need for suspension and expulsion in maintaining classroom order and school discipline;

`(K) establishing and implementing a system for transferring suspension and expulsion records by a local educational agency to any public or private elementary or secondary school;

`(L) allowing students attending unsafe public elementary and secondary schools, as determined by the State, to attend a safe public school, including a public charter school, in the same State as the unsafe public elementary and secondary school, and allowing payment of reasonable transportation costs for such students;

`(M) establishing or enhancing programs or initiatives that improve academic achievement;

`(N) the development and implementation of character education and training programs that reflect the values of parents, teachers, and local communities, and incorporate elements of good character, including honesty, citizenship, courage, justice, respect, personal responsibility, and trustworthiness;

`(O) testing students for illegal drug use or conducting student locker searches for illegal drugs or drug paraphernalia;

`(P) establishing of school uniform policies;

`(Q) emergency intervention services following traumatic crisis events, such as a shooting, major accident, or a drug-related incident, that has disrupted the learning environment;

`(R) establishing and maintaining a school violence hotline;

`(S) conducting background checks of school personnel;

`(T) expanding and improving school-based mental health services, including early identification of drug use and violence, assessment, and direct individual or group counseling services provided to students, parents, and school personnel by qualified school based mental health services personnel;

`(U) hiring and training coordinators of drug and violence prevention programs serving students in grades six through nine;

`(V) mentoring and tutoring services for students provided by senior citizen volunteers;

`(W) alternative education programs or services for students who have been expelled or suspended from the regular educational settings, including programs or services to assist students to reenter the regular education setting upon return from treatment or alternative education programs; and

`(X) partnerships between the courts and the schools that address alternative education programs.

`(Y) the evaluation of any of the activities authorized under this subsection.

`(3) SCHOOL PROTECTION--Each local educational agency, or consortium of such agencies, that receives a subgrant under section 4112(c) and has reported expulsions under part C during the past 3 years, may develop a plan with local law enforcement agencies to protect students and employees of public schools against gun violence that may include, but not be limited to, promoting the benefits of child safety locks for firearms.

`(4) STUDY- Each local educational agency, or consortium of such agencies, that receives a subgrant under section 4112(c) and has a high rate of expulsions, as reported under part C, may use a portion of its subgrant to study the effectiveness of promoting the benefits of child safety locks for firearms with the purpose of reducing the danger of firearms harming public school students and employees.

`SEC. 4116. EVALUATION AND REPORTING.

`(a) DATA COLLECTION-

`(1) IN GENERAL- The National Center for Education Statistics shall collect data for the following purposes:

`(A) To determine the frequency, seriousness, and incidence of drug use by youth in schools and communities in the States using, if appropriate, data submitted by the States pursuant to subsection (b).

`(B) To determine the frequency, degree of harm, and morbidity of violent incidents, particularly firearm-related injuries and fatalities, by youth in schools and communities in the States, including information with respect to--

`(i) the relationship between victims and perpetrators;

`(ii) demographic characteristics of victims and perpetrators; and

`(iii) type and characteristic of the firearm used in the shooting.

`(2) REPORT- The Secretary shall submit to the Congress a report on the data collected under this subsection.

`(b) STATE REPORT-

`(1) IN GENERAL- Not later than October 1, 2003, and every third year thereafter, the chief executive officer of a State, in consultation with the State educational agency, shall submit to the Secretary a report on the implementation and outcomes of State and local programs under section 4115.

`(2) SPECIAL RULE- The report required by this subsection shall be--

`(A) based on the State's ongoing evaluation activities, and shall include data on the prevalence of drug use and violence by youth in schools and communities; and

`(B) made available to the public upon request, with public notice of such availability provided.

`(c) LOCAL EDUCATIONAL AGENCY REPORT- Each local educational agency receiving funds under this part shall submit to the State such information, and at such intervals, as the State reasonably requires to complete the State report required by subsection (b), including information on the prevalence of drug use and violence by youth in the schools and the community and the progress of the local educational agency toward meeting its performance measures. The report shall be made available to the public upon request, with public notice of such availability provided.

`PART B--NATIONAL PROGRAMS

`SEC. 4121. FEDERAL ACTIVITIES.

`(a) PROGRAM AUTHORIZED-

`(1) IN GENERAL- From funds made available to carry out this part under section 4004(2), the Secretary, in consultation with the Secretary of Health and Human Services, the Director of the Office of National Drug Control Policy, the Chair of the Ounce of Prevention Council, and the Attorney General, shall carry out programs to prevent the illegal use of drugs and violence among, and promote safety and discipline for, students in elementary and secondary schools based on the needs reported by States and local educational agencies.

`(2) COORDINATION- The Secretary shall carry out programs described in paragraph (1) directly, or through grants, contracts, or cooperative agreements with public and private nonprofit and for-profit organizations, including religious organizations, and individuals, or through agreements with other Federal agencies, and shall coordinate such programs with other appropriate Federal activities.

`(3) PROGRAMS- Programs described in paragraph (1) may include--

`(A) demonstrations and rigorous scientifically based evaluations of innovative approaches to drug and violence prevention based on needs reported by State and local educational agencies;

`(B) the provision of information on drug abuse education and prevention to the Secretary of Health and Human Services for dissemination by the clearinghouse for alcohol and drug abuse information established under section 501(d)(16) of the Public Health Service Act; and

`(C) continuing technical assistance to chief executive officers, State agencies, and local educational agencies to build capacity to develop and implement high-quality, effective programs consistent with the principles of effectiveness.

`(b) PEER REVIEW- The Secretary shall use a peer review process in reviewing applications for funds under this section.

`SEC. 4122. NATIONAL CLEARINGHOUSE FOR AFTER SCHOOL PROGRAMS.

`From funds made available to carry this part under section 4004(2), the Secretary, in consultation with the Secretary of Health and Human Services, through the Commissioner on Children, Youth, and Families, the Attorney General, and representatives with relevant experience from State child care agencies and child care resource and referral centers, shall establish a national clearinghouse to provide technical assistance regarding establishment and operation of after school programs and models of after school programs. The national clearinghouse shall be available to the public, including via Internet, and shall serve as a resource for child care organizations, communities, and individuals seeking to improve the quality and availability of after school programs.

`PART C--GUN POSSESSION

`SEC. 4131. GUN-FREE SCHOOL REQUIREMENTS.

`(a) REQUIREMENTS-

`(1) STATE LAW- Each State receiving funds under this Act shall have in effect a State law requiring each local educational agency--

`(A) to expel from school for a period of not less than one year a student who is determined to have brought a firearm to a school under the jurisdiction of a local educational agency in that State, except that such State law shall allow the chief administering officer of such local educational agency to modify such expulsion requirement for a student on a case-by-case basis; and

`(B) to have a policy requiring each elementary and secondary school to refer to the criminal justice or juvenile delinquency system any student who brings a firearm to school.

`(2) CONSTRUCTION- Nothing in this part shall be construed to prevent a State from allowing a local educational agency that has expelled a student from such a student's regular school setting from providing educational services to such student in an alternative setting.

`(b) SPECIAL RULE- The provisions of this section shall be construed in a manner consistent with the Individuals with Disabilities Education Act.

`(c) APPLICATION TO STATE- Each local educational agency requesting assistance from a State that is provided from funds made available to the State under this Act shall provide to the State, in the application requesting such assistance--

`(1) an assurance that such local educational agency is in compliance with the State law required by subsection (a); and

`(2) a description of the circumstances surrounding any expulsions imposed under the State law required by subsection (b), including--

`(A) the name of the school concerned;

`(B) the number of students expelled from such school, including the number of children with disabilities expelled from such school; and

`(C) the type of firearm concerned.

`(d) REPORTING- Each State shall report the information described in subsection (b) to the Secretary on an annual basis.

`(e) DEFINITIONS- For the purpose of this part--

`(1) the term `firearm' has the same meaning given to such term under section 921(a)(3) of title 18, United States Code; and

`(2) the term `school' does not include a home school, regardless of whether a home school is treated as a private school under State law.

`PART D--GENERAL PROVISIONS

`SEC. 4141. DEFINITIONS.

`For the purposes of this title, the following terms have the following meanings:

`(1) COMMUNITY-BASED ORGANIZATION- The term `community-based organization' means a private nonprofit organization that is representative of a community or significant segments of a community and that provides educational or related services to individuals in the community.

`(2) CONTROLLED SUBSTANCE- The term `controlled substance' means a drug or other substance identified under Schedule I, II, III, IV, or V in section 202(c) of the Controlled Substances Act (21 U.S.C. 812(c)).

`(3) DRUG- The term `drug' includes controlled substances; the illegal use of alcohol and tobacco; and the harmful, abusive, or addictive use of substances, including inhalants and anabolic steroids.

`(4) DRUG AND VIOLENCE PREVENTION- The term `drug and violence prevention' means--

`(A) with respect to drugs, prevention, early intervention, rehabilitation referral, or education related to the illegal use of drugs;

`(B) with respect to violence, the promotion of school safety, such that students and school personnel are free from violent and disruptive acts, on school premises, going to and from school, and at school-sponsored activities, through the creation and maintenance of a school environment that is free of weapons and fosters individual responsibility and respect for the rights of others; and

`(C) with respect to before and after school programs and continuing education activities, educational activities for individuals of all ages in the community that operate with a goal of drug and violence prevention in the school or community.

`(5) LOCAL EDUCATIONAL AGENCY- The term `local educational agency' includes educational service agencies and consortia of such agencies.

`(6) NONPROFIT- The term `nonprofit,' as applied to a school, agency, organization, or institution means a school, agency, organization, or institution owned and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

`(7) SCHOOL-AGED POPULATION- The term `school-aged population' means the population aged 5 through 17, as determined by the Secretary on the basis of the most recent satisfactory data available from the Department of Commerce.

`(8) SCHOOL BASED MENTAL HEALTH SERVICES PROVIDER- The term `school based mental health services provider' includes a State licensed or State certified school counselor, school psychologist, school social worker, or other State licensed or certified mental health professional qualified under State law to provide such services to children and adolescents.

`(9) SCHOOL PERSONNEL- The term `school personnel' includes teachers, administrators, guidance counselors, social workers, psychologists, nurses, librarians, and other support staff who are employed by a school or who perform services for the school on a contractual basis.

`(10) SCIENTIFICALLY BASED RESEARCH- The term `scientifically based research'--

`(A) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to youth drug and violence prevention activities and programs; and

`(B) shall include research that--

`(i) employs systemic, 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.

`(11) STATE- The term `State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

`SEC. 4142. MESSAGE AND MATERIALS.

`(a) `WRONG AND HARMFUL' MESSAGE- Drug prevention programs supported under this title shall convey a clear and consistent message that the use of drugs is wrong and harmful.

`(b) CURRICULUM- The Secretary shall not prescribe the use of specific curricula for programs supported under this part.

`SEC. 4143. REQUIRED POLICY.

`Each State educational agency and local educational agency that receives funds under this title shall have a policy that prohibits cigarette vending machines, and the illegal possession or use of drugs and alcohol, in any form, at any time, and by any person, in school buildings, on school grounds, or at any school-sponsored event.

`SEC. 4144. PARENTAL CONSENT.

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

`SEC. 4145. PROHIBITED USES OF FUNDS.

`No funds under this title may be used for--

`(1) construction (except for minor remodeling needed to accomplish the purposes of this part);

`(2) medical services, drug treatment or rehabilitation, except for pupil services or referral to treatment for students who are victims of, or witnesses to, use of drugs or crime; and

`(3) activities or programs that discriminate against or denigrate the religious or moral beliefs of students who participate in such activities or programs or of the parents or legal guardians of such students.

`SEC. 4146. QUALITY RATING.

`(a) IN GENERAL- The chief executive officer of each State, or in the case of a State in which the constitution or law of such State designates another individual, entity, or agency in the State to be responsible for education activities, such individual, entity, or agency is authorized and encouraged--

`(1) to establish a standard of quality for drug and violence prevention programs implemented in public elementary and secondary schools in the State in accordance with subsection (b); and

`(2) to identify and designate, upon application by a public elementary or secondary school, any such school that achieves such standard as a quality program school.

`(b) CRITERIA- The standard referred to in subsection (a) shall address, at a minimum--

`(1) a comparison of the rate of illegal use of drugs and of violent occurrences by students enrolled in the school over a period of time to be determined by the chief executive officer of the State or the individual, entity, or agency described in subsection (a), as the case may be;

`(2) the rate of suspensions or expulsions of students enrolled in the school for drug and violence offenses;

`(3) the effectiveness of the drug and violence prevention program as proven by scientifically based research;

`(4) the involvement of parents and community members in the design of the drug and violence prevention program; and

`(5) the extent of review of existing community drug and violence prevention programs before implementation of the public school program.

`(c) REQUEST FOR QUALITY PROGRAM SCHOOL DESIGNATION- A school that wishes to receive a quality program school designation shall submit a request and documentation of compliance with this section to the chief executive officer of the State or the individual, entity, or agency described in subsection (a), as the case may be.

`(d) PUBLIC NOTIFICATION- Not less than once a year, the chief executive officer of each State or the individual, entity, or agency described in subsection (a), as the case may be, shall make available to the public a list of the names of each public school in the State that has received a quality program school designation in accordance with this section.

`SEC. 4147. CONTINUATION AWARDS.

`From funds made available under section 4004(2), the Secretary is authorized to continue funding multi-year grants awarded prior to fiscal year 2001 under part I of title X, as such part was in effect on the day preceding the date of the enactment of the Education OPTIONS Act, or the Middle School Coordinator Initiative (as described in title III of the Department of Education Act, 2000, (as enacted into law by section 1004(a)(4) of Public Law 106-113) and prior appropriations Acts, prior to the date of the enactment of the Education OPTIONS Act for the duration of the original grant period.

`SEC. 4148. GENERAL ACCOUNTING OFFICE REPORT.

`Not later than 1 year after the date of the enactment of the Education OPTIONS Act, the General Accounting Office shall transmit to Congress a report containing the following:

`(1) For each State, a description of the types of after school programs that are available for students in kindergarten through grade 12, including programs sponsored by the Boys and Girls Clubs of America, the Boy Scouts of America, the Girl Scouts of America, YMCA's, private nonprofit and for-profit organizations, and athletic and other programs operated by public schools and other State and local agencies.

`(2) For 15 communities selected to represent a variety of regional, population, and demographic profiles, a detailed analysis of the after school programs that are available for students in kindergarten through grade 12, including programs sponsored by the Boys and Girls Clubs of America, the Boy Scouts of America, the Girl Scouts of America, YMCA's, mentoring programs, athletic programs, and programs operated by public schools, churches, day care centers, parks, recreation centers, family day care, community organizations, law enforcement agencies, service providers, and for-profit and non-profit organizations.

`(3) For each State, a description of significant areas of unmet need in the quality and availability of after school programs.

`(4) For each State, a description of barriers which prevent or deter the participation of children in after school programs.

`(5) A list of activities, other than after school programs, in which students in kindergarten through grade 12 participate when not in school, including jobs, volunteer opportunities, and other non-school affiliated programs.

`(6) An analysis of the value of the activities listed pursuant to paragraph (5) relevant to the well-being and educational development of students in kindergarten through grade 12.

`SEC. 4149. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE ORGANIZATIONS.

`(a) IN GENERAL- A State may administer and provide services under the programs and activities described in this title through grants and contracts with charitable, religious, or private organizations.

`(b) RELIGIOUS ORGANIZATIONS- The purpose of this section is to allow States to provide grants to or to contract with religious organizations on the same basis as any other nongovernmental provider without impairing the religious character of such organizations, and without diminishing the religious freedom of beneficiaries of assistance funded under such program.

`(c) NONDISCRIMINATION AGAINST RELIGIOUS ORGANIZATIONS- In the event a State exercises its authority under subsection (a), religious organizations are eligible, on the same basis as any other private organization, as grant recipients or contractors, to provide assistance under any program described in this title if the programs sponsored by such religious organization are implemented in a manner consistent with the Establishment Clause of the United States Constitution. Except as provided in subsection (i), neither the Federal Government, a State, nor a local educational agency receiving funds under this title shall discriminate against an organization that is or applies to be a contractor to provide assistance on the basis that the organization has a religious character.

`(d) RELIGIOUS CHARACTER AND FREEDOM-

`(1) RELIGIOUS ORGANIZATIONS- A religious organization with a grant or contract under this title shall retain its religious character and control over the definition, development, practice, and expression of its religious beliefs.

`(2) ADDITIONAL SAFEGUARDS- Neither the Federal Government, a State, nor local government shall require a religious organization to--

`(A) alter its form of internal governance; or

`(B) remove religious art, icons, scripture, or other symbols;

in order to be eligible to receive a grant or contract under this title.

`(e) EMPLOYMENT PRACTICES- A religious organization's exemption provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-1), regarding employment practices, shall not be affected by its participation in, or receipt of funds from, programs under this title.

`(f) NONDISCRIMINATION AGAINST BENEFICIARIES- Except as otherwise provided in law, a religious organization shall not discriminate against an individual in regard to rendering assistance funded under any program described in this title on the basis of religion, a religious belief, or refusal to actively participate in a religious practice.

`(g) FISCAL ACCOUNTABILITY-

`(1) IN GENERAL- Except as provided in paragraph (2), any religious organization receiving a grant or contracting to provide assistance funded under any program described in this title shall be subject to the same regulations as other recipients or contractors to account in accord with generally accepted auditing principles for the use of such funds provided under such programs.

`(2) LIMITED AUDIT- If such organization segregates Federal funds provided under such programs into separate accounts, then only the financial assistance provided with such funds shall be subject to audit.

`(h) LIMITATIONS ON USE OF FUNDS FOR CERTAIN PURPOSES- No funds provided directly to institutions or organizations to provide services and administer programs under this Act shall be expended for sectarian worship, instruction, or proselytization.

`(i) PREEMPTION- Nothing in this section shall be construed to preempt any provision of a State constitution or State statute that prohibits or restricts the expenditure of State funds in or by religious organizations.

`(j) PROTECTION FOR BENEFICIARIES- A charitable, religious, or private organization shall not subject a participant during a program assisted under this title to sectarian worship, instruction, or proselytization.

`(k) TREATMENT OF RELIGIOUS ORGANIZATIONS- For purposes of any Federal, State, or local law, receipt of financial assistance under this title shall constitute receipt of Federal financial assistance or aid.

`SEC. 4150. DISCIPLINE OF CHILDREN WITH DISABILITIES.

`(a) POSSESSION OF WEAPONS-

`(1) AUTHORITY OF SCHOOL PERSONNEL- Each State receiving funds under this Act shall require each local educational agency to have in effect a policy under which school personnel of such agency may discipline (including expel or suspend) a child with a disability who carries or possesses a weapon to or at a school, on school premises, or to or at a school function, under the jurisdiction of a State or a local educational agency, in the same manner in which such personnel may discipline a child without a disability. Such personnel may modify the disciplinary action on a case-by-case basis.

`(2) RULE OF CONSTRUCTION- Nothing in paragraph (1) shall be construed to prevent a child with a disability who is disciplined pursuant to the authority provided under paragraph (1) from asserting a defense that the carrying or possession of the weapon was unintentional or innocent.

`(3) FREE APPROPRIATE PUBLIC EDUCATION-

`(A) CEASING TO PROVIDE EDUCATION- Notwithstanding any other provision of Federal law, a child expelled or suspended under paragraph (1) shall not be entitled to continue educational services, including a free appropriate public education, required under Federal law during the term of such expulsion or suspension, if the State in which the local educational agency responsible for providing educational services to such child does not require a child without a disability to receive educational services after being expelled or suspended.

`(B) PROVIDING EDUCATION- Notwithstanding subparagraph (A), the local educational agency responsible for providing educational services to a child with a disability who is expelled or suspended under subparagraph (A) may choose to continue to provide educational services or mental health services to such child. If the local educational agency so chooses to continue to provide the services--

`(i) nothing in any other provision of Federal law shall require the local educational agency to provide such child with any particular level of service; and

`(ii) the location where the local educational agency provides the services shall be left to the discretion of the local educational agency.

`(4) DEFINITION- For purposes of this subsection, the term `weapon' has the meaning given the term `dangerous weapon' under paragraph (2) of subsection (g) of section 930 of title 18, United States Code.

`(b) DANGEROUS BEHAVIOR-

`(1) AUTHORITY OF SCHOOL PERSONNEL- Each State receiving funds under this Act shall require each local educational agency to have in effect a policy under which school personnel of such agency may discipline (including expel or suspend) a child with a disability who--

`(A) knowingly possesses or uses illegal drugs or sells or solicits the sale of a controlled substance at a school, on school premises, or at a school function, under the jurisdiction of a State or a local educational agency, or

`(B) commits an aggravated assault or battery (as defined under State or local law) at a school, on school premises, or at a school function, under the jurisdiction of a State or a local educational agency,

in the same manner in which such personnel may discipline a child without a disability, consistent with State and local law. Such personnel may modify the disciplinary action on a case-by-case basis.

`(2) RULE OF CONSTRUCTION- Nothing in paragraph (1) shall be construed to prevent a child with a disability who is disciplined pursuant to the authority provided under paragraph (1)(A) from asserting a defense that the possession or use of the illegal drugs (or sale or solicitation of the controlled substance) was unintentional or innocent.

`(3) FREE APPROPRIATE PUBLIC EDUCATION-

`(A) CEASING TO PROVIDE EDUCATION- Notwithstanding any other provision of Federal law, a child expelled or suspended under paragraph (1) shall not be entitled to continue educational services, including a free appropriate public education, required under Federal law during the term of such expulsion or suspension, if the State in which the local educational agency responsible for providing educational services to such child does not require a child without a disability to receive educational services after being expelled or suspended.

`(B) PROVIDING EDUCATION- Notwithstanding subparagraph (A), the local educational agency responsible for providing educational services to a child with a disability who is expelled or suspended under subparagraph (A) may choose to continue to provide educational services or mental health services to such child. If the local educational agency so chooses to continue to provide the services--

`(i) nothing in any other provision of Federal law shall require the local educational agency to provide such child with any particular level of service; and

`(ii) the location where the local educational agency provides the services shall be left to the discretion of the local educational agency.

`(4) DEFINITIONS- For purposes of this subsection:

`(A) CONTROLLED SUBSTANCE- The term `controlled substance' shall have the same meaning as the term is defined in section 4141.

`(B) ILLEGAL DRUG- The term `illegal drug' means a controlled substance, but does not include such a substance that is legally possessed or used under the supervision of a licensed health-care professional or that is legally possessed or used under any other authority under the Controlled Substances Act or under any other provision of Federal law.'.

SEC. 202. USE OF CERTAIN FUNDS.

If a local educational agency chooses to utilize the authority under section 613(a)(2)(C)(i) of the Individuals with Disabilities Education Act to treat as local funds up to 20 percent of the amount of funds the agency receives under part B of such Act that exceeds the amount it received under that part for the previous fiscal year, then the agency shall use those local funds to provide additional funding for programs under the Elementary and Secondary Education Act of 1965, including, but not limited to, programs that address school safety, teacher quality and professional development, before and after school learning opportunities, educational reform and literacy, or related education programs authorized under Federal, State, or local law.

TITLE III--TECH FOR SUCCESS

SEC. 301. TECH FOR SUCCESS.

Title III of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6801 et seq.) is amended to read as follows:

`TITLE III--TECH FOR SUCCESS

`SEC. 3001. SHORT TITLE.

`This title may be cited as the `Tech for Success Act of 2000'.

`SEC. 3002. PURPOSE.

`The purposes of this title are as follows:

`(1) To provide assistance to states and localities for implementing innovative technology initiatives which lead to increased student academic achievement and which may be evaluated for effectiveness and replicated if successful.

`(2) To encourage the establishment or expansion of initiatives, especially those involving public/private partnerships, designed to increase access to technology, particularly in high need local educational agencies.

`(3) To promote initiatives which provide school administrators and teachers with the capacity to effectively utilize technology in ways which integrate such technology with challenging State content and student performance standards, through such means as high quality professional development programs.

`(4) To support the development of electronic networks and other innovative methods, such as distance learning, of delivering challenging courses and curricula for students who would otherwise not have access to such courses and curricula, especially in isolated regions.

`(5) To support the rigorous evaluation of programs funded under this title, especially the impact of such initiatives on student academic performance, and ensuring timely information on the results of such evaluations are widely accessible through electronic means.

`(6) To support local efforts for the use of technology to promote parent and family involvement in education and communication among parents, teachers and students.

`PART A--TECH FOR SUCCESS GRANT PROGRAM

`Subpart 1--General Provisions

`SEC. 3101. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

`(a) IN GENERAL- There are authorized to be appropriated to carry out this part--

`(1) $731,305,000 for fiscal year 2000; and

`(2) such sums as may be necessary for each of the 5 succeeding fiscal years.

`(b) ALLOCATION OF FUNDS BETWEEN NATIONAL AND STATE AND LOCAL INITIATIVES- Except as provided in subsection (c), the amount of funds made available under subsection (a) shall be allocated as follows:

`(1) Not less than 95 percent shall be made available for State and local technology initiatives pursuant to subpart 2.

`(2) Not more than 5 percent may be made available for activities of the Secretary under subpart 3.

`(c) CONTINUATION OF FUNDING FOR FORMER PROGRAMS-

`(1) IN GENERAL- Using funds made available under subsection (a), the Secretary is authorized to continue funding multiyear grants under this title (as in effect prior to the enactment of the Education OPTIONS Act) which were awarded prior to fiscal year 2001 for the duration of the original grant period.

`(2) REDUCTION IN AMOUNT AVAILABLE- The amount of funds allocated under subsection (b) between State and local technology initiatives and activities of the Secretary shall be reduced by the amount used by the Secretary to continue funding former programs under paragraph (1).

`SEC. 3102. DEFINITIONS.

`For purposes of this part, the following definitions shall apply:

`(1) In this part and part B, the term `distance learning' means the transmission of educational or instructional programming to geographically dispersed individuals and groups via telecommunications.

`(2) The term `eligible local entity' means--

`(A) a high need local educational agency; or

`(B) an eligible local partnership.

`(3) The term `eligible local partnership' means a partnership that includes at least one high need local educational agency and at least one--

`(A) local educational agency that can demonstrate that teachers in schools served by that agency are using technology effectively in their classrooms;

`(B) institution of higher education;

`(C) for-profit business or organization that develops, designs, manufactures, or produces technology products or services, or has substantial expertise in the application of technology;

`(D) public or private non-profit organization with demonstrated experience in the application of educational technology; or

`(E) local educational agency which has the potential to become an exemplary model for wide-scale adoption by other local educational agencies on how to effectively integrate technology and proven research-based teaching practices which result in improvement in classroom instruction in the core academic subject areas, and the preparation of students to meet challenging State content and student performance standards.

`(4) The term `emerging technologies' means the applications that can result from the development of high-speed, broad band telecommunications networks and more powerful computer systems.

`(5) The term `high need local educational agency' means a local educational agency which serves an elementary or secondary school located in an area--

`(A) in which there is a high percentage of individuals from families with incomes below the poverty line, as defined by the Office of Management and Budget and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)); or

`(B) which is identified by the State as an area with--

`(i) limited access to advanced telecommunications services,

`(ii) a high ratio of students to computers within the school, or

`(iii) a high proportion of teachers who are not computer-proficient.

`(6) The term `scientifically based research'--

`(A) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to education technology; and

`(B) shall include research which--

`(i) employs systematic, empirical methods which draw on observation or experiment,

`(ii) involves rigorous data analyses which are adequate to test the stated hypotheses and justify the general conclusions drawn,

`(iii) relies on measurements or observational methods which 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 2--State and Local Technology for Success Grants

`SEC. 3111. DETERMINATION OF AMOUNT OF STATE ALLOTMENT.

`(a) IN GENERAL- Except as otherwise provided in this subpart, each State shall be eligible to receive a grant under this subpart for a fiscal year in an allotment determined as follows:

`(1) 50 percent shall bear the same relationship to the amount made available under section 3101(b)(1) for such year as the amount such state received under part A for title I for such year bears to the amount received for such year under such part by all States.

`(2) 50 percent shall be determined on the basis of the State's relative population of individuals age 5 through 17, as determined by the Secretary on the basis of the most recent satisfactory data.

`(b) RESERVATION OF FUNDS FOR BUREAU OF INDIAN AFFAIRS AND OUTLYING AREAS- Of the amount made available to carry out this subpart under section 3101(b)(1) for a fiscal year--

`(1) the Secretary shall reserve .305 percent (or $2,125,000, whichever is greater) for the Secretary of the Interior for programs under this subpart for schools operated or funded by the Bureau of Indian Affairs; and

`(2) the Secretary shall reserve .305 percent (or $2,125,000, whichever is greater) to provide assistance to the outlying areas.

`(c) MINIMUM ALLOTMENT- The amount of any State's allotment under subsection (a) for any fiscal year may not be less than one-half of one percent of the amount made available under section 3101(b)(1) for such year.

`(d) REALLOTMENT OF UNUSED FUNDS- If any State does not apply for an allotment under this subpart for a fiscal year, the Secretary shall reallot the amount of the State's allotment to the remaining States in accordance with this section.

`SEC. 3112. USE OF ALLOTMENT BY STATE.

`(a) IN GENERAL- Except as provided in subsection (b), of the amount provided to a State from its allotment under section 3111--

`(1) the State may use not more than 5 percent to carry out activities under section 3115; and

`(2) not less than 95 percent shall be distributed to local educational agencies by the State as follows:

`(A) At least 80 percent shall be used for activities described in section 3116, to be distributed through a formula developed by the State which shall target funds to high need local educational agencies which have submitted plans to the State under section 3114, and which may (at the option of the State)--

`(i) be the formula used by the State to award grants to local educational agencies under section 3132 (as in effect prior to the enactment of the Education OPTIONS Act); and

`(ii) set a minimum amount that may be provided to any recipient.

`(B) Not more than 20 percent shall be awarded through a State-determined competitive process to eligible local entities which have submitted plans to the State under section 3114, to be used to carry out activities consistent with this part.

`(b) CONTINUATION OF FUNDING FOR FORMER PROGRAMS-

`(1) IN GENERAL- From funds made available under this ubpart, a State is authorized to continue funding multiyear grants awarded prior to fiscal year 2001 under section 3132 of this title (as in effect prior to the enactment of the Education OPTIONS Act), for the duration of the original grant period.

`(2) REDUCTION IN AMOUNT AVAILABLE FOR OTHER ACTIVITIES- The amount available for a State to use under subsection (a) shall be reduced by the amount used by the State to continue funding former programs under paragraph (1).

`SEC. 3113. STATE PLANS.

`(a) IN GENERAL- To be eligible to receive a grant under this subpart, a State shall submit a new or updated statewide, long-range strategic educational technology plan to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require.

`(b) CONTENTS- Each State plan submitted under this section shall include the following:

`(1) A description of how the State will use funds provided under this subpart to improve the academic achievement of all students and to improve the capacity of all teachers to provide instruction in the State, through the use of education technology.

`(2) A description of the State's goals for using advanced technology to improve student achievement aligned to challenging State content and student performance standards, including a description of how the State will take steps to ensure that all students in the State, particularly those residing in districts served by high need local educational agencies, will have increased access to educational technology.

`(3) A description of the process the State will use for the evaluation of the extent to which education technology funded under this part has been successfully integrated into teaching strategies and school curriculum, has increased the ability of teachers to teach, and has enabled students to meet challenging State content and student performance standards.

`(4) A description of how the State will encourage the development and utilization of innovative strategies for the delivery of specialized or rigorous academic courses and curricula through the use of technology and distance learning, particularly for those areas of the State which are isolated and which would not otherwise have access to such courses and curricula.

`(5) An assurance that financial assistance provided under this subpart shall supplement, not supplant, State and local funds.

`(6) A description of how the State plans to ensure that every teacher within a school funded under this part will be computer-literate and proficient (as determined by the State) by 2004.

`(c) DEEMED APPROVAL- A State plan submitted to the Secretary under this section shall be deemed to be approved by the Secretary unless the Secretary makes a written determination prior to the expiration of the 90-day period which begins on the date the Secretary receives the application that the plan is in violation of the provisions of this part.

`(d) DISAPPROVAL- The Secretary may issue a final disapproval of a State's application under this subpart only after giving the State notice and an opportunity for a hearing.

`(e) DISSEMINATION OF INFORMATION ON STATE PLANS- The Secretary shall establish a process under which information on State plans under this subpart is made widely available to schools and the general public, including through dissemination on the Internet, in a timely and user-friendly manner.

`SEC. 3114. LOCAL PLANS.

`(a) IN GENERAL- An applicant seeking to receive funds from a State under this subpart shall submit a new or updated long-range local strategic educational technology plan consistent with the objectives of the statewide education technology plan described in section 3113(a) to the State at such time, in such manner, and accompanied by such information as the State may reasonably require.

`(b) CONTENTS OF LOCAL PLAN- Each local plan described in this section shall include the following:

`(1) A description of how the applicant will use Federal funds provided under this subpart to improve the academic achievement of all students and to improve the capacity of all teachers to provide instruction through the use of education technology.

`(2) A description of the applicant's specific goals for using advanced technology to improve student achievement aligned to challenging State content and student performance standards, including a description of how the applicant will take steps to ensure that all students in the local educational area (particularly those in high poverty and high need schools) have increased access to educational technology, and a description of how such technology will be used to improve the academic achievement for such students.

`(3) A description of how the applicant will promote--

`(A) the utilization of teaching strategies and curricula, based upon scientifically based research, which effectively integrate technology into instruction, leading to improvements in student academic achievement as measured by challenging State content and student performance standards; and

`(B) sustained and intensive, high quality professional development, based upon scientifically based research, which increases teacher capacity to create improved learning environments through the integration of technology into instruction through proven strategies and improved content as described in subparagraph (A).

`(4) A description of how the applicant will integrate technology across the curriculum and a time line for such integration, including a description of how the applicant will make effective use of new and emerging technologies and teaching practices that are linked to such emerging technologies to provide challenging content and improved classroom instruction.

`(5) A description of how the applicant will coordinate education technology activities funded under this subpart, including (but not limited to) professional development, with any such activities provided under other Federal, State, and local programs, including those authorized under title I, title II, title VI, and (where applicable) the Individuals with Disabilities Education Act and the Carl D. Perkins Vocational and Technical Education Act of 1998.

`(6) A description of the process the applicant will use for the evaluation of the extent to which funds provided under this subpart were effective in integrating technology into school curriculum, increasing the ability of teachers to teach, and enabling students to meet challenging State content and student performance standards.

`(7) If requested by the State--

`(A) a description of how the applicant will use funds provided under this subpart in a manner which is consistent with any broad education technology priorities which may be established by the State consistent with this part; and

`(B) an assurance that any technology obtained with funds provided under this subpart will have compatibility and interconnectivity with technology obtained with funds provided previously under this title (as in effect prior to the enactment of the Education OPTIONS Act).

`(8) A description of the applicant's Internet filtering or blocking technology and related enforcement policies.

`SEC. 3115. STATE ACTIVITIES.

`(a) IN GENERAL- From funds made available under section 3112(a)(1), a State shall carry out activities and assist local efforts to carry out the purposes of this part, which may include the following activities:

`(1) Developing or assisting applicants in the development and utilization of innovative strategies to deliver rigorous academic programs through the use of technology and distance learning, and providing other technical assistance to such applicants throughout the State, with a priority to high need local educational agencies.

`(2) Establishing or supporting joint public and private initiatives to provide interest-free or reduced loans for the acquisition of educational technology for high need local educational agencies and students attending schools within such districts.

`(3) Assisting applicants in providing sustained and intensive high-quality professional development based upon scientifically based research in the integration of advanced technologies (including emerging technologies) into curriculum and in using those technologies to create new learning environments, including training in the use of technology to--

`(A) access data and resources to develop curricula and instructional materials;

`(B) enable teachers to use the Internet to communicate with other teachers and to retrieve web-based learning resources; and

`(C) lead to improvements in classroom instruction in the core academic subject areas, which effectively prepare students to meet challenging State content and student performance standards.

`(4) Assisting applicants in providing all students (including students from nontraditional populations, students with disabilities, and students with limited English proficiency) with access to educational technology.

`(5) Establishing or expanding access to technology in neighborhoods served by high need local educational agencies, with special emphasis for access provided through technology centers in partnership with libraries and with the support of the private sector.

`(6) Developing enhanced performance measurement systems to determine the effectiveness of education technology programs funded under this subpart, especially in determining the extent to which education technology funded under this part has been successfully integrated into teaching strategies and school curriculum, has increased the ability of teachers to teach, and has enabled students to meet challenging State content and student performance standards.

`(b) LIMITATION ON ADMINISTRATIVE COSTS- Of the 5 percent of the State's allotment under section 3111 which may be used to carry out activities under this section, not more than 10 percent may be used by the State for administrative costs.

`SEC. 3116. LOCAL ACTIVITIES.

`(a) PROFESSIONAL DEVELOPMENT- A recipient of funds made available under section 3112(a)(2)(A) shall use not less than 20 percent of such funds to provide sustained and intensive, high-quality professional development, based on scientifically based research, in the integration of advanced technologies (including emerging technologies) into curriculum and in using those technologies to create new learning environments, including training in the use of technology to--

`(1) access data and resources to develop curricula and instructional materials;

`(2) enable teachers to use the Internet to communicate with other teachers and retrieve web-based learning resources; and

`(3) lead to improvements in classroom instruction in the core academic subject areas, which effectively prepare students to meet challenging State content and student performance standards.

`(b) OTHER ACTIVITIES- In addition to the activities described in subsection (a), a recipient of funds made available under section 3112(a)(2)(A) shall use such funds to carry out other activities consistent with this part, which may include the following:

`(1) Adapting or expanding existing and new applications of technology to enable teachers to increase student academic achievement through the use of teaching practices and advanced technologies which are based upon scientifically based research and are designed to prepare students to meet challenging State content and student performance standards, and for developing and utilizing innovative strategies to deliver rigorous academic programs.

`(2) Developing, expanding, or acquiring education technology as a means to improve the academic achievement of all students.

`(3) The establishment or expansion of initiatives, especially those involving public/private partnerships, designed to increase access to technology, particularly for high need local educational agencies.

`(4) Using technology to promote parent and family involvement and support communications between parents, teachers, and students.

`(5) Acquiring filtering, blocking, or other technologies and activities which are designed to protect students from harmful materials which may be accessed on the Internet.

`(6) Using technology to collect, manage, and analyze data to inform school improvement efforts.

`(7) Implementing enhanced performance measurement systems to determine the effectiveness of education technology programs funded under this subpart, especially in determining the extent to which education technology funded under this part has been successfully integrated into teaching strategies and school curriculum, has increased the ability of teachers to teach, and has enabled students to meet challenging State content and student performance standards.

`(8) Preparing one or more teachers in elementary, middle, and secondary schools as technology leaders who are provided with the means to serve as experts and train other teachers in the effective use of technology.

`(9) Establishing or expanding access to technology in neighborhoods served by high need local educational agencies, with special emphasis for access provided through technology centers in partnership with libraries and with the support of the private sector.

`(10) Carrying out a program under which the recipient enters into an agreement with an entity for providing--

`(A) one laptop computer for each child in the third through twelfth grades in the school district (in such installments over such period of time as the recipient and entity may provide in the agreement) ;

`(B) training and ongoing support in the use of such laptop computers for students, teachers, and parents;

`(C) hardware and software for such laptop computers for instruction and professional development; and

`(D) assistance in using the technology provided to incorporate State and local academic goals into the curricula.

`(c) INTERNET FILTERING-

`(1) IN GENERAL- No funds made available under this subpart to a local educational agency or elementary or secondary school may be used to purchase computers used to access the Internet, or to pay for direct costs associated with accessing the Internet, unless such agency or school has in place, on computers that are accessible to minors, and during use by such minors, technology which filters or blocks--

`(A) material that is obscene;

`(B) child pornography; and

`(C) material harmful to minors.

`(2) DISABLING DURING ADULT USE- An administrator, supervisor, or other authority may disable the technology described in paragraph (1) during use by an adult, to enable unfiltered access for bona fide research or other lawful purposes.

`(3) RULE OF CONSTRUCTION- Nothing in this section shall be construed to prohibit a local educational agency or elementary or secondary school from filtering or blocking materials other than those referred to in subparagraph (A), (B), or (C) of paragraph (1).

`(4) DEFINITIONS-

`(A) MATERIAL HARMFUL TO MINORS- The term `material harmful to minors' has the meaning given such term in section 231(e)(6) of the Communications Act of 1934.

`(B) CHILD PORNOGRAPHY- The term `child pornography' has the meaning given such term in section 2256(8) of title 18, United States Code.

`(C) MINOR- The term `minor' has the meaning given such term in section 2256(1) of title 18, United States Code.

`(5) SEVERABILITY- If any provision of this subsection is held invalid, the remainder of such subsection and this Act shall not be affected thereby.

`Subpart 3--National Technology Initiatives

`SEC. 3121. NATIONAL TECHNOLOGY INITIATIVES.

`(a) IN GENERAL- Using funds made available under section 3101(b)(2), the Secretary may carry out the following initiatives:

`(1) The funding of programs built upon scientifically based research, which utilize technology in education, through the competitive awarding of grants or contracts, pursuant to a peer review process, to States, local educational agencies (including eligible local entities), institutions of higher education, and public and private or nonprofit or for-profit agencies.

`(2) The provision of technical assistance to States, local educational agencies, and other grantees under this part (directly or through the competitive award of grants or contracts) in order to assist such States, local educational agencies, and other grantees to achieve the purposes of this part.

`(3) Acting through the Office of Educational Technology, the updating of the national long-range educational technology plan developed pursuant to section 3121 (as in effect prior to the enactment of the Education OPTIONS Act) in accordance with the requirements of such section, in order to promote the purposes of this title and to ensure the coordination of Federal efforts to promote the effective use of educational technology.

`(b) STUDY OF USE OF TECHNOLOGY TO IMPROVE ACADEMIC ACHIEVEMENT- Using funds made available under section 3101(b)(2), the Secretary shall conduct an independent, long-term study utilizing scientifically based research methods and control groups, on the effectiveness of the uses of educational technology on improving student academic achievement, and shall include in the study an identification of effective uses of educational technology that have a measurable positive impact on student achievement.

`(c) PRIORITIES- In funding initiatives under subsection (a), the Secretary shall place a priority on projects which--

`(1) develop innovative models using electronic networks or other forms of distance learning to provide challenging courses which are otherwise not readily available to students in a particular school district, particularly in rural areas; and

`(2) increase access to technology to those residing in districts served by high need local educational agencies.

`SEC. 3122. REQUIREMENTS FOR RECIPIENTS OF FUNDS.

`(a) APPLICATION- In order to receive a grant or contract under this subpart, an entity shall submit an application to the Secretary (at such time and in such form as the Secretary may require), and shall include in the application--

`(1) a description of the project proposed to be carried out with the grant or contract and how it would carry out the purposes of this subpart; and

`(2) a detailed plan for the independent evaluation of the project built upon scientifically based research principles to determine the impact on the academic achievement of students served under such project, as measured by challenging State content and student performance standards.

`(b) NON-FEDERAL SHARE-

`(1) IN GENERAL- Subject to paragraphs (2) and (3), the Secretary may require any recipient of a grant or contract under this subpart to share in the cost of the activities assisted under such grant or contract, which may be in the form of cash or in-kind contributions fairly valued.

`(2) INCREASE- The Secretary may increase the non-Federal share required of a recipient of a grant or contract under this subpart after the first year such recipient receives funds under such grant or contract.

`(3) MAXIMUM- The non-Federal share required under this subsection may not exceed 50 percent of the cost of the activities assisted pursuant to a grant or contract under this subpart.

`(4) NOTICE- The Secretary shall publish in the Federal Register the non-Federal share required under this subsection.

`SEC. 3123. EVALUATION AND DISSEMINATION.

`(a) EVALUATION AUTHORITY- In order to identify effective uses of educational technology that have a measurable positive impact on student achievement, the Secretary shall--

`(1) develop tools and provide resources, including technical assistance, for recipients of funds under this subpart to effectively evaluate their activities; and

`(2) conduct independent evaluations of the activities assisted under this subpart.

`(b) POST-GRANT EVALUATION INFORMATION AND DISSEMINATION-

`(1) IN GENERAL- The Secretary shall establish a process under which information on each project funded with a grant or contract under this subpart is made widely available to schools and the general public, including through dissemination on the Internet, in a timely and user-friendly manner.

`(2) SPECIFIC INFORMATION REQUIRED- The information made available and disseminated under paragraph (1) shall at a minimum include the following:

`(A) Upon the awarding of such a grant or contract under this subpart, the identification of the grant or contract recipient, the amount of the grant or contract, the stated goals of the grant or contract, the methods by which the grant or contract will be evaluated in meeting such stated goals, and the timeline for meeting such goals.

`(B) Not later than 12 months after the awarding of such a grant or contract, information on the progress of the grant or contract recipient in carrying out the grant or contract, including a detailed description of the use of the funds provided, the extent to which the stated goals have been reached, and the results (or progress of) the evaluation of the project, meeting the requirements of scientifically based research, funded under the grant or contract.

`(C) Not later than 24 months after the awarding of such a grant or contract (and updated thereafter as appropriate), a follow up to the information described in subparagraph (B).

`PART B--READY TO LEARN TELEVISION

`SEC. 3201. PROGRAM AUTHORIZED.

`(a) IN GENERAL- The Secretary is authorized to award grants to or enter into contracts or cooperative agreements with eligible entities described in subsection (c) to--

`(1) develop, produce, and distribute educational and instructional video programming for preschool and elementary school children and their parents in order to facilitate student academic achievement;

`(2) facilitate the development (directly or through contracts with producers of children and family educational television programming) of educational programming for preschool and elementary school children and accompanying support materials and services that directly promote the effective use of such programming;

`(3) facilitate the development of programming and digital content especially designed for nationwide distribution over digital broadcasting channels and the Internet, containing Ready to Learn-based children's programming and resources for parents and caregivers;

`(4) enable such entities to contract with other entities (such as public telecommunications entities) so that programs funded under this section are disseminated and distributed by the most appropriate distribution technologies to the widest possible audience appropriate to be served by the programming; and

`(5) develop and disseminate training and support materials, including interactive programs and programs adaptable to distance learning technologies which are designed to--

`(A) promote school readiness; and

`(B) promote the effective use of programming developed under paragraphs (2) and (3) among parents, Head Start providers, Even Start and providers of family literacy services, child care providers, early childhood development personnel, and elementary school teachers, public libraries, and after school program personnel caring for preschool and elementary school children.

`(b) AVAILABILITY- In making grants, contracts, or cooperative agreements under this section, the Secretary shall ensure that recipients increase the effective use of the programming funded under this section by making it widely available with support materials as appropriate to young children, their parents, child care workers, Head Start providers, and Even Start and providers of family literacy services.

`(c) ELIGIBLE ENTITIES DESCRIBED- In this part, an `eligible entity' means a nonprofit entity (including a public telecommunications entity) which is able--

`(1) to demonstrate a capacity for the development and national distribution of educational and instructional television programming of high quality which is accessible by a large majority of disadvantaged preschool and elementary school children; and

`(2) to demonstrate--

`(A) a capacity to contract with the producers of children's television programming for the purpose of developing educational television programming of high quality which is accessible by a large majority of disadvantaged preschool and elementary school children, and

`(B) consistent with the entity's mission and nonprofit nature, a capacity to negotiate such contracts in a manner which returns to the entity an appropriate share of any ancillary income from sales of any program-related products.

`(d) CAP ON ADMINISTRATIVE COSTS- An entity receiving a grant, contract, or cooperative agreement from the Secretary under this section may not use more than 5 percent of the amounts received under the grant, contract, or cooperative agreement for the expenses of administering the grant, contract, or cooperative agreement.

`(e) COORDINATION OF ACTIVITIES- An entity receiving a grant, contract, or cooperative agreement from the Secretary under this section shall work with the Secretary and the Secretary of Health and Human Services to--

`(1) maximize the utilization by preschool and elementary school children of the programming funded under this section and to make such programming widely available to federally funded programs serving such populations; and

`(2) coordinate with Federal programs that have major training components for early childhood development (including Head Start, Even Start, family literacy services, and State training activities funded under the Child Care Development Block Grant Act of 1990) regarding the availability and utilization of materials developed with funds provided under this section to enhance parent and child care provider skills in early childhood development and education.

`SEC. 3202. APPLICATIONS.

`Any entity desiring a grant, contract, or cooperative agreement under this part shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

`SEC. 3203. REPORTS AND EVALUATION.

`(a) ANNUAL REPORT BY GRANT RECIPIENTS TO SECRETARY- Each entity receiving funds under section 3201 shall prepare and submit to the Secretary an annual report which contains such information as the Secretary may require. At a minimum, the report shall describe the program activities undertaken with funds received under such section, including information regarding--

`(1) the programming that has been developed directly or indirectly by the entity and the target population of the programs developed;

`(2) the support and training materials that have been developed to accompany the programming and the method by which such materials are distributed to consumers and users of the programming;

`(3) the means by which the programming has been distributed, including the distance learning technologies that have been utilized to make programming available and the geographic distribution achieved through such technologies; and

`(4) the initiatives undertaken by the entity to develop public-private partnerships to secure non-Federal support for the development and distribution and broadcast of educational and instructional programming.

`(b) REPORT TO CONGRESS- The Secretary shall prepare and submit to the relevant committees of Congress a biannual report on the activities funded and carried out under this part, and shall include in the report--

`(1) a summary of the programming developed using funds provided under section 3201; and

`(2) a description of the training materials developed using funds provided under section 3201, the manner in which outreach has been conducted to inform parents and child care providers of the availability of such materials, and the manner in which such materials have been distributed.

`SEC. 3204. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $16,000,000 for fiscal year 2000, and such sums as may be necessary for each of the 5 succeeding fiscal years. Not less than 60 percent of the amounts authorized to be appropriated under this section for any fiscal year shall be used to carry out paragraphs (2) and (3) of section 3201(a).

`PART C--TELECOMMUNICATIONS PROGRAM

`SEC. 3301. PROGRAM AUTHORIZED.

`(a) IN GENERAL- The Secretary is authorized to carry out any of the following activities:

`(1) Awarding grants to a nonprofit telecommunications entity (or a partnership of such entities) for the purpose of carrying out a national telecommunications-based program to improve the teaching of core academic subjects and to assist elementary and secondary school teachers in preparing all students to achieve State content standards.

`(2) Awarding grants to or entering into contracts or cooperative agreements with a local public telecommunications entity to develop, produce, and distribute educational and instructional video programming which is designed for use by elementary and secondary school students, created for or adaptable to State content standards, and capable of distribution through digital broadcasting and school digital networks.

`(b) APPLICATIONS-

`(1) IN GENERAL- Any telecommunications entity or partnership of such entities desiring a grant under this part shall submit an application to the Secretary.

`(2) SPECIFIC REQUIREMENTS FOR NATIONAL TELECOMMUNICATIONS-BASED PROGRAM- Each application for a grant subsection (a)(1) shall--

`(A) demonstrate that the applicant will use the existing publicly funded telecommunications infrastructure, the Internet, and school digital networks (where available) to deliver video, voice, and data in an integrated service to train teachers in the use of materials and learning technologies for achieving State content standards;

`(B) assure that the program for which assistance is sought will be conducted in cooperation with States as appropriate, local educational agencies, and State or local nonprofit public telecommunications entities;

`(C) assure that a significant portion of the benefits available for elementary and secondary schools from the program for which assistance is sought will be available to schools of local educational agencies which have a high percentage of children counted for the purpose of part A of title I; and

`(D) contain such additional assurances as the Secretary may reasonably require.

`(c) APPROVAL OF APPLICATIONS; NUMBER OF DEMONSTRATION SITES- In approving applications under this section, the Secretary shall assure that--

`(1) the national telecommunications-based program under subsection (a)(1) is conducted at elementary and secondary school sites in at least 15 States; and

`(2) grants under subsection (a)(2) are awarded on a competitive basis and for a period of 3 years to entities which--

`(A) enter into multiyear collaborative arrangements for content development with State educational agencies, local educational agencies, institutions of higher education, businesses, or other agencies and organizations, and

`(B) contribute non-Federal matching funds (including funds provided for transitions to digital broadcasting as well as in-kind contributions) to the activities assisted with the grant in an amount not less than 100 percent of the amount of the grant.

`SEC. 3302. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this part $8,500,000 for fiscal year 2000, and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

TITLE IV--INNOVATIVE EDUCATION PROGRAMS

SEC. 401. INNOVATIVE EDUCATION PROGRAM STRATEGIES.

Title VI of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7301 et seq.) is amended to read as follows:

`TITLE VI--INNOVATIVE EDUCATION PROGRAM STRATEGIES

`SEC. 6001. FINDINGS AND STATEMENT OF PURPOSE.

`(a) FINDINGS- The Congress finds that this title--

`(1) provides flexibility to meet local needs;

`(2) promotes local and State education reforms;

`(3) contributes to the improvement of academic achievement for all students.

`(4) provides funding for critical activities; and

`(5) provides services for private school students.

`(b) STATEMENT OF PURPOSE- It is the purpose of programs under this title--

`(1) to provide funding to enable States and local educational agencies to implement promising educational reform programs and school improvement initiatives based on scientifically based research;

`(2) to provide a continuing source of innovation and educational improvement, including support for library services and instructional and media materials; and

`(3) to meet the educational needs of all students, including at risk students.

`(c) STATE AND LOCAL RESPONSIBILITY- The basic responsibility for the administration of funds made available under this title is within the States, but it is the intent of Congress that the responsibility be carried out with a minimum of paperwork and that the responsibility for the design and implementation of programs assisted under this title will be mainly that of local educational agencies, school superintendents and principals, and classroom teachers and supporting personnel, because such agencies and individuals have the most direct contact with students and are most likely to be able to design programs to meet the educational needs of students in their own school districts.

`PART A--STATE AND LOCAL PROGRAMS

`SEC. 6101. ALLOTMENT TO STATES.

`(a) RESERVATIONS- From the sums appropriated to carry out this title for any fiscal year, the Secretary shall reserve not to exceed 1 percent for payments to outlying areas to be allotted in accordance with their respective needs.

`(b) ALLOTMENT- From the remainder of such sums, the Secretary shall allot to each State an amount which bears the same ratio to the amount of such remainder as the school-age population of the State bears to the school-age population of all States, except that no State shall receive less than an amount equal to 1/2 of 1 percent of such remainder.

`SEC. 6102. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

`(a) DISTRIBUTION RULE-

`(1) IN GENERAL- Subject to paragraph (2), from the sums made available each year to carry out this title, the State shall distribute not less than 85 percent to local educational agencies within such State according to the relative enrollments in public and private, nonprofit schools within the jurisdictions of such agencies, adjusted, in accordance with criteria approved by the Secretary, to provide higher per-pupil allocations to local educational agencies that have the greatest numbers or percentages of children whose education imposes a higher than average cost per child, such as--

`(A) children living in areas with high concentrations of low-income families;

`(B) children from low-income families; and

`(C) children living in sparsely populated areas.

`(2) EXCEPTION- 100 percent of any amount by which the funds paid to a State under this title for a fiscal year exceed the amount of such funds paid to the State for fiscal year 2000 shall be distributed to local educational agencies and used locally for innovative assistance described in section 6301(b).

`(3) LIMITATION ON ADMINISTRATIVE COSTS- Not more than 4 percent of the funds paid to a State under this title for a fiscal year may be used by the agency for administration and supervision of programs assisted under this title.

`(b) CALCULATION OF ENROLLMENTS-

`(1) IN GENERAL- The calculation of relative enrollments under subsection (a)(1) shall be on the basis of the total of--

`(A) the number of children enrolled in public schools; and

`(B) the number of children enrolled in private nonprofit schools that desire that their children participate in programs or projects assisted under this title, for the fiscal year preceding the fiscal year for which the determination is made.

`(2) CONSTRUCTION- Nothing in this subsection shall diminish the responsibility of local educational agencies to contact, on an annual basis, appropriate officials from private nonprofit schools within the areas served by such agencies in order to determine whether such schools desire that their children participate in programs assisted under this part.

`(3) ADJUSTMENTS-

`(A) IN GENERAL- Relative enrollments under subsection (a)(1) shall be adjusted, in accordance with criteria approved by the Secretary under subparagraph (B), to provide higher per-pupil allocations only to local educational agencies that serve the greatest numbers or percentages of--

`(i) children living in areas with high concentrations of low-income families;

`(ii) children from low-income families; or

`(iii) children living in sparsely populated areas.

`(B) CRITERIA- The Secretary shall review criteria submitted by a State for adjusting allocations under paragraph (1) and shall approve such criteria only if the Secretary determines that such criteria are reasonably calculated to produce an adjusted allocation that reflects the relative needs within the State's local educational agencies based on the factors set forth in subparagraph (A).

`(c) PAYMENT OF ALLOCATIONS-

`(1) DISTRIBUTION- From the funds paid to a State under this title for a fiscal year, a State shall distribute to each eligible local educational agency that has submitted an application as required in section 6303 the amount of such local educational agency's allocation, as determined under subsection (a).

`(2) ADDITIONAL FUNDS-

`(A) IN GENERAL- Additional funds resulting from higher per-pupil allocations provided to a local educational agency on the basis of adjusted enrollments of children described in subsection (a)(1) may, in the discretion of the local educational agency, be allocated for expenditures to provide services for children enrolled in public and private nonprofit schools in direct proportion to the number of children described in subsection (a)(1) and enrolled in such schools within the local educational agency.

`(B) ELECTION- In any fiscal year, any local educational agency that elects to allocate such additional funds in the manner described in subparagraph (A) shall allocate all additional funds to schools within the local educational agency in such manner.

`(C) CONSTRUCTION- Subparagraphs (A) and (B) may not be construed to require any school to limit the use of the additional funds described in subparagraph (A) to the provision of services to specific students or categories of students.

`PART B--STATE PROGRAMS

`SEC. 6201. STATE USES OF FUNDS.

`A State may use funds made available for State use under this title only for--

`(1) State administration of programs under this title including--

`(A) supervision of the allocation of funds to local educational agencies;

`(B) planning, supervision, and processing of State funds; and

`(C) monitoring and evaluation of programs and activities under this title;

`(2) support for planning, designing, and initial implementation of charter schools as described in part C of title X; and

`(3) statewide education reform and school improvement activities and technical assistance and direct grants to local educational agencies which assist such agencies under section 6301.

`SEC. 6202. STATE APPLICATIONS.

`(a) APPLICATION REQUIREMENTS- Any State that desires to receive assistance under this title shall submit to the Secretary an application which--

`(1) provides for an annual statewide summary of how assistance under this title is contributing toward improving student achievement or improving the quality of education for students;

`(2) sets forth the allocation of such funds required to implement section 6402;

`(3) provides that the State will keep such records and provide such information to the Secretary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this section);

`(4) provides assurance that, apart from technical and advisory assistance and monitoring compliance with this title, the State has not exercised and will not exercise any influence in the decisionmaking processes of local educational agencies as to the expenditure made pursuant to an application under section 6303;

`(5) contains assurances that there is compliance with the specific requirements of this title; and

`(6) provides for timely public notice and public dissemination of the information provided pursuant to paragraph (2).

`(b) STATEWIDE SUMMARY- The statewide summary referred to in subsection (a)(2) shall be submitted to the Secretary and shall be derived from the evaluation information submitted by local educational agencies to the State under section 6303(a)(8). The format and content of such summary shall be in the discretion of the State and may include statistical measures such as the number of students served by each type of innovative assistance described in subsection (b), including the number of teachers trained.

`(c) PERIOD OF APPLICATION- An application filed by the State under subsection (a) shall be for a period not to exceed 3 years, and may be amended annually as may be necessary to reflect changes without filing a new application.

`(d) AUDIT RULE- Local educational agencies receiving less than an average of $5,000 each under this title shall not be audited more frequently than once every 5 years.

`PART C--LOCAL INNOVATIVE EDUCATION PROGRAMS

`SEC. 6301. TARGETED USE OF FUNDS.

`(a) GENERAL RULE- Funds made available to local educational agencies under section 6102 shall be used for innovative assistance described in subsection (b).

`(b) INNOVATIVE ASSISTANCE- The innovative assistance programs referred to in subsection (a) may include--

`(1) professional development activities and the hiring of teachers, including activities consistent with title II, that give teachers, principals, and administrators the knowledge and skills to provide students with the opportunity to meet challenging State or local content standards and student performance standards;

`(2) technology related to the implementation of school-based reform programs, including professional development to assist teachers and other school officials regarding how to use effectively such equipment and software;

`(3) programs for the development or acquisition and use of instructional and educational materials, including library services and materials (including media materials), assessments, reference materials, computer software and hardware for instructional use, and other curricular materials which are tied to high academic standards and which will be used to improve student achievement and which are part of an overall education reform program;

`(4) promising education reform projects, including effective schools and magnet schools;

`(5) programs to improve the academic skills of disadvantaged elementary and secondary school students and to prevent students from dropping out of school;

`(6) programs to combat illiteracy in the student and adult population, including parent illiteracy;

`(7) programs to provide for the educational needs of gifted and talented children;

`(8) planning, designing, and initial implementation of charter schools as described in part C of title X;

`(9) school improvement programs or activities under sections 1116 and 1117;

`(10) education reform projects that provide single gender schools and classrooms, as long as comparable educational opportunities are offered for students of both sexes;

`(11) community service programs that use qualified school personnel to train and mobilize young people to measurably strengthen their communities through nonviolence, responsibility, compassion, respect, and moral courage;

`(12) curriculum-based youth entrepreneurship education programs with demonstrated records of empowering disadvantaged youth with applied mathematics, entrepreneurial, and other analytical skills;

`(13) activities to promote consumer, economic, and personal finance education, such as disseminating and encouraging the best practices for teaching the basic principles of economics and promoting the concept of achieving financial literacy through the teaching of personal financial management skills including the basic principles involved with earning, spending, saving, and investing;

`(14) public school choice;

`(15) expanding and improving school-based mental health services, including early identification of drug use and violence, assessment, and direct individual or group counseling services provided to students, parents, and school personnel by qualified school based mental health services personnel; and

`(16) alternative educational programs for those students who have been expelled or suspended from their regular educational setting, including programs to assist students to reenter the regular educational setting upon return from treatment or alternative educational programs.

`SEC. 6302. ADMINISTRATIVE AUTHORITY.

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

`SEC. 6303. LOCAL APPLICATIONS.

`(a) CONTENTS OF APPLICATION- A local educational agency or consortium of such agencies may receive an allocation of funds under this title for any year for which an application is submitted to the State and such application is certified to meet the requirements of this section. The State shall certify any such application if such application--

`(1) describes locally identified needs relative to the purposes of this title and to the innovative assistance described in section 6301(b);

`(2) based on the needs identified in paragraph (1), sets forth the planned allocation of funds among innovative assistance programs described in section 6301 and describes the programs, projects, and activities designed to carry out such innovative assistance that the local educational agency intends to support;

`(3) sets forth the allocation of such funds required to implement section 6402;

`(4) describes how assistance under this title will contribute to improving student academic achievement;

`(5) provides assurances of compliance with the provisions of this title, including the participation of children enrolled in private, nonprofit schools in accordance with section 6402;

`(6) agrees to keep such records, and provide such information to the State as reasonably may be required for fiscal audit and program evaluation, consistent with the responsibilities of the State under this title;

`(7) provides in the allocation of funds for the assistance authorized by this title, and in the design, planning, and implementation of such programs, for systematic consultation with parents of children attending elementary and secondary schools in the area served by the local educational agency, with teachers and administrative personnel in such schools, and with other groups involved in the implementation of this title (such as librarians, school counselors, and other pupil services personnel) as may be considered appropriate by the local educational agency; and

`(8) provides assurance that--

`(A) programs, services, and activities will be evaluated annually;

`(B) such evaluation will be used to determine and implement appropriate changes in program services and activities for the subsequent year;

`(C) such evaluation shall describe how assistance under this title contributed toward improving student academic achievement; and

`(D) such evaluation shall be submitted to the State in the time and manner requested by the agency.

`(b) PERIOD OF APPLICATION- An application filed by a local educational agency under subsection (a) shall be for a period not to exceed 3 fiscal years, may provide for the allocation of funds to programs for a period of 3 years, and may be amended annually as may be necessary to reflect changes without filing a new application.

`(c) LOCAL EDUCATIONAL AGENCY DISCRETION- Subject to the limitations and requirements of this title, a local educational agency shall have complete discretion in determining how funds under this part shall be divided under section 6301. In exercising such discretion, a local educational agency shall ensure that expenditures under this part carry out the purposes of this title and are used to meet the educational needs within the schools of such local educational agency.

`PART D--GENERAL PROVISIONS

`SEC. 6401. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

`(a) MAINTENANCE OF EFFORT-

`(1) IN GENERAL- Except as provided in paragraph (2), a State is entitled to receive its full allocation of funds under this part 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 the allocation of funds under this part 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 section if the Secretary determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State.

`(b) FEDERAL FUNDS SUPPLEMENTARY- A State or local educational agency may use and allocate funds received under this part only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of Federal funds made available under this part, be made available from non-Federal sources, and in no case may such funds be used so as to supplant funds from non-Federal sources.

`SEC. 6402. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

`(a) PARTICIPATION ON EQUITABLE BASIS-

`(1) IN GENERAL- To the extent consistent with the number of children in the school district of a local educational agency which is eligible to receive funds under this title or which serves the area in which a program or project assisted under this title is located who are enrolled in private nonprofit elementary and secondary schools, or with respect to instructional or personnel training programs funded by the State from funds made available for State use, such agency, after consultation with appropriate private school officials, shall provide for the benefit of such children in such schools secular, neutral, and nonideological services, materials, and equipment, including the participation of the teachers of such children (and other educational personnel serving such children) in training programs, and the repair or minor remodeling of public facilities as may be necessary for their provision (consistent with subsection (c) of this section), or, if such services, materials, and equipment are not feasible or necessary in one or more such private schools as determined by the local educational agency after consultation with the appropriate private school officials, shall provide such other arrangements as will assure equitable participation of such children in the purposes and benefits of this title.

`(2) OTHER PROVISIONS FOR SERVICES- If no program or project is carried out under paragraph (1) in the school district of a local educational agency, the State shall make arrangements, such as through contracts with nonprofit agencies or organizations, under which children in private schools in such district are provided with services and materials to the extent that would have occurred if the local educational agency had received funds under this title.

`(3) APPLICATION OF REQUIREMENTS- The requirements of this section relating to the participation of children, teachers, and other personnel serving such children shall apply to programs and projects carried out under this title by a State or local educational agency, whether directly or through grants to or contracts with other public or private agencies, institutions, or organizations.

`(b) EQUAL EXPENDITURES- Expenditures for programs pursuant to subsection (a) shall be equal (consistent with the number of children to be served) to expenditures for programs under this title for children enrolled in the public schools of the local educational agency, taking into account the needs of the individual children and other factors which relate to such expenditures, and when funds available to a local educational agency under this title are used to concentrate programs or projects on a particular group, attendance area, or grade or age level, children enrolled in private schools who are included within the group, attendance area, or grade or age level selected for such concentration shall, after consultation with the appropriate private school officials, be assured equitable participation in the purposes and benefits of such programs or projects.

`(c) FUNDS-

`(1) ADMINISTRATION OF FUNDS AND PROPERTY- The control of funds provided under this title, and title to materials, equipment, and property repaired, remodeled, or constructed with such funds, shall be in a public agency for the uses and purposes provided in this title, and a public agency shall administer such funds and property.

`(2) PROVISION OF SERVICES- The provision of services pursuant to this title shall be provided by employees of a public agency or through contract by such public agency with a person, an association, agency, or corporation who or which, in the provision of such services, is independent of such private school and of any religious organizations, and such employment or contract shall be under the control and supervision of such public agency, and the funds provided under this title shall not be commingled with State or local funds.

`(d) STATE PROHIBITION WAIVER- If by reason of any provision of law a State or local educational agency is prohibited from providing for the participation in programs of children enrolled in private elementary and secondary schools, as required by this section, the Secretary shall waive such requirements and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of this section.

`(e) WAIVER AND PROVISION OF SERVICES-

`(1) FAILURE TO COMPLY- If the Secretary determines that a State or a local educational agency has substantially failed or is unwilling to provide for the participation on an equitable basis of children enrolled in private elementary and secondary schools as required by this section, the Secretary may waive such requirements and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of this section.

`(2) WITHHOLDING OF ALLOCATION- Pending final resolution of any investigation or complaint that could result in a determination under this subsection or subsection (d), the Secretary may withhold from the allocation of the affected State or local educational agency the amount estimated by the Secretary to be necessary to pay the cost of those services.

`(f) DETERMINATION- Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the State or local educational agency to meet the requirements of subsections (a) and (b).

`(g) PAYMENT FROM STATE ALLOTMENT- When the Secretary arranges for services pursuant to this section, the Secretary shall, after consultation with the appropriate public and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the appropriate allotment of the State under this title.

`(h) REVIEW-

`(1) WRITTEN OBJECTIONS- The Secretary shall not take any final action under this section until the State and the local educational agency affected by such action have had an opportunity, for not less than 45 days after receiving written notice thereof, to submit written objections and to appear before the Secretary or the Secretary's designee to show cause why that action should not be taken.

`(2) COURT ACTION- If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under paragraph (1), such agency may, not later than 60 days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action. A copy of the petition shall be transmitted by the clerk of the court to the Secretary. The Secretary thereupon shall file in the court the record of the proceedings on which the Secretary based this action, as provided in section 2112 of title 28, United States Code.

`(3) REMAND TO SECRETARY- The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evidence and the Secretary may make new or modified findings of fact and may modify the Secretary's previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.

`(4) COURT REVIEW- Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set such action aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.

`SEC. 6403. FEDERAL ADMINISTRATION.

`(a) TECHNICAL ASSISTANCE- The Secretary, upon request, shall provide technical assistance to States and local educational agencies under this title.

`(b) RULEMAKING- The Secretary shall issue regulations under this title only to the extent that such regulations are necessary to ensure that there is compliance with the specific requirements and assurances required by this title.

`(c) AVAILABILITY OF APPROPRIATIONS- Notwithstanding any other provision of law, unless expressly in limitation of this subsection, funds appropriated in any fiscal year to carry out activities under this title shall become available for obligation on July 1 of such fiscal year and shall remain available for obligation until the end of the subsequent fiscal year.

`SEC. 6404. DEFINITIONS.

`For purposes of this title:

`(1) EFFECTIVE SCHOOLS PROGRAMS- The term `effective schools programs' means school-based programs that may encompass preschool through secondary school levels and that have the objectives of--

`(A) promoting school-level planning, instructional improvement, and staff development;

`(B) increasing the academic achievement levels of all children and particularly educationally disadvantaged children; and

`(C) achieving as ongoing conditions in the school the following factors identified through scientifically based research as distinguishing effective from ineffective schools:

`(i) Strong and effective administrative and instructional leadership that creates consensus on instructional goals and organizational capacity for instructional problem solving.

`(ii) Emphasis on the acquisition of basic and advanced academic skills.

`(iii) A safe and orderly school environment that allows teachers and pupils to focus their energies on academic achievement.

`(iv) Continuous review of students and programs to evaluate the effects of instruction.

`(2) SCHOOL-AGE POPULATION- The term `school-age population' means the population aged 5 through 17.

`(3) SCIENTIFICALLY BASED RESEARCH- The term `scientifically based research'--

`(A) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to effective schools programs; 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.

`(4) STATE- The term `State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

`SEC. 6405. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out this title $365,750,000 for fiscal year 2000 and such sums as may be necessary for each of the 5 succeeding fiscal years.'.

TITLE V--PROGRAMS OF NATIONAL SIGNIFICANCE

PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

SEC. 501. FUND FOR THE IMPROVEMENT OF EDUCATION.

Part A of title X of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001 et seq.) is amended to read as follows:

`PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

`SEC. 10101. PROHIBITION ON FEDERALLY SPONSORED TESTING.

`Notwithstanding any other provision of Federal law, no funds provided under this part to the Secretary or to the recipient of any award may be used to develop, pilot test, field test, implement, administer, or distribute any federally sponsored national test in reading, mathematics, or any other subject, unless specifically and explicitly authorized by law.

`SEC. 10102. PROHIBITION ON FEDERAL ENDORSEMENT OF ELEMENTARY AND SECONDARY SCHOOL CURRICULUM.

`Notwithstanding any other provision of Federal law, no funds provided under this part to the Secretary may be used to endorse, approve, or sanction any curriculum designed to be used in elementary or secondary schools.

`SEC. 10103. FUND FOR THE IMPROVEMENT OF EDUCATION.

`(a) PROGRAMS AND PROJECTS AUTHORIZED-

`(1) IN GENERAL- From funds appropriated under this part, the Secretary is authorized to support nationally significant programs and projects to improve the quality of elementary and secondary education at the State and local levels.

`(2) METHODS FOR CARRYING OUT PROGRAMS AND PROJECTS- The Secretary is authorized to carry out such programs and projects directly, or through grants to or contracts with States or local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions, including religious organizations.

`(b) USES OF FUNDS- The funds appropriated under this part may be used for any of the following activities and programs:

`(1) Activities to promote systemic education reform at the State and local levels, including--

`(A) scientifically based research to improve student academic achievement at the State and local level; and

`(B) the development and evaluation of strategies for parent and community involvement.

`(2) Programs at the State and local levels which are designed to yield significant results, including programs to explore approaches to public school choice and school-based decision-making.

`(3) Programs designed to promote public school choice.

`(4) Performance rewards for States which--

`(A) make significant progress in eliminating achievement gaps by increasing the proportions of 2 or more groups of students described in section 1111(a)(3)(I) who meet State proficiency standards; and

`(B) have agreed to meet specific and numerical performance goals during the term of a performance agreement of at least 5 years in length.

`(5) Activities to promote and evaluate coordinated pupil services programs.

`(6) Activities to promote consumer, economic, entrepreneurial, and personal finance education, including disseminating and encouraging the best practices for teaching the basic principles of economics and promoting the concept of achieving financial literacy through the teaching of personal financial management skills, including the basic principles involved with earning, spending, saving, and investing.

`(7) Studies, evaluations, and dissemination of various education reform strategies and innovations based on scientifically based research being pursued by the Federal Government, States, and local educational agencies.

`(8) The identification and recognition of exemplary schools and programs such as Blue Ribbon Schools.

`(9) Experiential-based learning programs.

`(10) The development and expansion of public-private partnership education programs which extend the learning experience beyond the classroom environment through the use of computers.

`(11) An independent study conducted in consultation with appropriate entities, which will provide a multi-level coordinated implementation strategy based on scientifically based research, for effective professional development activities for mathematics and science teachers.

`(12) Programs to hire and support school nurses.

`(13) Grants for the education of recent immigrants to the United States.

`(14) Activities to plan, implement, or expand alternative education programs to reduce classroom disruptions and provide a safe learning environment.

`(15) Grants for elementary and secondary school counseling programs under section 10104.

`(16) Grants for character education programs under section 10105.

`(17) Grants for smaller learning communities within high schools programs under section 10106.

`SEC. 10104. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

`(a) GRANTS AUTHORIZED-

`(1) IN GENERAL- The Secretary may use funds provided under this part to award grants to local educational agencies to enable such agencies to establish or expand elementary and secondary school counseling programs which meet the requirements of subsection (b).

`(2) PRIORITY- In awarding grants under this section, the Secretary shall give special consideration to applications describing programs which--

`(A) demonstrate the greatest need for new or additional counseling services among the children in the schools served by the applicant;

`(B) propose the most promising and innovative approaches for initiating or expanding school counseling; and

`(C) show the greatest potential for replication and dissemination.

`(3) EQUITABLE DISTRIBUTION- In awarding grants under this section, the Secretary shall ensure an equitable geographic distribution among the regions of the United States and among urban, suburban, and rural local educational agencies.

`(4) DURATION- A grant under this section shall be awarded for a period not to exceed 3 years.

`(b) REQUIREMENTS FOR COUNSELING PROGRAMS- Each program funded under this section shall--

`(1) be comprehensive in addressing the counseling and educational needs of all students;

`(2) use a developmental, preventive approach to counseling;

`(3) increase the range, availability, quantity, and quality of counseling services in the elementary and secondary schools of the local educational agency;

`(4) expand counseling services through qualified school counselors, school psychologists, and school social workers;

`(5) use innovative approaches to increase children's understanding of peer and family relationships, work and self, decision making, or academic and career planning, or to improve peer interaction;

`(6) provide counseling services in settings that meet the range of needs of students;

`(7) include inservice training, including training for teachers in appropriate identification and intervention techniques for disciplining and teaching students at risk of violent behavior, by school counselors, school psychologists, and school social workers;

`(8) involve parents of participating students in the design, implementation, and evaluation of a counseling program;

`(9) involve collaborative efforts with community groups, social service agencies, or other public or private entities to enhance the program;

`(10) evaluate annually the effectiveness and outcomes of the counseling services and activities assisted under this section;

`(11) ensure a team approach to school counseling in the elementary and secondary schools of the local educational agency by maintaining a scientifically based ratio of school counselors, school social workers, and school psychologists to students; and

`(12) ensure that school counselors, school psychologists, or school social workers paid from funds made available under this section spend a majority of their time at the school in activities directly related to the counseling process.

`(c) LIMIT ON ADMINISTRATION- Not more than 3 percent of the amounts made available under this section in any fiscal year may be used for administrative costs to carry out this section.

`(d) DEFINITIONS- For purposes of this section, the terms `school counselor', `school psychologist', and `school social worker', mean individuals qualified, licensed, or certified under State law to provide mental health counseling to children and adolescents.

`SEC. 10105. CHARACTER EDUCATION PROGRAM.

`(a) PROGRAM AUTHORIZED-

`(1) IN GENERAL- The Secretary may use funds provided under this part to award grants to States, local educational agencies, or consortia of such educational agencies for the design and implementation of character education programs which incorporate the elements of character described in subsection (c).

`(2) DURATION- Each grant under this section shall be awarded for a period not to exceed 5 years, of which the recipient may not use more than 1 year for planning and program design.

`(b) CONTRACTS UNDER PROGRAM-

`(1) EVALUATION- Each State, local educational agency, or consortia of such educational agencies awarded a grant under this section may contract with outside sources, including institutions of higher education and private and nonprofit organizations, for purposes of evaluating its program and measuring the success of the program toward fostering in students the elements of character described in subsection (c).

`(2) MATERIALS AND PROGRAM DEVELOPMENT- Each State, local educational agency, or consortia of such educational agencies awarded a grant under this section may contract with outside sources, including institutions of higher education and private and nonprofit organizations, for assistance in developing curriculum, materials, teacher training, and other activities related to character education.

`(c) ELEMENTS OF CHARACTER- The elements of character described in this subsection are as follows:

`(1) Honesty.

`(2) Citizenship.

`(3) Courage.

`(4) Justice.

`(5) Respect.

`(6) Personal Responsibility.

`(7) Trustworthiness.

`(8) Any other elements deemed appropriate by the State, local educational agency, or consortia of such educational agencies receiving a grant under this paragraph.

`(d) SELECTION OF RECIPIENTS-

`(1) CRITERIA- The Secretary shall select States, local educational agencies, or consortia of such educational agencies to receive grants under this section on the basis of the quality of the applications submitted, taking into consideration such factors as--

`(A) the extent to which the proposed character education program fosters in students the elements of character described in subsection (c);

`(B) the extent of parental, student, and community involvement in the program; and

`(C) the likelihood that the goals of the program will be realistically achieved.

`(2) DIVERSITY OF PROJECTS- The Secretary shall approve applications for grants under this section in a manner which ensures to the extent practicable that the character education programs funded with such grants--

`(A) serve an equitable geographic distribution among the regions of the United States and among urban, suburban, and rural areas; and

`(B) serve schools which serve a high percentage of minorities, Native Americans, students of limited English proficiency, and disadvantaged students.

`SEC. 10106. SMALLER LEARNING COMMUNITIES WITHIN HIGH SCHOOLS.

`(a) IN GENERAL- The Secretary may use funds provided under this part to--

`(1) promote the creation of smaller learning communities within high schools in which students may receive greater individual attention and support, including the development and implementation of scientifically based research strategies described in subsection (b) to create such communities; and

`(2) develop and implement strategies to include parents, business representatives, institutions of higher education, community-based organizations, and other community members in such communities.

`(b) EXAMPLES OF STRATEGIES TO CREATE SMALLER LEARNING COMMUNITIES- The strategies described in this subsection to create smaller learning communities within high schools may include:

`(1) The establishment of learning clusters, `houses', magnet schools, or other approaches to creating schools within schools.

`(2) The use of block scheduling.

`(3) The use of personal adult advocates, teacher-advisory systems, and other mentoring strategies.

`(4) Strategies to reduce teaching loads.

`(5) Other innovations designed to increase student academic achievement through the creation of a more personalized high school experience for students.

`(c) SIZE OF COMMUNITIES- In using funds under this section, the Secretary's goal shall be the creation of learning communities of not more than 600 students within high schools.

`SEC. 10107. GENERAL PROVISIONS.

`(a) AWARDS MADE ON COMPETITIVE BASIS- The Secretary may make awards under this part on the basis of competitions announced by the Secretary.

`(b) SPECIAL RULE- The Secretary shall ensure that programs, projects, and activities supported under this part are designed so that the effectiveness of such programs, projects, and activities is readily ascertainable and based on scientifically based research.

`(c) PEER REVIEW- The Secretary shall use a peer review process in reviewing applications for assistance under this part, and may use funds appropriated under this part for the cost of such peer review.

`(d) APPLICATIONS- An applicant for an award under this part shall submit an application which--

`(1) establishes clear goals and objectives for its project under this part which are based on scientifically based research; and

`(2) describes the activities it will carry out in order to meet the goals and objectives described in paragraph (1).

`(e) EVALUATIONS- A recipient of an award under this part shall--

`(1) evaluate the effectiveness of its project in achieving the goals and objectives stated in its application; and

`(2) report to the Secretary such information as may be required, including evidence of its progress toward meeting the such goals, to determine the project's effectiveness.

`(f) DISSEMINATION OF EVALUATION RESULTS- The Secretary shall provide for the dissemination of the evaluations of projects funded under this part by making the evaluations publicly available upon request, and shall publish public notice that the evaluations are so available.

`(g) MATCHING FUNDS- The Secretary may require recipients of awards under this part to provide matching funds from non-Federal sources.

`(h) SCIENTIFICALLY BASED RESEARCH DEFINED- In this part, the term `scientifically based research'--

`(1) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to education activities and programs; and

`(2) shall include research which--

`(A) employs systematic, empirical methods which draw on observation or experiment,

`(B) involves rigorous data analyses which are adequate to test the stated hypotheses and justify the general conclusions drawn,

`(C) relies on measurements or observational methods which provide valid data across evaluators and observers and across multiple measurements and observations, and

`(D) has been accepted by a peer reviewed journal or approved by a panel of independent experts through a comparably rigorous, objective, and scientific review.

`(i) AUTHORIZATION OF APPROPRIATIONS- For the purpose of carrying out this part, there are authorized to be appropriated $50,000,000 for fiscal year 2000 and $50,000,000 for each of the 5 succeeding fiscal years.'.

PART B--ARTS EDUCATION

SEC. 511. ARTS EDUCATION.

Part D of title X of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8091 et seq.) is amended to read as follows:

`PART D--ARTS EDUCATION

`SEC. 10401. SUPPORT FOR ARTS EDUCATION.

`(a) FINDINGS- The Congress finds that--

`(1) every student can benefit from an education in the arts;

`(2) a growing body of research indicates that education in the arts may provide cognitive benefits and bolster academic achievement, beginning at an early age and continuing through school;

`(3) qualified arts teachers and sequential curriculum are the basis and core for substantive arts education for students;

`(4) arts education programs should be grounded in rigorous instruction and take their place within a structure of direct accountability to parents, school officials, and the community;

`(5) opportunities in the arts have enabled persons of all ages with disabilities to participate more fully in school and community activities; and

`(6) arts education is a valuable part of the elementary and secondary school curriculum.

`(b) PURPOSES- The purposes of this part are to--

`(1) support systemic education reform by strengthening arts education as an integral part of the elementary and secondary school curriculum; and

`(2) help ensure that all students can learn to challenging State content standards and challenging State student performance standards in the arts.

`(c) ELIGIBLE RECIPIENTS- In order to carry out the purposes of this part, the Secretary is authorized to award grants to, or enter into contracts or cooperative agreements with--

`(1) States;

`(2) local educational agencies;

`(3) institutions of higher education;

`(4) museums and other cultural institutions; and

`(5) other public and private agencies, institutions, and organizations.

`(d) AUTHORIZED ACTIVITIES- Funds under this part may be used for--

`(1) research on arts education;

`(2) planning, developing, acquiring, expanding, improving, and disseminating model school-based arts education programs;

`(3) the development of model State arts education assessments based on State standards;

`(4) the development and implementation of curriculum frameworks for arts education;

`(5) the development of model inservice professional development programs for arts educators and other instructional staff;

`(6) supporting collaborative activities with other Federal agencies or institutions, arts educators, and organizations representing the arts, including State and local arts agencies involved in arts education;

`(7) supporting model projects and programs in the performing arts for children and youth and programs which assure the participation in mainstream settings in arts and education programs of individuals with disabilities through arrangements made with organizations such as the John F. Kennedy Center for the Performing Arts and VSA arts;

`(8) supporting model projects and programs to integrate arts education into the regular elementary and secondary school curriculum; and

`(9) other activities that further the purposes of this part.

`(e) COORDINATION AND CONSULTATION-

`(1) IN GENERAL- A recipient of funds under this part shall, to the extent possible, coordinate projects assisted under this part with appropriate activities of public and private cultural agencies, institutions, and organizations, including museums, arts education associations, libraries, and theaters.

`(2) CONSULTATION- In carrying out this part, the Secretary shall consult with other Federal agencies or institutions, arts educators (including professional arts education associations), and organizations representing the arts including State and local arts agencies involved in arts education.

`(f) AUTHORIZATION-

`(1) IN GENERAL- For the purpose of carrying out this part, there are authorized to be appropriated $11,500,000 for fiscal year 2000 and such sums as may be necessary for each of the 5 succeeding fiscal years.

`(2) SPECIAL RULE- Any entity receiving funds under this part shall use such funds only to supplement and not to supplant the amount of funds made available from non-Federal sources for the activities assisted under this part.'.

PART C--PUBLIC CHARTER SCHOOLS

SEC. 521. PUBLIC CHARTER SCHOOLS.

(a) CHARTER SCHOOL DEFINED- Section 10310(1)(H) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8066(1)(H)) is amended by inserting `or in another nondiscriminatory manner consistent with State law,' after `lottery,'.

(b) AUTHORIZATION OF APPROPRIATIONS- Section 10311 (20 U.S.C. 8067) is amended--

(1) by striking `$100,000,000 for fiscal year 1999' and inserting `$145,000,000 for fiscal year 2000'; and

(2) by striking `four' and inserting `5'.

PART D--CIVIC EDUCATION

SEC. 531. CIVIC EDUCATION.

Part F of title X of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8141 et seq.) is amended to read as follows:

`PART F--CIVIC EDUCATION

`SEC. 10601. SHORT TITLE.

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

`SEC. 10602. PURPOSE.

`It is the purpose of this part--

`(1) to improve the quality of civics and government education, by educating students about the history and principles of the Constitution of the United States, including the Bill of Rights; and

`(2) to foster civic competence and responsibility.

`SEC. 10603. GENERAL AUTHORITY.

`The Secretary is authorized to award grants to or enter into contracts with the Center for Civic Education to carry out civic education activities under sections 10604.

`SEC. 10604. WE THE PEOPLE PROGRAM.

`(a) THE CITIZEN AND THE CONSTITUTION-

`(1) IN GENERAL- The Center for Civic Education shall use funds awarded under section 10603(a) to carry out The Citizen and the Constitution program in accordance with this subsection.

`(2) EDUCATIONAL ACTIVITIES- The Citizen and the Constitution program--

`(A) shall continue and expand the educational activities of the `We the People . . . The Citizen and the Constitution' program administered by the Center for Civic Education;

`(B) shall enhance student attainment of challenging content standards in civics and government; and

`(C) shall provide--

`(i) a course of instruction on the basic principles of our Nation's constitutional democracy and the history of the Constitution of the United States and the Bill of Rights;

`(ii) at the request of a participating school, school and community simulated congressional hearings following the course of study;

`(iii) an annual national competition of simulated congressional hearings for secondary school students who wish to participate in such a program;

`(iv) advanced training of teachers about the Constitution of the United States and the political system the United States created;

`(v) materials and methods of instruction, including teacher training, that utilize the latest advancements in educational technology; and

`(vi) civic education materials and services to address specific problems such as the prevention of school violence and the abuse of drugs and alcohol.

`(3) AVAILABILITY OF PROGRAM- The education program authorized under this subsection shall be made available to public and private elementary and secondary schools, including Bureau funded schools, in the 435 congressional districts, and in the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(b) PROJECT CITIZEN-

`(1) IN GENERAL- The Center for Civic Education shall use funds awarded under section 10603(a) to carry out The Project Citizen program in accordance with this subsection.

`(2) EDUCATIONAL ACTIVITIES- The Project Citizen program--

`(A) shall continue and expand the educational activities of the `We the People . . . Project Citizen' program administered by the Center for Civic Education;

`(B) shall enhance student attainment of challenging content standards in civics and government; and

`(C) shall provide--

`(i) a course of instruction at the middle school level on the roles of State and local governments in the Federal system established by the Constitution of the United States;

`(ii) optional school and community simulated State legislative hearings;

`(iii) an annual national showcase or competition;

`(iv) advanced training of teachers on the roles of State and local governments in the Federal system established by the Constitution of the United States;

`(v) materials and methods of instruction, including teacher training, that utilize the latest advancements in educational technology; and

`(vi) civic education materials and services to address specific problems such as the prevention of school violence and the abuse of drugs and alcohol.

`(3) AVAILABILITY OF PROGRAM- The education program authorized under this subsection shall be made available to public and private middle schools, including Bureau funded schools, in the 50 States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(c) DEFINITION OF BUREAU FUNDED SCHOOL- In this section the term `Bureau funded school' has the meaning given the term in section 1146 of the Education Amendments of 1978.

`SEC. 10605. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out section 10604, $9,850,000 for fiscal year 2000 and such sums as may be necessary for each of the fiscal years 2001 through 2005.'.

PART E--ALLEN J. ELLENDER FELLOWSHIP PROGRAM

SEC. 541. ALLEN J. ELLENDER FELLOWSHIP PROGRAM.

Part G of title X of the Elementary and Secondary Education Act of 1965 is amended to read as follows:

`PART G--ALLEN J. ELLENDER FELLOWSHIP PROGRAM

`SEC. 10701. FINDINGS.

`The Congress finds as follows:

`(1) It is a worthwhile goal to ensure that all students in America are prepared for responsible citizenship and that all students should have the opportunity to be involved in activities that promote and demonstrate good citizenship.

`(2) It is a worthwhile goal to ensure that America's educators have access to programs for the continued improvement of their professional skills.

`(3) Allen J. Ellender, a Senator from Louisiana and President pro tempore of the United States Senate, had a distinguished career in public service characterized by extraordinary energy and real concern for young people. Senator Ellender provided valuable support and encouragement to the Close Up Foundation, a nonpartisan, nonprofit foundation promoting knowledge and understanding of the Federal Government among young people and educators. Therefore, it is a fitting and appropriate tribute to Senator Ellender to provide fellowships in his name to students of limited economic means, the teachers who work with such students, and older Americans, so that such students, teachers, and older Americans may participate in the programs supported by the Close Up Foundation.

`Subpart 1--Program for Middle and Secondary School Students

`SEC. 10711. ESTABLISHMENT.

`(a) GENERAL AUTHORITY- The Secretary is authorized to make grants in accordance with the provisions of this subpart to the Close Up Foundation of Washington, District of Columbia, a nonpartisan, nonprofit foundation, for the purpose of assisting the Close Up Foundation in carrying out its programs of increasing understanding of the Federal Government among middle and secondary school students.

`(b) USE OF FUNDS- Grants under this subpart shall be used only to provide financial assistance to economically disadvantaged students who participate in the program described in subsection (a). Financial assistance received pursuant to this subpart by such students shall be known as Allen J. Ellender fellowships.

`SEC. 10712. APPLICATIONS.

`(a) APPLICATION REQUIRED- No grant under this subpart may be made except upon an application at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

`(b) CONTENTS OF APPLICATION- Each such application shall contain provisions to assure--

`(1) that fellowship grants are made to economically disadvantaged middle and secondary school students;

`(2) that every effort will be made to ensure the participation of students from rural and small town areas, as well as from urban areas, and that in awarding fellowships to economically disadvantaged students, special consideration will be given to the participation of students with special educational needs, including student with disabilities, ethnic minority students, and gifted and talented students; and

`(3) the proper disbursement of the funds received under this subpart.

`Subpart 2--Program for Middle and Secondary School Teachers

`SEC. 10721. ESTABLISHMENT.

`(a) GENERAL AUTHORITY- The Secretary is authorized to make grants in accordance with the provisions of this subpart to the Close Up Foundation of Washington, District of Columbia, a nonpartisan, nonprofit foundation, for the purpose of assisting the Close Up Foundation in carrying out its programs of teaching skills enhancement for middle and secondary school teachers.

`(b) USE OF FUNDS- Grants under this subpart shall be used only for financial assistance to teachers who participate in the program described in subsection (a). Financial assistance received pursuant to this subpart by such individuals shall be known as Allen J. Ellender fellowships.

`SEC. 10722. APPLICATIONS.

`(a) APPLICATION REQUIRED- No grant under this subpart may be made except upon an application at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

`(b) CONTENTS OF APPLICATION- Each such application shall contain provisions to assure--

`(1) that fellowship grants are made only to teachers who have worked with at least one student from such teachers school who participates in the programs described in section 10711(a);

`(2) that not more than one teacher in each school participating in the programs provided for in section 10711(a) may receive a fellowship in any fiscal year; and

`(3) the proper disbursement of the funds received under this subpart.

`Subpart 3--Programs for Recent Immigrants, Students of Migrant Parents and Older Americans

`SEC. 10731. ESTABLISHMENT.

`(a) GENERAL AUTHORITY-

`(1) IN GENERAL- The Secretary is authorized to make grants in accordance with the provisions of this subpart to the Close Up Foundation of Washington, District of Columbia, a nonpartisan, nonprofit foundation, for the purpose of assisting the Close Up Foundation in carrying out its programs of increasing understanding of the Federal Government among economically disadvantaged older Americans, recent immigrants and students of migrant parents.

`(2) DEFINITION- For the purpose of this subpart, the term older American means an individual who has attained 55 years of age.

`(b) USE OF FUNDS- Grants under this subpart shall be used for financial assistance to economically disadvantaged older Americans, recent immigrants and students of migrant parents who participate in the program described in subsection (a). Financial assistance received pursuant to this subpart by such individuals shall be known as Allen J. Ellender fellowships.

`SEC. 10732. APPLICATIONS.

`(a) APPLICATION REQUIRED- No grant under this subpart may be made except upon application at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

`(b) CONTENTS OF APPLICATION- Except such application shall contain provisions to assure--

`(1) that fellowship grants are made to economically disadvantaged older Americans, recent immigrants and students of migrant parents;

`(2) that every effort will be made to ensure the participation of older Americans, recent immigrants and students of migrant parents from rural and small town areas, as well as from urban areas, and that in awarding fellowships, special consideration will be given to the participation of older Americans, recent immigrants and students of migrant parents with special needs, including individuals with disabilities, ethnic minorities, and gifted and talented students;

`(3) that activities permitted by subsection (a) are fully described; and

`(4) the proper disbursement of the funds received under this subpart.

`Subpart 4--General Provisions

`SEC. 10741. ADMINISTRATIVE PROVISIONS.

`(a) GENERAL RULE- Payments under this part may be made in installments, in advance, or by way of reimbursement, with necessary adjustments on account of underpayment or overpayment.

`(b) AUDIT RULE- The Comptroller General of the United States or any of the Comptroller Generals duly authorized representatives shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to any grant under this part.

`SEC. 10742. AUTHORIZATION OF APPROPRIATIONS.

`(a) IN GENERAL- There are authorized to be appropriated to carry out the provisions of subparts 1, 2, and 3 of this part $4,400,000 for fiscal year 2001 and such sums as may be necessary of each of the four succeeding fiscal years.

`(b) SPECIAL RULE- Of the funds appropriated pursuant to subsection (a), not more than 30 percent may be used for teachers associated with students participating in the programs described in section 10711(a).'.

TITLE VI--GENERAL PROVISIONS

SEC. 601. GENERAL PROVISIONS.

Title XIV of the Elementary and Secondary Education Act is amended to read as follows:

`TITLE XIV--GENERAL PROVISIONS

`PART A--DEFINITIONS

`SEC. 14101. DEFINITIONS.

`Except as otherwise provided, for the purposes of this Act, the following terms have the following meanings:

`(1) Average daily attendance--

`(A) 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) 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) 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) 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 disabilities, as defined in section 602(3) 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) CHILD WITH DISABILITY- The term `child with a disability' means a child--

`(A) with mental retardation, hearing impairments, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (hereinafter referred to as `emotional disturbance'), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities; and

`(B) who, by reason thereof, needs special education and related services.

`(5) 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.

`(6) CONSOLIDATED LOCAL APPLICATION- The term `consolidated local application' means an application submitted by a local educational agency pursuant to section 14305.

`(7) CONSOLIDATED LOCAL PLAN- The term `consolidated local plan' means a plan submitted by a local educational agency pursuant to section 14305.

`(8) CONSOLIDATED STATE APPLICATION- The term `consolidated State application' means an application submitted by a State educational agency pursuant to section 14302.

`(9) CONSOLIDATED STATE PLAN- The term `consolidated State plan' means a plan submitted by a State educational agency pursuant to section 14302.

`(10) 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.

`(11) COVERED PROGRAM- The term `covered program' means each of the programs authorized by--

`(A) part A of title I;

`(B) part B of title I;

`(C) part C of title I;

`(D) part D of title I;

`(E) title II (other than National activities);

`(F) subpart 2 of part A of title III;

`(G) part A title IV (other than section 4115(b));

`(H) title VI;

`(I) comprehensive school reform programs as authorized under section 1502 and described on pages 96-99 of the Joint Explanatory Statement of the Committee of Conference included in House Report 105-390 (Conference Report on the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1998);

`(K) part A of title VII;

`(L) part C of title VII;

`(M) part J of title X; and

`(N) title XII.

`(12) CURRENT EXPENDITURES- The term `current expenditures' means expenditures for free public education--

`(A) including expenditures for administration, instruction, attendance, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities; but

`(B) not including expenditures for community services, capital outlay, and debt service, or any expenditures made from funds received under title I and title VI.

`(13) DEPARTMENT- The term `Department' means the Department of Education.

`(14) 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.

`(15) 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.

`(16) FAMILY LITERACY SERVICES- The term `family literacy services' means services provided to participants on a voluntary basis that are of sufficient intensity in terms of hours, and of sufficient duration, to make sustainable changes in a family, and that integrate all of the following activities:

`(A) Interactive literacy activities between parents and their children.

`(B) Training for parents regarding how to be the primary teacher for their children and full partners in the education of their children.

`(C) Parent literacy training that leads to economic self-sufficiency.

`(D) An age-appropriate education to prepare children for success in school and life experiences.

`(17) 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 or secondary school education as determined under applicable State law, except that such term does not include any education provided beyond grade 12.

`(18) 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.

`(19) INSTITUTION OF HIGHER EDUCATION- The term `institution of higher education' has the meaning given that term in section 101 of the Higher Education Act of 1965.

`(20) LOCAL EDUCATIONAL AGENCY- (A) 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 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 its public elementary or secondary schools.

`(B) The term includes any other public institution or agency having administrative control and direction of a public elementary or secondary school.

`(C) The term includes an elementary 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.

`(D) The term includes educational service agencies and consortia of such agencies.

`(21) MENTORING- The term `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.

`(22) OTHER STAFF- The term `other staff' means pupil services personnel, librarians, career guidance and counseling personnel, education aides, and other instructional and administrative personnel.

`(23) OUTLYING AREA- The term `outlying area' means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(24) PARENT- The term `parent' includes a legal guardian or other person standing in loco parentis.

`(25) PUBLIC TELECOMMUNICATION ENTITY- The term `public telecommunication entity' has the same meaning given to such term in section 397(12) of the Communications Act of 1934.

`(26) PUPIL SERVICES PERSONNEL; PUPIL SERVICES- (A) 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(22) of the Individuals with Disabilities Education Act) as part of a comprehensive program to meet student needs.

`(B) The term `pupil services' means the services provided by pupil services personnel.

`(27) SCIENTIFICALLY BASED RESEARCH- The term `scientifically based research'--

`(A) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to education activities and programs; 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;

`(iv) is evaluated using randomized experiments in which individuals, entities, programs, or activities are randomly assigned to different variations (including a control condition) to compare the relative effects of the variations; and

`(v) has been accepted by a peer-reviewed journal or approved by a panel of independent experts through a comparably rigorous, objective, and scientific review.

`(28) 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.

`(29) SECRETARY- The term `Secretary' means the Secretary of Education.

`(30) 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.

`(31) STATE EDUCATIONAL AGENCY- The term `State educational agency' means the agency primarily responsible for the State supervision of public elementary and secondary schools.

`(32) TECHNOLOGY- The term `technology' means the latest state-of-the-art technology products and services.

`SEC. 14102. APPLICABILITY OF TITLE.

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

`SEC. 14103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED SCHOOLS.

`For purposes of any competitive program under this Act, a consortia of schools operated by the Bureau of Indian Affairs, a school operated under a contract or grant with the Bureau of Indian Affairs in consortia with another contract or grant school or tribal or community organization, or a Bureau of Indian Affairs school in consortia with an institution of higher education, a contract or grant school and tribal or community organization shall be given the same consideration as a local educational agency.

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

`SEC. 14201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

`(a) CONSOLIDATION OF ADMINISTRATIVE FUNDS-

`(1) IN GENERAL- A State educational agency may consolidate the amounts specifically made available to such agency for State administration under one or more of the programs under paragraph (2) if such State educational agency can demonstrate that the majority of such agency's resources are derived from non-Federal sources.

`(2) APPLICABILITY- This section applies to any program under this Act under which funds are authorized to be used for administration, and such other programs as the Secretary may designate.

`(b) USE OF FUNDS-

`(1) IN GENERAL- A State educational agency shall use the amount available under this section for the administration of the programs included in the consolidation under subsection (a).

`(2) ADDITIONAL USES- A State educational agency may also use funds available under this section for administrative activities designed to enhance the effective and coordinated use of funds under programs included in the consolidation under subsection (a), such as--

`(A) the coordination of such programs with other Federal and non-Federal programs;

`(B) the establishment and operation of peer-review mechanisms under this Act;

`(C) the administration of this title;

`(D) the dissemination of information regarding model programs and practices;

`(E) technical assistance under any program under this Act;

`(F) State level activities designed to carry out this title;

`(G) training personnel engaged in audit and other monitoring activities; and

`(H) implementation of the Cooperative Audit Resolution and Oversight Initiative of the Department of Education.

`(c) RECORDS- A State educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of programs included in the consolidation under subsection (a).

`(d) REVIEW- To determine the effectiveness of State administration under this section, the Secretary may periodically review the performance of State educational agencies in using consolidated administrative funds under this section and take such steps as the Secretary finds appropriate to ensure the effectiveness of such administration.

`(e) UNUSED ADMINISTRATIVE FUNDS- If a State educational agency does not use all of the funds available to such agency under this section for administration, such agency may use such funds during the applicable period of availability as funds available under one or more programs included in the consolidation under subsection (a).

`SEC. 14202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

`A State educational agency that also serves as a local educational agency, in such agency's applications or plans under this Act, shall describe how such agency will eliminate duplication in the conduct of administrative functions.

`SEC. 14203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

`(a) GENERAL AUTHORITY- In accordance with regulations of the Secretary and for any fiscal year, a local educational agency, with the approval of its State educational agency, may consolidate and use for the administration of one or more programs under this Act (or such other programs as the Secretary shall designate) not more than the percentage, established in each such program, of the total available for the local educational agency under such programs.

`(b) STATE PROCEDURES- Within one-year from the date of enactment of the Education OPTIONS Act, a State educational agency shall, in collaboration with local educational agencies in the State, establish procedures for responding to requests from local educational agencies to consolidate administrative funds under subsection (a) and for establishing limitations on the amount of funds under such programs that may be used for administration on a consolidated basis.

`(c) CONDITIONS- A local educational agency that consolidates administrative funds under this section for any fiscal year shall not use any other funds under the programs included in the consolidation for administration for that fiscal year.

`(d) USES OF ADMINISTRATIVE FUNDS- A local educational agency that consolidates administrative funds under this section may use such consolidated funds for the administration of such programs and for uses, at the school district and school levels, comparable to those described in section 14201(b)(2).

`(e) RECORDS- A local educational agency that consolidates administrative funds under this section shall not be required to keep separate records, by individual program, to account for costs relating to the administration of such programs included in the consolidation.

`SEC. 14205. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR FUNDS.

`(a) GENERAL AUTHORITY-

`(1) TRANSFER- The Secretary shall transfer to the Department of the Interior, as a consolidated amount for covered programs, the Indian education programs under part A of title IX of this Act, and the education for homeless children and youth program under subtitle B of title VII of the Stewart B. McKinney Homeless Assistance Act, the amounts allotted to the Department of the Interior under those programs.

`(2) AGREEMENT- (A) The Secretary and the Secretary of the Interior shall enter into an agreement, consistent with the requirements of the programs specified in paragraph (1), for the distribution and use of those program funds under terms that the Secretary determines best meet the purposes of those programs.

`(B) The agreement shall--

`(i) set forth the plans of the Secretary of the Interior for the use of the amount transferred and the performance measures to assess program effectiveness, including measurable goals and objectives; and

`(ii) be developed in consultation with Indian tribes.

`(b) ADMINISTRATION- The Department of the Interior may use not more than 1.5 percent of the funds consolidated under this section for such department's costs related to the administration of the funds transferred under this section.

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

`SEC. 14301. PURPOSE.

`The purposes of this part are to improve teaching and learning through greater coordination between programs and to provide greater flexibility to State and local authorities by allowing the consolidation of State and local plans, applications, and reporting.

`SEC. 14302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

`(a) GENERAL AUTHORITY-

`(1) SIMPLIFICATION- In order to simplify application requirements and reduce the burden for State educational agencies under this Act, the Secretary, in accordance with subsection (b), shall establish procedures and criteria under which a State educational agency may submit a consolidated State plan or a consolidated State application meeting the requirements of this section for--

`(A) any programs under this Act in which the State participates; and

`(B) such other programs as the Secretary may designate.

`(2) CONSOLIDATED APPLICATIONS AND PLANS- A State educational agency that submits a consolidated State plan or a consolidated State application under this section shall not be required to submit a separate State plan or application for a program included in the consolidated State plan or application.

`(b) COLLABORATION-

`(1) IN GENERAL- In establishing criteria and procedures under this section, the Secretary shall collaborate with State educational agencies and, as appropriate, with other State agencies, local educational agencies, public and private nonprofit agencies, organizations, and institutions, private schools, and representatives of parents, students, and teachers.

`(2) CONTENTS- Through the collaborative process described in paragraph (1), the Secretary shall establish, for each program under the Act to which this section applies, the descriptions, information, assurances, and other material required to be included in a consolidated State plan or consolidated State application.

`(3) NECESSARY MATERIALS- The Secretary shall require only descriptions, information, assurances, and other materials that are absolutely necessary for the consideration of the consolidated State plan or consolidated State application.

`SEC. 14303. CONSOLIDATED REPORTING.

`In order to simplify reporting requirements and reduce reporting burdens, the Secretary shall establish procedures and criteria under which a State educational agency may submit a consolidated State annual report. Such report shall contain information about the programs included in the report, including the State's performance under those programs, and other matters as the Secretary determines, such as monitoring activities. Such a report shall take the place of separate individual annual reports for the programs subject to it.

`SEC. 14304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY ASSURANCES.

`(a) ASSURANCES- A State educational agency that submits a consolidated State plan or consolidated State application under this Act, whether separately or under section 14302, shall have on file with the Secretary a single set of assurances, applicable to each program for which such plan or application is submitted, that provides that--

`(1) each such program will be administered in accordance with all applicable statutes, regulations, program plans, and applications;

`(2)(A) the control of funds provided under each such program and title to property acquired with program funds will be in a public agency, in a nonprofit private agency, institution, or organization, or in an Indian tribe if the law authorizing the program provides for assistance to such entities; and

`(B) the public agency, nonprofit private agency, institution, or organization, or Indian tribe will administer such funds and property to the extent required by the authorizing law;

`(3) the State will adopt and use proper methods of administering each such program, including--

`(A) the enforcement of any obligations imposed by law on agencies, institutions, organizations, and other recipients responsible for carrying out each program;

`(B) the correction of deficiencies in program operations that are identified through audits, monitoring, or evaluation; and

`(C) the adoption of written procedures for the receipt and resolution of complaints alleging violations of law in the administration of such programs;

`(4) the State will cooperate in carrying out any evaluation of each such program conducted by or for the Secretary or other Federal officials;

`(5) the State will use such fiscal control and fund accounting procedures as will ensure proper disbursement of, and accounting for, Federal funds paid to the State under each such program;

`(6) the State will--

`(A) make reports to the Secretary as may be necessary to enable the Secretary to perform the Secretary's duties under each such program; and

`(B) maintain such records, provide such information to the Secretary, and afford access to the records as the Secretary may find necessary to carry out the Secretary's duties; and

`(7) before the plan or application was submitted to the Secretary, the State has afforded a reasonable opportunity for public comment on the plan or application and has considered such comment.

`(b) GEPA PROVISION- Section 441 of the General Education Provisions Act shall not apply to programs under this Act.

`SEC. 14305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

`(a) GENERAL AUTHORITY- A local educational agency receiving funds under more than one program under this Act may submit plans or applications to the State educational agency under such programs on a consolidated basis.

`(b) REQUIRED CONSOLIDATED PLANS OR APPLICATIONS- A State educational agency that has an approved consolidated State plan or application under section 14302 may require local educational agencies in the State receiving funds under more than one program included in the consolidated State plan or consolidated State application to submit consolidated local plans or applications under such programs, but may not require such agencies to submit separate plans.

`(c) COLLABORATION- A State educational agency shall collaborate with local educational agencies in the State in establishing procedures for the submission of the consolidated State plans or consolidated State applications under this section.

`(d) NECESSARY MATERIALS- The State educational agency shall require only descriptions, information, assurances, and other material that are absolutely necessary for the consideration of the local educational agency plan or application.

`SEC. 14306. OTHER GENERAL ASSURANCES.

`(a) ASSURANCES- Any applicant other than a State educational agency that submits a plan or application under this Act, shall have on file with the State educational agency a single set of assurances, applicable to each program for which a plan or application is submitted, that provides that--

`(1) each such program will be administered in accordance with all applicable statutes, regulations, program plans, and applications;

`(2)(A) the control of funds provided under each such program and title to property acquired with program funds will be in a public agency or in a nonprofit private agency, institution, organization, or Indian tribe, if the law authorizing the program provides for assistance to such entities; and

`(B) the public agency, nonprofit private agency, institution, or organization, or Indian tribe will administer such funds and property to the extent required by the authorizing statutes;

`(3) the applicant will adopt and use proper methods of administering each such program, including--

`(A) the enforcement of any obligations imposed by law on agencies, institutions, organizations, and other recipients responsible for carrying out each program; and

`(B) the correction of deficiencies in program operations that are identified through audits, monitoring, or evaluation;

`(4) the applicant will cooperate in carrying out any evaluation of each such program conducted by or for the State educational agency, the Secretary or other Federal officials;

`(5) the applicant will use such fiscal control and fund accounting procedures as will ensure proper disbursement of, and accounting for, Federal funds paid to such applicant under each such program;

`(6) the applicant will--

`(A) make reports to the State educational agency and the Secretary as may be necessary to enable such agency and the Secretary to perform their duties under each such program; and

`(B) maintain such records, provide such information, and afford access to the records as the State educational agency or the Secretary may find necessary to carry out the State educational agency's or the Secretary's duties; and

`(7) before the application was submitted, the applicant afforded a reasonable opportunity for public comment on the application and has considered such comment.

`(b) GEPA PROVISION- Section 442 of the General Education Provisions Act shall not apply to programs under this Act.

`PART D--WAIVERS

`SEC. 14401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.

`(a) IN GENERAL- Except as provided in subsection (c), the Secretary may waive any statutory or regulatory requirement of this Act or the Carl D. Perkins Vocational and Technical Education Act of 1998 for a State educational agency, local educational agency, Indian tribe, or school through a local educational agency, that--

`(1) receives funds under a program authorized by this Act; and

`(2) requests a waiver under subsection (b).

`(b) REQUEST FOR WAIVER-

`(1) IN GENERAL- A State educational agency, local educational agency, or Indian tribe which desires a waiver shall submit a waiver application to the Secretary that--

`(A) indicates each Federal program affected and each statutory or regulatory requirement requested to be waived;

`(B) describes the purpose and overall expected results of waiving each such requirement;

`(C) describes, for each school year, specific, measurable, educational goals for the State educational agency and for each local educational agency, Indian tribe, or school that would be affected by the wavier;

`(D) explains why the waiver will assist the State educational agency and each affected local educational agency, Indian tribe, or school in reaching such goals.

`(2) ADDITIONAL INFORMATION- Such requests--

`(A) may provide for waivers of requirements applicable to State educational agencies, local educational agencies, Indian tribes, and schools; and

`(B) shall be developed and submitted--

`(i)(I) by local educational agencies (on behalf of such agencies and schools) to State educational agencies; and

`(II) by State educational agencies (on behalf of, and based upon the requests of, local educational agencies) to the Secretary; or

`(ii) by Indian tribes (on behalf of schools operated by such tribes) to the Secretary.

`(3) GENERAL REQUIREMENTS-

`(A) In the case of a waiver request submitted by a State educational agency acting in its own behalf, the State educational agency shall--

`(i) provide all interested local educational agencies in the State with notice and a reasonable opportunity to comment on the request;

`(ii) submit the comments to the Secretary; and

`(iii) provide notice and information to the public regarding the waiver request in the manner that the applying agency customarily provides similar notices and information to the public.

`(B) In the case of a waiver request submitted by a local educational agency that receives funds under this Act--

`(i) such request shall be reviewed by the State educational agency and be accompanied by the comments, if any, of such State educational agency; and

`(ii) notice and information regarding the waiver request shall be provided to the public by the agency requesting the waiver in the manner that such agency customarily provides similar notices and information to the public.

`(c) RESTRICTIONS- The Secretary shall not waive under this section any statutory or regulatory requirements relating to--

`(1) the allocation or distribution of funds to States, local educational agencies, or other recipients of funds under this Act;

`(2) maintenance of effort;

`(3) comparability of services;

`(4) use of Federal funds to supplement, not supplant, non-Federal funds;

`(5) equitable participation of private school students and teachers;

`(6) parental participation and involvement;

`(7) applicable civil rights requirements;

`(8) the requirement for a charter school under part C of title X; or

`(9) the prohibitions regarding--

`(A) State aid in section 14502;

`(B) use of funds for religious worship or instruction in section 14507; and

`(C) activities in section 14513.

`(d) DURATION AND EXTENSION OF WAIVER-

`(1) IN GENERAL- Except as provided in paragraph (2), the duration of a waiver approved by the Secretary under this section may be for a period not to exceed 5 years.

`(2) EXTENSION- The Secretary may extend the period described in paragraph (1) if the Secretary determines that--

`(A) the waiver has been effective in enabling the State or affected recipients to carry out the activities for which the waiver was requested and the waiver has contributed to improved student performance; and

`(B) such extension is in the public interest.

`(e) REPORTS-

`(1) LOCAL WAIVER- A local educational agency that receives a waiver under this section shall at the end of the second year for which a waiver is received under this section, and each subsequent year, submit a report to the State educational agency that--

`(A) describes the uses of such waiver by such agency or by schools;

`(B) describes how schools continued to provide assistance to the same populations served by the programs for which waivers are requested; and

`(A) evaluates the progress of such agency and of schools in improving the quality of instruction or the academic performance of students.

`(2) STATE WAIVER- A State educational agency that receives reports required under paragraph (1) shall annually submit a report to the Secretary that is based on such reports and contains such information as the Secretary may require.

`(3) INDIAN TRIBE WAIVER- An Indian tribe that receives a waiver under this section shall annually submit a report to the Secretary that--

`(A) describes the uses of such waiver by schools operated by such tribe; and

`(B) evaluates the progress of such schools in improving the quality of instruction or the academic performance of students.

`(4) REPORT TO CONGRESS- Beginning in fiscal year 2001 and each subsequent year, the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor and Pensions of the Senate a report--

`(A) summarizing the uses of waivers by State educational agencies, local educational agencies, Indian tribes, and schools; and

`(B) describing whether such waivers--

`(i) increased the quality of instruction to students; or

`(ii) improved the academic performance of students.

`(f) TERMINATION OF WAIVERS- The Secretary shall terminate a waiver under this section if the Secretary determines, after notice and an opportunity for a hearing, that the performance of the State or other recipient affected by the waiver has been inadequate to justify a continuation of the waiver or if the waiver is no longer necessary to achieve its original purposes.

`(g) PUBLICATION- A notice of the Secretary's decision to grant each waiver under subsection (a) shall be published in the Federal Register and the Secretary shall provide for the dissemination of such notice to State educational agencies, interested parties, including educators, parents, students, advocacy and civil rights organizations, and the public.

`PART E--UNIFORM PROVISIONS

`SEC. 14501. MAINTENANCE OF EFFORT.

`(a) IN GENERAL- A local educational agency may receive funds under a covered program for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of such agency and the State with respect to the provision of free public education by such agency for the preceding fiscal year was not less than 90 percent of such combined fiscal effort or aggregate expenditures for the second preceding fiscal year.

`(b) REDUCTION IN CASE OF FAILURE TO MEET-

`(1) IN GENERAL- The State educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion to which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90 percent of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to such local agency).

`(2) SPECIAL RULE- No such lesser amount shall be used for computing the effort required under subsection (a) of this section for subsequent years.

`(c) WAIVER- The Secretary may waive the requirements of this section if the Secretary determines that such a waiver would be equitable due to--

`(1) exceptional or uncontrollable circumstances such as a natural disaster; or

`(2) a precipitous decline in the financial resources of the local educational agency.

`SEC. 14502. PROHIBITION REGARDING STATE AID.

`A State shall not take into consideration payments under this Act (other than under title VIII) in determining the eligibility of any local educational agency in such State for State aid, or the amount of State aid, with respect to free public education of children.

`SEC. 14503. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

`(a) PRIVATE SCHOOL PARTICIPATION-

`(1) IN GENERAL- Except as otherwise provided in this Act, to the extent consistent with the number of eligible children in areas served by a State educational agency, local educational agency, educational service agency, consortium of such agencies, or another entity receiving financial assistance under a program specified in subsection (b), who are enrolled in private elementary and secondary schools in areas served by such agency, consortium or entity, such agency, consortium or entity shall, after timely and meaningful consultation with appropriate private school officials, provide such children and their teachers or other educational personnel, on an equitable basis, special educational services or other benefits that address their needs under such program.

`(2) SECULAR, NEUTRAL, AND NONIDEOLOGICAL SERVICES OR BENEFITS- Educational services or other benefits, including materials and equipment, provided under this section, shall be secular, neutral, and nonideological.

`(3) SPECIAL RULE- Educational services and other benefits provided under this section for such private school children, teachers, and other educational personnel shall be equitable in comparison to services and other benefits for public school children, teachers, and other educational personnel participating in such program and shall be provided in a timely manner.

`(4) EXPENDITURES- Expenditures for educational services and other benefits provided under this section to eligible private school children, their teachers, and other educational personnel serving such children shall be equal, taking into account the number and educational needs of the children to be served, to the expenditures for participating public school children.

`(5) PROVISION OF SERVICES- Such agency, consortium or entity described in subsection (a)(1) of this section may provide such services directly or through contracts with public and private agencies, organizations, and institutions.

`(b) APPLICABILITY-

`(1) IN GENERAL- This section applies to programs under--

`(A) part C of title I;

`(B) title II;

`(C) title III;

`(D) title IV; and

`(E) title VII.

`(2) DEFINITION- For the purposes of this section, the term `eligible children' means children eligible for services under a program described in paragraph (1).

`(c) CONSULTATION-

`(1) IN GENERAL- To ensure timely and meaningful consultation, a State educational agency, local educational agency, educational service agency, consortium of such agencies or entity shall consult with appropriate private school officials during the design and development of the programs under this Act, on issues such as--

`(A) how the children's needs will be identified;

`(B) what services will be offered;

`(C) how, where, and by whom the services will be provided;

`(D) how the services will be assessed and how the results of the assessment will be used to improve such services;

`(E) the size and scope of the equitable services to be provided to the eligible private school children, teachers, and other educational personnel and the amount of funds available for such services; and

`(F) how and when the agency, consortium, or entity will make decisions about the delivery of services, including a thorough consideration and analysis of the views of the private school officials on the provision of contract services through potential third party providers.

`(2) DISAGREEMENT- If the agency, consortium or entity disagrees with the views of the private school officials on the provision of services through a contract, the agency, consortium, or entity shall provide in writing to such private school officials an analysis of the reasons why the local educational agency has chosen not to use a contractor.

`(3) TIMING- Such consultation shall occur before the agency, consortium, or entity makes any decision that affects the opportunities of eligible private school children, teachers, and other educational personnel to participate in programs under this Act, and shall continue throughout the implementation and assessment of activities under this section.

`(4) DISCUSSION REQUIRED- Such consultation shall include a discussion of service delivery mechanisms that the agency, consortium, or entity could use to provide equitable services to eligible private school children, teachers, administrators, and other staff.

`(d) PUBLIC CONTROL OF FUNDS-

`(1) IN GENERAL- The control of funds used to provide services under this section, and title to materials, equipment, and property purchased with such funds, shall be in a public agency for the uses and purposes provided in this Act, and a public agency shall administer such funds and property.

`(2) PROVISION OF SERVICES-

`(A) The provision of services under this section shall be provided--

`(i) by employees of a public agency; or

`(ii) through contract by such public agency with an individual, association, agency, organization, or other entity.

`(B) In the provision of such services, such employee, person, association, agency, organization or other entity shall be independent of such private school and of any religious organization, and such employment or contract shall be under the control and supervision of such public agency.

`(C) Funds used to provide services under this section shall not be commingled with non-Federal funds.

`SEC. 14504. STANDARDS FOR BY-PASS.

`If, by reason of any provision of law, a State educational agency, local educational agency, educational service agency, consortium, or other entity of such agencies, is prohibited from providing for the participation in programs of children enrolled in, or teachers or other educational personnel from, private elementary and secondary schools, on an equitable basis, or if the Secretary determines that such agency consortium or entity has substantially failed or is unwilling to provide for such participation, as required by section 14503, the Secretary shall--

`(1) waive the requirements of that section for such agency, consortium, or entity;

`(2) arrange for the provision of equitable services to such children, teachers, or other educational personnel through arrangements that shall be subject to the requirements of this section and of sections 14503, 14505, and 14506; and

`(3) in making the determination, consider one or more factors, including the quality, size, scope, location of the program and the opportunity of private school children, teachers, and other educational personnel to participate.

`SEC. 14505. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL CHILDREN.

`(a) PROCEDURES FOR COMPLAINTS- The Secretary shall develop and implement written procedures for receiving, investigating, and resolving complaints from parents, teachers, or other individuals and organizations concerning violations of section 14503 by a State educational agency, local educational agency, educational service agency, consortium of such agencies or entity. Such individual or organization shall submit such complaint to the State educational agency for a written resolution by the State educational agency within a reasonable period of time.

`(b) APPEALS TO SECRETARY- Such resolution may be appealed by an interested party to the Secretary not later than 30 days after the State educational agency resolves the complaint or fails to resolve the complaint within a reasonable period of time. Such appeal shall be accompanied by a copy of the State educational agency's resolution, and a complete statement of the reasons supporting the appeal. The Secretary shall investigate and resolve each such appeal not later than 120 days after receipt of the appeal.

`SEC. 14506. BY-PASS DETERMINATION PROCESS.

`(a) REVIEW-

`(1) IN GENERAL-

`(A) The Secretary shall not take any final action under section 14504 until the State educational agency, local educational agency, educational service agency, consortium of such agencies or entity affected by such action has had an opportunity, for not less than 45 days after receiving written notice thereof, to submit written objections and to appear before the Secretary to show cause why that action should not be taken.

`(B) Pending final resolution of any investigation or complaint that could result in a determination under this section, the Secretary may withhold from the allocation of the affected State or local educational agency the amount estimated by the Secretary to be necessary to pay the cost of those services.

`(2) PETITION FOR REVIEW-

`(A) If such affected agency consortium or entity is dissatisfied with the Secretary's final action after a proceeding under paragraph (1), such agency consortium or entity may, within 60 days after notice of such action, file with the United States court of appeals for the circuit in which such State is located a petition for review of that action.

`(B) A copy of the petition shall be forthwith transmitted by the clerk of the court to the Secretary.

`(C) The Secretary upon receipt of the copy of the petition shall file in the court the record of the proceedings on which the Secretary based this action, as provided in section 2112 of title 28, United States Code.

`(3) FINDINGS OF FACT-

`(A) The findings of fact by the Secretary, if supported by substantial evidence, shall be conclusive, but the court, for good cause shown, may remand the case to the Secretary to take further evidence and the Secretary may then make new or modified findings of fact and may modify the Secretary's previous action, and shall file in the court the record of the further proceedings.

`(B) Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.

`(4) JURISDICTION-

`(A) Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Secretary or to set such action aside, in whole or in part.

`(B) The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code.

`(b) DETERMINATION- Any determination by the Secretary under this section shall continue in effect until the Secretary determines, in consultation with such agency, consortium or entity and representatives of the affected private school children, teachers, or other educational personnel that there will no longer be any failure or inability on the part of such agency or consortium to meet the applicable requirements of section 14503 or any other provision of this Act.

`(c) PAYMENT FROM STATE ALLOTMENT- When the Secretary arranges for services pursuant to this section, the Secretary shall, after consultation with the appropriate public and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the appropriate allocation or allocations under this Act.

`(d) PRIOR DETERMINATION- Any by-pass determination by the Secretary under this Act as in effect on the day preceding the date of enactment of the Education OPTIONS Act shall remain in effect to the extent the Secretary determines that such determination is consistent with the purpose of this section.

`SEC. 14507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR INSTRUCTION.

`Nothing contained in this Act shall be construed to authorize the making of any payment under this Act for religious worship or instruction.

`SEC. 14508. APPLICABILITY TO HOME SCHOOLS.

`Nothing in this Act shall be construed to affect home schools.

`SEC. 14509. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC SCHOOLS.

`Nothing in this Act or any other Act administered by the Department shall be construed to permit, allow, encourage, or authorize any Federal control over any aspect of any private, religious, or home school, whether or not a home school is treated as a private school or home school under State law. This section shall not be construed to bar private, religious, or home schools from participation in programs or services under this Act or any other Act administered by the Department.

`SEC. 14510. SCHOOL PRAYER.

`Notwithstanding any provision of law, no funds made available through the Department of Education under this Act, or any other Act, shall be available to any State or local educational agency which has a policy of denying or which effectively prevents participation in, constitutionally protected prayer in public schools by individuals on a voluntary basis. Neither the United States nor any State nor any local educational agency shall require any person to participate in prayer or influence the form or content of any constitutionally protected prayer in such public schools.

`SEC. 14511. MEMORIALS AND MEMORIAL SERVICES; RULE OF CONSTRUCTION; AND ATTORNEY FEES.

`(a) FINDINGS- Congress finds the following:

`(1) The saying of a prayer, the reading of a scripture, or the performance of religious music, as part of a memorial service that is held on the campus of a public elementary or secondary school in order to honor the memory of any person slain on that campus is not objectionable under this Act.

`(2) The design and construction of any memorial which includes religious symbols, motifs, or sayings that is placed on the campus of a public elementary or secondary school in order to honor the memory of any person slain on that campus is not objectionable under this Act.

`(b) RULE OF CONSTRUCTION-

`(1) PAYMENT- Nothing contained in this Act shall be construed to authorize the making of any payment under this Act for religious worship, instruction, or the construction of any religious memorial.

`(2) MEMORIAL SERVICE- This Act shall not be construed to bar--

`(A) the saying of a prayer;

`(B) the reading of a scripture;

`(C) the performance of religious music; or

`(D) the design or construction of any memorial which includes religious symbols, motifs, or sayings;

as part of a memorial service held or a memorial placed, as the case may be, on the campus of a public elementary or secondary school in order to honor the memory of any person slain on that campus.

`SEC. 14512. ATTORNEYS FEES.

`Notwithstanding any other provision of Federal law, a local educational agency or public elementary or secondary school may use not more than 20 percent of its administrative funds from any program under this Act for payment of attorneys fees and related legal services in the defense of any legal action, brought against a local educational agency, public elementary or secondary school, or agent of any of such entities, claiming such agency, school, or agent violated the constitutional prohibition against the establishment of religion by permitting, facilitating, or accommodating--

`(1) a student's religious expression; or

`(2) the design or construction of any memorial which includes religious symbols, motifs, or saying as part of a memorial placed on the campus of a public elementary or secondary school in order to honor the memory of a person slain on that campus.

`SEC. 14513. GENERAL PROHIBITIONS.

`(a) PROHIBITION- None of the funds authorized under this Act shall be used--

`(1) to develop or distribute materials, or operate programs or courses of instruction directed at youth that are designed to promote or encourage, sexual activity, whether homosexual or heterosexual;

`(2) to distribute or to aid in the distribution by any organization of legally obscene materials to minors on school grounds;

`(3) to provide sex education or HIV prevention education in schools unless such instruction is age appropriate and emphasizes the health benefits of abstinence; or

`(4) to operate a program of contraceptive distribution in schools.

`(b) LOCAL CONTROL- Nothing in this section shall be construed to--

`(1) authorize an officer or employee of the Federal Government to mandate, direct, review, or control a State, local educational agency, or schools' instructional content, curriculum, and related activities;

`(2) limit the application of the General Education Provisions Act (20 U.S.C.A. 1221 et seq.);

`(3) require the distribution of scientifically or medically false or inaccurate materials or to prohibit the distribution of scientifically or medically true or accurate materials; or

`(4) create any legally enforceable right.

`SEC. 14514. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

`Nothing in this Act shall be construed to authorize an officer or employee of the Federal Government to mandate, direct, or control a State, local educational agency, or school's curriculum, program of instruction, or allocation of State or local resources, or mandate a State or any subdivision thereof to spend any funds or incur any costs not paid for under this Act.

`SEC. 14515. RULEMAKING.

`The Secretary shall issue regulations under this Act only to the extent that such regulations are necessary to ensure that there is compliance with the specific requirements and assurances required by this Act.

`SEC. 14516. REPORT.

`The Secretary shall report to the Congress not later than 180 days after the date of enactment of the Education OPTIONS Act regarding how the Secretary shall ensure that audits conducted by Department employees of activities assisted under this Act comply with changes to this Act made by the Education OPTIONS Act, particularly with respect to permitting children with similar educational needs to be served in the same educational settings, where appropriate.

`SEC. 14517. REQUIRED APPROVAL OR CERTIFICATION PROHIBITED.

`(a) IN GENERAL- Notwithstanding any other provision of Federal law, no State shall be required to have content standards or student performance standards approved or certified by the Federal Government, in order to receive assistance under this Act.

`(b) CONSTRUCTION- Nothing in this section shall be construed to affect requirements under title I of this Act.

`SEC. 14518. PROHIBITION ON ENDORSEMENT OF CURRICULUM.

`Notwithstanding any other prohibition of Federal law, no funds provided to the Department of Education or to any applicable program may be used by the Department to endorse, approve, or sanction any curriculum designed to be used in an elementary or secondary school.

`SEC. 14519. PRIVACY FOR STUDENTS.

`(a) IN GENERAL- No State educational agency or local educational agency that receives funds under this Act may enter into an agreement, or allow a school under its supervision to enter into an agreement, with any person or entity that allows such person or entity to monitor, gather, or obtain information used to advertise, sell, or develop a product from any student under 18 years of age unless such agreement requires the written permission of the parent of such student prior to monitoring, gathering, or obtaining such information.

`(b) NATURE OF INFORMATION COLLECTED- Before a school, local educational agency, or State educational agency, as the case may be, enters into an agreement to allow a person or entity to monitor, gather, or obtain information used to advertise, sell, or develop a product from any student under 18 years, the school, agency, or State shall ascertain the nature of the information to be collected, how the information will be used, if the information will be sold, distributed, or transferred to any person or entity, and the amount of class time, if any, that will be consumed by such activity.

`(c) CONSENT FORM- The written permission required by subsection (a) shall clearly disclose to the parent the nature of the agreement between a school, local educational agency, or State educational agency, as the case may be, and the person or entity, including--

`(1) the dollar amount of any consideration paid under the agreement;

`(2) the nature of the information to be gathered;

`(3) how the information will be used;

`(4) whether the information will be sold, distributed, or transferred to any other entity; and

`(5) the amount of class time, if any, that will be consumed by such activity.

`(d) EXCEPTIONS- This section shall not apply to--

`(1) the recruitment activities of any institution of higher education, as such term is defined in section 102 of the Higher Education Act of 1965;

`(2) the development and administration of tests and assessments used by elementary and secondary schools to provide cognitive, evaluative, diagnostic, aptitude, or achievement information about students (or for normalizing data), and the subsequent analysis and public release of aggregate data, if--

`(A) the information is not used to sell, advertise, or develop another product; and

`(B) the tests are conducted in accordance with applicable Federal, State, and local policies;

`(3) the development and administration of educational curriculum and instructional materials used by elementary and secondary schools to teach core academic subjects, if--

`(A) the information is not used to sell, advertise, or develop another product; and

`(B) the curriculum and instructional materials are used in accordance with applicable Federal, State, and local policies; or

`(4) contact information collected from a student that is used only to respond directly to a specific request from the student for a transaction, if the information--

`(A) is not used for any purpose other than as required in order to effect the transaction with the student; and

`(B) is not used to recontact the student in order to advertise, sell, or develop any other product or service to the student.

`SEC. 14520. RULE OF CONSTRUCTION ON PERSONALLY IDENTIFIABLE INFORMATION.

`Nothing in this Act shall be construed to permit the development of a national database of personally identifiable information on individuals involved in studies or in data collection efforts under this Act.

`PART F--SENSE OF CONGRESS

`SEC. 14614. REDUCING THE READING DEFICIT.

`(a) FINDINGS- The ability to read the English language is the cornerstone of academic success. The 1998 National Assessment of Educational Progress (NAEP) found that 69 percent of 4th grade students are reading below the proficient level. The National Institute of Child Health and Human Development (NICHD) has conducted extensive scientific research on reading instruction for more than 34 years at a cost of more than two hundred million dollars. Federal research in reading instruction has concluded that phonemic awareness, direct systematic instruction in sound-spelling correspondences, blending of sound-spellings into words, reading comprehension, and regular exposure to interesting books are essential components of any balanced reading program.

`(b) SENSE OF CONGRESS- It is the sense of Congress that--

`(1) federally funded education programs which are designed to improve reading skills, should use instructional practices that are grounded in scientifically based research as defined in section 14101(27) of this Act;

`(2) reducing the reading deficit is one of the most critical tasks before the nation; and

`(3) successful learning in all other areas such as science, history, literature, business and vocational training or computer science requires the ability to read fluently and with comprehension.

`SEC. 14615. SCIENCE ASSESSMENT.

`It is the sense of Congress that State and local assessments in science should measure a student's ability to--

`(1) understand scientific facts, results, and concepts;

`(2) design and conduct experiments;

`(3) make arguments based on evidence and data; and

`(4) communicate scientific information.

`SEC. 14616. AMERICA ACHIEVES ACADEMIC EXCELLENCE.

`It is the sense of Congress that--

`(1) the Constitution of the United States reserves to the States and to the people the responsibility for the general supervision of public education in kindergarten through the twelfth grade;

`(2) State and local educational agencies are best suited to increasing academic achievement levels for all students and ensuring no student is left behind;

`(3) States and local educational agencies deserve and require the maximum liberty to build upon existing innovative approaches for education reform and continue their proven record of increasing student success;

`(4) education reform is in the best interests of the American people in order to secure a more prosperous and perfect union;

`(5) the best education decisions are made by those who know the students best and who are responsible for implementing the decisions, and, therefore, educators and parents should retain the right and responsibility to educate their pupils and children free of regulation by the Federal Government; and

`(6) States should be commended for their efforts and results and encouraged to sustain and improve upon them.'.

SEC. 602. REPEALS.

The following provisions are repealed:

(1) GOALS- Parts A and C of title II and title VI of Goals 2000: Educate America Act.

(2) ESEA- Title XI of the Elementary and Secondary Education Act of 1965.

SEC. 603. EFFECTIVE DATE.

This Act and the amendments made by this Act shall take effect on October 1, 2000, or the date of enactment of the Education OPTIONS Act, whichever occurs later.

Calendar No. 331

To amend the Elementary and Secondary Education Act of 1965, and for other purposes.

May 4, 2000

END