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   Mr. BINGAMAN proposed an amendment to the bill (S. 1134) to amend the Internal Revenue Code of 1986 to allow tax-free expenditures from education individual retirement accounts for elementary and secondary school expenses, to increase the maximum annual amount of contributions to such accounts, and for other purposes; as follows:

   Strike section 101 and insert the following:

   ``SEC. 101 FUNDS FOR ACCOUNTABILITY AND SCHOOL IMPROVEMENT.

   ``(a) AUTHORIZATION OF APPROPRIATIONS.--For the purpose of carrying out this section, there are authorized to be appropriated $275,000,000 for fiscal year 2001 and such sums as may be necessary for each of the succeeding fiscal years.

   ``(b) NATIONAL ACTIVITIES.--From the amount appropriated for any fiscal year under subsection (a), the Secretary of Education (`the Secretary') may reserve not more than 3 percent to conduct evaluations and studies, collect data, and carry out other activities relevant to sections 1116 and 1117 of the Elementary and Secondary Education Act of 1965 (hereafter in this section referred to as ``the ESEA''). .

   ``(c) ALLOCATIONS TO STATES.--The Secretary shall allocate the amount appropriated for any fiscal year under subsection (a) and not reserved under subsection (b) among the States in the same proportion in which funds are allocated among the States under part A of title I of the ESEA.

   ``(d) STATE USE OF FUNDS.--

   (1) IN GENERAL.--Each State educational agency shall use funds received under subsection (c) to--

   ``(A) make allotments under paragraph (2); and

   ``(B) carry out its responsibilities under sections 1116 and 1117 of the ESEA, including establishing and supporting the State educational agency's statewide system of technical assistance and support for local educational agencies.

   ``(2) ALLOTMENTS TO LOCAL EDUCATIONAL AGENCIES.--

   ``(A) IN GENERAL.--Each State educational agency shall allot at least 70 percent of the amount received under this section to local educational agencies in the State.

   ``(B) PRIORITIES.--In making allotments under this paragraph, the State educational agency shall--

   ``(i) give first priority to schools and local educational agencies with schools identified for corrective action under section 1116(c)(5) of the ESEA; and

   ``(ii) give second priority to schools and local educational agencies with other schools identified for school improvement under section 1116(c)(1) of the ESEA.

   ``(e) LOCAL USE OF FUNDS.--.

   ``(1) CORRECTIVE ACTION.--Each local educational agency receiving an allotment under subsection (d)(2)(B)(i) shall use the allotment to carry out effective corrective action in the schools identified for corrective action.

   ``(2) SCHOOL IMPROVEMENT.--Each local educational agency receiving an allotment under subsection (d)(2)(B)(ii) shall use the allotment to achieve substantial improvement in the performance of the schools identified for school improvement.''

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