H.R.6

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To extend for five years the authorizations of appropriations for the 
programs under the Elementary and Secondary Education Act of 1965, and 
for certain 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 ``Improving America's Schools Act of 
1994''.

SEC. 2. ORGANIZATION OF THE ACT.

    This Act is organized into the following titles:

  TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

      TITLE II--AMENDMENTS TO THE GENERAL EDUCATION PROVISIONS ACT

                   TITLE III--AMENDMENTS TO OTHER ACTS

                 TITLE IV--NATIONAL EDUCATION STATISTICS

                         TITLE V--MISCELLANEOUS

SEC. 3. EFFECTIVE DATES; TRANSITION.

    (a) Effective Dates.--
        (1) Title i.--
            (A) Title I and the amendment made by title I of this Act 
        shall take effect July 1, 1995, except that those provisions of 
        title I that apply to programs under title VIII (Impact Aid) of 
        the Elementary and Secondary Education Act of 1965, as amended 
        by this Act, and to programs under such Act that are conducted 
        on a competitive basis, shall be effective with respect to 
        appropriations for use under such programs for fiscal year 1995 
        and for subsequent fiscal years.
            (B) Title VIII of the Elementary and Secondary Education 
        Act of 1965, as amended by title I of this Act, shall take 
        effect on the date of the enactment of this Act.
        (2) Title ii.--Title II of this Act and the amendments made by 
    title II of this Act shall take effect on the date of enactment of 
    this Act, except that section 236 (equity for students, teachers, 
    and other program beneficiaries) of such title shall be effective--
            (A) July 1, 1995 for noncompetitive programs in which funds 
        are allocated on the basis of a formula; and
            (B) for programs that are conducted on a competitive basis, 
        with respect to appropriations for use under such programs in 
        fiscal year 1995 and in subsequent fiscal years.
        (3) Title iii.--(A) Parts A and B of title III of this Act and 
    the amendments made by such parts shall take effect on July 1, 
    1995.
        (B) Part C of title III of this Act and the amendments made by 
    such part shall take effect on October 1, 1994.
    (b) Transition.--Notwithstanding any other provision of law, a 
recipient of funds under the Elementary and Secondary Education Act of 
1965, as such Act was in effect on the day preceding the date of 
enactment of this Act, may use funds available to such recipient under 
such predecessor authority to carry out necessary and reasonable 
planning and transition activities in order to ensure a smooth 
implementation of programs authorized by this Act.

 TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

    SEC. 101. AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT 
      OF 1965.
    The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 
et seq.) is amended to read as follows:

``SECTION 1. TABLE OF CONTENTS.

    ``This Act may be cited as the `Elementary and Secondary Education 
Act of 1965'.

     ``TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

``SEC. 1001. DECLARATION OF POLICY AND STATEMENT OF PURPOSE.

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

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

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

``SEC. 1003. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

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

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

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
        ``(1) In general.--Any State desiring to receive a grant under 
    this part shall submit to the Secretary a plan, developed in 
    consultation with local educational agencies, teachers, pupil 
    services personnel, administrators, other staff, and parents, that 
    satisfies the requirements of this section and that is coordinated 
    with other programs under this Act, the Goals 2000: Educate America 
    Act, and other Acts, as appropriate, consistent with section 14306.
        ``(2) Consolidation plan.--A State plan submitted under 
    paragraph (1) may be submitted as part of a consolidation plan 
    under section 14302.
    ``(b) Standards and Assessments.--
        ``(1) Challenging standards.--(A) Each State plan shall 
    demonstrate that the State has developed or adopted challenging 
    content standards and challenging student performance standards 
    that will be used by the State, its local educational agencies, and 
    its schools to carry out this part, except that a State shall not 
    be required to submit such standards to the Secretary.
        ``(B) If a State has State content standards or State student 
    performance standards developed under title III of the Goals 2000: 
    Educate America Act and an aligned set of assessments for all 
    students developed under such title, or, if not developed under 
    such title, adopted under another process, the State shall use such 
    standards and assessments, modified, if necessary, to conform with 
    the requirements of subparagraphs (A) and (D) of this paragraph, 
    and paragraphs (2) and (3).
        ``(C) If a State has not adopted State content standards and 
    State student performance standards for all students, the State 
    plan shall include a strategy and schedule for developing State 
    content standards and State student performance standards for 
    elementary and secondary school children served under this part in 
    subjects as determined by the State, but including at least 
    mathematics and reading or language arts by the end of the one-year 
    period described in paragraph (6), which standards shall include 
    the same knowledge, skills, and levels of performance expected of 
    all children.
        ``(D) Standards under this paragraph shall include--
            ``(i) challenging content standards in academic subjects 
        that--
                ``(I) specify what children are expected to know and be 
            able to do;
                ``(II) contain coherent and rigorous content; and
                ``(III) encourage the teaching of advanced skills;
            ``(ii) challenging student performance standards that--
                ``(I) are aligned with the State's content standards;
                ``(II) describe two levels of high performance, 
            proficient and advanced, that determine how well children 
            are mastering the material in the State content standards; 
            and
                ``(III) describe a third level of performance, 
            partially proficient, to provide complete information about 
            the progress of the lower performing children toward 
            achieving to the proficient and advanced levels of 
            performance.
        ``(E) For the subjects in which students will be served under 
    this part, but for which a State is not required by subparagraphs 
    (A), (B), and (C) to develop, and has not otherwise developed such 
    standards, the State plan shall describe a strategy for ensuring 
    that such students are taught the same knowledge and skills and 
    held to the same expectations as are all children.
        ``(2) Yearly progress.--
            ``(A) Each State plan shall demonstrate, based on 
        assessments described under paragraph (3), what constitutes 
        adequate yearly progress of--
                ``(i) any school served under this part toward enabling 
            children to meet the State's student performance standards; 
            and
                ``(ii) any local educational agency that received funds 
            under this part toward enabling children in schools 
            receiving assistance under this part to meet the State's 
            student performance standards.
            ``(B) Adequate yearly progress shall be defined in a 
        manner--
                ``(i) that is consistent with guidelines established by 
            the Secretary that result in continuous and substantial 
            yearly improvement of each local educational agency and 
            school sufficient to achieve the goal of all children 
            served under this part meeting the State's proficient and 
            advanced levels of performance, particularly economically 
            disadvantaged and limited English proficient children; and
                ``(ii) that links progress primarily to performance on 
            the assessments carried out under this section while 
            permitting progress to be established in part through the 
            use of other measures.
        ``(3) Assessments.--Each State plan shall demonstrate that the 
    State has developed or adopted a set of high-quality, yearly 
    student assessments, including assessments in at least mathematics 
    and reading or language arts, that will be used as the primary 
    means of determining the yearly performance of each local 
    educational agency and school served under this part in enabling 
    all children served under this part to meet the State's student 
    performance standards. Such assessments shall--
            ``(A) be the same assessments used to measure the 
        performance of all children, if the State measures the 
        performance of all children;
            ``(B) be aligned with the State's challenging content and 
        student performance standards and provide coherent information 
        about student attainment of such standards;
            ``(C) be used for purposes for which such assessments are 
        valid and reliable, and be consistent with relevant, nationally 
        recognized professional and technical standards for such 
        assessments;
            ``(D) measure the proficiency of students in the academic 
        subjects in which a State has adopted challenging content and 
        student performance standards and be administered at some time 
        during--
                ``(i) grades 3 through 5;
                ``(ii) grades 6 through 9; and
                ``(iii) grades 10 through 12;
            ``(E) involve multiple up-to-date measures of student 
        performance, including measures that assess higher order 
        thinking skills and understanding;
            ``(F) provide for--
                ``(i) the participation in such assessments of all 
            students;
                ``(ii) the reasonable adaptations and accommodations 
            for students with diverse learning needs, necessary to 
            measure the achievement of such students relative to State 
            content standards; and
                ``(iii) the inclusion of limited English proficient 
            students who shall be assessed, to the extent practicable, 
            in the language and form most likely to yield accurate and 
            reliable information on what such students know and can do, 
            to determine such students' mastery of skills in subjects 
            other than English;
            ``(G) include students who have attended schools in a local 
        educational agency for a full academic year but have not 
        attended a single school for a full academic year, however the 
        performance of students who have attended more than one school 
        in the local educational agency in any academic year shall be 
        used only in determining the progress of the local educational 
        agency;
            ``(H) provide individual student interpretive and 
        descriptive reports, which shall include scores, or other 
        information on the attainment of student performance standards; 
        and
            ``(I) enable results to be disaggregated within each State, 
        local educational agency, and school by gender, by each major 
        racial and ethnic group, by English proficiency status, by 
        migrant status, by students with disabilities as compared to 
        nondisabled students, and by economically disadvantaged 
        students as compared to students who are not economically 
        disadvantaged.
        ``(4) Special rule.--Assessment measures that do not meet the 
    requirements of paragraph (3)(C) may be included as one of the 
    multiple measures, if a State includes in the State plan 
    information regarding the State's efforts to validate such 
    measures.
        ``(5) Language assessments.--Each State plan shall identify the 
    languages other than English that are present in the participating 
    student population and indicate the languages for which yearly 
    student assessments are not available and are needed. The State 
    shall make every effort to develop such assessments and may request 
    assistance from the Secretary if linguistically accessible 
    assessment measures are needed. Upon request, the Secretary shall 
    assist with the identification of appropriate assessment measures 
    in the needed languages through the Office of Bilingual Education 
    and Minority Languages Affairs.
        ``(6) Standard and assessment development.--(A) A State that 
    does not have challenging State content standards and challenging 
    State student performance standards, in at least mathematics and 
    reading or language arts, shall develop such standards within one 
    year of receiving funds under this part after the first fiscal year 
    for which such State receives such funds after the date of 
    enactment of the Improving America's Schools Act of 1994.
        ``(B) A State that does not have assessments that meet the 
    requirements of paragraph (3) in at least mathematics and reading 
    or language arts shall develop and test such assessments within 
    four years (one year of which shall be used for field testing such 
    assessment), of receiving funds under this part after the first 
    fiscal year for which such State receives such funds after the date 
    of enactment of the Improving America's Schools Act of 1994 and 
    shall develop benchmarks of progress toward the development of such 
    assessments that meet the requirements of paragraph (3), including 
    periodic updates.
        ``(C) The Secretary may extend for one additional year the time 
    for testing new assessments under subparagraph (B) upon the request 
    of the State and the submission of a strategy to correct problems 
    identified in the field testing of such new assessments.
        ``(D) If, after the one-year period described in subparagraph 
    (A), a State does not have challenging State content and 
    challenging student performance standards in at least mathematics 
    and reading or language arts, a State shall adopt a set of 
    standards in these subjects such as the standards and assessments 
    contained in other State plans the Secretary has approved.
        ``(E) If, after the four-year period described in subparagraph 
    (B), a State does not have assessments, in at least mathematics and 
    reading or language arts, that meet the requirement of paragraph 
    (3), and is denied an extension under subparagraph (C), a State 
    shall adopt an assessment that meets the requirement of paragraph 
    (3) such as one contained in other State plans the Secretary has 
    approved.
        ``(7) Transitional assessments.--(A) If a State does not have 
    assessments that meet the requirements of paragraph (3) and 
    proposes to develop such assessments under paragraph (6)(B), the 
    State may propose to use a transitional set of yearly statewide 
    assessments that will assess the performance of complex skills and 
    challenging subject matter.
        ``(B) For any year in which a State uses transitional 
    assessments, the State shall devise a procedure for identifying 
    local educational agencies under paragraphs (3) and (7) of section 
    1116(d), and schools under paragraphs (1) and (7) of section 
    1116(c), that rely on accurate information about the academic 
    progress of each such local educational agency and school.
        ``(8) Requirement.--Each State plan shall describe--
            ``(A) how the State educational agency will help each local 
        educational agency and school affected by the State plan 
        develop the capacity to comply with each of the requirements of 
        sections 1112(c)(1)(D), 1114(b), and 1115(c) that is applicable 
        to such agency or school; and
            ``(B) such other factors the State deems appropriate (which 
        may include opportunity-to-learn standards or strategies 
        developed under the Goals 2000: Educate America Act) to provide 
        students an opportunity to achieve the knowledge and skills 
        described in the challenging content standards adopted by the 
        State.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
        ``(1)(A) the State educational agency will implement a system 
    of school support teams under section 1117(c), including provision 
    of necessary professional development for those teams;
        ``(B) the State educational agency will work with other 
    agencies, including educational service agencies or other local 
    consortia, and institutions to provide technical assistance to 
    local educational agencies and schools to carry out the State 
    educational agency's responsibilities under this part, including 
    technical assistance in providing professional development under 
    section 1119 and technical assistance under section 1117; and
        ``(C)(i) where educational service agencies exist, the State 
    educational agency will consider providing professional development 
    and technical assistance through such agencies; and
        ``(ii) where educational service agencies do not exist, the 
    State educational agency will consider providing professional 
    development and technical assistance through other cooperative 
    agreements such as through a consortium of local educational 
    agencies;
        ``(2) the State educational agency will notify local 
    educational agencies and the public of the standards and 
    assessments developed under this section, and of the authority to 
    operate schoolwide programs, and will fulfill the State educational 
    agency's responsibilities regarding local educational agency 
    improvement and school improvement under section 1116, including 
    such corrective actions as are necessary;
        ``(3) the State educational agency will provide the least 
    restrictive and burdensome regulations for local educational 
    agencies and individual schools participating in a program assisted 
    under this part;
        ``(4) the State educational agency will encourage the use of 
    funds from other Federal, State, and local sources for schoolwide 
    reform in schoolwide programs under section 1114;
        ``(5) the Committee of Practitioners established under section 
    1603(b) will be substantially involved in the development of the 
    plan and will continue to be involved in monitoring the plan's 
    implementation by the State; and
        ``(6) the State will coordinate activities funded under this 
    part with school-to-work, vocational education, cooperative 
    education and mentoring programs, and apprenticeship programs 
    involving business, labor, and industry, as appropriate.
    ``(d) Peer Review and Secretarial Approval.--
        ``(1) In general.--The Secretary shall--
            ``(A) establish a peer review process to assist in the 
        review and recommendations for revision of State plans;
            ``(B) appoint individuals to the peer review process who 
        are representative of State educational agencies, local 
        educational agencies, teachers, and parents;
            ``(C) following an initial peer review, approve a State 
        plan the Secretary determines meets the requirements of 
        subsections (a), (b), and (c);
            ``(D) if the Secretary determines that the State plan does 
        not meet the requirements of subsection (a), (b), or (c), 
        immediately notify the State of such determination and the 
        reasons for such determination;
            ``(E) not decline to approve a State's plan before--
                ``(i) offering the State an opportunity to revise its 
            plan;
                ``(ii) providing technical assistance in order to 
            assist the State to meet the requirements under subsections 
            (a), (b), and (c); and
                ``(iii) providing a hearing; and
            ``(F) have the authority to disapprove a State plan for not 
        meeting the requirements of this part, but shall not have the 
        authority to require a State, as a condition of approval of the 
        State plan, to include in, or delete from, such plan one or 
        more specific elements of the State's content standards or to 
        use specific assessment instruments or items.
        ``(2) Withholding.--The Secretary may withhold funds for State 
    administration and activities under section 1117 until the 
    Secretary determines that the State plan meets the requirements of 
    this section.
    ``(e) Duration of the Plan.--
        ``(1) In general.--Each State plan shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
        ``(2) Additional information.--If the State makes significant 
    changes in its plan, such as the adoption of new State content 
    standards and State student performance standards, new assessments, 
    or a new definition of adequate progress, the State shall submit 
    such information to the Secretary.
    ``(f) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal Government 
to mandate, direct, or control a State, local educational agency, or 
school's specific instructional content or student performance 
standards and assessments, opportunity-to-learn standards or 
strategies, curriculum, or program of instruction, as a condition of 
eligibility to receive funds under this part.
    ``(g) Prohibition.--Nothing in this Act shall be construed to 
require any State educational agency, local educational agency, or 
school, to implement opportunity-to-learn standards or strategies 
developed by such State under the Goals 2000: Educate America Act.
    ``(h) Special Rule.--If the aggregate State expenditure by a State 
educational agency for the operation of elementary and secondary 
education programs in the State is less than such agency's aggregate 
Federal expenditure for the State operation of all Federal elementary 
and secondary education programs, then the State plan shall include 
assurances and specific provisions that such State will provide State 
expenditures for the operation of elementary and secondary education 
programs equal to or exceeding the level of Federal expenditures for 
such operation by October 1, 1998.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

    ``(a) Plans Required.--
        ``(1) Subgrants.--A local educational agency may receive a 
    subgrant under this part for any fiscal year only if such agency 
    has on file with the State educational agency a plan, approved by 
    the State educational agency, that is coordinated with other 
    programs under this Act, the Goals 2000: Educate America Act, and 
    other Acts, as appropriate, as specified in section 14306.
        ``(2) Consolidated application.--The plan may be submitted as 
    part of a consolidated application under section 14304.
    ``(b) Plan Provisions.--Each local educational agency plan shall 
include--
        ``(1) a description of additional high-quality student 
    assessments, if any, other than the assessments described in the 
    State plan under section 1111, that the local educational agency 
    and schools served under this part will use to--
            ``(A) determine the success of children served under this 
        part in meeting the State's student performance standards and 
        provide information to teachers, parents, and students on the 
        progress being made toward meeting the State student 
        performance standards described in section 1111(b)(1)(D)(ii);
            ``(B) assist in diagnosis, teaching, and learning in the 
        classroom in ways that best enable children served under this 
        part to meet State standards and do well in the local 
        curriculum; and
            ``(C) determine what revisions are needed to projects under 
        this part so that such children will meet the State's student 
        performance standards;
        ``(2) at the local educational agency's discretion, a 
    description of any other indicators that will be used in addition 
    to the assessments described in paragraph (1) for the uses 
    described in such paragraph;
        ``(3) a description of the strategy the local educational 
    agency will use to provide professional development for teachers, 
    and, where appropriate, pupil services personnel, administrators, 
    parents and other staff, including local educational agency level 
    staff in accordance with section 1119;
        ``(4) a description of how the local educational agency will 
    coordinate and integrate services provided under this part with 
    other educational services at the local educational agency or 
    individual school level, such as--
            ``(A) Even Start, Head Start, and other preschool programs, 
        including plans for the transition of participants in such 
        programs to local elementary school programs, vocational 
        education programs, and school-to-work transition programs; and
            ``(B) services for children with limited English 
        proficiency or with disabilities, migratory children served 
        under part C or who were formerly eligible for services under 
        part C in the two-year period preceding the date of the 
        enactment of the Improving America's School Act of 1994, 
        neglected or delinquent youth and youth at risk of dropping out 
        served under part D, homeless children, and immigrant children 
        in order to increase program effectiveness, eliminate 
        duplication, and reduce fragmentation of the instructional 
        program;
        ``(5) a description of the poverty criteria that will be used 
    to select school attendance areas under section 1113;
        ``(6) a description of how teachers, in consultation with 
    parents, administrators, and pupil services personnel, in targeted 
    assistance schools under section 1115, will identify the eligible 
    children most in need of services under this part;
        ``(7) a general description of the nature of the programs to be 
    conducted by such agency's schools under sections 1114 and 1115 
    and, where appropriate, educational services outside such schools 
    for children living in local institutions for neglected or 
    delinquent children, for neglected and delinquent children in 
    community day school programs, and for eligible homeless children;
        ``(8) a description of how the local educational agency will 
    ensure that migratory children and formerly migratory children who 
    are eligible to receive services under this part are selected to 
    receive such services on the same basis as other children who are 
    selected to receive services under this part;
        ``(9) where appropriate, a description of how the local 
    educational agency will use funds under this part to support 
    preschool programs for children, particularly children 
    participating in a Head Start or Even Start program, which services 
    may be provided directly by the local educational agency or through 
    a subcontract with the local Head Start agency designated by the 
    Secretary of Health and Human Services under section 641 of the 
    Head Start Act, agencies operating Even Start programs, or another 
    comparable public early childhood development program.
    ``(c) Assurances.--
        ``(1) In general.--Each local educational agency plan shall 
    provide assurances that the local educational agency will--
            ``(A) inform eligible schools and parents of schoolwide 
        project authority;
            ``(B) provide technical assistance and support to 
        schoolwide programs;
            ``(C) work in consultation with schools as the schools 
        develop the schools' plans pursuant to section 1114 and assist 
        schools as the schools implement such plans or undertake 
        activities pursuant to section 1115 so that each school can 
        make adequate yearly progress toward meeting the State content 
        standards and State student performance standards;
            ``(D) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking 
        corrective actions under section 1116(c)(4);
            ``(E) coordinate and collaborate, to the extent feasible 
        and necessary as determined by the local educational agency, 
        with other agencies providing services to children, youth, and 
        families, including health and social services;
            ``(F) provide services to eligible children attending 
        private elementary and secondary schools in accordance with 
        section 1120, and timely and meaningful consultation with 
        private school officials regarding such services;
            ``(G) take into account the experience of model programs 
        for the educationally disadvantaged, and the findings of 
        relevant research indicating that services may be most 
        effective if focused on students in the earliest grades at 
        schools that receive funds under this part; and
            ``(H) beginning in fiscal year 1997 and in the case that a 
        local educational agency chooses to use funds under this part 
        to provide early childhood development services to low-income 
        children below the age of compulsory school attendance, ensure 
        that such services comply with the performance standards 
        established under section 641A(a) of the Head Start Act or 
        under section 651 of such Act, as such section 651 was in 
        effect on the day preceding the date of enactment of the Human 
        Services Amendments of 1994.
        ``(2) Special rule.--In carrying out subparagraph (H) of 
    paragraph (1) the Secretary--
            ``(A) in fiscal year 1995, shall consult with the Secretary 
        of Health and Human Services on the implementation of such 
        subparagraph and shall establish procedures (taking into 
        consideration existing State and local laws, and local teacher 
        contracts) to assist local educational agencies to comply with 
        such subparagraph; and
            ``(B) in fiscal year 1996, shall disseminate to local 
        educational agencies the Head Start Performance Standards 
        revised pursuant to section 641A(a) of the Head Start Act, and 
        such agencies effected by such subparagraph shall plan for the 
        implementation of such subparagraph (taking into consideration 
        existing State and local laws, and local teacher contracts), 
        including pursuing the availability of other Federal, State, 
        and local funding sources to assist in compliance with such 
        subparagraph.
        ``(3) Inapplicability.--The provisions of this subsection shall 
    not apply to preschool programs using the Even Start model or to 
    Even Start programs which are expanded through the use of funds 
    under this part.
    ``(d) Plan Development and Duration.--Each local educational agency 
plan shall--
        ``(1) be developed in consultation with teachers, including 
    vocational teachers, and pupil services personnel, where 
    appropriate, and parents of children in schools served under this 
    part; and
        ``(2)(A) remain in effect for the duration of the local 
    educational agency's participation under this part; and
        ``(B) periodically be reviewed and revised, as necessary, to 
    reflect changes in the local educational agency's strategies and 
    programs.
    ``(e) State Approval.--
        ``(1) In general.--Each local educational agency plan shall be 
    filed according to a schedule established by the State educational 
    agency, except that a local educational agency shall have not more 
    than one year after the date of enactment of the Improving 
    America's Schools Act of 1994 to have such plan provisionally 
    approved by the State educational agency and not more than two 
    years after the date of enactment of such Act to have such plan 
    finally approved by the State educational agency.
        ``(2) Approval.--The State educational agency shall approve a 
    local educational agency's plan only if the State educational 
    agency determines that the local educational agency's plan will 
    enable schools served under this part to substantially help all 
    children served under this part meet the standards expected of all 
    children described in section 1111(b)(1).
        ``(3) Review.--The State educational agency shall review the 
    local educational agency's plan to determine if such agency's 
    professional development activities are in accordance with section 
    1119.
    ``(f) Program Responsibility.--The local educational agency plan 
shall reflect the shared responsibility of schools, teachers, and the 
local educational agency in making decisions regarding activities under 
sections 1114 and 1115.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) Determination.--
        ``(1) In general.--A local educational agency shall use funds 
    received under this part only in eligible school attendance areas.
        ``(2) Eligible school attendance areas.--For the purposes of 
    this part--
            ``(A) the term `school attendance area' means, in relation 
        to a particular school, the geographical area in which the 
        children who are normally served by that school reside; and
            ``(B) the term `eligible school attendance area' means a 
        school attendance area in which the percentage of children from 
        low-income families is at least as high as the percentage of 
        children from low-income families in the local educational 
        agency as a whole.
        ``(3) Ranking order.--If funds allocated in accordance with 
    subsection (c) are insufficient to serve all eligible school 
    attendance areas, a local educational agency shall--
            ``(A) annually rank, without regard to grade spans, such 
        agency's eligible school attendance areas in which the 
        concentration of children from low-income families exceeds 75 
        percent from highest to lowest according to the percentage of 
        children from low-income families; and
            ``(B) serve such eligible school attendance areas in rank 
        order.
        ``(4) Remaining funds.--If funds remain after serving all 
    eligible school attendance areas under paragraph (3), a local 
    educational agency shall--
            ``(A) annually rank such agency's remaining eligible school 
        attendance areas from highest to lowest either by grade span or 
        for the entire local educational agency according to the 
        percentage of children from low-income families; and
            ``(B) serve such eligible school attendance areas in rank 
        order either within each grade-span grouping or within the 
        local educational agency as a whole.
        ``(5) Measures.--The local educational agency shall use the 
    same measure of poverty, which measure shall be the number of 
    children ages 5 through 17 in poverty counted in the most recent 
    census data approved by the Secretary, the number of children 
    eligible for free and reduced priced lunches under the National 
    School Lunch Act, the number of children in families receiving 
    assistance under the Aid to Families with Dependent Children 
    program, or the number of children eligible to receive medical 
    assistance under the Medicaid program, or a composite of such 
    indicators, with respect to all school attendance areas in the 
    local educational agency--
            ``(A) to identify eligible school attendance areas;
            ``(B) to determine the ranking of each area; and
            ``(C) to determine allocations under subsection (c).
        ``(6) Exception.--This subsection shall not apply to a local 
    educational agency with a total enrollment of less than 1,000 
    children.
        ``(7) Waiver for desegregation plans.--The Secretary may 
    approve a local educational agency's written request for a waiver 
    of the requirements of subsections (a) and (c), and permit such 
    agency to treat as eligible, and serve, any school that children 
    attend with a State-ordered or a court-ordered school desegregation 
    plan or a plan that continues to be implemented in accordance with 
    a State-ordered or court-ordered desegregation plan, if (A) the 
    number of economically disadvantaged children enrolled in the 
    school is at least 25 percent of the school's total enrollment; and 
    (B) the Secretary determines on the basis of a written request from 
    such agency and in accordance with such criteria as the Secretary 
    establishes, that approval of that request would further the 
    purposes of this part.
    ``(b) Local Educational Agency Discretion.--
        ``(1) In general.--Notwithstanding subsection (a)(2), a local 
    educational agency may--
            ``(A) designate as eligible any school attendance area or 
        school in which at least 35 percent of the children are from 
        low-income families;
            ``(B) use funds received under this part in a school that 
        is not in an eligible school attendance area, if the percentage 
        of children from low-income families enrolled in the school is 
        equal to or greater than the percentage of such children in a 
        participating school attendance area of such agency; and
            ``(C) elect not to serve an eligible school attendance area 
        or eligible school that has a higher percentage of children 
        from low-income families if--
                ``(i) the school meets the comparability requirements 
            of section 1120A(c);
                ``(ii) the school is receiving supplemental funds from 
            other State or local sources that are spent according to 
            the requirements of section 1114 or 1115; and
                ``(iii) the funds expended from such other sources 
            equal or exceed the amount that would be provided under 
            this part.
        ``(2) Special rule.--Notwithstanding paragraph (1)(C), the 
    number of children attending private elementary and secondary 
    schools who are to receive services, and the assistance such 
    children are to receive under this part, shall be determined 
    without regard to whether the public school attendance area in 
    which such children reside is assisted under paragraph (1).
    ``(c) Allocations.--
        ``(1) In general.--A local educational agency shall allocate 
    funds received under this part to eligible school attendance areas 
    or eligible schools, identified under subsection (a) or (b), in 
    rank order, on the basis of the total number of children from low-
    income families in each area or school.
        ``(2) Special rule.--(A) Except as provided in subparagraph 
    (B), the per pupil amount of funds allocated to each school 
    attendance area or school under paragraph (1) shall be at least 125 
    percent of the per pupil amount of funds a local educational agency 
    received for that year under the poverty criteria described by the 
    local educational agency in the plan submitted under section 1112, 
    except that this paragraph shall not apply to a local educational 
    agency that only serves schools in which the percentage of such 
    children is 35 percent or greater.
        ``(B) A local educational agency may reduce the amount of funds 
    allocated under subparagraph (A) for a school attendance area or 
    school by the amount of any supplemental State and local funds 
    expended in that school attendance area or school for programs that 
    meet the requirements of section 1114 or 1115.
        ``(3) Reservation.--A local educational agency shall reserve 
    such funds as are necessary under this part to provide services 
    comparable to those provided to children in schools funded under 
    this part to serve--
            ``(A) where appropriate, eligible homeless children who do 
        not attend participating schools, including providing 
        educationally related support services to children in shelters;
            ``(B) children in local institutions for neglected or 
        delinquent children; and
            ``(C) where appropriate, neglected and delinquent children 
        in community day school programs.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
        ``(1) In general.--A local educational agency may use funds 
    under this part, in combination with other Federal, State, and 
    local funds, in order to upgrade the entire educational program in 
    a school described in subparagraph (A) or (B) if, for the initial 
    year of the schoolwide program, the school meets either of the 
    following criteria:
            ``(A) For the school year 1995-1996--
                ``(i) the school serves an eligible school attendance 
            area in which not less than 60 percent of the children are 
            from low-income families; or
                ``(ii) not less than 60 percent of the children 
            enrolled in the school are from such families.
            ``(B) For the school year 1996-1997 and subsequent years--
                ``(i) the school serves an eligible school attendance 
            area in which not less than 50 percent of the children are 
            from low-income families; or
                ``(ii) not less than 50 percent of the children 
            enrolled in the school are from such families.
        ``(2) State assurances.--(A) A local educational agency may 
    start new schoolwide programs under this section only after the 
    State educational agency provides written information to each local 
    educational agency in the State that demonstrates that such State 
    agency has established the statewide system of support and 
    improvement required by subsections (c)(1) and (e) of section 1117.
        ``(B) A school that desires to initiate a schoolwide program 
    under this section prior to the establishment of the statewide 
    system of support and improvement required in subsections (c)(1) 
    and (e) of section 1117 shall demonstrate to the local educational 
    agency that such school has received high quality technical 
    assistance and support from other providers of assistance such as 
    comprehensive technical assistance centers, regional laboratories, 
    institutions of higher education, educational service agencies, or 
    other local consortia.
        ``(3) Identification.--(A) No school participating in a 
    schoolwide program shall be required to identify particular 
    children under this part as eligible to participate in a schoolwide 
    program or to provide supplemental services to such children.
        ``(B) A school participating in a schoolwide program shall use 
    funds available to carry out this section only to supplement the 
    amount of funds that would, in the absence of funds under this 
    part, be made available from non-Federal sources for the school, 
    including funds needed to provide services that are required by law 
    for children with disabilities and children with limited English 
    proficiency.
        ``(4) Special rule.--(A) Except as provided in subsection (b), 
    the Secretary may, through publication of a notice in the Federal 
    Register, exempt schoolwide programs under this section from 
    statutory or regulatory provisions of any other noncompetitive 
    formula grant program administered by the Secretary, or any 
    discretionary grant program administered by the Secretary (other 
    than formula or discretionary grant programs under the Individuals 
    with Disabilities Education Act), to support schoolwide programs, 
    if the intent and purposes of such other programs are met.
        ``(B) A school that chooses to use funds from such other 
    programs shall not be relieved of the requirements relating to 
    health, safety, civil rights, gender equity, student and parental 
    participation and involvement, services to private school children, 
    maintenance of effort, comparability of services, uses of Federal 
    funds to supplement, not supplant non-Federal funds, or the 
    distribution of funds to State or local educational agencies that 
    apply to the receipt of funds from such programs.
        ``(5) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to effectively carry out the activities described in 
    subsection (b)(1)(D) in accordance with section 1119 for such 
    fiscal year, except that a school may enter into a consortium with 
    another school to carry out such activities.
    ``(b) Components of a Schoolwide Program.--
        ``(1) In general.--A schoolwide program shall include the 
    following components:
            ``(A) A comprehensive needs assessment of the entire school 
        that is based on information on the performance of children in 
        relation to the State content standards and the State student 
        performance standards described in section 1111(b)(1).
            ``(B) Schoolwide reform strategies that--
                ``(i) provide opportunities for all children to meet 
            the State's proficient and advanced levels of student 
            performance described in section 1111(b)(1)(D);
                ``(ii) are based on effective means of improving the 
            achievement of children;
                ``(iii) use effective instructional strategies, which 
            may include the integration of vocational and academic 
            learning (including applied learning and team teaching 
            strategies), that--

                    ``(I) increase the amount and quality of learning 
                time, such as providing an extended school year and 
                before- and after-school and summer programs and 
                opportunities, and help provide an enriched and 
                accelerated curriculum; and
                    ``(II) include strategies for meeting the 
                educational needs of historically underserved 
                populations, including girls and women;

                ``(iv)(I) address the needs of all children in the 
            school, but particularly the needs of children who are 
            members of the target population of any program that is 
            included in the schoolwide program, which may include--

                    ``(aa) counseling, pupil services, and mentoring 
                services;
                    ``(bb) college and career awareness and 
                preparation, such as college and career guidance, 
                comprehensive career development, occupational 
                information, enhancement of employability skills and 
                occupational skills, personal finance education, job 
                placement services, and innovative teaching methods 
                which may include applied learning and team teaching 
                strategies;
                    ``(cc) services to prepare students for the 
                transition from school to work, including the formation 
                of partnerships between elementary, middle, and 
                secondary schools and local businesses, and the 
                integration of school-based and work-based learning; 
                and
                    ``(dd) incorporation of gender-equitable methods 
                and practices; and

                ``(II) address how the school will determine if such 
            needs have been met; and
                ``(vii) are consistent with, and are designed to 
            implement, the State and local improvement plans, if any, 
            approved under title III of the Goals 2000: Educate America 
            Act.
            ``(C) Instruction by highly qualified professional staff.
            ``(D) In accordance with section 1119 and subsection 
        (a)(5), professional development for teachers and aides, and, 
        where appropriate, pupil services personnel, parents, 
        principals, and other staff to enable all children in the 
        school to meet the State's student performance standards.
            ``(E) Strategies to increase parental involvement, such as 
        family literary services.
            ``(F) Plans for assisting preschool children in the 
        transition from early childhood programs, such as Head Start, 
        Even Start, or a State-run preschool program, to local 
        elementary school programs.
            ``(G) Measures to include teachers in the decisions 
        regarding the use of assessments described in section 
        1112(b)(1) in order to provide information on, and to improve, 
        the performance of individual students and the overall 
        instructional program.
            ``(H) Activities to ensure that students who experience 
        difficulty mastering any of the standards required by section 
        1111(b) during the course of the school year shall be provided 
        with effective, timely additional assistance, which shall 
        include--
                ``(i) measures to ensure that students' difficulties 
            are identified on a timely basis and to provide sufficient 
            information on which to base effective assistance;
                ``(ii) to the extent the school determines feasible 
            using funds under this part, periodic training for teachers 
            in how to identify such difficulties and to provide 
            assistance to individual students; and
                ``(iii) for any student who has not met such standards, 
            teacher-parent conferences, at which time the teacher and 
            parents shall discuss--

                    ``(I) what the school will do to help the student 
                meet such standards;

                    ``(II) what the parents can do to help the student 
                improve the student's performance; and
                    ``(III) additional assistance which may be 
                available to the student at the school or elsewhere in 
                the community.

        ``(2) Plan.--(A) Any eligible school that desires to operate a 
    schoolwide program shall first develop (or amend a plan for such a 
    program that was in existence before the date of enactment of the 
    Improving America's Schools Act of 1994), in consultation with the 
    local educational agency and its school support team or other 
    technical assistance provider under subsections (c)(1) and (e) of 
    section 1117, a comprehensive plan for reforming the total 
    instructional program in the school that--
            ``(i) incorporates the components described in paragraph 
        (1);
            ``(ii) describes how the school will use resources under 
        this part and from other sources to implement those components;
            ``(iii) includes a list of State and local educational 
        agency programs and other Federal programs under subsection 
        (a)(4) that will be included in the schoolwide program;
            ``(iv) describes how the school will provide individual 
        student assessment results, including an interpretation of 
        those results, to the parents of a child who participates in 
        the assessment required by section 1111(b)(3);
            ``(v) provides for the collection of data on the 
        achievement and assessment results of students disaggregated by 
        gender, major ethnic or racial groups, limited English 
        proficiency status, migrant students, and by children with 
        disabilities as compared to other students, and by economically 
        disadvantaged students as compared to students who are not 
        economically disadvantaged;
            ``(vi) seeks to produce statistically sound results for 
        each category for which assessment results are disaggregated 
        through the use of oversampling or other means; and
            ``(vii) provides for the public reporting of disaggregated 
        data only when such reporting is statistically sound.
        ``(B) Plans developed before a State has adopted standards and 
    a set of assessments that meet the criteria in paragraphs (1) and 
    (3) of section 1111(b) shall be based on an analysis of available 
    data on the achievement of students in the school and effective 
    instructional and school improvement practices.
        ``(C) The comprehensive plan shall be--
            ``(i) developed during a one-year period, unless--
                ``(I) the local educational agency, after considering 
            the recommendation of the technical assistance providers 
            under subsections (c) and (e) of section 1117, determines 
            that less time is needed to develop and implement the 
            schoolwide program; or
                ``(II) the school is operating a schoolwide program on 
            the day preceding the date of enactment of the Improving 
            America's Schools Act of 1994, in which case such school 
            may continue to operate such program, but shall develop a 
            new plan during the first year of assistance under such Act 
            to reflect the provisions of this section;
            ``(ii) developed with the involvement of the community to 
        be served and individuals who will carry out such plan, 
        including teachers, principals, other staff, and, where 
        appropriate, pupil services personnel, and parents, and, if the 
        plan relates to a secondary school, students from such school;
            ``(iii) in effect for the duration of the school's 
        participation under this part and reviewed and revised, as 
        necessary, by the school;
            ``(iv) available to the local educational agency, parents, 
        and the public, and the information contained in such plan 
        shall be translated, to the extent feasible, into any language 
        that a significant percentage of the parents of participating 
        children in the school speak as their primary language; and
            ``(v) where appropriate, developed in coordination with 
        programs under the School-to-Work Opportunities Act of 1994, 
        the Carl D. Perkins Vocational and Applied Technology Education 
        Act, and the National and Community Service Act of 1990.
    ``(c) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of section 1116.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

    ``(a) In General.--In all schools selected to receive funds under 
section 1113(c) that are ineligible for a schoolwide program under 
section 1114, or that choose not to operate such a schoolwide program, 
a local educational agency may use funds received under this part only 
for programs that provide services to eligible children under 
subsection (b) identified as having the greatest need for special 
assistance.
    ``(b) Eligible Children.--
        ``(1) Eligible population.--(A) The eligible population for 
    services under this part is--
            ``(i) children not older than age 21 who are entitled to a 
        free public education through grade 12; and
            ``(ii) children who are not yet at a grade level where the 
        local educational agency provides a free public education, yet 
        are of an age at which such children can benefit from an 
        organized instructional program provided in a school or other 
        educational setting.
        ``(B) From the population described in subparagraph (A), 
    eligible children are children identified by the school as failing, 
    or most at risk of failing, to meet the State's challenging student 
    performance standards on the basis of multiple, educationally 
    related, objective criteria established by the local educational 
    agency and supplemented by the school, except that children from 
    preschool through grade two shall be selected solely on the basis 
    of such criteria as teacher judgment, interviews with parents, and 
    developmentally appropriate measures.
        ``(2) Children included.--(A)(i) Children who are economically 
    disadvantaged, children with disabilities, migrant children or 
    limited English proficient children, are eligible for services 
    under this part on the same basis as other children selected to 
    receive services under this part.
        ``(ii) Funds received under this part may not be used to 
    provide services that are otherwise required by law to be made 
    available to such children but may be used to coordinate or 
    supplement such services.
        ``(B) A child who, at any time in the two years preceding the 
    year for which the determination is made, participated in a Head 
    Start or Even Start program, is eligible for services under this 
    part.
        ``(C)(i) A child who, at any time in the two years preceding 
    the year for which the determination is made, received services 
    under the program for youth who are neglected, delinquent, or at 
    risk of dropping out under part D (or its predecessor authority) 
    may be eligible for services under this part.
        ``(ii) A child in a local institution for neglected or 
    delinquent children or attending a community day program for such 
    children may be eligible for services under this part.
        ``(D) A child who is homeless and attending any school in the 
    local educational agency may be eligible for services under this 
    part.
    ``(c) Components of a Targeted Assistance School Program.--
        ``(1) In general.--To assist targeted assistance schools and 
    local educational agencies to meet their responsibility to provide 
    for all their students served under this part the opportunity to 
    meet the State's student performance standards in subjects as 
    determined by the State, each targeted assistance program under 
    this section shall--
            ``(A) use such program's resources under this part to help 
        participating children meet such State student performance 
        standards expected for all children;
            ``(B) be based on effective means for improving achievement 
        of children;
            ``(C) ensure that planning for students served under this 
        part is incorporated into existing school planning;
            ``(D) use effective instructional strategies that--
                ``(i) give primary consideration to providing extended 
            learning time such as an extended school year, before- and 
            after-school, and summer, programs and opportunities;
                ``(ii) help provide an accelerated, high-quality 
            curriculum, including applied learning; and
                ``(iii) minimize removing children from the regular 
            classroom during regular school hours for instruction 
            provided under this part;
            ``(E) coordinate with and support the regular education 
        program, which may include--
                ``(i) counseling, mentoring, and other pupil services;
                ``(ii) college and career awareness and preparation, 
            such as college and career guidance, comprehensive career 
            development, occupational information, enhancement of 
            employability skills and occupational skills, personal 
            finance education, job placement services, and innovative 
            teaching methods which may include applied learning and 
            team teaching strategies;
                ``(iii) services to prepare students for the transition 
            from school to work, including the formation of 
            partnerships between elementary, middle, and secondary 
            schools and local businesses, and the integration of 
            school-based and work-based learning; and
                ``(iv) services to assist preschool children in the 
            transition from early childhood programs to elementary 
            school programs;
            ``(F) provide instruction by highly qualified staff;
            ``(G) in accordance with subsection (e)(3) and section 
        1119, provide opportunities for professional development with 
        resources provided under this part, and from other sources to 
        the extent feasible, for administrators and for teachers and 
        other school staff who work with participating children in 
        programs under this section or in the regular education 
        program; and
            ``(H) provide strategies to increase parental involvement, 
        such as family literary services.
        ``(2) Requirements.--Each school conducting a program under 
    this section shall assist participating children selected in 
    accordance with subsection (b) to meet the State's proficient and 
    advanced levels of performance by--
            ``(A) the coordination of resources provided under this 
        part with other resources to enable the children served to meet 
        the State content standards and State student performance 
        standards; and
            ``(B) reviewing, on an ongoing basis, the progress of 
        participating children and revising the targeted assistance 
        program, if necessary, to provide additional assistance to 
        enable such children to meet the State's challenging student 
        performance standards, such as an extended school year, before- 
        and after-school, and summer, programs and opportunities, 
        training for teachers regarding how to identify students that 
        require additional assistance, and training for teachers 
        regarding how to implement student performance standards in the 
        classroom.
    ``(d) Assignment of Personnel.--To promote the integration of staff 
supported with funds under this part and children served under this 
part into the regular school program and overall school planning and 
improvement efforts, public school personnel who are paid with funds 
received under this part may--
        ``(1) assume limited duties that are assigned to similar 
    personnel who are not so paid, including duties beyond classroom 
    instruction or that do not benefit participating children, so long 
    as the amount of time spent on such duties is the same proportion 
    of total work time as prevails with respect to similar personnel at 
    the same school;
        ``(2) participate in general professional development and 
    school planning activities; and
        ``(3) collaboratively teach with regular classroom teachers, if 
    such collaborative teaching directly benefits participating 
    children.
    ``(e) Special Rules.--
        ``(1) Simultaneous service.--Nothing in this section shall be 
    construed to prohibit a school from serving students served under 
    this section simultaneously with students with similar educational 
    needs, in the same educational settings where appropriate.
        ``(2) Comprehensive services.--If health, nutrition, and other 
    social services are not otherwise available to eligible children in 
    a targeted assistance school and such school, if appropriate, has 
    engaged in a comprehensive needs assessment and established a 
    collaborative partnership with local service providers, and if 
    funds are not reasonably available from other public or private 
    sources to provide services under this part, then a portion of the 
    funds provided under this part may be used as a last resort to 
    provide such services, including--
            ``(A) the provision of basic medical equipment, such as 
        eyeglasses and hearing aids;
            ``(B) compensation of a coordinator; and
            ``(C) professional development necessary to assist 
        teachers, pupil services personnel, other staff, and parents in 
        identifying and meeting the comprehensive needs of eligible 
        children.
        ``(3) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to effectively carry out the professional development 
    activities described in subparagraph (G) of subsection (c)(1) in 
    accordance with section 1119, for such fiscal year, except that a 
    school may enter into a consortium with another school to carry out 
    such activities.

``SEC. 1115A. SCHOOL CHOICE.

    ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with State, local, and private funds, 
to develop and implement choice programs, for children eligible for 
assistance under this part, which permit parents to select the public 
school that their children will attend.
    ``(b) Choice Plan.--A local educational agency that chooses to 
implement a school choice plan shall first develop a comprehensive plan 
that includes assurances that--
        ``(1) all eligible students across grade levels will have equal 
    access to the program;
        ``(2) the program does not include schools which follow a 
    racially discriminatory policy;
        ``(3) describe how the school will use resources under this 
    part and from other sources to implement the plan;
        ``(4) describe how the school will provide individual student 
    assessment results, including an interpretation of such results, to 
    the parents of a child who participates in the assessment required 
    by section 1111(b)(3);
        ``(5) the plan will be developed with the involvement of the 
    community to be served and individuals who will carry out the plan, 
    including teachers, principals, and other staff, parents, and, if 
    the plan relates to a secondary school, students from the school;
        ``(6) the plan will be made available to parents and the 
    public;
        ``(7) the program will not include schools that do not receive 
    funds under this part;
        ``(8) the program will not use funds under this part to pay for 
    transportation costs;
        ``(9) both the sending and receiving schools agree to the 
    student transfer; and
        ``(10) such local educational agency will comply with the other 
    requirements of this part.
``SEC. 1116. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
IMPROVEMENT.
    ``(a) Local Review.--Each local educational agency receiving funds 
under this part shall--
        ``(1) use the State assessments described in the State plan;
        ``(2) use any additional measures or indicators described in 
    the local educational agency's plan to review annually the progress 
    of each school served under this part to determine whether the 
    school is meeting, or making adequate progress as defined in 
    section 1111(b)(2)(A)(i) toward enabling its students to meet the 
    State's student performance standards described in the State plan;
        ``(3) publicize and disseminate to teachers and other staff, 
    parents, students, and the community, the results of the annual 
    review under paragraph (2) of all schools served under this part in 
    individual school performance profiles that include statistically 
    sound disaggregated results as required by section 1111(b)(3)(I); 
    and
        ``(4) provide the results of the local annual review to schools 
    so that the schools can continually refine the program of 
    instruction to help all children served under this part in those 
    schools meet the State's student performance standards.
    ``(b) Designation of Distinguished Schools.--Each State educational 
agency and local educational agency receiving funds under this part 
shall designate distinguished schools in accordance with section 1117.
    ``(c) School Improvement.--
        ``(1) In general.--A local educational agency shall identify 
    for school improvement any school served under this part that--
            ``(A) has been in program improvement under section 1020 of 
        the Elementary and Secondary Education Act of 1965 (as such 
        section was in effect on the day preceding the date of 
        enactment of the Improving America's Schools Act of 1994), for 
        at least two consecutive school years prior to such day;
            ``(B) has not made adequate progress as defined in the 
        State's plan under section 1111(b)(2)(A)(i) for two consecutive 
        school years, except that--
                ``(i) this subparagraph shall not apply to a school if 
            almost every student in such school is meeting the State's 
            advanced level of performance; or
                ``(ii) in the case of a targeted assistance school, 
            such school may be reviewed on the progress of only those 
            students that have been or are served under this part; or
            ``(C) has failed to meet the criteria established by the 
        State through the State's transitional procedure under section 
        1111(b)(7)(B) for two consecutive years.
        ``(2) Requirement.--(A) Each school identified under paragraph 
    (1) shall--
            ``(i) in consultation with parents, the local educational 
        agency, and the school support team, develop or revise a school 
        plan in ways that have the greatest likelihood of improving the 
        performance of participating children in meeting the State's 
        student performance standards, which may include reviewing the 
        schools' plan in the context of the opportunity-to-learn 
        standards or strategies developed by such State under the Goals 
        2000: Educate America Act; and
            ``(ii) submit the plan or revised plan to the local 
        educational agency for approval.
        ``(B) Before identifying a school for school improvement under 
    paragraph (1), the local educational agency shall provide the 
    school with an opportunity to review the school-level data, 
    including assessment data, on which such identification is based. 
    If the school believes that such identification for school 
    improvement is in error for statistical or other substantive 
    reasons, such school may provide evidence to the local educational 
    agency to support such belief.
        ``(C) During the first year immediately following such 
    identification, the school shall implement such school's plan or 
    revised plan.
        ``(3) Professional development.--(A) Each school identified 
    under paragraph (1) shall, as part of the school plan under 
    paragraph (2), improve the skills of its staff by providing 
    effective professional development activities. A school shall 
    demonstrate such school's compliance with this paragraph by--
            ``(i) devoting to such activities, over two consecutive 
        years, an amount equivalent to at least 10 percent of the funds 
        received by the school under this part during one fiscal year; 
        or
            ``(ii) otherwise demonstrating that such school is 
        effectively carrying out professional development activities.
        ``(B) A school may use funds from any source to meet the 
    requirements of this subsection.
        ``(C) Decisions about how to use the funds made available under 
    this part which the school makes available for professional 
    development shall be made by teachers, principals, and other school 
    staff in that school.
        ``(4) Technical assistance.--(A) For each school identified 
    under paragraph (1), the local educational agency shall provide 
    technical or other assistance as the school develops and implements 
    such school's plan or revised plan, such as a joint plan between 
    the local educational agency and school that addresses specific 
    elements of student performance problems and that specifies school 
    and local educational agency responsibilities under the plan, and 
    waivers or modifications of requirements of local educational 
    agency policy or regulation that impede the ability of the school 
    to educate students.
        ``(B) Such technical assistance may be provided directly by the 
    local educational agency, through mechanisms authorized under 
    section 1117, or with the local educational agency's approval, by 
    an institution of higher education, a private nonprofit 
    organization, an educational service agency, a comprehensive 
    regional assistance center under part A of title XIII, or other 
    entities with experience in helping schools improve achievement.
        ``(5) Corrective action.--(A) Except as provided in 
    subparagraph (C), after providing technical assistance pursuant to 
    paragraph (4) and taking other remediation measures, the local 
    educational agency may take corrective action at any time against a 
    school that has been identified under paragraph (1), but, during 
    the third year following identification under paragraph (1), shall 
    take such action against any school that still fails to make 
    adequate progress.
        ``(B)(i) Corrective actions are those, consistent with State 
    and local law, determined and made public and disseminated by the 
    local educational agency, which may include--
            ``(I) withholding funds;
            ``(II) interagency collaborative agreements between the 
        school and other public agencies to provide health, counseling, 
        and other social services needed to remove barriers to 
        learning;
            ``(III) revoking authority for a school to operate a 
        schoolwide program;
            ``(IV) decreasing decisionmaking authority at the school 
        level;
            ``(V) making alternative governance arrangements such as 
        the creation of a public charter school;
            ``(VI) reconstituting the school staff;
            ``(VII) authorizing students to transfer, including 
        transportation costs, to other public schools served by the 
        local educational agency; and
            ``(VIII) implementing opportunity-to-learn standards or 
        strategies developed by such State under the Goals 2000: 
        Educate America Act.
        ``(ii) Notwithstanding clause (i), corrective actions taken 
    pursuant to this part shall not include the actions described in 
    subclause (I), (III), (IV), (VI), or (VII) of clause (i) until the 
    State has developed assessments that meet the requirements of 
    subparagraph (C) of section 1111(b)(3).
        ``(C) Prior to implementing any corrective action, the local 
    educational agency may refrain from such corrective action for one 
    additional year to the extent that the failure to make progress can 
    be attributed to extenuating circumstances as determined by the 
    local educational agency.
        ``(D) A school that is no longer operating its schoolwide 
    program due to a corrective action may not resume operation of such 
    a program until the local educational agency determines that the 
    school has adequately reformed its schoolwide program plan to 
    enable the school to make adequate progress toward meeting the 
    State's challenging student performance standards.
        ``(6) State educational agency responsibilities.--The State 
    educational agency shall--
            ``(A) make technical assistance under section 1117 
        available to the schools farthest from meeting the State's 
        challenging student performance standards, if requested by the 
        school or local educational agency; and
            ``(B) if such agency determines that a local educational 
        agency failed to carry out the local educational agency's 
        responsibilities under paragraphs (4) and (5), take such 
        corrective actions as the State educational agency deems 
        appropriate and which are in compliance with State law.
        ``(7) Special rule.--Schools that, for at least two of the 
    three years following identification under paragraph (1), make 
    adequate progress toward meeting the State's proficient and 
    advanced levels of performance shall no longer need to be 
    identified for school improvement.
    ``(d) State Review and Local Educational Agency Improvement.--
        ``(1) In general.--A State educational agency shall--
            ``(A) annually review the progress of each local 
        educational agency receiving funds under this part to determine 
        whether schools receiving assistance under this part are making 
        adequate progress as defined in section 1111(b)(2)(A)(ii) 
        toward meeting the State's student performance standards; and
            ``(B) publicize and disseminate to local educational 
        agencies, teachers and other staff, parents, students, and the 
        community the results of the State review, including 
        statistically sound disaggregated results, as required by 
        section 1111(b)(3)(I).
        ``(2) Rewards.--In the case of a local educational agency that 
    for three consecutive years has met or exceeded the State's 
    definition of adequate progress as defined in section 
    1111(b)(2)(A)(ii), the State may make institutional and individual 
    rewards of the kinds described for individual schools in paragraph 
    (2) of section 1117(c).
        ``(3) Identification.--(A) A State educational agency shall 
    identify for improvement any local educational agency that--
            ``(i) for two consecutive years, is not making adequate 
        progress as defined in section 1111(b)(2)(A)(ii) in schools 
        served under this part toward meeting the State's student 
        performance standards, except that schools served by the local 
        educational agency that are operating targeted assistance 
        programs may be reviewed on the basis of the progress of only 
        those students served under this part; or
            ``(ii) has failed to meet the criteria established by the 
        State through such State's transitional procedure under section 
        1111(b)(7)(B) for two consecutive years.
        ``(B) Before identifying a local educational agency for 
    improvement under paragraph (1), the State educational agency shall 
    provide the local educational agency with an opportunity to review 
    the school-level data, including assessment data, on which such 
    identification is based. If the local educational agency believes 
    that such identification for improvement is in error due to 
    statistical or other substantive reasons, such local educational 
    agency may provide evidence to the State educational agency to 
    support such belief.
        ``(4) Local educational agency revisions.--(A) Each local 
    educational agency identified under paragraph (3) shall, in 
    consultation with schools, parents, and educational experts, revise 
    its local educational agency plan under section 1112 in ways that 
    have the greatest likelihood of improving the performance of 
    schools served by the local educational agency under this part in 
    meeting the State's student performance standards.
        ``(B) Such revision shall include determining why the local 
    educational agency's plan failed to bring about increased 
    achievement, and may include reviewing the local educational 
    agency's plan in the context of the opportunity-to-learn standards 
    or strategies developed by such State under the Goals 2000: Educate 
    America Act.
        ``(5) State educational agency responsibility.--(A) For each 
    local educational agency identified under paragraph (3), the State 
    educational agency shall--
            ``(i) provide technical or other assistance, if requested, 
        as authorized under section 1117, to better enable the local 
        educational agency to--
                ``(I) develop and implement the local educational 
            agency's revised plan; and
                ``(II) work with schools needing improvement; and
            ``(ii) make available to the local educational agencies 
        farthest from meeting the State's standards, if requested, 
        assistance under section 1117.
        ``(B) Technical or other assistance may be provided by the 
    State educational agency directly, or by an institution of higher 
    education, a private nonprofit organization, an educational service 
    agency or other local consortium, a technical assistance center, or 
    other entities with experience in assisting local educational 
    agencies improve achievement, and may include--
            ``(i) interagency collaborative agreements between the 
        local educational agency and other public agencies to provide 
        health, pupil services, and other social services needed to 
        remove barriers to learning; and
            ``(ii) waivers or modification of requirements of State law 
        or regulation (in States in which such waivers are permitted) 
        that impede the ability of a local educational agency to 
        educate students.
        ``(6) Corrective action.--(A) Except as provided in 
    subparagraph (C), after providing technical assistance pursuant to 
    paragraph (5) and taking other remediation measures, the State 
    educational agency may take corrective action at any time against a 
    local educational agency that has been identified under paragraph 
    (3), but, during the fourth year following identification under 
    paragraph (3), shall take such action against any local educational 
    agency that still fails to make adequate progress.
        ``(B)(i) Corrective actions are those actions, consistent with 
    State law, determined and made public and disseminated by the State 
    educational agency, which may include--
            ``(I) the withholding of funds;
            ``(II) reconstitution of school district personnel;
            ``(III) removal of particular schools from the jurisdiction 
        of the local educational agency and establishment of 
        alternative arrangements for public governance and supervision 
        of such schools;
            ``(IV) implementation of the opportunity-to-learn standards 
        or strategies developed by such State under the Goals 2000: 
        Educate America Act;
            ``(V) appointment by the State educational agency of a 
        receiver or trustee to administer the affairs of the local 
        educational agency in place of the superintendent and school 
        board;
            ``(VI) the abolition or restructuring of the local 
        educational agency;
            ``(VII) the authorizing of students to transfer from a 
        school operated by one local educational agency to a school 
        operated by another local educational agency; and
            ``(VIII) a joint plan between the State and the local 
        educational agency that addresses specific elements of student 
        performance problems and that specifies State and local 
        responsibilities under the plan.
        ``(ii) Notwithstanding clause (i), corrective actions taken 
    pursuant to this part shall not include the actions described in 
    subclauses (I), (II), and (III) of clause (i) until the State has 
    developed assessments that meet the requirements of paragraph 
    (3)(C) of section 1111(b).
        ``(C) Prior to implementing any corrective action, the State 
    educational agency shall provide due process and a hearing (if 
    State law provides for such due process and a hearing) to any local 
    educational agency identified under paragraph (3) and may refrain 
    from such corrective action for one year after the four-year period 
    described in subparagraph (A) to the extent that the failure to 
    make progress can be attributed to such extenuating circumstances 
    as determined by the State educational agency.
        ``(7) Special rule.--Local educational agencies that for at 
    least two of the three years following identification under 
    paragraph (3) make adequate progress toward meeting the State's 
    standards no longer need to be identified for local educational 
    agency improvement.
    ``(e) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school or school district employees under Federal, State, or local laws 
(including applicable regulations or court orders) or under the terms 
of collective bargaining agreements, memoranda of understanding, or 
other agreements between such employees and their employers.

``SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

    ``(a) System for Support.--
        ``(1) State support.--Each State educational agency shall 
    establish a statewide system of intensive and sustained support and 
    improvement for schools receiving funds under this part, including 
    schoolwide programs and schools in need of program improvement, in 
    order to increase the opportunity for all students in such schools 
    to meet the State's content standards and student performance 
    standards.
        ``(2) Meeting requirements.--Funds reserved under section 
    1003(a) or appropriated under section 1002(f) shall be used to meet 
    the requirements of this section. In addition to such funds a State 
    educational agency may use State administrative funds reserved 
    under section 1603(c) to meet such requirements.
    ``(b) Regional Centers.--Such a statewide system shall work with 
and receive support and assistance from the comprehensive regional 
technical assistance centers under part A of title XIII and the 
educational regional laboratories under section 941(h) of the 
Educational Research, Development, Dissemination, and Improvement Act 
of 1994.
    ``(c) Provisions.--The system shall include at a minimum, the 
following:
        ``(1) School support teams.--
            ``(A) Each State educational agency, in consultation with 
        local educational agencies and schools, shall establish a 
        system of school support teams to provide information and 
        assistance to schoolwide programs and to assist such programs 
        in providing an opportunity to all students to meet the State's 
        student performance standards.
            ``(B) If funds are sufficient, school support teams shall 
        provide information and assistance to--
                ``(i) schools--

                    ``(I) in which the number of students in poverty is 
                equal to or greater than 75 percent of the total number 
                of students enrolled in such school; and
                    ``(II) identified as in need of improvement under 
                section 1116(c)(1); and

                ``(ii) other schools in need of improvement.
            ``(C) Each such team shall be composed of persons, 
        including teachers, pupil services personnel, representatives 
        of organizations knowledgeable about successful schoolwide 
        projects or comprehensive school reform (especially 
        distinguished educators described in paragraph (3)), and other 
        persons who are knowledgeable about research and practice on 
        teaching and learning, particularly about strategies for 
        improving the educational opportunities for low-achieving 
        students (including alternative and applied learning), such as 
        representatives of institutions of higher education, regional 
        educational laboratories or research centers, and outside 
        consultant groups.
            ``(D) A school support team shall work cooperatively with 
        each school and make recommendations as the school develops the 
        school's schoolwide program plan or school improvement plan, 
        review each plan, and make recommendations to the school and 
        the local educational agency.
            ``(E) During the operation of the schoolwide program or 
        during school improvement activities, a school support team 
        shall--
                ``(i) periodically review the progress of the school in 
            enabling children in the school to meet the State's student 
            performance standards under this part;
                ``(ii) identify problems in the design and operation of 
            the instructional program; and
                ``(iii) make recommendations for improvement to the 
            school and the local educational agency.
        ``(2) Distinguished schools.--
            ``(A) Each State shall designate as a distinguished school 
        any school served under this part which, for three consecutive 
        years, has exceeded the State's definition of adequate progress 
        as defined in section 1111(b)(2)(A)(i), and, any school in 
        which--
                ``(i) virtually all students have met the State's 
            advanced level of student performance; and
                ``(ii) equity in participation and achievement of 
            students by sex has been achieved or significantly 
            improved.
            ``(B) Schools designated under this paragraph may serve as 
        models and provide support to other schools, especially 
        schoolwide programs and schools in school improvement, to 
        assist such schools in meeting the State's student performance 
        standards.
            ``(C) States shall use funds reserved under section 1003(a) 
        and funds made available under section 1002(f) to allow schools 
        identified under this paragraph to carry out the activities 
        described in subparagraph (B) and may use such funds to provide 
        awards to such schools to further such school's education 
        programs under this part, provide additional incentives for 
        continued success, and reward individuals or groups in the 
        school for exemplary performance.
            ``(D) A local educational agency may also recognize the 
        success of a distinguished school by providing additional 
        institutional and individual rewards, such as greater 
        decisionmaking authority at the school building level, 
        increased access to resources or supplemental services such as 
        summer programs that may be used to sustain or increase 
        success, additional professional development opportunities, 
        opportunities to participate in special projects, and 
        individual financial bonuses.
        ``(3) Distinguished educators.--
            ``(A) In order to provide assistance to schools and local 
        educational agencies identified as needing improvement and 
        schools participating in schoolwide programs, each State, in 
        consultation with local educational agencies and using funds 
        reserved under section 1003(a) and made available under section 
        1002(f), shall establish a corps of distinguished educators.
            ``(B) When possible, distinguished educators shall be 
        chosen from schools served under this part that have been 
        especially successful in enabling children to meet or make 
        outstanding progress toward meeting the State's student 
        performance standards, such as the schools described in 
        paragraph (2).
            ``(C) Distinguished educators shall provide, as part of the 
        statewide system, intensive and sustained assistance to the 
        schools and local educational agencies farthest from meeting 
        the State's student performance standards and to schoolwide 
        programs as such programs develop and implement their plans, 
        including participation in the support teams described in 
        paragraph (1).
    ``(d) Implementation.--In order to implement this section funds 
reserved under section 1003(a) and funds made available under section 
1002(f) may be used by a State for release time for teachers and 
administrators, travel, training, and other related costs.
    ``(e) Alternatives.--The State may devise additional approaches to 
providing the assistance described in paragraphs (1) and (3) of 
subsection (c), such as providing assistance through institutions of 
higher education and educational service agencies or other local 
consortia, and the State may seek approval from the Secretary to use 
funds reserved under section 1003 and funds made available under 
section 1002(f) for such approaches as part of the State plan.

``SEC. 1118. PARENTAL INVOLVEMENT.

    ``(a) Local Educational Agency Policy.--
        ``(1) In general.--A local educational agency may receive funds 
    under this part only if such agency implements programs, 
    activities, and procedures for the involvement of parents in 
    programs assisted under this part consistent with the provisions of 
    this section. Such activities shall be planned and implemented with 
    meaningful consultation with parents of participating children.
        ``(2) Written policy.--Each local educational agency that 
    receives funds under this part shall develop jointly with, agree 
    upon with, and distribute to, parents of participating children a 
    written parent involvement policy that is incorporated into the 
    local educational agency's plan developed under section 1112, 
    establishes the expectations for parent involvement, and describes 
    how the local educational agency will--
            ``(A) involve parents in the joint development of the plan 
        under section 1112, and the process of school review and 
        improvement under section 1116;
            ``(B) provide the coordination, technical assistance, and 
        other support necessary to assist participating schools in 
        planning and implementing effective parent involvement;
            ``(C) build the schools' and parents' capacity for strong 
        parent involvement as described in subsection (e);
            ``(D) coordinate and integrate parental involvement 
        strategies under this part with parental involvement strategies 
        under other programs, such as Head Start, Even Start, the 
        Parents as Teachers Program, the Home Instruction Program for 
        Preschool Youngsters, and State-run preschool programs;
            ``(E) conduct, with the involvement of parents, an annual 
        evaluation of the content and effectiveness of the parental 
        involvement policy developed under this section--
                ``(i) to determine the effectiveness of the policy in 
            increasing the participation of parents; and
                ``(ii) to identify barriers to greater participation by 
            parents in activities authorized by this section, giving 
            particular attention to parents who are economically 
            disadvantaged, are disabled, have limited English 
            proficiency, have limited literacy, or are of any racial or 
            ethnic minority background; and
            ``(F) use the findings of the evaluations described in 
        subparagraph (E) in designing strategies for school improvement 
        and revising, if necessary, the parental involvement policies 
        described in this subsection and subsection (b)(1).
        ``(3) Reservation.--(A) Each local educational agency shall 
    reserve not less than 1 percent of such agency's allocation under 
    this part to carry out this section, including family literacy and 
    parenting skills, except that this paragraph shall not apply if 1 
    percent of such agency's allocation under this part (other than 
    funds allocated under section 1002(e)) for the fiscal year for 
    which the determination is made is $5,000 or less.
        ``(B) Parents of children receiving services under this part 
    shall be involved in the decisions regarding how funds reserved 
    under subparagraph (A) are allotted for parental involvement 
    activities.
    ``(b) School Parental Involvement Policy.--
        ``(1) In general.--Each school served under this part shall 
    jointly develop with, and distribute to, parents of participating 
    children a written parental involvement policy, agreed upon by such 
    parents, that shall describe the means for carrying out the 
    requirements of subsections (c) through (f). Such policy shall be 
    updated periodically to meet the changing needs of parents and the 
    school.
        ``(2) Special rule.--If the school has a parental involvement 
    policy that applies to all parents, such school may amend that 
    policy, if necessary, to meet the requirements of this subsection.
        ``(3) Amendment.--If the local educational agency has a school 
    district-level parental involvement policy that applies to all 
    parents, such agency may amend that policy, if necessary, to meet 
    the requirements of this subsection.
        ``(4) Parental comments.--If the plan under section 1112 is not 
    satisfactory to the parents of participating children, the local 
    educational agency shall submit any parent comments with such plan 
    when such local educational agency submits the plan to the State.
    ``(c) Policy Involvement.--Each school served under this part 
shall--
        ``(1) convene an annual meeting, at a convenient time, to which 
    all parents of participating children shall be invited and 
    encouraged to attend, to inform parents of their school's 
    participation under this part and to explain this part, its 
    requirements, and their right to be involved;
        ``(2) offer a flexible number of meetings, such as meetings in 
    the morning or evening, and may provide, with funds provided under 
    this part, transportation, child care, or home visits, as such 
    services relate to parental involvement;
        ``(3) involve parents, in an organized, ongoing, and timely 
    way, in the planning, review, and improvement of programs under 
    this part, including the school parental involvement policy and the 
    joint development of the schoolwide program plan under section 
    1114(b), except that if a school has in place a process for 
    involving parents in the joint planning and design of its programs, 
    the school may use that process, if such process includes an 
    adequate representation of parents of participating children;
        ``(4) provide parents of participating children--
            ``(A) timely information about programs under this part;
            ``(B) school performance profiles required under section 
        1116(a)(3) and their child's individual student assessment 
        results, including an interpretation of such results, as 
        required under section 1111(b)(3)(H);
            ``(C) a description and explanation of the curriculum in 
        use at the school, the forms of assessment used to measure 
        student progress, and the proficiency levels students are 
        expected to meet;
            ``(D) opportunities for regular meetings to formulate 
        suggestions, share experiences with other parents, and 
        participate as appropriate in decisions relating to the 
        education of their children if such parents so desire; and
            ``(E) timely responses to parents' suggestions under 
        subparagraph (D); and
        ``(5) if the schoolwide program plan under section 1114(b)(2) 
    is not satisfactory to the parents of participating children, 
    submit any parent comments on the plan when the school makes the 
    plan available to the local educational agency.
    ``(d) Shared Responsibilities for High Student Performance.--As a 
component of the school-level parental involvement policy developed 
under subsection (b), each school served under this part shall jointly 
develop with parents for all children served under this part a school-
parent compact that outlines how parents, the entire school staff, and 
students will share the responsibility for improved student achievement 
and the means by which the school and parents will build and develop a 
partnership to help children achieve the State's high standards. Such 
compact shall--
        ``(1) describe the school's responsibility to provide high-
    quality curriculum and instruction in a supportive and effective 
    learning environment that enables the children served under this 
    part to meet the State's student performance standards, and the 
    ways in which each parent will be responsible for supporting their 
    children's learning, such as monitoring attendance, homework 
    completion, and television watching; volunteering in their child's 
    classroom; and participating, as appropriate, in decisions relating 
    to the education of their children and positive use of 
    extracurricular time; and
        ``(2) address the importance of communication between teachers 
    and parents on an ongoing basis through, at a minimum--
            ``(A) parent-teacher conferences in elementary schools, at 
        least annually, during which the compact shall be discussed as 
        the compact relates to the individual child's achievement;
            ``(B) frequent reports to parents on their children's 
        progress; and
            ``(C) reasonable access to staff, opportunities to 
        volunteer and participate in their child's class, and 
        observation of classroom activities.
    ``(e) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the school, 
parents, and the community to improve student achievement, each school 
and local educational agency--
        ``(1) shall provide assistance to participating parents in such 
    areas as understanding the National Education Goals, the State's 
    content standards and State student performance standards, the 
    provisions of section 1111(b)(8), State and local assessments, the 
    requirements of this part, and how to monitor a child's progress 
    and work with educators to improve the performance of their 
    children as well as information on how parents can participate in 
    decisions relating to the education of their children;
        ``(2) shall provide materials and training, such as--
            ``(A) coordinating necessary literacy training from other 
        sources to help parents work with their children to improve 
        their children's achievement; and
            ``(B) training to help parents to work with their children 
        to improve their children's achievement;
        ``(3) shall educate teachers, pupil services personnel, 
    principals and other staff, with the assistance of parents, in the 
    value and utility of contributions of parents, and in how to reach 
    out to, communicate with, and work with parents as equal partners, 
    implement and coordinate parent programs, and build ties between 
    home and school;
        ``(4) shall coordinate and integrate parent involvement 
    programs and activities with Head Start, Even Start, the Home 
    Instruction Programs for Preschool Youngsters, the Parents as 
    Teachers Program, and public preschool programs and other programs, 
    to the extent feasible and appropriate;
        ``(5) shall develop appropriate roles for community-based 
    organizations and businesses in parent involvement activities, 
    including providing information about opportunities for 
    organizations and businesses to work with parents and schools, and 
    encouraging the formation of partnerships between elementary, 
    middle, and secondary schools and local businesses that include a 
    role for parents;
        ``(6) shall conduct other activities, as appropriate and 
    feasible, such as parent resource centers and providing 
    opportunities for parents to learn about child development and 
    child rearing issues beginning at the birth of a child, that are 
    designed to help parents become full partners in the education of 
    their children;
        ``(7) shall ensure, to the extent possible, that information 
    related to school and parent programs, meetings, and other 
    activities is sent to the homes of participating children in the 
    language used in such homes;
        ``(8) may involve parents in the development of training for 
    teachers, principals, and other educators to improve the 
    effectiveness of such training in improving instruction and 
    services to the children of such parents;
        ``(9) may provide necessary literacy training from funds 
    received under this part if the local educational agency has 
    exhausted all other reasonably available sources of funding for 
    such activities;
        ``(10) may pay reasonable and necessary expenses associated 
    with local parental involvement activities, including 
    transportation and child care costs, to enable parents to 
    participate in school-related meetings and training sessions;
        ``(11) may train and support parents to enhance the involvement 
    of other parents;
        ``(12) may arrange meetings at a variety of times, such as in 
    the mornings and evenings, in order to maximize the opportunities 
    for parents to participate in school related activities;
        ``(13) may arrange for teachers or other educators, who work 
    directly with participating children, to conduct in-home 
    conferences with parents who are unable to attend such conferences 
    at school;
        ``(14) may adopt and implement model approaches to improving 
    parental involvement, such as Even Start; and
        ``(15) shall provide such other reasonable support for parental 
    involvement activities under this section as parents may request.
    ``(f) Accessibility.--In carrying out the parental involvement 
requirements of this part, local educational agencies and schools, to 
the extent practicable, shall provide full opportunities for the 
participation of parents with limited English proficiency or with 
disabilities, including providing information and school profiles in a 
language and form such parents understand.
    ``(g) Parental Information and Resource Centers.--In States where 
parental information and resource centers have been established 
pursuant to section 401 of the Goals 2000: Educate America Act of 1994 
(to provide training, information, and support to parents and 
individuals who work with parents), local educational agencies and 
schools receiving assistance under this part shall assist parents and 
parent organizations by informing such parents and organizations of the 
existence and purpose of such centers, providing such parents and 
organizations with a description of the services and programs provided 
by such centers, advising parents on how to use such centers, and 
helping parents to contact such centers.

``SEC. 1119. PROFESSIONAL DEVELOPMENT.

    ``(a) Program Requirements.--
        ``(1) In general.--Each local educational agency receiving 
    assistance under this part shall provide high-quality professional 
    development that will improve the teaching of the academic 
    subjects, consistent with the State content standards, in order to 
    enable all children to meet the State's student performance 
    standards.
        ``(2) Program design.--Such professional development activities 
    shall be designed by principals, teachers, and other school staff 
    in schools receiving assistance under this part.
    ``(b) Professional Development Activities.--
        ``(1) Required activities.--Such professional development 
    activities shall--
            ``(A) support instructional practices that are geared to 
        challenging State content standards and create a school 
        environment conducive to high achievement in the academic 
        subjects;
            ``(B) support local educational agency plans under section 
        1112 and school plans under section 1114;
            ``(C) draw on resources available under this part, title 
        III of the Goals 2000: Educate America Act, title II of this 
        Act, and from other sources;
            ``(D) where appropriate, as determined by the local 
        educational agency, include strategies for developing curricula 
        and teaching methods that integrate academic and vocational 
        instruction (including applied learning and team teaching 
        strategies); and
            ``(E) include strategies for identifying and eliminating 
        gender and racial bias in instructional materials, methods, and 
        practices.
        ``(2) Optional activities.--Such professional development 
    activities may include--
            ``(A) instruction in the use of assessments;
            ``(B) instruction in ways that teachers, principals, pupil 
        services personnel, and school administrators may work more 
        effectively with parents;
            ``(C) the forming of partnerships with institutions of 
        higher education to establish school-based teacher training 
        programs that provide prospective teachers and novice teachers 
        with an opportunity to work under the guidance of experienced 
        teachers and college faculty;
            ``(D) instruction in the use of technology;
            ``(E) the creation of career ladder programs for 
        paraprofessionals (assisting teachers under this part) to 
        obtain the education necessary for such paraprofessionals to 
        become licensed and certified teachers;
            ``(F) instruction in ways to teach special needs children;
            ``(G) instruction in gender-equitable education methods, 
        techniques, and practices;
            ``(H) joint professional development activities involving 
        programs under this part, Head Start, Even Start, or State-run 
        preschool program personnel; and
            ``(I) instruction in experiential-based teaching methods 
        such as service learning.
    ``(c) Program Participation.--Each local educational agency 
receiving assistance under this part is encouraged to design 
professional development programs so that--
        ``(1) all school staff in schools participating in a schoolwide 
    program under section 1114 can participate in professional 
    development activities; and
        ``(2) all school staff in targeted assistance schools may 
    participate in professional development activities if such 
    participation will result in better addressing the needs of 
    students served under this part.
    ``(d) Parental Participation.--Parents may participate in 
professional development activities under this part if the school 
determines that parental participation is appropriate.
    ``(e) Consortia.--In carrying out such professional development 
programs, local educational agencies may provide services through 
consortia arrangements with other local educational agencies, 
educational service agencies or other local consortia, institutions of 
higher education, or other public or private institutions or 
organizations.
    ``(f) Effective Teaching Strategies.--Knowledge of effective 
teaching strategies that is gained through professional development 
activities under this section may be shared with teachers who are not 
participating in targeted assistance programs under this part.
    ``(g) Combinations of Funds.--Funds provided under this part that 
are used for professional development purposes may be combined with 
funds provided under title II of this Act, title III of the Goals 2000: 
Educate America Act, and other sources.
    ``(h) State Review.--
        ``(1) In general.--The State educational agency shall review 
    the local educational agency's plan under section 1112(b) to 
    determine if such agency's professional development activities--
            ``(A) are tied to challenging State student content and 
        student performance standards;
            ``(B) reflect research on teaching and learning where 
        possible;
            ``(C) are designed to have a positive impact on the 
        teacher's performance in the classroom;
            ``(D) contribute to continuous improvement in the classroom 
        or throughout the school;
            ``(E) include methods to teach children with special needs;
            ``(F) are developed with the extensive participation of 
        teachers; and
            ``(G) include gender-equitable education methods, 
        techniques, and practices.
        ``(2) Technical assistance.--If a local educational agency's 
    plan for professional development does not include the activities 
    described in paragraph (1), the State educational agency shall 
    provide technical assistance to such local educational agencies to 
    enable such agencies to make progress toward inclusion of such 
    activities in the local educational agency's professional 
    development activities.
        ``(3) Special rule.--No State educational agency shall require 
    a school or a local educational agency to expend a specific amount 
    of funds for professional development activities under this part, 
    except that this paragraph shall not apply with respect to 
    requirements under section 1116(d)(6).
    ``(i) Instructional Aides.--
        ``(1) In general.--If a local educational agency uses funds 
    received under this part to employ instructional aides, the local 
    educational agency shall ensure that such aides--
            ``(A) possess the knowledge and skills sufficient to assist 
        participating children in meeting the educational goals of this 
        part;
            ``(B) have a secondary school diploma, or its recognized 
        equivalent, or earn either within two years of employment, 
        except that a local educational agency may employ an 
        instructional aide that does not meet the requirement of this 
        subparagraph if such aide possesses proficiency in a language 
        other than English that is needed to enhance the participation 
        of children in programs under this part; and
            ``(C) are under the direct supervision of a teacher who has 
        primary responsibility for providing instructional services to 
        eligible children.
        ``(2) Inclusion in activities.--Each local educational agency 
    receiving funds under this part, when feasible, shall include 
    instructional aides in professional development activities.
``SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.
    ``(a) General Requirement.--
        ``(1) In general.--To the extent consistent with the number of 
    eligible children identified under section 1115(b) in a local 
    educational agency who are enrolled in private elementary and 
    secondary schools, a local educational agency shall, after timely 
    and meaningful consultation with appropriate private school 
    officials, provide such children, on an equitable basis, special 
    educational services or other benefits under this part (such as 
    dual enrollment, educational radio and television, computer 
    equipment and materials, other technology, and mobile educational 
    services and equipment).
        ``(2) Secular, neutral, nonideological.--Such educational 
    services or other benefits, including materials and equipment, 
    shall be secular, neutral, and nonideological.
        ``(3) Equity.--Educational services and other benefits for such 
    private school children shall be equitable in comparison to 
    services and other benefits for public school children 
    participating under this part.
        ``(4) Expenditures.--Expenditures for educational services and 
    other benefits to eligible private school children shall be equal 
    to the proportion of funds allocated to participating school 
    attendance areas based on the number of children from low-income 
    families who attend private schools.
        ``(5) Provision of services.--The local educational agency may 
    provide such services directly or through contracts with public and 
    private agencies, organizations, and institutions.
    ``(b) Consultation.--
        ``(1) In general.--To ensure timely and meaningful 
    consultation, a local educational agency shall consult with 
    appropriate private school officials during the design and 
    development of such agency's programs under this part, on issues 
    such as--
            ``(A) how the children's needs will be identified;
            ``(B) what services will be offered;
            ``(C) how and where the services will be provided;
            ``(D) how the services will be assessed; and
            ``(E) the size and scope of the equitable services to be 
        provided to the eligible private school children, and what is 
        the proportion of funds allocated under subsection (a)(4) for 
        such services.
        ``(2) Timing.--Such consultation shall occur before the local 
    educational agency makes any decision that affects the 
    opportunities of eligible private school children to participate in 
    programs under this part.
        ``(3) Discussion.--Such consultation shall include a discussion 
    of service delivery mechanisms a local educational agency can use 
    to provide equitable services to eligible private school children.
    ``(c) Public Control of Funds.--
        ``(1) In general.--The control of funds provided under this 
    part, and title to materials, equipment, and property purchased 
    with such funds, shall be in a public agency, and a public agency 
    shall administer such funds 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, or organization.
        ``(B) In the provision of such services, such employee, person, 
    association, agency, or organization shall be independent of such 
    private school and of any religious organization, and such 
    employment or contract shall be under the control and supervision 
    of such public agency.
    ``(d) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation on an equitable 
basis of eligible children enrolled in private elementary and secondary 
schools or if the Secretary determines that a local educational agency 
has substantially failed or is unwilling to provide for such 
participation, as required by this section, the Secretary shall--
        ``(1) waive the requirements of this section for such local 
    educational agency; and
        ``(2) arrange for the provision of services to such children 
    through arrangements that shall be subject to the requirements of 
    this section and sections 14505 and 14506.
    ``(e) Capital Expenses.--
        ``(1) In general.--(A) From the amount appropriated for this 
    subsection under section 1002(e) for any fiscal year, each State is 
    eligible to receive an amount that bears the same ratio to the 
    amount so appropriated as the number of private school children who 
    received services under this part in the State in the most recent 
    year for which data satisfactory to the Secretary are available 
    bears to the number of such children in all States in that same 
    year.
        ``(B) The Secretary shall reallocate any amounts allocated 
    under subparagraph (A) that are not used by a State for the purpose 
    of this subsection to other States on the basis of their respective 
    needs, as determined by the Secretary.
        ``(2) Capital expenses.--(A) A local educational agency may 
    apply to the State educational agency for payments for capital 
    expenses consistent with this subsection.
        ``(B) State educational agencies shall distribute such funds 
    under this subsection to local educational agencies based on the 
    degree of need set forth in their respective applications for 
    assistance under this subsection.
        ``(3) Uses of funds.--Any funds appropriated to carry out this 
    subsection shall be used only for capital expenses incurred to 
    provide equitable services for private school children under this 
    section.
        ``(4) Definition.--For the purpose of this subsection, the term 
    `capital expenses' means--
            ``(A) expenditures for noninstructional goods and services, 
        such as the purchase, lease, or renovation of real and personal 
        property, including mobile educational units and leasing of 
        neutral sites or spaces;
            ``(B) insurance and maintenance costs;
            ``(C) transportation; and
            ``(D) other comparable goods and services.

``SEC. 1120A. FISCAL REQUIREMENTS.

    ``(a) Maintenance of Effort.--A local educational agency may 
receive funds under this part for any fiscal year only if the State 
educational agency finds that the local educational agency has 
maintained its fiscal effort in accordance with section 14501 of this 
Act.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--
        ``(1) In general.--(A) Except as provided in subparagraph (B), 
    a State or local educational agency shall use funds received under 
    this part only to supplement the amount of funds that would, in the 
    absence of such Federal funds, be made available from non-Federal 
    sources for the education of pupils participating in programs 
    assisted under this part, and not to supplant such funds.
        ``(B) For the purpose of complying with subparagraph (A), a 
    State or local educational agency may exclude supplemental State 
    and local funds expended in any eligible school attendance area or 
    school for programs that meet the requirements of section 1114 or 
    1115.
        ``(2) Special rule.--No local educational agency shall be 
    required to provide services under this part through a particular 
    instructional method or in a particular instructional setting in 
    order to demonstrate such agency's compliance with paragraph (1).
    ``(c) Comparability of Services.--
        ``(1) In general.--(A) Except as provided in paragraphs (4) and 
    (5), a local educational agency may receive funds under this part 
    only if State and local funds will be used in schools served under 
    this part to provide services that, taken as a whole, are at least 
    comparable to services in schools that are not receiving funds 
    under this part.
        ``(B) If the local educational agency is serving all of such 
    agency's schools under this part, such agency may receive funds 
    under this part only if such agency will use State and local funds 
    to provide services that, taken as a whole, are substantially 
    comparable in each school.
        ``(C) A local educational agency may meet the requirements of 
    subparagraphs (A) and (B) on a grade-span by grade-span basis or a 
    school-by-school basis.
        ``(2) Written assurance.--(A) A local educational agency shall 
    be considered to have met the requirements of paragraph (1) if such 
    agency has filed with the State educational agency a written 
    assurance that such agency has established and implemented--
            ``(i) a local educational agency-wide salary schedule;
            ``(ii) a policy to ensure equivalence among schools in 
        teachers, administrators, and other staff; and
            ``(iii) a policy to ensure equivalence among schools in the 
        provision of curriculum materials and instructional supplies.
        ``(B) For the purpose of subparagraph (A), in the determination 
    of expenditures per pupil from State and local funds, or 
    instructional salaries per pupil from State and local funds, staff 
    salary differentials for years of employment shall not be included 
    in such determinations.
        ``(C) A local educational agency need not include unpredictable 
    changes in student enrollment or personnel assignments that occur 
    after the beginning of a school year in determining comparability 
    of services under this subsection.
        ``(3) Procedures and records.--Each local educational agency 
    assisted under this part shall--
            ``(A) develop procedures for compliance with this 
        subsection; and
            ``(B) maintain records that are updated biennially 
        documenting such agency's compliance with this subsection.
        ``(4) Inapplicability.--This subsection shall not apply to a 
    local educational agency that does not have more than one building 
    for each grade span.
        ``(5) Compliance.--For the purpose of determining compliance 
    with paragraph (1), a local educational agency may exclude State 
    and local funds expended for--
            ``(A) bilingual education for children of limited English 
        proficiency; and
            ``(B) excess costs of providing services to children with 
        disabilities as determined by the local educational agency.

``SEC. 1120B. COORDINATION REQUIREMENTS.

    ``(a) In General.--Each local educational agency receiving 
assistance under this part shall carry out the activities described in 
subsection (b) to the extent feasible and appropriate to the 
circumstances, including the extent to which such local educational 
agency is able to secure the cooperation of parents and local Head 
Start agencies and, if feasible, other early childhood development 
programs.
    ``(b) Activities.--The activities referred to in subsection (a) are 
activities that increase coordination between the local educational 
agency and a Head Start agency, and, if feasible, other early childhood 
development programs, serving children who will attend the schools of 
such agency, including--
        ``(1) developing and implementing a systematic procedure for 
    receiving records regarding such children transferred with parental 
    consent from a Head Start program or, where applicable, other early 
    childhood development programs;
        ``(2) establishing channels of communication between school 
    staff and their counterparts in such Head Start agencies (including 
    teachers, social workers, and health staff) or other early 
    childhood development programs, as appropriate, to facilitate 
    coordination of programs;
        ``(3) conducting meetings involving parents, kindergarten or 
    elementary school teachers, and Head Start teachers or, if 
    appropriate, teachers from other early childhood development 
    programs, to discuss the developmental and other needs of 
    individual children; and
        ``(4) organizing and participating in joint transition related 
    training of school staff, Head Start staff, and, where appropriate, 
    other early childhood staff.
    ``(c) Coordination of Regulations.--The Secretary shall work with 
the Secretary of Health and Human Services to coordinate regulations 
promulgated under this part with regulations promulgated under the Head 
Start Act Amendments of 1994.

                        ``Subpart 2--Allocations

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

    ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a), the 
Secretary shall reserve a total of 1 percent to provide assistance to--
        ``(1) the outlying areas on the basis of their respective need 
    for such assistance according to such criteria as the Secretary 
    determines will best carry out the purpose of this part; and
        ``(2) the Secretary of the Interior in the amount necessary to 
    make payments pursuant to subsection (c).
    ``(b) Assistance to the Outlying Areas.--
        ``(1) In general.--From amounts made available under subsection 
    (a) in each fiscal year the Secretary shall make grants to local 
    educational agencies in the outlying areas (other than the outlying 
    areas assisted under paragraph (3)).
        ``(2) Competitive grants.--(A) The Secretary shall reserve 
    $5,000,000 from the amounts made available under subsection (a) in 
    each fiscal year to award grants on a competitive basis, to local 
    educational agencies in the Federated States of Micronesia, the 
    Republic of the Marshall Islands, and the Republic of Palau. The 
    Secretary shall award such grants according to the recommendations 
    of the Pacific Region Educational Laboratory which shall conduct a 
    competition for such grants.
        ``(B) Except as provided in subparagraph (D), grant funds 
    awarded under this part only may be used for programs described in 
    this Act, including teacher training, curriculum development, 
    instructional materials, or general school improvement and reform.
        ``(C) Grant funds awarded under this paragraph only may be used 
    to provide direct educational services.
        ``(D) The Secretary may provide 5 percent of the amount made 
    available for grants under this paragraph to pay the administrative 
    costs of the Pacific Region Educational Laboratory regarding 
    activities assisted under this paragraph.
    ``(c) Allotment to the Secretary of the Interior.--
        ``(1) In general.--The amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2) for any fiscal 
    year shall be, as determined pursuant to criteria established by 
    the Secretary, the amount necessary to meet the special educational 
    needs of--
            ``(A) Indian children on reservations served by elementary 
        and secondary schools for Indian children operated or supported 
        by the Department of the Interior; and
            ``(B) out-of-State Indian children in elementary and 
        secondary schools in local educational agencies under special 
        contracts with the Department of the Interior.
        ``(2) Payments.--From the amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2), the Secretary of 
    the Interior shall make payments to local educational agencies, 
    upon such terms as the Secretary determines will best carry out the 
    purposes of this part, with respect to out-of-State Indian children 
    described in paragraph (1). The amount of such payment may not 
    exceed, for each such child, the greater of--
            ``(A) 40 percent of the average per pupil expenditure in 
        the State in which the agency is located; or
            ``(B) 48 percent of such expenditure in the United States.

``SEC. 1122. ALLOCATIONS TO STATES.

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

``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Amount of Grants.--
        ``(1) Grants for local educational agencies and puerto rico.--
    The grant which a local educational agency in a State is eligible 
    to receive under this subpart for a fiscal year shall (except as 
    provided in section 1126), be determined by multiplying the number 
    of children counted under subsection (c) by 40 percent of the 
    amount determined under the next sentence. The amount determined 
    under this sentence shall be the average per pupil expenditure in 
    the State except that--
            ``(A) if the average per pupil expenditure in the State is 
        less than 80 percent of the average per pupil expenditure in 
        the United States, such amount shall be 80 percent of the 
        average per pupil expenditure in the United States; or
            ``(B) if the average per pupil expenditure in the State is 
        more than 120 percent of the average per pupil expenditure in 
        the United States, such amount shall be 120 percent of the 
        average per pupil expenditure in the United States.
        ``(2) Basis for calculating grants.--For fiscal years 1995 
    through 1998, grants shall be calculated by the Secretary on the 
    basis of the number of children counted under subsection (c) for 
    counties, and State educational agencies shall suballocate county 
    amounts to local educational agencies, in accordance with 
    regulations published by the Secretary. In any State in which a 
    large number of local educational agencies overlap county 
    boundaries, the State educational agency may apply to the Secretary 
    for authority during any particular fiscal year to make the 
    allocations under this part (other than section 1124A) directly to 
    local educational agencies without regard to the counties. If the 
    Secretary approves an application of a State educational agency for 
    a particular year under this subparagraph, the State educational 
    agency shall provide assurances that--
            ``(A) such allocations will be made using precisely the 
        same factors for determining a grant as are used under this 
        part;
            ``(B) such allocations will be made using alternative data 
        approved by the Secretary that the State determines best 
        reflects the distribution of children in poor families and is 
        adjusted to be equivalent in proportion to the number of 
        children determined in accordance with subsection (c); or
            ``(C) such allocations will be made using data that the 
        State educational agency submits to the Secretary for approval 
        that more accurately target poverty.
    In addition, the State educational agency shall provide assurances 
    that a procedure will be established through which local 
    educational agencies dissatisfied with the determinations made by 
    the State educational agency may appeal directly to the Secretary 
    for a final determination. Beginning in fiscal year 1999, grants 
    shall be calculated by the Secretary on the basis of population 
    data compiled for local educational agencies, unless the Secretary 
    and the Secretary of Commerce determine that use of the updated 
    population data would be inappropriate or unreliable taking into 
    consideration the recommendations of the study to be conducted by 
    the National Academy of Sciences. If the Secretary and the 
    Secretary of Commerce determine that some or all of the data 
    referred to in this paragraph are inappropriate or unreliable, the 
    Secretaries shall jointly issue a report setting forth their 
    reasons in detail. In years when grants are calculated by the 
    Secretary on the basis of local educational agency data, for each 
    local educational agency serving an area with a total population of 
    at least 20,000 persons, the grant under this section shall be the 
    amount determined by the Secretary. For local educational agencies 
    serving areas with total populations of fewer than 20,000 persons, 
    the State educational agency may either--
            ``(i) distribute to such local educational agencies grants 
        under this section equal to the amounts determined by the 
        Secretary; and
            ``(ii) use an alternative method, approved by the 
        Secretary, to distribute the share of the State's total grants 
        under this section that is based on local educational agencies 
        with total populations of fewer than 20,000 persons. Such an 
        alternative method of distributing grants under this section 
        among a State's local educational agencies serving areas with 
        total populations of fewer than 20,000 persons shall be based 
        upon population data that the State educational agency 
        determines best reflect the current distribution of children in 
        poor families among the State's local educational agencies 
        serving areas with total populations of fewer than 20,000 
        persons. If a local educational agency serving an area with 
        total population of less than 20,000 persons is dissatisfied 
        with the determination of its grant by the State education 
        agency, then such local educational agency may appeal this 
        determination to the Secretary. The Secretary must respond to 
        this appeal within 45 days of receipt.
        ``(3) Puerto rico.--For each fiscal year, the Secretary shall 
    determine the percentage which the average per pupil expenditure in 
    the Commonwealth of Puerto Rico is of the lowest average per pupil 
    expenditure of any of the 50 States. The grant which the 
    Commonwealth of Puerto Rico shall be eligible to receive under this 
    section for a fiscal year shall be the amount arrived at by 
    multiplying the number of children counted under subsection (c) for 
    the Commonwealth of Puerto Rico by the product of--
            ``(A) the percentage determined under the preceding 
        sentence; and
            ``(B) 32 percent of the average per pupil expenditure in 
        the United States.
        ``(4) Definition.--For purposes of this subsection, the term 
    `State' does not include Guam, American Samoa, the Virgin Islands, 
    the Northern Mariana Islands, and Palau.
    ``(b) Minimum Number of Children To Qualify.--Subject to the 
succeeding sentence, a local educational agency shall be eligible for a 
basic grant for a fiscal year under this subpart only if the number of 
children counted under subsection (c) in the school district of such 
local educational agency is at least 10. Beginning in fiscal year 1996, 
no local educational agency shall be eligible for a grant under this 
section if the number of children counted for grants under this section 
is equal to 2 percent or less of the total school age population in the 
local educational agency. For fiscal years 1996 through 1998, grants 
not made as a result of applying the preceding sentence shall be 
reallocated by the State educational agency to other eligible local 
educational agencies in the State in proportion to the distribution of 
other funds under this section.
    ``(c) Children To Be Counted.--
        ``(1) Categories of children.--The number of children to be 
    counted for purposes of this section is the aggregate of--
            ``(A) the number of children aged 5 to 17, inclusive, in 
        the school district of the local educational agency from 
        families below the poverty level as determined under paragraph 
        (2);
            ``(B) the number of children aged 5 to 17, inclusive, in 
        the school district of such agency from families above the 
        poverty level as determined under paragraph (5); and
            ``(C) the number of children aged 5 to 17, inclusive, in 
        the school district of such agency in institutions for 
        neglected and delinquent children (other than such institutions 
        operated by the United States), but not counted pursuant to 
        subpart 1 of part D for the purposes of a grant to a State 
        agency, or being supported in foster homes with public funds.
        ``(2) Determination of number of children.--For the purposes of 
    this section, the Secretary shall determine the number of children 
    aged 5 to 17, inclusive, from families below the poverty level on 
    the basis of the most recent satisfactory data, described in 
    paragraph (3), available from the Department of Commerce. For 
    fiscal year 1999 and beyond, the District of Columbia and the 
    Commonwealth of Puerto Rico shall be treated as individual local 
    educational agencies. If a local educational agency contains two or 
    more counties in their entirety, then each county will be treated 
    as if such county were a separate local educational agency for 
    purposes of calculating grants under this part. The total of grants 
    for such counties shall be allocated to such a local educational 
    agency, which local educational agency shall distribute to schools 
    in each county within such agency a share of the local educational 
    agency's total grant that is no less than the county's share of the 
    population counts used to calculate the local educational agency's 
    grant.
        ``(3) Population updates.--In fiscal year 1997 and every 2 
    years thereafter, the Secretary shall use updated data on the 
    number of children, aged 5 to 17, inclusive, from families below 
    the poverty level for counties or local educational agencies, 
    published by the Department of Commerce, unless the Secretary and 
    the Secretary of Commerce determine that use of the updated 
    population data would be inappropriate or unreliable, taking into 
    consideration the recommendations of the study to be conducted by 
    the National Academy of Sciences. If the Secretary and the 
    Secretary of Commerce determine that some or all of the data 
    referred to in this paragraph are inappropriate or unreliable, they 
    shall jointly issue a report setting forth their reasons in detail. 
    In determining the families which are below the poverty level, the 
    Secretary shall utilize the criteria of poverty used by the Bureau 
    of the Census in compiling the most recent decennial census, in 
    such form as those criteria have been updated by increases in the 
    Consumer Price Index for all urban consumers, published by the 
    Bureau of Labor Statistics.
        ``(4) Study.--(A) The Secretary of Education shall, within 30 
    days after the date of enactment of the Improving America's 
    School's Act of 1994, contract with the National Academy of 
    Sciences (hereafter in this section referred to as the `Academy') 
    to study the program to produce intercensal poverty data for small 
    geographic areas and certain age cohorts being developed by the 
    Bureau of the Census.
        ``(B) In conducting its study, the Academy shall consider such 
    matters as--
            ``(i) the methodology used to produce and publish 
        intercensal poverty data, and possible alternative methods to 
        improve the usefulness of the data for Federal program 
        purposes;
            ``(ii) the availability of alternative indicators of 
        poverty for small geographic areas, against which the poverty 
        data produced and published by the Bureau of the Census could 
        be compared;
            ``(iii) the reliability of the poverty data produced and 
        published by the Bureau of the Census, particularly for less 
        populous geographic areas;
            ``(iv) the reliability of intercensal poverty data produced 
        and published by the Bureau of the Census, as compared over 
        time to similar data produced by the Bureau of the Census 
        during the most recent decennial census; and
            ``(v) the usefulness of poverty data produced and published 
        by the Bureau of the Census for Federal programs that allocate 
        funds to State and sub-State areas based, in whole or in part, 
        on such data.
        ``(C) The Academy shall submit to the Secretary and the 
    Secretary of Commerce, as well as to the Committee on Education and 
    Labor and the Committee on Post Office and Civil Service of the 
    House of Representatives and the Committee on Labor and Human 
    Resources and the Committee on Governmental Affairs of the Senate--
            ``(i) not later than 18 months after the date on which a 
        contract is entered into under subsection (a), and not later 
        than every 18 months thereafter, such interim reports on the 
        Academy's activities under this Act that the Academy deems 
        appropriate, including a detailed statement of the Academy's 
        findings and conclusions with respect to any poverty data which 
        the Bureau of the Census publishes and produces, within 90 days 
        of such publication; and
            ``(ii) not later than December 31, 1998, a final report 
        which shall include a more detailed statement of the Academy's 
        findings and conclusions with respect to the use of any 
        intercensal poverty data produced and published by the Bureau 
        of the Census as the basis for allocating Federal funds under 
        this Act.
        ``(D) Of the funds appropriated under section 1002(f) of this 
    Act, the Secretary shall use such sums as are necessary in each of 
    fiscal years 1995, 1996, 1997, 1998, and 1999 to carry out the 
    provisions of this paragraph.
        ``(5) Other children to be counted.--For purposes of this 
    section, the Secretary shall determine the number of children aged 
    5 to 17, inclusive, from families above the poverty level on the 
    basis of the number of such children from families receiving an 
    annual income, in excess of the current criteria of poverty, from 
    payments under the program of aid to families with dependent 
    children under a State plan approved under title IV of the Social 
    Security Act; and in making such determinations the Secretary shall 
    utilize the criteria of poverty used by the Bureau of the Census in 
    compiling the most recent decennial census for a family of 4 in 
    such form as those criteria have been updated by increases in the 
    Consumer Price Index for all urban consumers, published by the 
    Bureau of Labor Statistics. The Secretary shall determine the 
    number of such children and the number of children of such ages 
    living in institutions for neglected or delinquent children, or 
    being supported in foster homes with public funds, on the basis of 
    the caseload data for the month of October of the preceding fiscal 
    year (using, in the case of children described in the preceding 
    sentence, the criteria of poverty and the form of such criteria 
    required by such sentence which were determined for the calendar 
    year preceding such month of October) or, to the extent that such 
    data are not available to the Secretary before January of the 
    calendar year in which the Secretary's determination is made, then 
    on the basis of the most recent reliable data available to the 
    Secretary at the time of such determination. The Secretary of 
    Health and Human Services shall collect and transmit the 
    information required by this subparagraph to the Secretary not 
    later than January 1 of each year.
        ``(6) Estimate.--When requested by the Secretary, the Secretary 
    of Commerce shall make a special updated estimate of the number of 
    children of such ages who are from families below the poverty level 
    (as determined under subparagraph (A) of this paragraph) in each 
    school district, and the Secretary is authorized to pay (either in 
    advance or by way of reimbursement) the Secretary of Commerce the 
    cost of making this special estimate. The Secretary of Commerce 
    shall give consideration to any request of the chief executive of a 
    State for the collection of additional census information. For 
    purposes of this section, the Secretary shall consider all children 
    who are in correctional institutions to be living in institutions 
    for delinquent children.
    ``(d) State Minimum.--Notwithstanding subsection (b)(1) or (d) of 
section 1122, the aggregate amount allotted for all local educational 
agencies within a State may not be less than the lesser of--
        ``(1) 0.25 percent of total grants under this section; or
        ``(2) the average of--
            ``(A) one-quarter of 1 percent of the total amount 
        available for such fiscal year under this section; and
            ``(B) the number of children in such State counted under 
        subsection (c) in the fiscal year multiplied by 150 percent of 
        the national average per pupil payment made with funds 
        available under this section for that year.
``SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.
    ``(a) Eligibility for and Amount of Grants.--
        ``(1) In general.--(A) Except as otherwise provided in this 
    paragraph, each local educational agency, in a State other than 
    Guam, American Samoa, the Virgin Islands, the Commonwealth of the 
    Northern Mariana Islands, and Palau, which is eligible for a grant 
    under this part for any fiscal year shall be eligible for an 
    additional grant under this section for that fiscal year if--
            ``(i) the number of children counted under section 1124(c) 
        in the county (for fiscal years 1996 through 1998), or local 
        educational agency (for fiscal years beginning with 1999) for 
        the fiscal year exceeds 6,500; or
            ``(ii) the number of children counted under section 1124(c) 
        exceeds 15 percent of the total number of children aged 5 to 
        17, inclusive, in the county (for fiscal years 1996 through 
        1998), or local educational agency (for fiscal years beginning 
        with 1999) in that fiscal year.
        ``(B) Notwithstanding such subsections (b)(1) and (d) of 
    section 1122, no State described in subparagraph (A) shall receive 
    less than the lesser of--
            ``(i) 0.25 percent of total grants; or
            ``(ii) the average of--
                ``(I) one-quarter of 1 percent of the sums available to 
            carry out this section for such fiscal year; and
                ``(II) the greater of--

                    ``(aa) $340,000; or
                    ``(bb) the number of children in such State counted 
                for purposes of this section in that fiscal year 
                multiplied by 150 percent of the national average per 
                pupil payment made with funds available under this 
                section for that year.

        ``(2) Special rule.--For each county or local educational 
    agency eligible to receive an additional grant under this section 
    for any fiscal year the Secretary shall determine the product of--
            ``(A) the number of children counted under section 1124(c) 
        for that fiscal year; and
            ``(B) the quotient resulting from the division of the 
        amount determined for those agencies under section 1124(a)(1) 
        for the fiscal year for which the determination is being made 
        divided by the total number of children counted under section 
        1124(c) for that agency for fiscal year.
        ``(3) Amount.--The amount of the additional grant for which an 
    eligible local educational agency or county is eligible under this 
    section for any fiscal year shall be an amount which bears the same 
    ratio to the amount available to carry out this section for that 
    fiscal year as the product determined under paragraph (2) for such 
    local educational agency for that fiscal year bears to the sum of 
    such products for all local educational agencies in the United 
    States for that fiscal year.
        ``(4) Suballocation.--For fiscal years 1996 through 1998, 
    county amounts shall be suballocated to local educational agencies 
    meeting the criteria of paragraph (1)(A) by State educational 
    agencies, in accordance with regulations published by the 
    Secretary. For fiscal years 1995 through 1998, grants shall be 
    calculated by the Secretary on the basis of the number of children 
    counted under section 1124(c) for counties, and State educational 
    agencies shall suballocate county amounts to local educational 
    agencies, in accordance with regulations published by the 
    Secretary. In any State in which a large number of local 
    educational agencies overlap county boundaries, the State 
    educational agency may apply to the Secretary for authority during 
    any particular fiscal year to make the allocations under this part 
    (other than this section) directly to local educational agencies 
    without regard to the counties. If the Secretary approves an 
    application of a State educational agency for a particular year 
    under this paragraph, the State educational agency shall provide 
    assurances that--
            ``(A) such allocations will be made using precisely the 
        same factors for determining a grant as are used under this 
        part;
            ``(B) such allocations will be made using alternative data 
        approved by the Secretary that the State determines best 
        reflects the distribution of children in poor families and is 
        adjusted to be equivalent in proportion to the number of 
        children determined in accordance with section 1124(c); or
            ``(C) such allocations will be made using data that the 
        State educational agency submits to the Secretary for approval 
        that more accurately target poverty.
    In addition, the State educational agency shall provide assurances 
    that a procedure will be established through which local 
    educational agencies dissatisfied with the determinations made by 
    the State educational agency may appeal directly to the Secretary 
    for a final determination. A State may reserve not more than 2 
    percent of its allocations in fiscal years 1996 through 1998 under 
    this section for the purpose of making grants to local educational 
    agencies that meet the criteria of clause (i) or (ii) of paragraph 
    (1)(A), but are in ineligible counties. For fiscal years beginning 
    with 1999, for each local educational agency serving an area with a 
    total population of at least 20,000 persons, the grant under this 
    section shall be the amount determined by the Secretary. For local 
    educational agencies serving areas with total populations of fewer 
    than 20,000 persons, the State educational agency may either (i) 
    distribute to such local educational agencies grants under this 
    section equal to the amounts determined by the Secretary; or (ii) 
    use an alternative method, approved by the Secretary, to distribute 
    the share of the State's total grants under this section that is 
    based on local educational agencies with total populations of fewer 
    than 20,000 persons. Such an alternative method of distributing 
    grants under this section among a State's local educational 
    agencies serving areas with total populations of fewer than 20,000 
    persons shall be based upon population data that the State 
    educational agency determines best reflects the current 
    distribution of children in poor families among the State's local 
    educational agencies serving areas with total populations of fewer 
    than 20,000 persons and meeting the eligibility criteria of 
    paragraph (1)(A). If a local educational agency serving an area 
    with total population of less than 20,000 persons is dissatisfied 
    with the determination of its grant by the State educational 
    agency, then such local educational agency may appeal this 
    determination to the Secretary. The Secretary shall respond to this 
    appeal within 45 days of receipt. The Secretary shall consult with 
    the Secretary of Commerce regarding whether available data on 
    population for local educational agencies serving areas with total 
    populations of fewer than 20,000 persons are sufficiently reliable 
    to be used to determine final grants to such areas meeting the 
    eligibility criteria of paragraph (1)(A).
    ``(b) Reservation of Funds.--Of the total amount of funds available 
for this section and sections 1124 and 1125, an amount equal to the 
appropriation for fiscal year 1995 for section 1006 of this Act (as 
such section was in effect on the day preceding the date of enactment 
of this Act) shall be available to carry out this section.
    ``(c) Ratable Reduction Rule.--If the sums available under 
subsection (b) for any fiscal year for making payments under this 
section are not sufficient to pay in full the total amounts which all 
States are eligible to receive under subsection (a) for such fiscal 
year, the maximum amounts which all States are eligible to receive 
under subsection (a) for such fiscal year shall be ratably reduced. In 
the case that additional funds become available for making such 
payments for any fiscal year during which the preceding sentence is 
applicable, such reduced amounts shall be increased on the same basis 
as they were reduced.
    ``(d) States Receiving Minimum Grants.--In States that receive the 
minimum grant under subsection (a)(1)(B), the State educational agency 
shall allocate such funds among the local educational agencies in each 
State either--
        ``(1) in accordance with paragraphs (2) and (4) of subsection 
    (a); or
        ``(2) based on their respective concentrations and numbers of 
    children counted under section 1124(c), except that only those 
    local educational agencies with concentrations or numbers of 
    children counted under section 1124(c) that exceed the statewide 
    average percentage of such children or the statewide average number 
    of such children shall receive any funds on the basis of this 
    paragraph.

``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted grant 
under this section for any fiscal year if the number of children in the 
local educational agency counted under subsection 1124(c), before 
application of the weighting factor described in subsection (c), is at 
least 10, and if the number of children counted for grants under 
section 1124 is at least 5 percent of the total population aged 5 to 17 
years, inclusive, in the local educational agency. Funds made available 
as a result of applying this subsection shall be reallocated by the 
State educational agency to other eligible local educational agencies 
in the State in proportion to the distribution of other funds under 
this section.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and Puerto Rico.--
        ``(1) In general.--The amount of the grant that a local 
    educational agency in a State or that the District of Columbia is 
    eligible to receive under this section for any fiscal year shall be 
    the product of--
            ``(A) the weighted child count determined under subsection 
        (c); and
            ``(B) the amount in the second sentence of subparagraph 
        1124(a)(1)(A).
        ``(2) Puerto rico.--For each fiscal year, the amount of the 
    grant for which the Commonwealth of Puerto Rico is eligible under 
    this section shall be equal to the number of children counted under 
    subsection (c) for Puerto Rico, multiplied by the amount determined 
    in subparagraph 1124(a)(3).
    ``(c) Weighted Child Count.--
        ``(1) Fiscal years 1966-1998.--
            ``(A) In general.--The weighted child count used to 
        determine a county's allocation under this section is the 
        larger of the two amounts determined under clause (i) or (ii), 
        as follows:
                ``(i) By percentage of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that county constituting up to 
                12.20 percent, inclusive, of the county's total 
                population aged 5 to 17, inclusive, multiplied by 1.0;
                    ``(II) the number of such children constituting 
                more than 12.20 percent, but not more than 17.70 
                percent, of such population, multiplied by 1.75;
                    ``(III) the number of such children constituting 
                more than 17.70 percent, but not more than 22.80 
                percent, of such population, multiplied by 2.5;

                    ``(IV) the number of such children constituting 
                more than 22.80 percent, but not more than 29.70 
                percent, of such population, multiplied by 3.25; and
                    ``(V) the number of such children constituting more 
                than 29.70 percent of such population, multiplied by 
                4.0.

                ``(ii) By number of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) constituting up to 1,917, inclusive, of 
                the county's total population aged 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(II) the number of such children between 1,918 
                and 5,938, inclusive, in such population, multiplied by 
                1.5;
                    ``(III) the number of such children between 5,939 
                and 20,199, inclusive, in such population, multiplied 
                by 2.0;
                    ``(IV) the number of such children between 20,200 
                and 77,999, inclusive, in such population, multiplied 
                by 2.5; and
                    ``(V) the number of such children in excess of 
                77,999 in such population, multiplied by 3.0.

            ``(B) Puerto rico.--Notwithstanding subparagraph (A), the 
        weighting factor for Puerto Rico under this paragraph shall not 
        be greater than the total number of children counted under 
        subsection 1124(c) multiplied by 1.72.
        ``(2) Fiscal years after 1999.--
            ``(A) In general.--For each fiscal year beginning with 
        fiscal year 1999 for which the Secretary uses local educational 
        agency data, the weighted child count used to determine a local 
        educational agency's grant under this section is the larger of 
        the two amounts determined under clauses (i) and (ii), as 
        follows:
                ``(i) By percentage of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that local educational agency 
                constituting up to 14.265 percent, inclusive, of the 
                agency's total population aged 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(II) the number of such children constituting 
                more than 14.265 percent, but not more than 21.553 
                percent, of such population, multiplied by 1.75;
                    ``(III) the number of such children constituting 
                more than 21.553 percent, but not more than 29.223 
                percent, of such population, multiplied by 2.5;
                    ``(IV) the number of such children constituting 
                more than 29.223 percent, but not more than 36.538 
                percent, of such population, multiplied by 3.25; and
                    ``(V) the number of such children constituting more 
                than 36.538 percent of such population, multiplied by 
                4.0.

                ``(ii) By number of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) constituting up to 575, inclusive, of 
                the agency's total population aged 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(II) the number of such children between 576 and 
                1,870, inclusive, in such population, multiplied by 
                1.5;
                    ``(III) the number of such children between 1,871 
                and 6,910, inclusive, in such population, multiplied by 
                2.0;
                    ``(IV) the number of such children between 6,911 
                and 42,000, inclusive, in such population, multiplied 
                by 2.5; and

                    ``(V) the number of such children in excess of 
                42,000 in such population, multiplied by 3.0.

            ``(B) Puerto rico.--Notwithstanding subparagraph (A), the 
        weighting factor for Puerto Rico under this paragraph shall not 
        be greater than the total number of children counted under 
        section 1124(c) multiplied by 1.72.
    ``(d) Local Educational Agency Allocations.--For fiscal years 1995 
through 1998, grants shall be calculated by the Secretary on the basis 
of the number of children counted under section 1124 for counties, and 
State educational agencies shall suballocate county amounts to local 
educational agencies, in accordance with regulations published by the 
Secretary. In any State in which a large number of local educational 
agencies overlap county boundaries, the State educational agency may 
apply to the Secretary for authority during any particular fiscal year 
to make the allocations under this part (other than section 1124A) 
directly to local educational agencies without regard to the counties. 
If the Secretary approves an application of a State educational agency 
for a particular year under this subparagraph, the State educational 
agency shall provide assurances that--
        ``(1) such allocations will be made using precisely the same 
    factors for determining a grant as are used under this part;
        ``(2) such allocations will be made using alternative data 
    approved by the Secretary that the State determines best reflects 
    the distribution of children in poor families and is adjusted to be 
    equivalent in proportion to the number of children determined in 
    accordance with section 1124(c); or
        ``(3) such allocations will be made using data that the State 
    educational agency submits to the Secretary for approval that more 
    accurately target poverty.
In addition, the State educational agency shall provide assurances that 
a procedure will be established through which local educational 
agencies dissatisfied with the determinations made by the State 
educational agency may appeal directly to the Secretary for a final 
determination. For fiscal years beginning in 1999, for each local 
educational agency serving an area with a total population of at least 
20,000 persons, the grant under this section shall be the amount 
determined by the Secretary. For local educational agencies serving 
areas with total populations of fewer than 20,000 persons, the State 
educational agency may either (1) distribute to such local educational 
agencies grants under this section equal to the amounts determined by 
the Secretary; or (2) use an alternative method, approved by the 
Secretary, to distribute the share of the State's total grants under 
this section that is based on local educational agencies with total 
populations of fewer than 20,000 persons. Such an alternative method of 
distributing grants under this section among a State's local 
educational agencies serving areas with total populations of fewer than 
20,000 persons shall be based upon population data that the State 
educational agency determines best reflects the current distribution of 
children in poor families among the State's local educational agencies 
serving areas with total populations of fewer than 20,000 persons. If a 
local educational agency serving an area with total populations of less 
than 20,000 persons is dissatisfied with the determination of its grant 
by the State educational agency, then the local educational agency may 
appeal this determination to the Secretary. The Secretary shall respond 
to this appeal within 45 days of receipt.
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or subsection (b)(1) or (d) of section 1122, from the total 
amount available for any fiscal year to carry out this section, each 
State shall be allotted at least the lesser of--
        ``(1) 0.25 percent of total appropriations; or
        ``(2) the average of--
            ``(A) one-quarter of 1 percent of the total amount 
        available to carry out this section; and
            ``(B) 150 percent of the national average grant under this 
        section per child described in section 1124(c), without 
        application of a weighting factor, multiplied by the State's 
        total number of children described in section 1124(c), without 
        application of a weighting factor.

``SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    ``(a) Grants.--The Secretary is authorized to make grants to States 
from the sums appropriated pursuant to subsection (e) to carry out the 
purposes of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
        ``(1) In general.--Funds appropriated pursuant to subsection 
    (e) shall be allotted to each State based upon the number of 
    children aged 5 to 17, inclusive, of such State multiplied by the 
    product of--
            ``(A) such State's effort factor described in paragraph 
        (2); multiplied by
            ``(B) 1.30 minus such State's equity factor described in 
        paragraph (3),
    except that for each fiscal year no State shall receive less than 
    one-quarter of 1 percent of the total amount appropriated pursuant 
    to subsection (e) for such fiscal year.
        ``(2) Effort factor.--(A) Except as provided in subparagraph 
    (B), the effort factor for a State shall be determined in 
    accordance with the succeeding sentence, except that such factor 
    shall not be less than .95 nor greater than 1.05. The effort factor 
    determined under this sentence shall be a fraction the numerator of 
    which is the product of the three-year average per-pupil 
    expenditure in the State multiplied by the three-year average per 
    capita income in the United States and the denominator of which is 
    the product of the three-year average per capita income in such 
    State multiplied by the three-year average per-pupil expenditure in 
    the United States.
        ``(B) The effort factor for the Commonwealth of Puerto Rico 
    shall be equal to the lowest effort factor calculated under 
    subparagraph (A) for any State.
        ``(3) Equity factor.--(A)(i) Except as provided in subparagraph 
    (B), the Secretary shall determine the equity factor under this 
    section for each State in accordance with clause (ii).
        ``(ii)(I) For each State, the Secretary shall compute a 
    weighted coefficient of variation for the per-pupil expenditures of 
    local educational agencies in accordance with subclauses (II), 
    (III), (IV), and (V).
        ``(II) In computing coefficients of variation, the Secretary 
    shall weigh the variation between per-pupil expenditures in each 
    local educational agency and the average per-pupil expenditures in 
    the State according to the number of pupils in the local 
    educational agency.
        ``(III) In determining the number of pupils under this 
    paragraph in each local educational agency and each State, the 
    Secretary shall multiply the number of children from low-income 
    families by 1.4 under this paragraph.
        ``(IV) In computing coefficients of variation, the Secretary 
    shall include only those local educational agencies with an 
    enrollment of more than 200 students.
        ``(V) The Secretary shall compute separate coefficients of 
    variation for elementary, secondary, and unified local educational 
    agencies and shall combine such coefficients into a single weighted 
    average coefficient for the State by multiplying each coefficient 
    by the total enrollments of the local educational agencies in each 
    group, adding such products, and dividing such sum by the total 
    enrollments of the local educational agencies in the State.
        ``(B) The equity factor for a State that meets the disparity 
    standard described in section 222.63 of title 34, Code of Federal 
    Regulations (as such section was in effect on the day preceding the 
    date of enactment of this Act) or a State with only one local 
    educational agency shall be not greater than .10.
        ``(C) The Secretary may revise each State's equity factor as 
    necessary based on the advice of independent education finance 
    scholars to reflect other need-based costs of local educational 
    agencies in addition to low-income student enrollment, such as 
    differing geographic costs, costs associated with students with 
    disabilities, children with limited-English proficiency or other 
    meaningful educational needs, which deserve additional support. In 
    addition and also with the advice of independent education finance 
    scholars, the Secretary may revise each State's equity factor to 
    incorporate other valid and accepted methods to achieve adequacy of 
    educational opportunity that may not be reflected in a coefficient 
    of variation method.
    ``(c) Use of Funds.--All funds awarded to each State under this 
section shall be allocated to local educational agencies and schools on 
a basis consistent with the distribution of other funds to such 
agencies and schools under sections 1124, 1124A, and 1125 to carry out 
activities under this part.
    ``(d) Maintenance of Effort.--
        ``(1) In general.--Except as provided in paragraph (2), a State 
    is entitled to receive its full allotment of funds under this part 
    for any fiscal year if the Secretary finds that either the combined 
    fiscal effort per student or the aggregate 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 of funds awarded to any State under this section in 
    any fiscal year in the exact proportion to which the State fails to 
    meet the requirements of paragraph (1) by falling below 90 percent 
    of both the fiscal effort per student and aggregate expenditures 
    (using the measure most favorable to the State), and no such lesser 
    amount shall be used for computing the effort required under 
    paragraph (1) for subsequent years.
        ``(3) Waivers.--The Secretary may waive, for one fiscal year 
    only, the requirements of this subsection if the Secretary 
    determines that such a waiver would be equitable due to exceptional 
    or uncontrollable circumstances such as a natural disaster or a 
    precipitous and unforeseen decline in the financial resources of 
    the State.
    ``(e) Authorization of Appropriations.--For the purpose of making 
grants under this section, there are authorized to be appropriated 
$200,000,000 for fiscal year 1996 and such sums as may be necessary for 
each of the three succeeding fiscal years.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

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

``SEC. 1127. CARRYOVER AND WAIVER.

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

             ``PART B--EVEN START FAMILY LITERACY PROGRAMS

``SEC. 1201. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to help break the cycle of poverty 
and illiteracy by improving the educational opportunities of the 
Nation's low-income families by integrating early childhood education, 
adult literacy or adult basic education, and parenting education into a 
unified family literacy program, to be referred to as `Even Start'. The 
program shall--
        ``(1) be implemented through cooperative projects that build on 
    existing community resources to create a new range of services;
        ``(2) promote achievement of the National Education Goals; and
        ``(3) assist children and adults from low-income families to 
    achieve to challenging State content standards and challenging 
    State student performance standards.

``SEC. 1202. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and Indian 
Tribes.--
        ``(1) In general.--For each fiscal year, the Secretary shall 
    reserve 5 percent of the amount appropriated under section 1002(b) 
    for programs, under such terms and conditions as the Secretary 
    shall establish, that are consistent with the purpose of this part, 
    and according to their relative needs, for--
            ``(A) children of migratory workers;
            ``(B) the outlying areas; and
            ``(C) Indian tribes and tribal organizations.
        ``(2) Special rule.--If the amount of funds made available 
    under this subsection exceeds $4,600,000, the Secretary shall award 
    a grant, on a competitive basis, of sufficient size and for a 
    period of sufficient duration to demonstrate the effectiveness of a 
    family literacy program in a prison that houses women and their 
    preschool age children and that has the capability of developing a 
    program of high quality.
    ``(b) Reservation for Federal Activities.--From amounts 
appropriated under section 1002(b), the Secretary may reserve not more 
than three percent of such amounts or the amount reserved to carry out 
the activities described in paragraphs (1) and (2) of subsection (a) 
for the fiscal year 1994, whichever is greater, for purposes of--
        ``(1) carrying out the evaluation required by section 1209; and
        ``(2) providing, through grants or contracts with eligible 
    organizations, technical assistance, program improvement, and 
    replication activities.
    ``(c) Reservation for Grants.--
        ``(1) Grants authorized.--In any fiscal year in which the 
    amount appropriated to carry out this part exceeds the amount 
    appropriated to carry out this part for the preceding fiscal year, 
    the Secretary may reserve such funds in excess of the amount 
    appropriated for such preceding fiscal years as do not exceed 
    $1,000,000 to award grants, on a competitive basis, to States to 
    enable such States to plan and implement, statewide family literacy 
    initiatives to coordinate and integrate existing Federal, State, 
    and local literacy resources consistent with the purposes of this 
    part. Such coordination and integration shall include funds 
    available under the Adult Education Act, Head Start, Even Start, 
    and the Family Support Act of 1988.
        ``(2) Matching requirement.--The Secretary shall not make a 
    grant to a State under paragraph (1) unless the State agrees that, 
    with respect to the costs to be incurred by the eligible consortium 
    in carrying out the activities for which the grant was awarded, the 
    State will make available non-Federal contributions in an amount 
    equal to not less than the Federal funds provided under the grant.
    ``(d) State Allocation.--
        ``(1) In general.--From amounts appropriated under section 
    1002(b) and not reserved under subsections (a), (b), and (c), the 
    Secretary shall make grants to States from allocations under 
    paragraph (2).
        ``(2) Allocations.--Except as provided in paragraph (3), from 
    the total amount available for allocation to States in any fiscal 
    year, each State shall be eligible to receive a grant under 
    paragraph (1) in an amount that bears the same ratio to such total 
    amount as the amount allocated under part A to that State bears to 
    the total amount allocated under that section to all the States.
        ``(3) Minimum.--No State shall receive a grant under paragraph 
    (1) in any fiscal year in an amount which is less than $250,000, or 
    one-half of 1 percent of the amount appropriated under section 
    1002(b) and not reserved under subsections (a), (b), and (c) for 
    such year, whichever is greater.
    ``(e) Definitions.--For the purpose of this part--
        ``(1) the term `eligible entity' means a partnership composed 
    of both--
            ``(A) a local educational agency; and
            ``(B) a nonprofit community-based organization, a public 
        agency other than a local educational agency, an institution of 
        higher education, or a public or private nonprofit organization 
        other than a local educational agency, of demonstrated quality;
        ``(2) the term `eligible organization' means any public or 
    private nonprofit organization with a record of providing effective 
    services to family literacy providers, such as the National Center 
    for Family Literacy, Parents as Teachers, Inc., the Home 
    Instruction Program for Preschool Youngsters, and the Home and 
    School Institute, Inc.;
        ``(3) the terms `Indian tribe' and `tribal organization' have 
    the meanings given such terms in section 4 of the Indian Self-
    Determination and Education Assistance Act; and
        ``(4) the term `State' includes each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 1203. STATE PROGRAMS.

    ``(a) State Level Activities.--Each State that receives a grant 
under section 1202(d)(1) may use not more than 5 percent of the grant 
funds for the costs of--
        ``(1) administration; and
        ``(2) providing, through one or more subgrants or contracts, 
    technical assistance for program improvement and replication, to 
    eligible entities that receive subgrants under subsection (b).
    ``(b) Subgrants for Local Programs.--
        ``(1) In general.--Each State shall use the grant funds 
    received under section 1202(d)(1) and not reserved under subsection 
    (a) to award subgrants to eligible entities to carry out Even Start 
    programs.
        ``(2) Minimum.--No State shall award a subgrant under paragraph 
    (1) in an amount less than $75,000, except that a State may award 
    one subgrant in each fiscal year of sufficient size, scope, and 
    quality to be effective in an amount less than $75,000 if, after 
    awarding subgrants under paragraph (1) for such fiscal year in 
    amounts of $75,000 or greater, less than $75,000 is available to 
    the State to award such subgrants.

``SEC. 1204. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program under this 
part, a recipient of funds under this part shall use such funds to pay 
the Federal share of the cost of providing family-centered education 
programs that involve parents and children, from birth through age 
seven, in a cooperative effort to help parents become full partners in 
the education of their children and to assist children in reaching 
their full potential as learners.
    ``(b) Federal Share Limitation.--
        ``(1) In general.--(A) Except as provided in paragraph (2), the 
    Federal share under this part may not exceed--
            ``(i) 90 percent of the total cost of the program in the 
        first year that such program receives assistance under this 
        part or its predecessor authority;
            ``(ii) 80 percent in the second such year;
            ``(iii) 70 percent in the third such year;
            ``(iv) 60 percent in the fourth such year; and
            ``(v) 50 percent in any subsequent such year.
        ``(B) The remaining cost of a program assisted under this part 
    may be provided in cash or in kind, fairly evaluated and may be 
    obtained from any source, including other Federal funds under this 
    Act.
        ``(2) Waiver.--The State educational agency may waive, in whole 
    or in part, the cost-sharing requirement described in paragraph (1) 
    for an eligible entity if such entity--
            ``(A) demonstrates that such entity otherwise would not be 
        able to participate in the program assisted under this part; 
        and
            ``(B) negotiates an agreement with the State educational 
        agency with respect to the amount of the remaining cost to 
        which the waiver will be applicable.
        ``(3) Prohibition.--Federal funds provided under this part may 
    not be used for the indirect costs of a program assisted under this 
    part, except that the Secretary may waive this paragraph if an 
    eligible recipient of funds reserved under section 1202(a)(1)(C) 
    demonstrates to the Secretary's satisfaction that such recipient 
    otherwise would not be able to participate in the program assisted 
    under this part.

``SEC. 1205. PROGRAM ELEMENTS.

    ``Each program assisted under this part shall--
        ``(1) include the identification and recruitment of families 
    most in need of services provided under this part, as indicated by 
    a low level of income, a low level of adult literacy or English 
    language proficiency of the eligible parent or parents, and other 
    need-related indicators;
        ``(2) include screening and preparation of parents, including 
    teenage parents and children to enable such parents to participate 
    fully in the activities and services provided under this part, 
    including testing, referral to necessary counselling, other 
    developmental and support services, and related services;
        ``(3) be designed to accommodate the participants' work 
    schedule and other responsibilities, including the provision of 
    support services, when such services are unavailable from other 
    sources, necessary for participation in the activities assisted 
    under this part, such as--
            ``(A) scheduling and locating of services to allow joint 
        participation by parents and children;
            ``(B) child care for the period that parents are involved 
        in the program provided under this part; and
            ``(C) transportation for the purpose of enabling parents 
        and their children to participate in programs authorized by 
        this part;
        ``(4) include high-quality instructional programs that promote 
    adult literacy and empower parents to support the educational 
    growth of their children, developmentally appropriate early 
    childhood educational services, and preparation of children for 
    success in regular school programs;
        ``(5) include special training of staff, including child care 
    staff, to develop the skills necessary to work with parents and 
    young children in the full range of instructional services offered 
    through this part;
        ``(6) provide and monitor integrated instructional services to 
    participating parents and children through home-based programs;
        ``(7) operate on a year-round basis, including the provision of 
    some program services, instructional or enrichment, during the 
    summer months;
        ``(8) be coordinated with--
            ``(A) programs assisted under other parts of this title and 
        this Act;
            ``(B) any relevant programs under the Adult Education Act, 
        the Individuals with Disabilities Education Act, and the Job 
        Training Partnership Act; and
            ``(C) the Head Start program, volunteer literacy programs, 
        and other relevant programs;
        ``(9) ensure that the programs will serve those families most 
    in need of the activities and services provided by this part; and
        ``(10) provide for an independent evaluation of the program.

``SEC. 1206. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), eligible 
participants in an Even Start program are--
        ``(1) a parent or parents--
            ``(A) who are eligible for participation in an adult basic 
        education program under the Adult Education Act; or
            ``(B) who are within the State's compulsory school 
        attendance age range, so long as a local educational agency 
        provides (or ensures the availability of) the basic education 
        component required under this part; and
        ``(2) the child or children, from birth through age seven, of 
    any individual described in paragraph (1).
    ``(b) Eligibility for Certain Other Participants.--
        ``(1) In general.--Family members of eligible participants 
    described in subsection (a) may participate in activities and 
    services provided under this part, when appropriate to serve the 
    purpose of this part.
        ``(2) Special rule.--Any family participating in a program 
    assisted under this part that becomes ineligible for such 
    participation as a result of one or more members of the family 
    becoming ineligible for such participation may continue to 
    participate in the program until all members of the family become 
    ineligible for such participation, which--
            ``(A) in the case of a family in which ineligibility was 
        due to the child or children of such family attaining the age 
        of eight, shall be in two years or when the parent or parents 
        become ineligible due to educational advancement, whichever 
        occurs first; and
            ``(B) in the case of a family in which ineligibility was 
        due to the educational advancement of the parent or parents of 
        such family, shall be when all children in the family attain 
        the age of eight.

``SEC. 1207. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant under this 
part, an eligible entity shall submit an application to the State 
educational agency in such form and containing or accompanied by such 
information as the State educational agency shall require.
    ``(b) Required Documentation.--Each application shall include 
documentation, satisfactory to the State educational agency, that the 
eligible entity has the qualified personnel needed--
        ``(1) to develop, administer, and implement an Even Start 
    program under this part; and
        ``(2) to provide access to the special training necessary to 
    prepare staff for the program, which may be offered by an eligible 
    organization.
    ``(c) Plan.--
        ``(1) In general.--Such application shall also include a plan 
    of operation for the program which shall include--
            ``(A) a description of the program goals;
            ``(B) a description of the activities and services that 
        will be provided under the program, including a description of 
        how the program will incorporate the program elements required 
        by section 1205;
            ``(C) a description of the population to be served and an 
        estimate of the number of participants to be served;
            ``(D) as appropriate, a description of the applicant's 
        collaborative efforts with institutions of higher education, 
        community-based organizations, the State educational agency, 
        private elementary schools, or other eligible organizations in 
        carrying out the program for which assistance is sought;
            ``(E) a statement of the methods that will be used--
                ``(i) to ensure that the programs will serve families 
            most in need of the activities and services provided by 
            this part;
                ``(ii) to provide services under this part to 
            individuals with special needs, such as individuals with 
            limited English proficiency and individuals with 
            disabilities; and
                ``(iii) to encourage participants to remain in the 
            program for a time sufficient to meet the program's 
            purpose; and
            ``(F) a description of how the plan is integrated with 
        other programs under this Act, the Goals 2000: Educate America 
        Act, or other Acts, as appropriate, consistent with section 
        14306.
        ``(2) Duration of the plan.--Each plan submitted under 
    paragraph (1)(A) shall--
            ``(A) remain in effect for the duration of the eligible 
        entity's participation under this part; and
            ``(B) be periodically reviewed and revised by the eligible 
        entity as necessary.
    ``(d) Consolidated Application.--The plan described in subsection 
(c)(1)(F) may be submitted as part of a consolidated application under 
section 14302.

``SEC. 1208. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--
        ``(1) In general.--The State educational agency shall establish 
    a review panel in accordance with paragraph (3) that will approve 
    applications that--
            ``(A) are most likely to be successful in--
                ``(i) meeting the purpose of this part; and
                ``(ii) effectively implementing the program elements 
            required under section 1205;
            ``(B) demonstrate that the area to be served by such 
        program has a high percentage or a large number of children and 
        families who are in need of such services as indicated by high 
        levels of poverty, illiteracy, unemployment, limited-English 
        proficiency, or other need-related indicators, including a high 
        percentage of children to be served by the program who reside 
        in a school attendance area eligible for participation in 
        programs under part A;
            ``(C) provide services for at least a three-year age range, 
        which may begin at birth;
            ``(D) demonstrate the greatest possible cooperation and 
        coordination between a variety of relevant service providers in 
        all phases of the program;
            ``(E) include cost-effective budgets, given the scope of 
        the application;
            ``(F) demonstrate the applicant's ability to provide the 
        Federal share required by section 1204(b);
            ``(G) are representative of urban and rural regions of the 
        State; and
            ``(H) show the greatest promise for providing models that 
        may be adopted by other local educational agencies.
        ``(2) Priority for subgrants.--The State educational agency 
    shall give priority for subgrants under this subsection to 
    applications that--
            ``(A) target services primarily to families described in 
        paragraph (1)(B); or
            ``(B) are located in areas designated as empowerment zones 
        or enterprise communities.
        ``(3) Review panel.--A review panel shall consist of at least 
    three members, including one early childhood professional, one 
    adult education professional, and one or more of the following 
    individuals:
            ``(A) A representative of a parent-child education 
        organization.
            ``(B) A representative of a community-based literacy 
        organization.
            ``(C) A member of a local board of education.
            ``(D) A representative of business and industry with a 
        commitment to education.
            ``(E) An individual who has been involved in the 
        implementation of programs under this title in the State.
    ``(b) Duration.--
        ``(1) In general.--Subgrants under this part may be awarded for 
    a period not to exceed four years.
        ``(2) Startup period.--The State educational agency may provide 
    subgrant funds to an eligible recipient, at such recipient's 
    request, for a three- to six-month startup period during the first 
    year of the four-year grant period, which may include staff 
    recruitment and training, and the coordination of services, before 
    requiring full implementation of the program.
        ``(3) Continuing eligibility.--In awarding subgrant funds to 
    continue a program under this part for the second, third, or fourth 
    year, the State educational agency shall review the progress being 
    made toward meeting the objectives of the program after the 
    conclusion of the startup period, if any.
        ``(4) Insufficient progress.--The State educational agency may 
    refuse to award subgrant funds if such agency finds that sufficient 
    progress has not been made toward meeting such objectives, but only 
    after affording the applicant notice and an opportunity for a 
    hearing.
        ``(5) Grant renewal.--(A) An eligible entity that has 
    previously received a subgrant under this part may reapply under 
    this part for additional subgrants. An eligible recipient may 
    receive funds under this part for a period not to exceed eight 
    years.
        ``(B) The Federal share of any subgrant renewed under 
    subparagraph (A) shall not exceed 50 percent in any fiscal year.

``SEC. 1209. EVALUATION.

    ``From funds reserved under section 1202(b)(1), the Secretary shall 
provide for an independent evaluation of programs assisted under this 
part--
        ``(1) to determine the performance and effectiveness of 
    programs assisted under this part; and
        ``(2) to identify effective Even Start programs assisted under 
    this part that can be duplicated and used in providing technical 
    assistance to Federal, State, and local programs.

``SEC. 1210. CONSTRUCTION.

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

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
        ``(1) support high-quality and comprehensive educational 
    programs for migratory children to help reduce the educational 
    disruptions and other problems that result from repeated moves;
        ``(2) ensure that migratory children are provided with 
    appropriate educational services (including supportive services) 
    that address their special needs in a coordinated and efficient 
    manner;
        ``(3) ensure that migratory children have the opportunity to 
    meet the same challenging State content standards and challenging 
    State student performance standards that all children are expected 
    to meet;
        ``(4) design programs to help migratory children overcome 
    educational disruption, cultural and language barriers, social 
    isolation, various health-related problems, and other factors that 
    inhibit the ability of such children to do well in school, and to 
    prepare such children to make a successful transition to 
    postsecondary education or employment; and
        ``(5) ensure that migratory children benefit from State and 
    local systemic reforms.

``SEC. 1302. PROGRAM AUTHORIZED.

    ``In order to carry out the purpose of this part, the Secretary 
shall make grants to State educational agencies, or combinations of 
such agencies, to establish or improve, directly or through local 
operating agencies, programs of education for migratory children in 
accordance with this part.

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--Each State (other than the Commonwealth 
of Puerto Rico) is entitled to receive under this part, for each fiscal 
year, an amount equal to--
        ``(1) the sum of the estimated number of migratory children 
    aged three through 21 who reside in the State full time and the 
    full-time equivalent of the estimated number of migratory children 
    aged three through 21 who reside in the State part time, as 
    determined in accordance with subsection (e); multiplied by
        ``(2) 40 percent of the average per-pupil expenditure in the 
    State, except that the amount determined under this paragraph shall 
    not be less than 32 percent, nor more than 48 percent, of the 
    average expenditure per pupil in the United States.
    ``(b) Allocation to Puerto Rico.--For each fiscal year, the amount 
for which the Commonwealth of Puerto Rico is eligible under this 
section shall be equal to--
        ``(1) the number of migratory children in Puerto Rico, 
    determined under subsection (a)(1); multiplied by
        ``(2) the product of--
            ``(A) the percentage that the average per-pupil expenditure 
        in Puerto Rico is of the lowest average per-pupil expenditure 
        of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
    ``(c) Ratable Reductions; Reallocations.--
        ``(1) In general.--(A) If, after the Secretary reserves funds 
    under section 1308(c), the amount appropriated to carry out this 
    part for any fiscal year is insufficient to pay in full the amounts 
    for which all States are eligible, the Secretary shall ratably 
    reduce each such amount.
        ``(B) If additional funds become available for making such 
    payments for any fiscal year, the Secretary shall allocate such 
    funds to States in amounts that the Secretary determines will best 
    carry out the purpose of this part.
        ``(2) Special rule.--(A) The Secretary shall further reduce the 
    amount of any grant to a State under this part for any fiscal year 
    if the Secretary determines, based on available information on the 
    numbers and needs of migratory children in the State and the 
    program proposed by the State to address such needs, that such 
    amount exceeds the amount required under section 1304.
        ``(B) The Secretary shall reallocate such excess funds to other 
    States whose grants under this part would otherwise be insufficient 
    to provide an appropriate level of services to migratory children, 
    in such amounts as the Secretary determines are appropriate.
    ``(d) Consortium Arrangements.--
        ``(1) In general.--In the case of a State that receives a grant 
    of $1,000,000 or less under this section, the Secretary shall 
    consult with the State educational agency to determine whether 
    consortium arrangements with another State or other appropriate 
    entity would result in delivery of services in a more effective and 
    efficient manner.
        ``(2) Proposals.--Any State, regardless of the amount of such 
    State's allocation, may submit a consortium arrangement to the 
    Secretary for approval.
        ``(3) Approval.--The Secretary shall approve a consortium 
    arrangement under paragraph (1) or (2) if the proposal demonstrates 
    that the arrangement will--
            ``(A) reduce administrative costs or program function costs 
        for State programs; and
            ``(B) make more funds available for direct services to add 
        substantially to the welfare or educational attainment of 
        children to be served under this part.
    ``(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing in each 
State for purposes of this section, the Secretary shall--
        ``(1) use such information as the Secretary finds most 
    accurately reflects the actual number of migratory children;
        ``(2) develop and implement a procedure for more accurately 
    reflecting cost factors for different types of summer and 
    intersession program designs;
        ``(3) adjust the full-time equivalent number of migratory 
    children who reside in each State to take into account--
            ``(A) the special needs of those children participating in 
        special programs provided under this part that operate during 
        the summer and intersession periods; and
            ``(B) the additional costs of operating such programs; and
        ``(4) conduct an analysis of the options for adjusting the 
    formula so as to better direct services to the child whose 
    education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State desiring to receive a grant 
under this part for any fiscal year shall submit an application to the 
Secretary at such time and in such manner as the Secretary may require.
    ``(b) Program Information.--Each such application shall include--
        ``(1) a description of how, in planning, implementing, and 
    evaluating programs and projects assisted under this part, the 
    State and its local operating agencies will ensure that the special 
    educational needs of migratory children, including preschool 
    migratory children, are identified and addressed through a 
    comprehensive plan for needs assessment and service delivery that 
    meets the requirements of section 1306;
        ``(2) a description of the steps the State is taking to provide 
    all migratory students with the opportunity to meet the same 
    challenging State content standards and challenging State student 
    performance standards that all children are expected to meet;
        ``(3) a description of how the State will use funds received 
    under this part to promote interstate and intrastate coordination 
    of services for migratory children, including how, consistent with 
    procedures the Secretary may require, the State will provide for 
    educational continuity through the timely transfer of pertinent 
    school records, including information on health, when children move 
    from one school to another, whether or not such move occurs during 
    the regular school year;
        ``(4) a description of the State's priorities for the use of 
    funds received under this part, and how such priorities relate to 
    the State's assessment of needs for services in the State;
        ``(5) a description of how the State will determine the amount 
    of any subgrants the State will award to local operating agencies, 
    taking into account the requirements of paragraph (1); and
        ``(6) such budgetary and other information as the Secretary may 
    require.
    ``(c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
        ``(1) funds received under this part will be used only--
            ``(A) for programs and projects, including the acquisition 
        of equipment, in accordance with section 1306(b)(1); and
            ``(B) to coordinate such programs and projects with similar 
        programs and projects within the State and in other States, as 
        well as with other Federal programs that can benefit migratory 
        children and their families;
        ``(2) such programs and projects will be carried out in a 
    manner consistent with the objectives of section 1114, subsections 
    (b) and (d) of section 1115, section 1120, and subsections (b) and 
    (c) of section 1120A, and part F;
        ``(3) in the planning and operation of programs and projects at 
    both the State and local operating agency level, there is 
    appropriate consultation with parent advisory councils for programs 
    of one school year in duration, and that all such programs and 
    projects are carried out, to the extent feasible, in a manner 
    consistent with section 1118;
        ``(4) in planning and carrying out such programs and projects, 
    there has been, and will be, adequate provision for addressing the 
    unmet education needs of preschool migratory children;
        ``(5) the effectiveness of such programs and projects will be 
    determined, where feasible, using the same approaches and standards 
    that will be used to assess the performance of students, schools, 
    and local educational agencies under part A;
        ``(6) to the extent feasible, such programs and projects will 
    provide for--
            ``(A) advocacy and outreach activities for migratory 
        children and their families, including informing such children 
        and families of, or helping such children and families gain 
        access to, other education, health, nutrition, and social 
        services;
            ``(B) professional development programs, including 
        mentoring, for teachers and other program personnel;
            ``(C) family literacy programs, including such programs 
        that use models developed under Even Start;
            ``(D) the integration of information technology into 
        educational and related programs; and
            ``(E) programs to facilitate the transition of secondary 
        school students to postsecondary education or employment; and
        ``(7) the State will assist the Secretary in determining the 
    number of migratory children under section 1303(e), through such 
    procedures as the Secretary may require.
    ``(d) Priority for Services.--In providing services with funds 
received under this part, each recipient of such funds shall give 
priority to migratory children who are failing, or most at risk of 
failing, to meet the State's challenging State content standards and 
challenging State student performance standards, and whose education 
has been interrupted during the regular school year.
    ``(e) Continuation of Services.--Notwithstanding any other 
provision of this part--
        ``(1) a child who ceases to be a migratory child during a 
    school term shall be eligible for services until the end of such 
    term;
        ``(2) a child who is no longer a migratory child may continue 
    to receive services for one additional school year, but only if 
    comparable services are not available through other programs; and
        ``(3) secondary school students who were eligible for services 
    in secondary school may continue to be served through credit 
    accrual programs until graduation.

``SEC. 1305. SECRETARIAL APPROVAL; PEER REVIEW.

    ``(a) Secretarial Approval.--The Secretary shall approve each State 
application that meets the requirements of this part.
    ``(b) Peer Review.--The Secretary may review any such application 
with the assistance and advice of State officials and other individuals 
with relevant expertise.
``SEC. 1306. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN; 
AUTHORIZED ACTIVITIES.
    ``(a) Comprehensive Plan.--
        ``(1) In general.--Each State that receives assistance under 
    this part shall ensure that the State and its local operating 
    agencies identify and address the special educational needs of 
    migratory children in accordance with a comprehensive State plan 
    that--
            ``(A) is integrated with other programs under this Act, the 
        Goals 2000: Educate America Act, or other Acts, as appropriate, 
        consistent with section 14306;
            ``(B) may be submitted as a part of consolidated 
        application under section 14302;
            ``(C) provides that migratory children will have an 
        opportunity to meet the same challenging State content 
        standards and challenging State student performance standards, 
        set out in such plans, that all children are expected to meet;
            ``(D) specifies measurable program goals and outcomes;
            ``(E) encompasses the full range of services that are 
        available for migratory children from appropriate local, State, 
        and Federal educational programs;
            ``(F) is the product of joint planning among such local, 
        State, and Federal programs, including programs under part A, 
        early childhood programs, and bilingual education programs 
        under part A of title VII; and
            ``(G) provides for the integration of services available 
        under this part with services provided by such other programs.
        ``(2) Duration of the plan.--Each such comprehensive State plan 
    shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
    ``(b) Authorized Activities.--
        ``(1) In general.--In implementing the comprehensive plan 
    described in subsection (a), each local operating agency shall have 
    the flexibility to determine the activities to be provided with 
    funds made available under this part, except that--
            ``(A) before funds under this part are used to provide 
        services described in subparagraph (B), such funds shall be 
        used to meet the identified needs of migratory children that--
                ``(i) result from the effects of their migratory 
            lifestyle, or are needed to permit migratory children to 
            participate effectively in school; and
                ``(ii) are not addressed by services provided under 
            other programs, including programs under part A; and
            ``(B) all migratory children who are eligible to receive 
        services under part A shall receive such services with funds 
        provided under this part or under part A.
        ``(2) Construction.--Nothing in this part shall be construed to 
    prohibit a local operating agency from serving migrant students 
    simultaneously with students with similar educational needs, in the 
    same educational settings where appropriate.
        ``(3) Special rule.--Notwithstanding section 1114, a school 
    that receives funds under this part shall continue to address the 
    identified needs described in paragraph (1)(A).

``SEC. 1307. BYPASS.

    ``The Secretary may use all or part of any State's allocation under 
this part to make arrangements with any public or private nonprofit 
agency to carry out the purpose of this part in such State if the 
Secretary determines that--
        ``(1) the State is unable or unwilling to conduct educational 
    programs for migratory children;
        ``(2) such arrangements would result in more efficient and 
    economic administration of such programs; or
        ``(3) such arrangements would add substantially to the welfare 
    or educational attainment of such children.

``SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

    ``(a) Improvement of Coordination.--
        ``(1) In general.--The Secretary, in consultation with the 
    States, may make grants to, or enter into contracts with, State 
    educational agencies, local educational agencies, institutions of 
    higher education, and other public and private nonprofit entities 
    to improve the interstate and intrastate coordination among such 
    agencies' educational programs, including the establishment or 
    improvement of programs for credit accrual and exchange, available 
    to migratory students.
        ``(2) Duration.--Grants under this subpart may be awarded for 
    not more than five years.
    ``(b) Assistance and Reporting.--
        ``(1) Student records.--(A) The Secretary shall solicit 
    information on how student records are transferred from one school 
    to another and shall solicit recommendations on whether new 
    procedures and technologies for record transfer should be employed 
    to better meet the needs of the migrant population.
        ``(B) The Secretary shall also seek recommendations on the most 
    effective means for determining the number of students or full-time 
    equivalent students in each State for the purpose of allocating 
    funds under this part.
        ``(2) Report to congress.--(A) Not later than April 30, 1995, 
    the Secretary shall report to the Committee on Labor and Human 
    Resources of the Senate and the Committee on Education and Labor of 
    the House of Representatives the Secretary's findings and 
    recommendations, and shall include in this report, recommendations 
    for interim measures that may be taken to ensure continuity of 
    services in this program.
        ``(B) The Secretary shall assist States in developing effective 
    methods for the transfer of student records and in determining the 
    number of students or full-time equivalent students in each State 
    if such interim measures are required.
    ``(c) Availability of Funds.--For the purpose of carrying out this 
section in any fiscal year, the Secretary shall reserve not more than 
$6,000,000 of the amount appropriated to carry out this part for such 
year.
    ``(d) Incentive Grants.--
        ``(1) In general.--From the amounts made available to carry out 
    this section, the Secretary shall reserve not more than $1,500,000 
    to award, on a competitive basis, grants in the amount of not more 
    than $250,000 to State educational agencies with consortium 
    agreements under section 1303(d).
        ``(2) Limitation.--Not less than 10 of such grants shall be 
    awarded to States which receive allocations of less than $1,000,000 
    if such States have approved agreements.

``SEC. 1309. DEFINITIONS.

    ``As used in this part:
        ``(1) Local operating agency.--The term `local operating 
    agency' means--
            ``(A) a local educational agency to which a State 
        educational agency makes a subgrant under this part;
            ``(B) a public or nonprofit private agency with which a 
        State educational agency or the Secretary makes an arrangement 
        to carry out a project under this part; or
            ``(C) a State educational agency, if the State educational 
        agency operates the State's migrant education program or 
        projects directly.
        ``(2) Migratory child.--The term `migratory child' means a 
    child who is, or whose parent, spouse, or guardian is, a migratory 
    agricultural worker, including a migratory dairy worker, or a 
    migratory fisher, and who, in the preceding 36 months, in order to 
    obtain, or accompany such parent, spouse, or guardian in order to 
    obtain, temporary or seasonal employment in agricultural or fishing 
    work--
            ``(A) has moved from one school district to another;
            ``(B) in a State that is comprised of a single school 
        district, has moved from one administrative area to another 
        within such district; or
            ``(C) resides in a school district of more than 15,000 
        square miles, and migrates a distance of 20 miles or more to a 
        temporary residence to engage in a fishing activity.

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

``SEC. 1401. FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

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

``SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS PART.

    ``(a) Agency Subgrants.--Based on the allocation amount computed 
under section 1412, the Secretary shall allocate to each State 
educational agency amounts necessary to make subgrants to State 
agencies.
    ``(b) Local Subgrants.--Each State shall retain, for purposes of 
subpart 2, funds generated throughout the State under part A based on 
youth residing in local correctional facilities, or attending community 
day programs for delinquent children and youth.
    ``(c) Use of Remaining Funds.--Each State shall use any funds 
remaining after allocations are made under subsection (a).

                   ``Subpart 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

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

``SEC. 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
        ``(1) In general.--Each State agency described in section 1411 
    (other than an agency in the Commonwealth of Puerto Rico) is 
    eligible to receive a subgrant under this part, for each fiscal 
    year, an amount equal to the product of--
            ``(A) the number of neglected or delinquent children and 
        youth described in section 1411 who--
                ``(i) are enrolled for at least 15 hours per week in 
            education programs in adult correctional institutions; and
                ``(ii) are enrolled for at least 20 hours per week--

                    ``(I) in education programs in institutions for 
                neglected or delinquent children; or
                    ``(II) in community day programs for neglected or 
                delinquent children; and

            ``(B) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        paragraph shall not be less than 32 percent, or more than 48 
        percent, of the average per-pupil expenditure in the United 
        States.
        ``(2) Special rule.--The number of neglected or delinquent 
    children and youth determined under paragraph (1) shall--
            ``(A) be determined by the State agency by a deadline set 
        by the Secretary, except that no State agency shall be required 
        to determine the number of such children on a specific date set 
        by the Secretary; and
            ``(B) be adjusted, as the Secretary determines is 
        appropriate, to reflect the relative length of such agency's 
        annual programs.
    ``(b) Subgrants to State Agencies in Puerto Rico.--For each fiscal 
year, the amount of the subgrant for which a State agency in the 
Commonwealth of Puerto Rico is eligible under this part shall be equal 
to--
        ``(1) the number of children and youth counted under subsection 
    (a)(1) for the Commonwealth of Puerto Rico; multiplied by
        ``(2) the product of--
            ``(A) the percentage that the average per-pupil expenditure 
        in the Commonwealth of Puerto Rico is of the lowest average 
        per-pupil expenditure of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
    ``(c) Ratable Reductions in Case of Insufficient Appropriations.--
If the amount appropriated for any fiscal year for subgrants under 
subsections (a) and (b) is insufficient to pay the full amount for 
which all agencies are eligible under such subsections, the Secretary 
shall ratably reduce each such amount.

``SEC. 1413. STATE REALLOCATION OF FUNDS.

    ``If a State educational agency determines that a State agency does 
not need the full amount of the subgrant for which such State agency is 
eligible under this part for any fiscal year, the State educational 
agency may reallocate the amount that will not be needed to other 
eligible State agencies that need additional funds to carry out the 
purpose of this part, in such amounts as the State educational agency 
shall determine.

``SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

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

``SEC. 1415. USE OF FUNDS.

    ``(a) In General.--
        ``(1) Uses.--A State agency shall use funds received under this 
    subpart only for programs and projects that--
            ``(A) are consistent with the State plan under section 
        1414(a); and
            ``(B) concentrate on providing participants with the 
        knowledge and skills needed to make a successful transition to 
        secondary school completion, further education, or employment.
        ``(2) Programs and projects.--Such programs and projects--
            ``(A) may include the acquisition of equipment;
            ``(B) shall be designed to support educational services 
        that--
                ``(i) except for institution-wide projects under 
            section 1416, are provided to children identified by the 
            State agency as failing, or most at risk of failing, to 
            meet the State's challenging State content standards and 
            challenging State student performance standards;
                ``(ii) supplement and improve the quality of the 
            educational services provided to such children by the State 
            agency; and
                ``(iii) afford such children an opportunity to learn to 
            such challenging State standards;
            ``(C) shall be carried out in a manner consistent with 
        section 1120A and part F of this title; and
            ``(D) may include the costs of meeting the evaluation 
        requirements of section 14701.
    ``(b) Supplement, Not Supplant.--A program under this subpart that 
supplements the number of hours of instruction students receive from 
State and local sources shall be considered to comply with the 
supplement, not supplant requirement of section 1120A without regard to 
the subject areas in which instruction is given during those hours.

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

    ``A State agency that provides free public education for children 
and youth in an institution for neglected or delinquent children (other 
than an adult correctional institution) or attending a community-day 
program for such children may use funds received under this part to 
serve all children in, and upgrade the entire educational effort of, 
that institution or program if the State agency has developed, and the 
State educational agency has approved, a comprehensive plan for that 
institution or program that--
        ``(1) provides for a comprehensive assessment of the 
    educational needs of all youth in the institution or program 
    serving juveniles;
        ``(2) provides for a comprehensive assessment of the 
    educational needs of youth aged 20 and younger in adult facilities 
    who are expected to complete incarceration within a two-year 
    period;
        ``(3) describes the steps the State agency has taken, or will 
    take, to provide all children under age 21 with the opportunity to 
    meet challenging State content standards and challenging State 
    student performance standards in order to improve the likelihood 
    that the students will complete secondary school, attain secondary 
    diploma or its recognized equivalent, or find employment after 
    leaving the institution;
        ``(4) describes the instructional program, pupil services, and 
    procedures that will be used to meet the needs described in 
    paragraph (1), including, to the extent feasible, the provision of 
    mentors for students;
        ``(5) specifically describes how such funds will be used;
        ``(6) describes the measures and procedures that will be used 
    to assess student progress;
        ``(7) describes how the agency has planned, and will implement 
    and evaluate, the institution-wide or program-wide project in 
    consultation with personnel providing direct instructional services 
    and support services in institutions or community-day programs for 
    neglected or delinquent children and personnel from the State 
    educational agency; and
        ``(8) includes an assurance that the State agency has provided 
    for appropriate training for teachers and other instructional and 
    administrative personnel to enable such teachers and personnel to 
    carry out the project effectively.

``SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

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

``SEC. 1418. TRANSITION SERVICES.

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

                   ``Subpart 2--Local Agency Programs

``SEC. 1421. PURPOSE.

    ``The purpose of this subpart is to support the operation of local 
educational agency programs which involve collaboration with locally 
operated correctional facilities to--
        ``(1) carry out high quality education programs to prepare 
    youth for secondary school completion, training, and employment, or 
    further education;
        ``(2) provide activities to facilitate the transition of such 
    youth from the correctional program to further education or 
    employment; and
        ``(3) operate dropout prevention programs in local schools for 
    youth at risk of dropping out of school and youth returning from 
    correctional facilities.
``SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.
    ``(a) Local Subgrants.--With funds retained made available under 
section 1402(b), the State educational agency shall award subgrants to 
local educational agencies with high numbers or percentages of youth 
residing in locally operated (including county operated) correctional 
facilities for youth (including facilities involved in day programs).
    ``(b) Special Rule.--A local educational agency which includes a 
correctional facility that operates a school is not required to operate 
a dropout prevention program if more than 30 percent of the youth 
attending such facility will reside outside the boundaries of the local 
educational agency upon leaving such facility.
    ``(c) Notification.--A State educational agency shall notify local 
educational agencies within the State of the eligibility of such 
agencies to receive a subgrant under this subpart.

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    ``Eligible local educational agencies desiring assistance under 
this section shall submit an application to the State educational 
agency, containing such information as the State educational agency may 
require. Each such application shall include--
        ``(1) a description of the program to be assisted;
        ``(2) a description of formal agreements between--
            ``(A) the local educational agency; and
            ``(B) correctional facilities and alternative school 
        programs serving youth involved with the juvenile justice 
        system to operate programs for delinquent youth;
        ``(3) as appropriate, a description of how participating 
    schools will coordinate with facilities working with delinquent 
    youth to ensure that such youth are participating in an education 
    program comparable to one operating in the local school such youth 
    would attend;
        ``(4) as appropriate, a description of the dropout prevention 
    program operated by participating schools and the types of services 
    such schools will provide to at-risk youth in participating schools 
    and youth returning from correctional facilities;
        ``(5) as appropriate, a description of the youth expected to be 
    served by the dropout prevention program and how the school will be 
    coordinating existing educational programs to meet unique education 
    needs;
        ``(6) as appropriate, a description of how schools will 
    coordinate with existing social and health services to meet the 
    needs of students at risk of dropping out of school and other 
    participating students, including prenatal health care and 
    nutrition services related to the health of the parent and child, 
    parenting and child development classes, child care, targeted re-
    entry and outreach programs, referrals to community resources, and 
    scheduling flexibility;
        ``(7) as appropriate, a description of any partnerships with 
    local businesses to develop training and mentoring services for 
    participating students;
        ``(8) as appropriate, a description of how the program will 
    involve parents in efforts to improve the educational achievement 
    of their children, assist in dropout prevention activities, and 
    prevent the involvement of their children in delinquent activities;
        ``(9) a description of how the program under this subpart will 
    be coordinated with other Federal, State, and local programs, such 
    as programs under the Job Training and Partnership Act and 
    vocational education programs serving this at-risk population of 
    youth;
        ``(10) a description of how the program will be coordinated 
    with programs operated under the Juvenile Justice and Delinquency 
    Prevention Act of 1974 and other comparable programs, if 
    applicable;
        ``(11) as appropriate, a description of how schools will work 
    with probation officers to assist in meeting the needs of youth 
    returning from correctional facilities;
        ``(12) a description of efforts participating schools will make 
    to ensure correctional facilities working with youth are aware of a 
    child's existing individualized education program; and
        ``(13) as appropriate, a description of the steps participating 
    schools will take to find alternative placements for youth 
    interested in continuing their education but unable to participate 
    in a regular public school program.

``SEC. 1424. USES OF FUNDS.

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

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

    ``Each correctional facility entering into an agreement with a 
local educational agency under section 1422(a) to provide services to 
youth under this section shall--
        ``(1) where feasible, ensure educational programs in juvenile 
    facilities are coordinated with the student's home school, 
    particularly with respect to special education students with an 
    individualized education program;
        ``(2) notify the local school of a youth if the youth is 
    identified as in need of special education services while in the 
    facility;
        ``(3) where feasible, provide transition assistance to help the 
    youth stay in school, including coordination of services for the 
    family, counseling, assistance in accessing drug and alcohol abuse 
    prevention programs, tutoring, and family counseling;
        ``(4) provide support programs which encourage youth who have 
    dropped out to reenter school once their term has been completed or 
    provide such youth with the skills necessary for such youth to gain 
    employment or seek a secondary school diploma or its recognized 
    equivalent;
        ``(5) work to ensure such facilities are staffed with teachers 
    and other qualified staff who are trained to work with children 
    with disabilities and other students with special needs taking into 
    consideration the unique needs of such children and students;
        ``(6) ensure educational programs in correctional facilities 
    are related to assisting students meet high educational standards;
        ``(7) use, to the extent possible, technology to assist in 
    coordinating educational programs between the juvenile facility and 
    the community school;
        ``(8) where feasible, involve parents in efforts to improve the 
    educational achievement of their children and prevent the further 
    involvement of such children in delinquent activities;
        ``(9) coordinate funds received under this program with other 
    local, State, and Federal funds available to provide services to 
    participating youth, such as funds under the Job Training 
    Partnership Act, and vocational education funds;
        ``(10) coordinate programs operated under this subpart with 
    activities funded under the Juvenile Justice and Delinquency 
    Prevention Act of 1974 and other comparable programs, if 
    applicable; and
        ``(11) if appropriate, work with local businesses to develop 
    training and mentoring programs for participating youth.

``SEC. 1426. ACCOUNTABILITY.

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

                    ``Subpart 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

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

``SEC. 1432. DEFINITIONS.

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

 ``PART E--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

``SEC. 1501. EVALUATIONS.

    ``(a) National Assessment.--
        ``(1) In general.--The Secretary shall conduct a national 
    assessment of programs assisted under this title, in coordination 
    with the ongoing National Evaluation under subsection (b) that 
    shall be planned, reviewed, and conducted in consultation with an 
    independent panel of researchers, State practitioners, local 
    practitioners, and other appropriate individuals.
        ``(2) Examination.--The assessment shall examine how well 
    schools, local educational agencies, and States are--
            ``(A) progressing toward the goal of all children served 
        under this title reaching the State's challenging State content 
        standards and challenging State student performance standards; 
        and
            ``(B) accomplishing the purpose set forth in section 
        1001(d) to achieve the goal described in paragraph (1), 
        including--
                ``(i) ensuring challenging State content standards and 
            challenging State student performance standards for all 
            children served under this title and aligning the efforts 
            of States, local educational agencies, and schools to help 
            such children reach such standards;
                ``(ii) providing children served under this title an 
            enriched and accelerated educational program through 
            schoolwide programs or through additional services that 
            increase the amount and quality of instructional time that 
            such children receive;
                ``(iii) promoting schoolwide reform and access for all 
            children served under this title to effective instructional 
            strategies and challenging academic content;
                ``(iv) significantly upgrading the quality of the 
            curriculum and instruction by providing staff in 
            participating schools with substantial opportunities for 
            professional development;
                ``(v) using and evaluating the usefulness of 
            opportunity-to-learn standards or strategies in improving 
            learning in schools receiving assistance under this part;
                ``(vi) coordinating services provided under all parts 
            of this title with each other, with other educational and 
            pupil services, including preschool services, and, to the 
            extent feasible, with health and social service programs 
            funded from other sources;
                ``(vii) affording parents of children served under this 
            title meaningful opportunities to participate in the 
            education of their children at home and at school, such as 
            the provision of family literacy services;
                ``(viii) distributing resources to areas where needs 
            are greatest;
                ``(ix) improving accountability, as well as teaching 
            and learning, by making assessments under this title 
            congruent with State assessment systems; and
                ``(x) providing greater decisionmaking authority and 
            flexibility to schools in exchange for greater 
            responsibility for student performance.
        ``(3) NAEP information.--Where feasible, the Secretary shall 
    use information gathered from a variety of sources, including the 
    National Assessment of Educational Progress, State evaluations, and 
    available research studies, in carrying out this subsection.
        ``(4) Interim and final reports.--The Secretary shall submit to 
    the President and the appropriate committees of the Congress an 
    interim report by January 1, 1996, summarizing the preliminary 
    findings of the assessment and a final report of the findings of 
    the assessment by January 1, 1998.
    ``(b) Studies and Data Collection.--
        ``(1) In general.--The Secretary may collect such data, as 
    necessary, at the State, local, and school levels and conduct 
    studies and evaluations, including national studies and 
    evaluations, to assess on an ongoing basis the effectiveness of 
    programs under this title and to report on such effectiveness on a 
    periodic basis. The Secretary shall report not later than December 
    31, 1997 to the Committee on Education and Labor of the House of 
    Representatives and the Committee on Labor and Human Resources of 
    the Senate on how schoolwide programs are meeting the needs of 
    children from migratory families.
        ``(2) Minimum information.--At a minimum, the Secretary shall 
    collect trend information on the effect of programs under this 
    title. Such data shall complement the data collected and reported 
    under subsections (a) and (c).
    ``(c) National Evaluation of Part A of Title I.--
        ``(1) In general.--The Secretary shall carry out an ongoing 
    evaluation of the program assisted under part A of title I in order 
    to provide the public, the Congress, and educators involved in such 
    program, an accurate description of the short- and long-term 
    effectiveness of such program and to provide information that can 
    be used to improve such program's effectiveness in enabling 
    students to meet challenging State content standards and 
    challenging State student performance standards, graduate from 
    secondary school, and make successful transitions to postsecondary 
    education and work. Such evaluation shall--
            ``(A) have a longitudinal design that tracks cohorts of 
        students within schools of differing poverty concentrations for 
        at least three years which, when the cohorts are taken as a 
        whole, provides a picture of such program's effectiveness over 
        the elementary and secondary grades;
            ``(B) be separate and independent from State and local 
        assessments and evaluations as required under this title;
            ``(C) utilize the highest available content standards that 
        are generally accepted as national in scope;
            ``(D) provide information on all students, students served 
        under part A, and, if funds are sufficient, information on 
        students from low-income families, limited-English-proficient 
        students, and students with disabilities; and
            ``(E) when feasible, collect, cross-tabulate, and report 
        data by sex within race or ethnicity and socioeconomic status.
        ``(2) Use.--The Secretary shall use the results of the 
    evaluation described in paragraph (1) as part of the national 
    assessment required by subsection (a) and shall report the data 
    from such evaluation to the Congress and the public at least as 
    frequently as reports are made under subsection (a)(4).
    ``(d) Developmentally Appropriate Measures.--In conducting the 
national assessment under subsection (a) and the national ongoing 
evaluation under subsection (c), the Secretary shall use 
developmentally appropriate measures to assess student performance and 
progress.
    ``(e) Parental Involvement, Study, Report and Dissemination.--
        ``(1) In general.--The Secretary, through the Office of 
    Education Research and Improvement, shall conduct a study to 
    identify and describe--
            ``(A) common barriers to effective parental involvement in 
        the education of participating children; and
            ``(B) successful local policies and programs which improve 
        parental involvement and the performance of participating 
        children.
        ``(2) Duties of secretary.--The Secretary shall--
            ``(A) complete such study by December 31, 1996;
            ``(B) report the findings of such study to the Committee on 
        Education and Labor of the House of Representatives and to the 
        Committee on Labor and Human Resources of the Senate; and
            ``(C) disseminate the findings, relating to the successful 
        local policies and programs which improve parental involvement 
        and the performance of participating children, to local 
        educational agencies.

``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

    ``(a) Demonstration Programs To Improve Achievement.--
        ``(1) In general.--From the funds appropriated for any fiscal 
    year under section 1002(g)(2), the Secretary may make grants to 
    State educational agencies, local educational agencies, other 
    public agencies, nonprofit organizations, public or private 
    partnerships involving business and industry organizations, and 
    consortia of such entities to carry out demonstration projects that 
    show the most promise of enabling children served under this title 
    to meet challenging State content standards and challenging State 
    student performance standards. Such projects shall include 
    promising strategies such as--
            ``(A) accelerated curricula, the application of new 
        technologies to improve teaching and learning, extended 
        learning time, and a safe and enriched full-day environment for 
        children to provide children the opportunity to reach such 
        standards;
            ``(B) integration of education services with each other and 
        with health, family, and other social services such as 
        mentoring programs, particularly in empowerment zones and 
        enterprise communities;
            ``(C) effective approaches to whole school reform;
            ``(D) programs that have been especially effective with 
        limited-English-proficient children, migratory children and 
        other highly mobile students, children leaving institutions for 
        neglected or delinquent children and returning to school, and 
        homeless children and youth;
            ``(E) programs which are especially effective in 
        recruiting, inducting, and retaining highly qualified teachers 
        for service in schools with low student achievement; and
            ``(F) programs that are built upon partnerships developed 
        between elementary and middle schools, employers, and the 
        community, which emphasize the integration of high quality 
        academic and vocational learning, stress excellence and high 
        expectations for success in academic subjects, instill 
        responsibility, decisionmaking, problem solving, interpersonal 
        skills, and other compentencies in students, and make school 
        relevant to the workplace and the community, through applied 
        and interactive teaching methodologies, team teaching 
        strategies, learning opportunities connecting school, the 
        workplace, and the community, and career exploration, 
        awareness, and career guidance opportunities.
        ``(2) Evaluation.--The Secretary shall evaluate the 
    demonstration projects supported under this title, using rigorous 
    methodological designs and techniques, including control groups and 
    random assignment, to the extent feasible, to produce reliable 
    evidence of effectiveness.
    ``(b) Partnerships.--From funds appropriated under section 
1002(g)(2) for any fiscal year, the Secretary may, directly or through 
grants or contracts, work in partnership with State educational 
agencies, local educational agencies, other public agencies, and 
nonprofit organizations to disseminate and use the highest quality 
research and knowledge about effective practices to improve the quality 
of teaching and learning in schools assisted under this title.
``SEC. 1503. INNOVATIVE ELEMENTARY SCHOOL TRANSITION PROJECTS.
    ``(a) In General.--From the amount appropriated under section 
1002(g)(2), the Secretary shall provide not less than $10,000,000, but 
not more than $40,000,000 to support innovative transition projects in 
elementary schools authorized under this section.
    ``(b) Grants.--
        ``(1) Local programs.--The Secretary shall award grants to 
    local educational agencies (including such agencies that operate 
    Follow Through programs, Even Start, and other comparable programs) 
    that have formed consortia with early childhood programs (including 
    Head Start, where available) for the purpose of supporting 
    projects, for children from low-income families who previously 
    attended a Head Start program, Even Start program, or similar 
    preschool program, which provide education and other services in 
    early elementary grades.
        ``(2) Purposes of projects.--The purposes of projects assisted 
    under this section are to--
            ``(A) assist eligible children and their families in making 
        a successful transition from preschool through the early 
        elementary grades;
            ``(B) enable eligible children to achieve challenging 
        academic standards through a model, developmentally 
        appropriate, instructional program; and
            ``(C) support the active involvement of parents in the 
        education of their children.
        ``(3) Components.--A program assisted under this subsection--
            ``(A) shall provide transition to elementary school 
        activities, such as--
                ``(i) development of a transition plan for each child 
            which provides for instruction, support, and assistance 
            through the third grade;
                ``(ii) transfer of each child's preschool records to 
            the elementary school (with parental consent);
                ``(iii) formal meetings between a child's parent, 
            preschool teacher, and kindergarten or first grade teacher; 
            and
                ``(iv) kindergarten visits and other orientation 
            activities for preschool children prior to enrollment in 
            elementary school;
            ``(B) shall use an instructional approach which--
                ``(i) has been shown to be effective in providing 
            transition services; or
                ``(ii) shows promise of providing effective transition 
            services;
            ``(C) shall provide for the direct participation of the 
        parents of such children in the development, operation, and 
        evaluation of such program;
            ``(D) shall provide directly or through referral 
        comprehensive educational, health, nutritional, social, and 
        other services that aid in the continued development of 
        eligible children to their full potential;
            ``(E) shall ensure that each supportive services team 
        developed pursuant to subsection (c)(8) includes a sufficient 
        number of family service coordinators to adequately meet the 
        needs of eligible children and their families; and
            ``(F) may provide for the use of mentors who are secondary 
        school students to assist elementary and secondary students who 
        were formerly enrolled in Head Start or Even Start programs.
    ``(c) Applications.--An application for a grant under subsection 
(b) shall--
        ``(1) describe the goals which the applicant plans to achieve;
        ``(2) describe the instructional approach the applicant will 
    use, and the manner in which the applicant will implement such 
    approach;
        ``(3) describe the transition to elementary school activities 
    for which assistance is sought;
        ``(4) describe the members of the consortium required by 
    subsection (b)(1);
        ``(5) shall include evidence that the consortium members each 
    have performed assessments of their programs to ensure that such 
    members have the capacity to address the health, immunization, 
    mental health, nutrition, parenting education, literacy, social 
    service (including substance abuse, education, and prevention), and 
    educational needs of low-income students and their families whom 
    the consortium members plan to serve;
        ``(6) describe how the project will be coordinated with title 
    I, title VII, and other programs under this Act;
        ``(7) provide evidence that the proposed transition activities, 
    instruction, and other services to be provided by the applicant 
    have been specifically designed to build upon, and coordinate with, 
    the services provided to eligible children and their parents by 
    local Head Start, Even Start, and other similar preschool programs;
        ``(8) include--
            ``(A) a plan for the development of a support services 
        team, including a family service coordinator, to--
                ``(i) assist families, administrators, and teachers to 
            respond to health, immunization, mental health, nutrition, 
            social service, and educational needs of eligible students;
                ``(ii) conduct home visits and help students and their 
            families to obtain health, immunization, mental health, 
            nutrition, parenting education, literacy, education 
            (including tutoring and remedial services), and social 
            services (including substance abuse treatment, education, 
            and prevention), for which students and their families are 
            eligible;
                ``(iii) coordinate a family outreach and support 
            program, including a plan for involving parents in the 
            management of the program under subsection (b), in 
            cooperation with parental involvement efforts undertaken 
            pursuant to this part, the Head Start Act, and the 
            Individuals with Disabilities Education Act, including 
            school-parent compacts, parent volunteer activities, parent 
            education services and training such as the services and 
            training provided through the Even Start program, and 
            regular meetings; and
                ``(iv) assist families, administrators, and teachers in 
            enhancing developmental continuity between the programs 
            assisted under the Head Start Act, other early childhood 
            development programs, and elementary school classes; or
            ``(B) a description of the comprehensive, coordinated 
        services currently provided to children eligible for services 
        under this section;
        ``(9) designate a member of the support services team described 
    in paragraph (8) who will serve as the supervisor of such support 
    services team;
        ``(10) contain assurances that State agencies, local agencies, 
    and community-based organizations that provide support services to 
    low-income students served by the local educational agency 
    consortium have been consulted in the preparation of the plan 
    described in paragraph (8);
        ``(11) contain assurances that State agencies, local agencies, 
    and community-based organizations served by the local educational 
    agency consortium will designate an individual who will act as a 
    liaison to the support services team described in paragraph (8);
        ``(12) describe the target population to be served by the 
    support services team described in paragraph (8), including 
    families previously served under part C of the Head Start Act, or 
    other comparable early childhood development program;
        ``(13) describe the support services to be provided, directly 
    or through referral;
        ``(14) describe the Federal and non-Federal resources that will 
    be used to carry out the program;
        ``(15) contain assurances that the support services described 
    in paragraph (8) will be equipped to assist children and families 
    with limited-English proficiency or with disabilities;
        ``(16) include a plan describing how the program assisted under 
    this section will be sustained, with funding received under part A 
    or other Federal and non-Federal funding sources, after the grant 
    has expired; and
        ``(17) contain such other information as the Secretary may 
    reasonably require.
    ``(d) National Activities.--
        ``(1) In general.--Of the amount provided under subsection (a) 
    to carry out this section, the Secretary shall use not less than 
    $3,000,000 but not more than $5,000,000 to carry out national 
    activities to evaluate and improve the use of innovative transition 
    programs.
        ``(2) Technical assistance and training.-- Of the amount 
    reserved under paragraph (1), the Secretary shall use not less than 
    $3,000,000 to award grants to public and private nonprofit 
    agencies, institutions, and organizations to provide to consortia 
    which receive grants under subsection (b)(1) and, to the extent 
    feasible, to schools that are designated schoolwide programs under 
    section 1114--
            ``(A) technical assistance in the implementation and 
        expanded use of model transition and instructional approaches, 
        including the use of appropriate pedagogy, efforts to increase 
        parental involvement and providing access to coordinated 
        services; and
            ``(B) training in conjunction with the implementation and 
        operation of such model approaches.
        ``(3) Coordination and dissemination.--The Secretary, in 
    cooperation with the Secretary of Health and Human Services, may 
    promote coordination of activities assisted under this section with 
    the projects funded under the Head Start Transition Projects Act, 
    including a process to--
            ``(A) collect information on program activities and 
        results; and
            ``(B) disseminate information on successful transition 
        programs.
        ``(4) Evaluation.--(A) The Secretary, in cooperation with the 
    Secretary of Health and Human Services, is authorized to award 
    grants, or enter into contracts or cooperative agreements, to 
    provide for the evaluation of the programs assisted under this 
    section.
        ``(B) To the extent practicable, such evaluations shall be 
    conducted jointly with evaluations of Head Start Transition 
    Projects.
        ``(5) Other activities.--The Secretary may undertake other 
    activities to promote the replication of successful transition 
    programs.
    ``(e) Coordination of Regulations.--The Secretary shall work with 
the Secretary of Health and Human Services to coordinate regulations 
promulgated under this section with regulations promulgated under the 
Head Start Act Amendments of 1994.
    ``(f) General Provisions.--
        ``(1) Priority.--In awarding grants under subsection (b)(1), 
    the Secretary shall give priority to applicants that--
            ``(A) will operate a project under this section at a school 
        designated as a schoolwide program under section 1114;
            ``(B) serve local educational agencies that have the 
        highest numbers or percentages of poor children; and
            ``(C) demonstrate a significant commitment by the community 
        to the proposed program, as evidenced by the level of 
        resources, both cash and in-kind, from other public and private 
        sources available to the consortium.
        ``(2) Supplement.--An application for assistance under this 
    section may not be approved unless the Secretary is satisfied that 
    the services to be provided by the applicant will supplement, and 
    not supplant, services that previously provided other Federal 
    assistance.
        ``(3) Sufficient size.--A grant under subsection (b)(1) shall 
    be of sufficient size and scope to enable the grantee to operate a 
    project which meets the requirements of this section.
        ``(4) Urban and rural grants.--To the extent practicable, the 
    Secretary shall award grants under subsection (b)(1) to consortia 
    in both urban and rural areas.
        ``(5) Renewal grant.--To be eligible to renew a grant under the 
    section, an applicant that received assistance under subsection 
    (b)(1) shall demonstrate that the project achieved the purposes 
    described in subsection (b)(2).
    ``(g) Definitions.--As used in this section:
        ``(1) Family services coordinator.--The term `family services 
    coordinator' means an individual who has the skills necessary to 
    assist families in obtaining support services and may be an 
    existing employee of a local educational agency or Head Start 
    agency.
        ``(2) Head start agency.--The term `Head Start agency' means 
    any agency designated as a Head Start agency under the Head Start 
    Act (42 U.S.C. 9831 et seq.).
        ``(3) Support services.--The term `support services' means 
    services that enhance the physical, social, emotional, and 
    intellectual development of low-income children, including the 
    provision of necessary support to the parents and other family 
    members of such children.

                      ``PART F--GENERAL PROVISIONS

``SEC. 1601. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
compliance with this title.
    ``(b) Negotiated Rulemaking Process.--
        ``(1) In general.--Prior to publishing in the Federal Register 
    proposed regulations to carry out this title, the Secretary shall 
    obtain the advice and recommendations of representatives of 
    Federal, State, and local administrators, parents, teachers, and 
    members of local boards of education involved with the 
    implementation and operation of programs under this title.
        ``(2) Meetings and electronic exchange.--Such advice and 
    recommendation may be obtained through such mechanisms as regional 
    meetings and electronic exchanges of information.
        ``(3) Proposed regulations.--After obtaining such advice and 
    recommendations, and prior to publishing proposed regulations, the 
    Secretary shall--
            ``(A) establish a negotiated rulemaking process on a 
        minimum of two key issues, including--
                ``(i) schoolwide programs; and
                ``(ii) standards and assessment;
            ``(B) select individuals to participate in such process 
        from among individuals or groups which provided advice and 
        recommendations, including representation from all geographic 
        regions of the United States; and
            ``(C) prepare a draft of proposed policy options that shall 
        be provided to the individuals selected by the Secretary under 
        subparagraph (A) not less than 15 days prior to the first 
        meeting under such process.
        ``(4) Process.--Such process--
            ``(A) shall be conducted in a timely manner to ensure that 
        final regulations are issued by the Secretary not later than 
        July 1, 1995; and
            ``(B) shall not be subject to the Federal Advisory 
        Committee Act but shall otherwise follow the provisions of the 
        Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
        ``(5) Emergency situation.--In an emergency situation in which 
    regulations to carry out this title must be issued with a very 
    limited time to assist State and local educational agencies with 
    the operation of a program under this title, the Secretary may 
    issue proposed regulations without following such process but 
    shall, immediately thereafter and prior to issuing final 
    regulations, conduct regional meetings to review such proposed 
    regulations.
    ``(c) Limitation.--Regulations to carry out this part may not 
require local programs to follow a particular instructional model, such 
as the provision of services outside the regular classroom or school 
program.

``SEC. 1602. COORDINATION OF FEDERAL, STATE, AND LOCAL ADMINISTRATION.

    ``(a) Program Assistance Manual.--The Secretary shall, not later 
than six months after the publication of final regulations under this 
title, prepare and distribute to State educational agencies, State 
agencies operating programs under parts C and D, and local educational 
agencies, and shall make available to parents and other interested 
individuals, organizations, and agencies, a manual for this title to--
        ``(1) assist such agencies in--
            ``(A) enhancing the quality, increasing the depth, or 
        broadening the scope of activities for programs under this 
        title;
            ``(B) applying for program funds under this title; and
            ``(C) meeting the program objectives under this title;
        ``(2) assist State educational agencies in achieving proper and 
    efficient administration of programs funded under this title;
        ``(3) assist parents to become involved in the planning for, 
    and implementation and evaluation of, programs and projects under 
    this title; and
        ``(4) ensure that officers and employees of the Department, 
    including officers and employees of the Secretary and officers and 
    employees of the Department charged with auditing programs carried 
    on under this title, uniformly interpret, apply, and enforce 
    requirements under this title throughout the United States.
    ``(b) Contents of Policy Manual.--The policy manual shall, with 
respect to programs carried out under this title, contain descriptions, 
statements, procedural and substantive rules, opinions, policy 
statements and interpretations and indices to and amendments of the 
foregoing, and in particular, whether or not such descriptions, 
statements, procedural and substantive rules, opinions, policy 
statements and interpretations and indices are required under section 
552 of title 5, United States Code, to be published or made available. 
The manual shall include--
        ``(1) a statement of the requirements applicable to the 
    programs carried out under this title, including such requirements 
    contained in this title, the General Education Provisions Act, 
    other applicable statutes, and regulations issued under the 
    authority of such statutes;
        ``(2) an explanation of the purpose of each requirement and its 
    interrelationship with other applicable requirements; and
        ``(3) model forms and instructions developed by the Secretary 
    for use by State and local educational agencies, at the discretion 
    of such agencies, including, application forms, application review 
    checklists, and instruments for monitoring programs under this 
    title.
    ``(c) Response to Inquiries.--The Secretary shall respond with 
written guidance not later than 90 days after any written request 
(return receipt requested) from a State or local educational agency 
regarding a policy, question, or interpretation under this title is 
received. In the case of a request from a local educational agency, 
such agency is required to address its request to the State educational 
agency first.

``SEC. 1603. STATE ADMINISTRATION.

    ``(a) Rulemaking.--
        ``(1) In general.--Each State that receives funds under this 
    title shall--
            ``(A) ensure that any State rules, regulations, and 
        policies relating to this title conform to the purposes of this 
        title and provide any such proposed rules, regulations, and 
        policies to the committee of practitioners under subsection (b) 
        for their review and comment;
            ``(B) minimize such rules, regulations, and policies to 
        which their local educational agencies and schools are subject; 
        and
            ``(C) identify any such rule, regulation, or policy as a 
        State-imposed requirement.
        ``(2) Support and facilitation.--State rules, regulations, and 
    policies under this title shall support and facilitate local 
    educational agency and school-level systemic reform designed to 
    enable all children to meet the challenging State content standards 
    and challenging State student performance standards.
    ``(b) Committee of Practitioners.--
        ``(1) In general.--Each State educational agency shall create a 
    State committee of practitioners to advise the State in carrying 
    out its responsibilities under this title.
        ``(2) Membership.--Each such committee shall include--
            ``(A) as a majority of its members, representatives from 
        local educational agencies;
            ``(B) administrators;
            ``(C) teachers, including vocational educators;
            ``(D) parents;
            ``(E) members of local boards of education;
            ``(F) representatives of private school children; and
            ``(G) pupil services personnel.
        ``(3) Duties.--The duties of such committee shall include a 
    review, prior to publication, of any proposed or final State rule 
    or regulation pursuant to this title. In an emergency situation 
    where such rule or regulation must be issued within a very limited 
    time to assist local educational agencies with the operation of the 
    program under this title, the State educational agency may issue a 
    regulation without prior consultation, but shall immediately 
    thereafter convene the State committee of practitioners to review 
    the emergency regulation prior to issuance in final form.
    ``(c) Payment for State Administration.--Each State may reserve for 
the proper and efficient performance of its duties under this title the 
greater of--
        ``(1) 1.00 percent of the funds received under subsections (a), 
    (c), and (d) of section 1002; or
        ``(2) $400,000, or $50,000 in the case of the outlying areas.

``SEC. 1604. CONSTRUCTION.

    ``(a) Prohibition of Federal Mandates, Direction, or Control.--
Nothing in this title shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content or pupil performance standards and assessments, curriculum, or 
program of instruction as a condition of eligibility to receive funds 
under this title.
    ``(b) Equalized Spending.--Nothing in this title shall be construed 
to mandate equalized spending per pupil for a State, local educational 
agency, or school.
    ``(c) Building Standards.--Nothing in this title shall be construed 
to mandate national school building standards for a State, local 
educational agency, or school.

   ``TITLE II--DWIGHT D. EISENHOWER PROFESSIONAL DEVELOPMENT PROGRAM

``SEC. 2001. FINDINGS.

    ``The Congress finds as follows:
        ``(1) Reaching the National Education Goals, particularly the 
    third, fourth, and fifth National Education Goals, requires a 
    comprehensive educational reform strategy that involves parents, 
    schools, government, communities, and other public and private 
    organizations at all levels.
        ``(2) A crucial component of the strategy for achieving such 
    goals is ensuring, through sustained and intensive high-quality 
    professional development, that all teachers will provide 
    challenging learning experiences in the core academic subjects for 
    their students.
        ``(3) Decisionmaking as to what activities a State or local 
    educational agency should undertake to improve teaching and 
    learning are best made by individuals in the schools closest to the 
    classroom and most knowledgeable about the needs of schools and 
    students.
        ``(4) The potential positive impact of high-quality 
    professional development is underscored by recent research findings 
    that--
            ``(A) professional development must be focused on teaching 
        and learning in order to improve the opportunities of all 
        students to achieve higher standards;
            ``(B) effective professional development focuses on 
        discipline-based knowledge and effective subject-specific 
        pedagogical skills, involves teams of teachers, and, where 
        appropriate, administrators and pupil services personnel, in a 
        school and, through professional networks of teachers, and, 
        where appropriate, teacher educators, administrators, pupil 
        services personnel, and parents, is interactive and 
        collaborative, motivates by its intrinsic content and 
        relationship to practice, builds on experience and learning-by-
        doing, and becomes incorporated into the everyday life of the 
        school;
            ``(C) professional development can dramatically improve 
        classroom instruction and learning when teachers, and, where 
        appropriate, administrators, pupil services personnel, and 
        parents, are partners in the development and implementation of 
        such professional development; and
            ``(D) new and innovative strategies for teaching to high 
        standards will require time for teachers, outside of the time 
        spent teaching, for instruction, practice, and collegial 
        collaboration.
        ``(5) Special attention must be given in professional 
    development activities to ensure that education professionals are 
    knowledgeable of, and make use of, strategies for serving 
    populations that historically have lacked access to equal 
    opportunities for advanced learning and career advancement.
        ``(6) Professional development is often a victim of budget 
    reductions in fiscally difficult times.
        ``(7) The Federal Government has a vital role in helping States 
    and local educational agencies to make sustained and intensive 
    high-quality professional development in the core academic subjects 
    become an integral part of the elementary and secondary education 
    system.
        ``(8) Professional development activities must prepare 
    teachers, pupil services personnel, paraprofessionals and other 
    staff in the collaborative skills needed to appropriately teach 
    children with disabilities, in the core academic subjects.
        ``(9) Parental involvement is an important aspect of school 
    reform and improvement. There is a need for special attention to 
    ensure the effective involvement of parents in the education of 
    their children. Professional development should include methods and 
    strategies to better prepare teachers and, where appropriate, 
    administrators, to enable parents to participate fully and 
    effectively in their children's education.

``SEC. 2002. PURPOSES.

    ``The purposes of this title are to provide assistance to State and 
local educational agencies and to institutions of higher education with 
teacher education programs so that such agencies and institutions can 
determine how best to improve the teaching and learning of all students 
by--
        ``(1) helping to ensure that teachers, and, where appropriate, 
    other staff and administrators, have access to sustained and 
    intensive high-quality professional development that is aligned to 
    challenging State content standards and challenging State student 
    performance standards, and to support the development and 
    implementation of sustained and intensive high-quality professional 
    development activities in the core academic subjects; and
        ``(2) helping to ensure that teachers, and, where appropriate, 
    administrators, other staff, pupil services personnel, and parents, 
    have access to professional development that--
            ``(A) is tied to challenging State content standards and 
        challenging State student performance standards;
            ``(B) reflects recent research on teaching and learning;
            ``(C) includes strong academic content and pedagogical 
        components;
            ``(D) incorporates effective strategies, techniques, 
        methods, and practices for meeting the educational needs of 
        diverse student populations, including females, minorities, 
        individuals with disabilities, limited-English-proficient 
        individuals, and economically disadvantaged individuals, in 
        order to ensure that all students have the opportunity to 
        achieve challenging State student performance standards;
            ``(E) is of sufficient intensity and duration to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom; and
            ``(F) is part of the everyday life of the school and 
        creates an orientation toward continuous improvement throughout 
        the school.
``SEC. 2003. AUTHORIZATION OF APPROPRIATIONS; ALLOCATION BETWEEN PARTS.
    ``(a) Authorization of Appropriations.--For the purpose of carrying 
out this title, there are authorized to be appropriated $800,000,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
four succeeding fiscal years.
    ``(b) Allocation Between Parts.--Of the amounts appropriated to 
carry out this title for any fiscal year, the Secretary shall make 
available--
        ``(1) 5 percent of such amounts to carry out subpart 1, of 
    which 5 percent of such 5 percent shall be available to carry out 
    section 2103;
        ``(2) 94 percent of such amounts to carry out part B; and
        ``(3) 1 percent of such amounts to carry out part C except that 
    such 1 percent shall not exceed $3,200,000 in any fiscal year.

                      ``PART A--FEDERAL ACTIVITIES

``SEC. 2101. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to make grants to, 
and enter into contracts and cooperative agreements with, local 
educational agencies, educational service agencies, State educational 
agencies, State agencies for higher education, institutions of higher 
education, and other public and private agencies, organizations, and 
institutions to--
        ``(1) support activities of national significance that the 
    Secretary determines will contribute to the development and 
    implementation of high-quality professional development activities 
    in the core academic subjects; and
        ``(2) evaluate activities carried out under this part and parts 
    B and C, in accordance with section 14701.
    ``(b) Requirements.--In carrying out the activities described in 
subsection (a), the Secretary shall coordinate professional development 
programs within the Department, particularly with those programs within 
the Office of Educational Research and Improvement and the Office of 
Special Education and Rehabilitative Services, and shall consult and 
coordinate with the National Science Foundation, the National Endowment 
for the Humanities, the National Endowment for the Arts, the Institute 
of Museum Services, and other appropriate Federal agencies and 
entities.

``SEC. 2102. AUTHORIZED ACTIVITIES.

    ``(a) Activities.--The Secretary shall use funds available to carry 
out this part for--
        ``(1) providing seed money to the entities described in section 
    2101(a) to develop the capacity of such entities to offer sustained 
    and intensive high-quality professional development;
        ``(2) awarding a grant or contract, in consultation with the 
    Director of the National Science Foundation, to establish an 
    Eisenhower National Clearinghouse for Mathematics and Science 
    Education (hereafter in this section referred to as the 
    `Clearinghouse'); and
        ``(3) evaluating programs assisted under this part and parts B 
    and C, in accordance with section 14701.
    ``(b) Clearinghouse.--
        ``(1) Application and award basis.--Each entity desiring to 
    establish and operate the Clearinghouse authorized by subsection 
    (a)(2) shall submit an application to the Secretary at such time, 
    in such manner, and accompanied by such information as the 
    Secretary may reasonably require. The grant or contract awarded 
    pursuant to subsection (a)(2) shall be made on a competitive, merit 
    basis.
        ``(2) Duration.--The grant or contract awarded under subsection 
    (a)(2) shall be awarded for a period of five years and shall be 
    reviewed by the Secretary not later than 30 months from the date 
    the grant or contract is awarded.
        ``(3) Use of funds.--The grant or contract awarded under 
    subsection (a)(2) shall be used to--
            ``(A) maintain a permanent repository of mathematics and 
        science education instructional materials and programs for 
        elementary and secondary schools, including middle schools 
        (including, to the extent practicable, all materials and 
        programs developed with Federal and non-Federal funds, such as 
        instructional materials developed by the Department, materials 
        developed by State and national mathematics and science 
        programs assisted under this part, and other instructional 
        materials) for use by the regional consortia established under 
        part C of title XIII and by the general public;
            ``(B) compile information on all mathematics and science 
        education programs administered by each Federal agency or 
        department;
            ``(C) disseminate information, programs, and instructional 
        materials to the public, dissemination networks, and the 
        regional consortia established under part C of title XIII;
            ``(D) coordinate with identifiable and existing data bases 
        containing mathematics and science curriculum and instructional 
        materials, including Federal, non-Federal, and, where feasible, 
        international, data bases;
            ``(E) participate in collaborative meetings of 
        representatives of the Clearinghouse and the regional consortia 
        established under part C of title XIII to discuss issues of 
        common interest and concern, to foster effective collaboration 
        and cooperation in acquiring and distributing curriculum 
        materials and programs, and to coordinate computer network 
        access to the Clearinghouse and the resources of the regional 
        consortia, except that not more than 3 percent of the funds 
        awarded under subsection (a)(2) shall be used to carry out this 
        subparagraph; and
            ``(F) gather qualitative and evaluative data on submissions 
        to the Clearinghouse.
        ``(4) Submission to clearinghouse.--Each Federal agency or 
    department which develops mathematics or science education 
    instructional material or programs, including the National Science 
    Foundation and the Department, shall submit to the Clearinghouse 
    copies of such material or programs.
        ``(5) Peer review.--The Secretary shall establish a peer review 
    process to select the recipient of the award under subsection 
    (a)(2).
        ``(6) Steering committee.--The Secretary may appoint a steering 
    committee to recommend policies and activities for the 
    Clearinghouse.
        ``(7) Application of copyright laws.--Nothing in this 
    subsection shall be construed to allow the use or copying, in any 
    media, of any material collected by the Clearinghouse that is 
    protected under the copyright laws of the United States unless the 
    permission of the owner of the copyright is obtained. The 
    Clearinghouse, in carrying out the provisions of this subsection, 
    shall ensure compliance with title 17, United States Code.
        ``(8) Dissemination of information.--The Secretary shall 
    disseminate information concerning the grant or contract awarded 
    under this section to State and local educational agencies and 
    institutions of higher education. Such dissemination of information 
    shall include examples of exemplary national programs in 
    mathematics and science instruction and necessary technical 
    assistance for the establishment of similar programs.
    ``(c) Uses of Funds.--The Secretary may use funds available to 
carry out this part for--
        ``(1) the development and maintenance of national 
    clearinghouses for core academic subjects as the Secretary 
    determines are needed and which shall be administered as adjunct 
    clearinghouses of the Educational Resources Information Center 
    Clearinghouses system of clearinghouses supported by the Office of 
    Educational Research and Improvement;
        ``(2) professional development institutes that provide teachers 
    or teams of teachers, and, where appropriate, administrators, pupil 
    services personnel and other staff, from individual schools, with 
    professional development that contains strong and integrated 
    disciplinary and pedagogical components;
        ``(3) encouraging the development of local and national 
    professional networks, such as the Teacher Research Dissemination 
    Demonstration Program under section 941(j) of the Educational 
    Research, Development, Dissemination, and Improvement Act of 1994, 
    that provide a forum for interaction among teachers of the core 
    academic subjects and that allow the exchange of information on 
    advances in content and pedagogy;
        ``(4) efforts to train teachers in the innovative uses and 
    applications of technology to enhance student learning;
        ``(5) the development and dissemination of model teaching 
    standards in the core academic subjects;
        ``(6) disseminating standards in the core academic subjects, 
    including information on voluntary national content standards and 
    voluntary national student performance standards and related models 
    of high-quality professional development;
        ``(7) the dissemination of information about voluntary national 
    content standards, State content standards, voluntary national 
    student performance standards and State student performance 
    standards, and related models of high-quality professional 
    development;
        ``(8) efforts to train teachers in innovative instructional 
    methodologies designed to meet the diverse learning needs of 
    individual students, including methodologies which integrate 
    academic and vocational learning and applied learning, interactive, 
    interdisciplinary team teaching, and other alternative teaching 
    strategies, such as service learning, experiential learning, 
    career-related education, and environmental education, that 
    integrate real world applications into the core academic subjects;
        ``(9) disseminating models of high-quality professional 
    development activities that train educators in strategies, 
    techniques, methods, and practices for meeting the educational 
    needs of historically underserved populations, including females, 
    minorities, individuals with disabilities, limited-English-
    proficient individuals, and economically disadvantaged individuals, 
    in order to ensure that all students have the opportunity to 
    achieve challenging State student performance standards;
        ``(10) promoting the transferability of licensure and 
    certification of teachers and administrators among State and local 
    jurisdictions;
        ``(11) supporting the National Board for Professional Teaching 
    Standards;
        ``(12) developing activities to prepare teachers, and, where 
    appropriate, paraprofessionals, pupil services personnel, and other 
    staff in the collaborative skills needed to appropriately teach 
    children with disabilities in the core academic subjects;
        ``(13) encouraging the development of innovative models for 
    recruitment, induction, retention, and assessment of new, highly 
    qualified teachers, especially such teachers from historically 
    underrepresented groups; and
        ``(14) joint activities with other Federal agencies and 
    entities engaged in or supporting similar professional development 
    efforts.

``SEC. 2103. NATIONAL TEACHER TRAINING PROJECT.

    ``(a) Short Title; Findings; Definitions.--
        ``(1) Short title.--This section may be cited as the `National 
    Teacher Training Project Act of 1994'.
        ``(2) Findings.--The Congress finds that--
            ``(A) teachers must be major players in educational reform 
        in the United States;
            ``(B) teachers are isolated from their peers and have 
        virtually no time during the school day to consult with other 
        teachers;
            ``(C) there is a shortage of sustained, year-round 
        professional development programs for teachers;
            ``(D) successful teaching methods are not adequately shared 
        among teachers;
            ``(E) teachers are the best teachers of other teachers 
        because practicing classroom teachers have experience that no 
        outside consultant can match;
            ``(F) it is important for universities and schools to 
        collaborate on teacher development programs if teaching and 
        learning are to be improved;
            ``(G) pertinent research is not shared among teachers in a 
        professional setting;
            ``(H) exemplary teachers should be recognized for their 
        abilities and contributions and encouraged to refine their 
        teaching methods;
            ``(I) each State should support a nationally based teacher 
        training program, that is modeled after the National Writing 
        Project, for teachers of early childhood education, and for 
        teachers of core academic subjects including teachers of 
        mathematics, science, English, civics and government, foreign 
        languages, and arts;
            ``(J) the National Writing Project is a nationally 
        recognized and honored nonprofit organization that recognizes 
        there are teachers in every region of the United States who 
        have developed successful methods for teaching writing and that 
        such teachers can be trained and encouraged to train other 
        teachers;
            ``(K) the National Writing Project is a collaborative 
        university-school program which offers summer and school year 
        inservice teacher training programs and a dissemination network 
        to inform and teach teachers regarding developments in the 
        field of writing;
            ``(L) each year, over 125,000 teachers voluntarily seek 
        training in National Writing Project intensive summer 
        institutes and workshops and school year inservice programs 
        through one of the 155 sites located within the United States, 
        and in 18 sites located outside of the United States;
            ``(M) in the 20 years of its existence, over 1,100,000 
        teachers, administrators, and parents have participated in 
        National Writing Project programs;
            ``(N) less than $16 per teacher was the average cost in 
        Federal dollars for all teacher training at writing projects in 
        academic year 1991-1992;
            ``(O) for every dollar in Federal support, the National 
        Writing Project provides over $5 in matching funds from States, 
        local universities and schools, and the private sector;
            ``(P) private foundation resources, although generous in 
        the past concerning National Writing Project programs, are 
        inadequate to fund all of the National Teacher Training Project 
        sites needed, and the future of the program is in jeopardy 
        without secure financial support;
            ``(Q) the National Writing Project has become a model for 
        programs in other fields, such as science, mathematics, 
        history, literature, foreign languages, and the performing 
        arts, and the development of programs in other fields should 
        continue with the support of Federal funds; and
            ``(R) each of the 50 States should participate in the 
        National Teacher Training Project by establishing regional 
        teacher training sites in early childhood development, 
        mathematics, science, English, civics and government, foreign 
        languages, and arts to serve all teachers within the State.
        ``(3) Definitions.--For the purpose of this section--
            ``(A) the term `contractor' means--
                ``(i) a local educational agency;
                ``(ii) an educational service agency; or
                ``(iii) an institution of higher education that awards 
            a bachelor's degree; and
            ``(B) the term `eligible recipient' means a nonprofit 
        educational organization which has as its primary purpose the 
        improvement of student learning in one of the core academic 
        subjects described in subsection (b)(2).
    ``(b) Grants Authorized.--
        ``(1) Grants to eligible recipients.--The Secretary is 
    authorized to award a grant to an eligible recipient to enable such 
    recipient--
            ``(A) to support and promote the establishment of teacher 
        training programs in early childhood development and one of the 
        nine core subject areas described in paragraph (2), including 
        the dissemination of effective practices and research findings 
        regarding teacher training, and administrative activities;
            ``(B) to support classroom research on effective teaching 
        practices in such area; and
            ``(C) to pay the Federal share of the cost of such programs 
        and research.
        ``(2) Core subject areas.--To the extent feasible, the 
    Secretary shall award a grant under paragraph (1) for the 
    establishment of a National Teacher Training Project in early 
    childhood development and each of the following core subject areas:
            ``(A) Mathematics.
            ``(B) Science.
            ``(C) English.
            ``(D) Civics and government.
            ``(E) Foreign languages.
            ``(F) Arts.
            ``(G) Geography.
            ``(H) History.
            ``(I) Economics.
        ``(3) Number of grants and eligible recipients.--The Secretary 
    shall award not more than ten grants under paragraph (1) to ten 
    different eligible recipients.
        ``(4) Equitable distribution.--The Secretary shall award grants 
    under paragraph (1) to eligible recipients from different 
    geographic areas of the United States.
        ``(5) Special rule.--Each grant under paragraph (1) shall be of 
    sufficient size, scope, and quality to be effective.
        ``(6) Administrative costs and technical assistance.--Each 
    eligible recipient receiving a grant under paragraph (1) may use 
    not more than a total of 5 percent of the grant funds for 
    administrative costs and the costs of providing technical 
    assistance to a contractor.
    ``(c) Grant Requirements.--Each eligible recipient receiving a 
grant under subsection (b) shall--
        ``(1) enter into a contract with a contractor under which such 
    contractor agrees--
            ``(A) to establish, operate, and provide the non-Federal 
        share of the cost of teacher training programs in effective 
        approaches and processes for the teaching of the core academic 
        subjects for which such eligible recipient was awarded a grant, 
        including approaches and processes to obtain parental 
        involvement in a child's education; and
            ``(B) to use funds received from the eligible recipient to 
        pay the Federal share of the cost of establishing and operating 
        teacher training programs described in subparagraph (A);
        ``(2) to submit annual reports to the Secretary and be 
    responsible for oversight of the funds expended at each teacher 
    training program described in subparagraph (A); and
        ``(3) meet such other conditions and standards as the Secretary 
    determines to be necessary to ensure compliance with this section 
    and provide such technical assistance as may be necessary to carry 
    out this section.
    ``(d) Teacher Training Programs.--The teacher training programs 
described in subsection (b) shall--
        ``(1) be conducted during the school year and during the summer 
    months;
        ``(2) train teachers who teach grades kindergarten through 
    college;
        ``(3) select teachers to become members of a National Teacher 
    Training Project, which members shall conduct inservice workshops 
    for other teachers in the area subject matter served by the 
    National Teacher Training Project site;
        ``(4) use teacher training principles and receive technical 
    assistance from the National Writing Project; and
        ``(5) encourage teachers from all disciplines to participate in 
    such teacher training programs.
    ``(e) Federal Share.--The term `Federal share' means, with respect 
to the costs of teacher training programs described in subsection (b), 
50 percent of such costs to the contractor.
    ``(f) Application.--Each eligible recipient desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may reasonably require.
    ``(g) Participants and Selection Process.--The selection process 
for participation in a teacher training program described in subsection 
(b) shall--
        ``(1) reward exemplary teachers with varying levels of teaching 
    experience who are nominated by other teachers and administrators;
        ``(2) involve an application process to select participants for 
    a summer program;
        ``(3) ensure the selection of a geographically and ethnically 
    diverse group of teachers by soliciting applications from teachers 
    of both public and private institutions in rural, urban, and 
    suburban settings in each State; and
        ``(4) automatically offer a place in a summer program to the 
    `Teacher of the Year' chosen pursuant to a Federal or State teacher 
    recognition program.
    ``(h) Limitation.--A contractor entering into a contract under 
subsection (c)(1) shall not spend more than 5 percent of funds received 
under the contract for administrative costs.

                  ``PART B--STATE AND LOCAL ACTIVITIES

``SEC. 2201. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to make grants to State educational 
agencies for the improvement of teaching and learning through sustained 
and intensive high-quality professional development activities in the 
core academic subjects at the State and local levels.

``SEC. 2202. ALLOCATION OF FUNDS.

    ``(a) Reservation of Funds.--From the amount available to carry out 
this part for any fiscal year, the Secretary shall reserve--
        ``(1) \1/2\ of 1 percent for the outlying areas, to be 
    distributed among the outlying areas on the basis of their relative 
    need, as determined by the Secretary in accordance with the 
    purposes of this part; and
        ``(2) \1/2\ of 1 percent for the Secretary of the Interior for 
    programs under this part for professional development activities 
    for teachers, other staff, and administrators in schools operated 
    or funded by the Bureau of Indian Affairs.
    ``(b) State Allocations.--The Secretary shall allocate the amount 
available to carry out this part and not reserved under subsection (a) 
to each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico as follows, except that no State shall 
receive less than \1/2\ of 1 percent of such amount:
        ``(1) Fifty percent shall be allocated among such jurisdictions 
    on the basis of their relative populations of individuals aged five 
    through 17, as determined by the Secretary on the basis of the most 
    recent satisfactory data.
        ``(2) Fifty percent shall be allocated among such jurisdictions 
    in accordance with the relative amounts such jurisdictions received 
    under part A of title I for the preceding fiscal year, or for 
    fiscal year 1995 only, such part's predecessor authority.
    ``(c) Reallocation.--If any jurisdiction does not apply for an 
allotment under subsection (b) for any fiscal year, the Secretary shall 
reallocate such amount to the remaining jurisdictions in accordance 
with such subsection.

``SEC. 2203. WITHIN-STATE ALLOCATIONS.

    ``Of the amounts received by a State under this part for any fiscal 
year--
        ``(1) 84 percent shall be available for local allowable 
    activities under section 2210(b), of which--
            ``(A) not more than 5 percent may be used for the 
        administrative costs of the State educational agency and for 
        State-level activities described in section 2207; and
            ``(B) of the remaining amount--
                ``(i) 50 percent shall be distributed to local 
            educational agencies--

                    ``(I) for use in accordance with section 2210; and
                    ``(II) in accordance with the relative enrollments 
                in public and private nonprofit elementary and 
                secondary schools within the boundaries of such 
                agencies; and

                ``(ii) 50 percent of such amount shall be distributed 
            to local educational agencies--

                    ``(I) for use in accordance with section 2210; and
                    ``(II) in accordance with the relative amount such 
                agencies received under part A of title I or for fiscal 
                year 1995 for the preceding fiscal year, such part's 
                predecessor authority; and

        ``(2) 16 percent shall be available to the State agency for 
    higher education for activities under section 2211, of which not 
    more than 5 percent may be used for the administrative costs of the 
    State agency for higher education.

``SEC. 2204. CONSORTIUM REQUIREMENT.

    ``(a) In General.--A local educational agency receiving a grant 
under this part of less than $10,000 shall form a consortium with 
another local educational agency or an educational service agency 
serving another local educational agency to be eligible to participate 
in programs assisted under this part.
    ``(b) Waiver.--The State educational agency may waive the 
application of paragraph (1) in the case of any local educational 
agency that demonstrates that the amount of its allocation under this 
part is sufficient to provide a program of sufficient size, scope, and 
quality to be effective. In granting waivers under the preceding 
sentence, the State educational agency shall--
        ``(1) give special consideration to local educational agencies 
    serving rural areas if distances or traveling time between schools 
    make formation of the consortium more costly or less effective; and
        ``(2) consider cash or in-kind contributions provided from 
    State or local sources that may be combined with the local 
    educational agency's allocation for the purpose of providing 
    services under this part.
    ``(c) Special Rule.--Each consortium shall rely, as much as 
possible, on technology or other arrangements to provide staff 
development programs tailored to the needs of each school or school 
district participating in a consortium described in subsection (a).

``SEC. 2205. STATE APPLICATIONS.

    ``(a) Applications Required.--Each State educational agency that 
wishes to receive an allotment under this part for any fiscal year 
shall submit an application to the Secretary at such time, in such 
form, and containing such information as the Secretary may require.
    ``(b) State Plan To Improve Teaching and Learning.--
        ``(1) In general.--Each application under this section shall 
    include a State plan that is coordinated with the State's plan 
    under other programs assisted under this Act, the Goals 2000: 
    Educate America Act, and other Acts, as appropriate, consistent 
    with the provisions of section 14306.
        ``(2) Contents.--Each such State plan shall--
            ``(A) be developed in conjunction with the State agency for 
        higher education, community-based and other nonprofit 
        organizations of demonstrated effectiveness, institutions of 
        higher education or schools of education, and with the 
        extensive participation of local teachers, administrators and 
        pupil services personnel and show the role of each such entity 
        in implementation of the plan;
            ``(B) be designed to give teachers, and, where appropriate, 
        administrators and pupil services personnel in the State, the 
        knowledge and skills necessary to provide all students the 
        opportunity to meet challenging State content standards and 
        challenging State student performance standards;
            ``(C) include an assessment of State and local needs for 
        professional development specifically related to subparagraph 
        (B);
            ``(D) include a description of how the plan has assessed 
        the needs of local educational agencies serving rural and urban 
        areas, and what actions are planned to meet such needs;
            ``(E) include a description of how the activities assisted 
        under this part will address the needs of teachers in schools 
        receiving assistance under part A of title I;
            ``(F) a description of how programs in all core academic 
        subjects, but especially in mathematics and science, will take 
        into account the need for greater access to, and participation 
        in, such disciplines by students from historically 
        underrepresented groups, including females, minorities, 
        individuals with limited English proficiency, the economically 
        disadvantaged, and individuals with disabilities, by 
        incorporating pedagogical strategies and techniques which meet 
        such individuals' educational needs;
            ``(G) be consistent with the State's needs assessment under 
        subparagraph (C), and describe how the State will work with 
        teachers, including teachers in schools receiving assistance 
        under part A of title I, administrators, parents, local 
        educational agencies, schools, educational service agencies, 
        institutions of higher education, and nonprofit organizations 
        of demonstrated effectiveness, to ensure that such individuals 
        develop the capacity to support sustained and intensive, high-
        quality professional development programs in the core academic 
        subjects;
            ``(H) describe how the State requirements for licensure of 
        teachers and administrators, including certification and 
        recertification, support challenging State content standards 
        and challenging State student performance standards and whether 
        such requirements are aligned with such standards;
            ``(I) address the need for improving teaching and learning 
        through teacher development beginning with recruitment, 
        preservice, and induction, and continuing throughout the 
        professional teaching career, taking into account the need, as 
        determined by the State, for greater access to and 
        participation in the teaching profession by individuals from 
        historically underrepresented groups;
            ``(J) describe how the State will prepare all teachers to 
        teach children with diverse learning needs, including children 
        with disabilities;
            ``(K) describe how the State will prepare teachers, and, 
        where appropriate, paraprofessionals, pupil services personnel, 
        and other staff in the collaborative skills needed to 
        appropriately teach children with disabilities, in the core 
        academic subjects;
            ``(L) describe how the State will use technology, including 
        the emerging national information infrastructure, to enhance 
        the professional development of teachers, and, where 
        appropriate, administrators and pupil services personnel;
            ``(M) describe how the State will provide incentives to 
        teachers and administrators to focus their professional 
        development on preparing such teachers and administrators to 
        provide instruction consistent with challenging State content 
        standards and challenging State student performance standards;
            ``(N) set specific performance indicators for professional 
        development; and
            ``(O) describe how parents can be involved in professional 
        development programs to enhance the participation of parents in 
        the education of their children.
        ``(3) Duration of the plan.--Each such State plan shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
    ``(c) Additional Material.--Each State application shall include--
        ``(1) a description of how the activities assisted under this 
    part will be coordinated, as appropriate, with--
            ``(A) other activities conducted with Federal funds, 
        especially activities supported under part A of title I of this 
        Act and the Individuals with Disabilities Education Act;
            ``(B) programs supported by State and local funds;
            ``(C) resources from business and industry, museums, 
        libraries, educational television stations, and public and 
        private nonprofit organizations of demonstrated experience; and
            ``(D) funds received from other Federal agencies, such as 
        the National Science Foundation, the Departments of Commerce, 
        Energy, and Health and Human Services, the National Endowment 
        for the Arts, the Institute of Museum Services, and the 
        National Endowment for the Humanities; and
        ``(2) a description of the activities to be sponsored under the 
    State-level activities under section 2207 and the higher education 
    activities under section 2211.
    ``(d) Peer Review and Secretarial Approval.--
        ``(1) In general.--The Secretary shall approve an application 
    of a State educational agency under this section if such 
    application meets the requirements of this section and holds 
    reasonable promise of achieving the purposes of this part.
        ``(2) Review.--In reviewing applications under this section, 
    the Secretary shall obtain the advice of non-Federal experts on 
    education in the core academic subjects and on teacher education, 
    including teachers and administrators.

``SEC. 2206. PRIORITY FOR PROFESSIONAL DEVELOPMENT IN MATHEMATICS AND 
              SCIENCE.

    ``(a) Appropriation of Less Than $250,000,000.--In any fiscal year 
for which the amount appropriated for this title is less than 
$250,000,000, each State shall ensure that all funds distributed in 
accordance with section 2203(1)(C) are used for professional 
development in mathematics and science.
    ``(b) Appropriation Equal To or Above $250,000,000.--In any fiscal 
year for which the amount appropriated for this title is equal to or 
exceeds $250,000,000, each State and local educational agency shall use 
for professional development activities in mathematics and science the 
amount of funds that would have been made available to each such agency 
in accordance with sections 2202 and 2203 if the amount appropriated 
was $250,000,000, consistent with subsection (a), and are permitted and 
encouraged to use the amount of funds in excess of $250,000,000 that is 
made available in accordance with sections 2202 and 2203 for 
professional development activities in mathematics and science.

``SEC. 2207. STATE-LEVEL ACTIVITIES.

    ``Each State may use funds made available under section 2203(1)(A) 
to carry out activities described in the plan under section 2205(b), 
such as--
        ``(1) reviewing and reforming State requirements for teacher 
    and administrator licensure, including certification and 
    recertification, to align such requirements with the State's 
    challenging State content standards and ensure that teachers and 
    administrators have the knowledge and skills necessary to help 
    students meet challenging State student performance standards;
        ``(2) developing performance assessments and peer review 
    procedures, as well as other methods, for licensing teachers and 
    administrators;
        ``(3) providing technical assistance to schools and local 
    educational agencies, especially schools and local educational 
    agencies that receive assistance under part A of title I, to help 
    such schools and agencies provide effective professional 
    development in the core academic subjects;
        ``(4) developing or supporting professional development 
    networks, either within a State or in a regional consortium of 
    States, that provide a forum for interaction among teachers and 
    that allow exchange of information on advances in content and 
    pedagogy;
        ``(5) supporting partnerships between schools, consortia of 
    schools, or local educational agencies and institutions of higher 
    education, including schools of education, which encourage--
            ``(A) teachers to participate in intensive, ongoing 
        professional development programs, both academic and 
        pedagogical, at institutions of higher education; and
            ``(B) students at institutions of higher education studying 
        to become teachers to have direct, practical experience at the 
        schools;
        ``(6) providing professional development in the effective use 
    of educational technology as an instructional tool for increasing 
    student understanding of the core academic subjects, including 
    efforts to train teachers in methods of achieving gender equity 
    both in students' access to computers and other educational 
    technology and in teaching practices used in the application of 
    educational technology;
        ``(7) providing incentives for teachers to be involved in 
    assessment, curriculum development, and technical assistance 
    processes for teachers and students;
        ``(8) providing professional development to enable teachers, 
    and, where appropriate, pupil services personnel, and other school 
    staff, to ensure that girls and young women, minorities, limited 
    English proficient students, individuals with disabilities, and 
    economically disadvantaged students have the full opportunity to 
    achieve challenging State content standards and challenging State 
    student performance standards in the core academic subjects by, for 
    example, encouraging girls and young women and minorities to pursue 
    advanced courses in mathematics and science;
        ``(9) professional development and recruitment activities 
    designed to increase the numbers of minorities, individuals with 
    disabilities, and women teaching in the core academic subjects in 
    which such individuals are underrepresented;
        ``(10) providing financial or other incentives for teachers to 
    become certified by nationally recognized professional teacher 
    enhancement organizations;
        ``(11) providing professional development activities which 
    prepare teachers, and where appropriate, pupil services personnel, 
    paraprofessionals, and other staff in the collaborative skills 
    needed to appropriately teach children with disabilities, in the 
    core academic subjects;
        ``(12) identifying, developing, or supporting professional 
    development strategies to better equip parents to assist their 
    children in raising their children's achievement in the core 
    academic subjects; and
        ``(13) professional development activities designed to increase 
    the number of women and other underrepresented groups in the 
    administration of schools.
``SEC. 2208. LOCAL PLAN AND APPLICATION FOR IMPROVING TEACHING AND 
LEARNING.
    ``(a) Local Application.--
        ``(1) In general.--Each local educational agency that wishes to 
    receive a subgrant under this part shall submit an application 
    (singly or as a consortium as described in section 2204) to the 
    State educational agency at such time as the State educational 
    agency shall require, but not less frequently than every three 
    years, that is coordinated with other programs under this Act, the 
    Goals 2000: Educate America Act, or other Acts, as appropriate, 
    consistent with the provisions of section 14306.
        ``(2) Indicators.--A local educational agency shall set 
    specific performance indicators for improving teaching and learning 
    through professional development.
    ``(b) Needs Assessment.--
        ``(1) In general.--A local educational agency that wishes to 
    receive a subgrant under this part shall include in its application 
    an assessment of local needs for professional development as 
    identified by the local educational agency and school staff.
        ``(2) Requirements.--Such needs assessment shall be carried out 
    with the involvement of teachers, including teachers in schools 
    receiving assistance under part A of title I, and shall take into 
    account what activities need to be conducted in order to give 
    teachers and, where appropriate, administrators, the means, 
    including the knowledge and skills, to provide students with the 
    opportunity to meet challenging State or local student performance 
    standards.
    ``(c) Application Contents.--Each application under this section 
shall include the local educational agency's plan for professional 
development that--
        ``(1) focuses on teaching and learning in the core academic 
    subjects; and
        ``(2) has been developed with the extensive participation of 
    administrators, staff, and pupil services personnel, which teachers 
    shall also be representative of the grade spans within schools to 
    be served and of schools which receive assistance under part A of 
    title I.
    ``(d) Plan Contents.--
        ``(1) In general.--Based on the needs assessment required under 
    subsection (b), the local educational agency's plan shall--
            ``(A) include a description of how the plan contributes to 
        the local educational agency's overall efforts for school 
        reform and educational improvement;
            ``(B) include a description of how the activities funded 
        under this section will address the needs of teachers in 
        schools receiving assistance under part A of title I;
            ``(C) be aligned with the State's challenging State content 
        standards and challenging State student performance standards;
            ``(D) describe a strategy, tied to challenging State 
        content standards and challenging State student performance 
        standards, consistent with the needs assessment under 
        subsection (b);
            ``(E) be of sufficient intensity and duration to have a 
        positive and lasting impact on the student's performance in the 
        classroom;
            ``(F) describe how programs in all core academic subjects, 
        but especially in mathematics and science, will take into 
        account the need for greater access to, and participation in, 
        such disciplines by students from historically underrepresented 
        groups, including girls and women, minorities, individuals with 
        limited English proficiency, the economically disadvantaged, 
        and individuals with disabilities, by incorporating pedagogical 
        strategies and techniques which meet such individuals' 
        educational need;
            ``(G) contain an assurance that the activities conducted 
        with funds received under this part will be assessed at least 
        every three years using the performance indicators;
            ``(H) describe how the program funded under this part will 
        be coordinated, as appropriate, with--
                ``(i) activities conducted under section 2131 and other 
            services of institutions of higher education;
                ``(ii) similar State and local activities;
                ``(iii) resources provided under part A of title I and 
            other provisions of this Act;
                ``(iv) resources from business, industry, public and 
            private nonprofit organizations (including museums, 
            libraries, educational television stations, community-based 
            organizations, professional organizations and associations 
            specializing in, or with a demonstrated expertise in the 
            core academic subjects);
                ``(v) funds or programming from other Federal agencies, 
            such as the National Science Foundation, the Department of 
            Energy, the Department of Health and Human Services, the 
            Institute of Museum Services, the National Endowment for 
            the Humanities, and the National Endowment for the Arts;
                ``(vi) services of educational service agencies; and
                ``(vii) resources provided under the Individuals with 
            Disabilities Education Act;
            ``(I) identify the sources of funding that will provide the 
        local educational agency's contribution under section 2209; and
            ``(J) describe the professional development strategies to 
        be employed to more fully and effectively involve parents in 
        the education of their children.
        ``(2) Duration of the plan.--Each local plan described in 
    subsection (b)(1) shall--
            ``(A) remain in effect for the duration of the local 
        educational agency's participation under this part; and
            ``(B) be periodically reviewed and revised by the local 
        educational agency, as necessary, to reflect changes in the 
        local educational agency's strategies and programs under this 
        part.

``SEC. 2209. LOCAL COST-SHARING.

    ``(a) In General.--Each local educational agency shall provide not 
less than 33 percent of the cost of the activities assisted under this 
part, excluding the cost of services provided to private school 
teachers.
    ``(b) Available Resources for Cost-Sharing.--
        ``(1) In general.--A local educational agency may meet the 
    requirement of subsection (a) through one or more of the following:
            ``(A) Cash expenditures from non-Federal sources, including 
        private contributions, directed toward professional development 
        activities.
            ``(B) Release time for teachers participating in 
        professional development assisted under this part.
            ``(C) Funds received under one or more of the following 
        programs, so long as such funds are used for professional 
        development activities consistent with this part and the 
        statutes under which such funds were received, and are used to 
        benefit students and teachers in schools that otherwise would 
        have been served with such funds:
                ``(i) Helping disadvantaged children meet high 
            standards under part A of title I.
                ``(ii) The Safe and Drug-Free Schools and Communities 
            program under title IV.
                ``(iii) Bilingual Education Programs under part A of 
            title VII.
                ``(iv) Programs under the Women's Educational Equity 
            Act of 1994.
                ``(v) Programs under title III of the Goals 2000: 
            Educate America Act.
                ``(vi) Programs that are related to the purposes of 
            this Act that are administered by other Federal agencies, 
            including the National Science Foundation, the National 
            Endowment for the Humanities, the National Endowment for 
            the Arts, the Institute of Museum Services, and the 
            Department of Energy.
                ``(vii) Programs under the Individuals with 
            Disabilities Education Act.
        ``(2) Special rule.--A local educational agency may meet the 
    requirement of subsection (a) through contributions described in 
    paragraph (1) that are provided in cash or in kind, fairly 
    evaluated.
    ``(c) Waiver.--The State educational agency may approve an 
application which has not fully met the requirements of subsection (a) 
and waive the requirements of subsection (a) if a local educational 
agency can demonstrate that such agency is unable to meet the 
requirements of subsection (a) due to economic hardship and that 
compliance with such requirements would preclude such agency's 
participation in the program.

``SEC. 2210. LOCAL ALLOCATION OF FUNDS AND ALLOWABLE ACTIVITIES.

    ``(a) Local Allocation of Funds.--Each local educational agency 
that receives funds under this part for any fiscal year--
        ``(1) shall use not less than 80 percent of such funds for 
    professional development of teachers, and, where appropriate, 
    administrators, and, where appropriate, pupil services personnel, 
    parents, and other staff of individual schools in a manner that--
            ``(A) is determined by such teachers and staff;
            ``(B) to the extent practicable, takes place at the 
        individual school site; and
            ``(C) is consistent with the local educational agency's 
        application under section 2208, any school plan under part A of 
        title I, and any other plan for professional development 
        carried out with Federal, State, or local funds that emphasizes 
        sustained, ongoing activities; and
        ``(2) may use not more than 20 percent of such funds for school 
    district-level professional development activities, including, 
    where appropriate, the participation of administrators, 
    policymakers, and parents, if such activities directly support 
    instructional personnel.
    ``(b) Authorized Activities.--
        ``(1) In general.--Each local educational agency and school 
    that receives funds under this part shall use such funds for 
    activities that give teachers 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) Professional development activities.--Professional 
    development activities funded under this part shall--
            ``(A) be tied to challenging State content standards or 
        challenging local content standards, and challenging State 
        student performance standards or challenging local student 
        performance standards;
            ``(B) take into account recent research on teaching and 
        learning;
            ``(C) provide professional development which incorporates 
        effective strategies, techniques, methods, and practices for 
        meeting the educational needs of diverse groups of students, 
        including girls and women, minorities, individuals with 
        disabilities, limited English proficient individuals, and 
        economically disadvantaged individuals;
            ``(D) include strong academic content and pedagogical 
        components; and
            ``(E) be of sufficient intensity and duration to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom.
        ``(3) Activities.--Funds under this part may be used for 
    professional development activities such as--
            ``(A) professional development for teams of teachers, and, 
        where appropriate, administrators, pupil services personnel, or 
        other staff from individual schools, to support teaching 
        consistent with challenging State content standards and 
        challenging State student performance standards;
            ``(B) support and time, which in the case of teachers may 
        include release time with pay, for teachers, and, where 
        appropriate, pupil services personnel and other school staff to 
        enable such teachers, personnel, and staff to participate in 
        professional development in the core academic subjects that are 
        offered through professional associations, universities, 
        community-based organizations, and other providers, such as 
        educational partnership organizations, science centers, and 
        museums;
            ``(C) activities that provide followup for teachers who 
        have participated in professional development activities that 
        are designed to ensure that the knowledge and skills learned by 
        the teacher are implemented in the classroom;
            ``(D) support for partnerships between schools, consortia 
        of schools, or local educational agencies, and institutions of 
        higher education, including schools of education, which 
        partnerships shall encourage--
                ``(i) teachers to participate in intensive, ongoing 
            professional development programs, both academic and 
            pedagogical, at institutions of higher education; and
                ``(ii) students at institutions of higher education 
            studying to become teachers to have direct, practical 
            experience at schools;
            ``(E) the establishment and maintenance of local 
        professional networks that provide a forum for interaction 
        among teachers and that allow exchange of information on 
        advances in content and pedagogy;
            ``(F) preparing teachers in the effective use of 
        educational technology and assistive technology as 
        instructional tools for increasing student understanding of the 
        core academic subjects;
            ``(G) professional development to enable teachers, and, 
        where appropriate, pupil services personnel and other school 
        staff, to ensure that girls and young women, minorities, 
        limited English proficient students, individuals with 
        disabilities, and the economically disadvantaged have full 
        opportunity to achieve the challenging State content standards 
        and challenging State student performance standards in the core 
        academic subjects;
            ``(H) professional development and recruitment activities 
        designed--
                ``(i) to increase the number of minorities, individuals 
            with disabilities, and females teaching in the core 
            academic subjects in which such individuals are 
            underrepresented; and
                ``(ii) to increase the numbers of women and members of 
            other underrepresented groups who are science and 
            mathematics teachers, through such programs as career 
            ladder programs that assist educational paraprofessionals 
            to obtain teaching credentials in the core academic 
            subjects;
            ``(I) providing financial or other incentives for teachers 
        to become certified by nationally recognized professional 
        teacher enhancement programs;
            ``(J) support and time for teachers, and, where 
        appropriate, pupil services personnel, and other school staff 
        to learn and implement effective collaboration for the 
        instruction of children with disabilities in the core academic 
        subject areas;
            ``(K) preparing teachers, and, where appropriate, pupil 
        services personnel to work with parents and families on 
        fostering student achievement in the core academic subjects;
            ``(L) professional development activities and other support 
        for new teachers as such teachers move into the classroom to 
        provide such teachers with practical support and to increase 
        the retention of such teachers;
            ``(M) professional development for teachers, parents, early 
        childhood educators, administrators, and other staff to support 
        activities and services related to preschool transition 
        programs to raise student performance in the core academic 
        subjects;
            ``(N) professional development activities to train teachers 
        in innovative instructional methodologies designed to meet the 
        diverse learning needs of individual students, including 
        methodologies which integrate academic and vocational learning 
        and applied learning, interactive and interdisciplinary team 
        teaching, and other alternative teaching strategies such as 
        service learning, experiential learning, career-related 
        education, and environmental education, that integrate real 
        world applications into the core academic subjects;
            ``(O) developing professional development strategies and 
        programs to more effectively involve parents in helping their 
        children achieve in the core academic subjects;
            ``(P) professional development activities designed to 
        increase the number of women and other underrepresented groups 
        in the administration of schools; and
            ``(Q) release time with pay for teachers.

``SEC. 2211. HIGHER EDUCATION ACTIVITIES.

    ``(a) Activities.--
        ``(1) In general.--From amounts made available under section 
    2203(2), the State agency for higher education, working in 
    conjunction with the State educational agency (if such agencies are 
    separate), shall make grants to, or enter into contracts or 
    cooperative agreements with, institutions of higher education and 
    nonprofit organizations of demonstrated effectiveness, including 
    museums and educational partnership organizations, which must work 
    in conjunction with a local educational agency, consortium of local 
    educational agencies, or schools, for--
            ``(A) professional development activities in the core 
        academic subjects that contribute to the State plan for 
        professional development;
            ``(B) developing and providing assistance to local 
        educational agencies, and the teachers and staff of each such 
        agency, for sustained, high-quality professional development 
        activities; and
            ``(C) improving teacher education programs in order to 
        promote further innovation in teacher education programs within 
        an institution of higher education and to better meet the needs 
        of the local educational agencies for well-prepared teachers.
        ``(2) Competitive basis.--Each grant, contract, or cooperative 
    agreement described in paragraph (1) shall be awarded on a 
    competitive basis.
        ``(3) Special rule.--No institution of higher education may 
    receive assistance under (a)(1) of this subsection unless the 
    institution enters into an agreement with a local educational 
    agency, or consortium of such agencies, to provide sustained, high-
    quality professional development for the elementary and secondary 
    school teachers in the schools of each such agency.
        ``(4) Joint efforts.--Each activity assisted under this 
    section, where applicable, shall involve the joint effort of the 
    institution of higher education's school or department of 
    education, if any, and the schools or departments in the specific 
    disciplines in which such professional development will be 
    provided.
    ``(b) Allowable Activities.--A recipient of funds under this 
section shall use such funds for--
        ``(1) sustained and intensive high-quality professional 
    development for teams of teachers, or teachers, and, where 
    appropriate, pupil services personnel and administrators from 
    individual schools or school districts;
        ``(2) other sustained and intensive professional development 
    activities related to achievement of the State plan for 
    professional development; and
        ``(3) preservice training activities.
    ``(c) Partnerships.--Each institution of higher education receiving 
a grant under this section may also enter into a partnership with a 
private industry, museum, library, educational television station, or 
public or private nonprofit organization of demonstrated experience to 
carry out professional development activities assisted under this 
section.

        ``PART C--PROFESSIONAL DEVELOPMENT DEMONSTRATION PROJECT

``SEC. 2301. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
        ``(1) underlying the standards-driven framework of the Goals 
    2000: Educate America Act and the high academic standards for 
    eligible students under title I is a widespread need to prepare 
    teachers to teach to higher standards;
        ``(2) prospective and current teachers need knowledge and 
    skills beyond what such teachers currently possess;
        ``(3) while both the Goals 2000: Educate America Act and titles 
    I and II of this Act have extensive references to professional 
    development of teachers, there are no provisions to incorporate 
    `on-the-ground' planning and implementation to serve as models for 
    local educational agencies across the Nation; and
        ``(4) better prepared teachers can lead to improved student 
    achievement, especially for students who are furthest from reaching 
    high standards.
    ``(b) Purpose.--It is the purpose of this part--
        ``(1) to address the need for professional development with a 
    primary focus on teachers;
        ``(2) to provide both prospective teachers and current teachers 
    opportunities to learn both the content and the pedagogy needed to 
    teach to high standards; and
        ``(3) to build models, in a few cities and States, that 
    demonstrate new organizational arrangements and deep investments in 
    teachers necessary to better prepare teachers for new standards and 
    assessments.

``SEC. 2302. DEMONSTRATION PROGRAM AUTHORIZED.

    ``(a) General Authority.--
        ``(1) In general.--The Secretary shall carry out a 
    demonstration project under which the Secretary awards grants in 
    accordance with this part to eligible partnerships to enable such 
    partnerships to plan and implement professional development 
    programs.
        ``(2) Program requirements.--The programs described in 
    paragraph (1)--
            ``(A) shall focus on increasing teachers' knowledge and 
        understanding of content by providing teachers opportunities to 
        improve their knowledge and to improve their classroom practice 
        in order to help students meet high academic standards;
            ``(B) shall include teachers at all career stages, from 
        student teachers or interns through senior team leaders or 
        department chairs; and
            ``(C) may incorporate professional development for 
        principals, pupil services personnel, aides, other school-based 
        staff, and parents.
    ``(b) Eligible Partnerships.--For the purpose of this part, the 
term `eligible partnership' means a partnership consisting of--
        ``(1) a local educational agency, a subunit of such agency, or 
    a consortium of such agencies, in which not less than 50 percent of 
    the schools served by such agency, subunit, or consortium are 
    eligible to participate in schoolwide programs under section 1114; 
    or
        ``(2) other partners that--
            ``(A) shall include, at a minimum, a teachers' union (if 
        appropriate), one or more institutions of higher education 
        which may include faculty from schools of education and faculty 
        from schools of arts and sciences, and a local parent or 
        community council; and
            ``(B) may include a business partner or a nonprofit 
        organization with a demonstrated record in staff development.

``SEC. 2303. GRANTS.

    ``(a) Authority.--
        ``(1) In general.--The Secretary shall award grants for 
    planning, and grants for the implementation of, professional 
    development programs under this part.
        ``(2) Distribution.--The Secretary shall award not less than 75 
    percent of the funds available for grants under this part to 
    eligible partnerships serving the schools with the greatest number 
    of poor students. To the extent possible, such grants shall be 
    awarded to eligible partnerships serving both rural and urban 
    school districts and in a manner that reflects geographic and 
    racial diversity.
        ``(3) Number of grants.--In the first year that the Secretary 
    awards grants under this part, the Secretary shall award at least 
    twice as many planning grants as implementation grants in order to 
    receive well-developed plans for long-term funding under this part.
    ``(b) Grant Requirements.--
        ``(1) Duration.--The Secretary shall award--
            ``(A) planning grants under this part for a period of not 
        less than six months and not more than nine months; and
            ``(B) implementation grants under this part for a period of 
        four fiscal years.
        ``(2) Amount.--The Secretary shall award grants under this part 
    in an amount determined on the basis of the size of the program and 
    the level of investment the eligible partnership is making in 
    teacher development in the area served by the eligible partnership, 
    including local, State, and Federal funds and existing higher 
    education resources, except that no grant under this part shall 
    exceed $500,000 in any one fiscal year.

``SEC. 2304. PLAN.

    ``Each eligible partnership desiring assistance under this part 
shall develop a plan for the program to be assisted under this part. 
Such plan shall--
        ``(1) identify clearly how such plan will support an overall 
    systemic reform strategy giving special attention to the role of 
    teacher preparation for new standards and assessment;
        ``(2) describe the eligible partnership's instructional 
    objectives and how the professional development activities will 
    support such objectives;
        ``(3) specify the organizational arrangements and delivery 
    strategies to be used, such as teacher centers, professional 
    development schools, teacher networks, and academic alliances, as 
    well as the curriculum for teachers;
        ``(4) specify the commitments the local educational agencies, 
    teacher's union, institutions of higher education, or any other 
    entity participating in such partnership are prepared to make, not 
    only to support program activities such as release time, 
    contractual flexibility, support for interns or student teachers if 
    applicable, but also to sustain the central aspects of the plan 
    after the expiration of the grant; and
        ``(5) describe how the activities described under this part 
    will lead to districtwide policy and budget changes.

``SEC. 2305. TECHNICAL ASSISTANCE.

    ``The Secretary is authorized to enter into an arrangement with an 
intermediary organization to enable such organization to provide 
technical assistance to eligible partnerships receiving assistance 
under this part.

``SEC. 2306. MATCHING FUNDS.

    ``The Secretary shall give special priority to awarding grants 
under this part to eligible partnerships that demonstrate such 
partnership's ability to raise matching funds from private sources.

                      ``PART D--GENERAL PROVISIONS

``SEC. 2401. REPORTING AND ACCOUNTABILITY.

    ``(a) States.--Each State that receives funds under this part shall 
submit a report to the Secretary every three years, beginning with 
fiscal year 1997, on the State's progress toward the performance 
indicators identified in such State's plan, as well as on the 
effectiveness of State and local activities assisted under this part.
    ``(b) Local Educational Agencies.--Each local educational agency 
that receives funds under this part shall submit a report to the State 
every three years, beginning with fiscal year 1997, regarding the 
progress of such agency toward performance indicators identified in 
such agency's local plan, as well as on the effectiveness of such 
agency's activities under this part.
    ``(c) Federal Evaluation.--The Secretary shall report to the 
President and the Congress on the effectiveness of programs and 
activities assisted under this part in accordance with section 14701.
    ``(d) Prohibition on Funds Being Used for Construction or 
Renovation.--Funds received under this part shall not be used for 
construction or renovation of buildings, rooms, or any other 
facilities.

``SEC. 2402. DEFINITIONS.

    ``As used in this part--
        ``(1) the term `core academic subjects' means those subjects 
    listed in the State plan under title III of the Goals 2000: Educate 
    America Act or under the third National Education Goal as set forth 
    in section 102(3) of such Act;
        ``(2) the term `performance indicators' means measures of 
    specific outcomes that the State or local educational agency 
    identifies as assessing progress toward the goal of ensuring that 
    all teachers have the knowledge and skills necessary to assist 
    their students to meet challenging State content standards and 
    challenging State student performance standards in the core 
    academic subjects, such as--
            ``(A) the degree to which licensure requirements are tied 
        to challenging State content standards and challenging State 
        student performance standards;
            ``(B) specific increases in the number of elementary and 
        secondary teachers with strong content backgrounds in the core 
        academic subjects;
            ``(C) incorporating effective strategies, techniques, 
        methods, and practices for meeting the educational needs of 
        diverse students, including females, minorities, individuals 
        with disabilities, limited English proficient individuals, and 
        economically disadvantaged individuals, in order to ensure that 
        all students have the opportunity to achieve challenging 
        student performance standards;
            ``(D) specific increases in the number of teachers who are 
        certified by the National Board for Professional Teaching 
        Standards or other nationally recognized professional teacher 
        enhancement organizations; and
            ``(E) specific increases in the number of teachers licensed 
        in each core academic subject;
        ``(3) the term `sustained and intensive high-quality 
    professional development' means professional development activities 
    that--
            ``(A) are tied to challenging State content standards, 
        challenging State student performance standards, voluntary 
        national content standards or voluntary national student 
        performance standards;
            ``(B) reflect up-to-date research in teaching and learning 
        and include integrated content and pedagogical components 
        appropriate for students with diverse learning needs;
            ``(C) incorporate effective strategies, techniques, 
        methods, and practices for meeting the educational needs of 
        diverse students, including females, minorities, individuals 
        with disabilities, limited English proficient individuals, and 
        economically disadvantaged individuals, in order to ensure that 
        all students have the opportunity to achieve challenging 
        student performance standards;
            ``(D) are of sufficient intensity and duration to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom or the administrator's performance on the job; and
            ``(E) recognize teachers as an important source of 
        knowledge that should inform and help shape professional 
        development; and
        ``(4) the term `local', when used with respect to standards, 
    means challenging content and student performance standards in the 
    core academic subjects (in addition to challenging State content 
    and student performance standards approved by the State for title 
    I).

                 ``TITLE III--TECHNOLOGY FOR EDUCATION

``SEC. 3101. SHORT TITLE.

    ``This title may be cited as the `Technology for Education Act of 
1994'.

           ``PART A--TECHNOLOGY FOR EDUCATION OF ALL STUDENTS

``SEC. 3111. FINDINGS.

    ``The Congress finds that--
        ``(1) technology can produce far greater opportunities for all 
    students to learn to high standards, promote efficiency and 
    effectiveness in education, and help propel our Nation's school 
    systems into very immediate and dramatic reform, without which our 
    Nation will not meet the National Education Goals by the target 
    year 2000;
        ``(2) the use of technology as a tool in the teaching and 
    learning process is essential to the development and maintenance of 
    a technologically literate citizenry and an internationally 
    competitive workforce;
        ``(3) the acquisition and use of technology in education 
    throughout the United States has been inhibited by--
            ``(A) the absence of Federal leadership;
            ``(B) the inability of many State and local educational 
        agencies to invest in and support needed technologies;
            ``(C) the limited exposure of students and teachers to the 
        power of technology as a cost-effective tool to improve student 
        learning and achievement;
            ``(D) the lack of appropriate electrical and telephone 
        connections in the classroom; and
            ``(E) the limited availability of appropriate technology-
        enhanced curriculum, instruction, professional development, and 
        administrative support resources and services in the 
        educational marketplace;
        ``(4) policies at the Federal, State, and local levels 
    concerning technology in education must address disparities in the 
    availability of technology to different groups of students, give 
    priority to serving students in greatest need, and recognize that 
    educational telecommunications and technology can address 
    educational equalization concerns and school restructuring needs by 
    providing universal access to high-quality teaching and programs, 
    particularly in urban and rural areas;
        ``(5) the increasing use of new technologies and 
    telecommunications systems in business has increased the gap 
    between schooling and work force preparation, and underscores the 
    need for technology policies at the Federal, State, tribal, and 
    local levels that address preparation for school-to-work 
    transitions;
        ``(6) technology can enhance the ongoing professional 
    development of teachers and administrators by providing constant 
    access to updated research in teaching and learning by means of 
    telecommunications, and, through exposure to technology 
    advancements, keep teachers and administrators excited and 
    knowledgeable about unfolding opportunities for the classroom;
        ``(7) planned and creative uses of technology, combined with 
    teachers adequately trained in the use of technology, can reshape 
    our Nation's traditional method of providing education and empower 
    teachers to create an environment in which students are challenged 
    through rigorous, rich classroom instruction provided at a pace 
    suited to each student's learning style, and in which students have 
    increased opportunities to develop higher order thinking and 
    technical skills;
        ``(8) schools need new ways of financing the acquisition and 
    maintenance of educational technology;
        ``(9) the needs for educational technology differ from State to 
    State;
        ``(10) technology can provide students, parents, teachers, 
    other education professionals, communities, and industry with 
    increased opportunities for partnerships and with increased access 
    to information, instruction, and educational services in schools 
    and other settings, including homes, libraries, preschool and 
    child-care facilities, adult and family education programs, and 
    postsecondary institutions;
        ``(11) the Department, consistent with the overall national 
    technology policy established by the President, must assume a vital 
    leadership and coordinating role in developing the national vision 
    and strategy to infuse advanced technology throughout all 
    educational programs;
        ``(12) Federal support can ease the burden at the State and 
    local levels by enabling the acquisition of advanced technology and 
    initiating the development of teacher training and support as well 
    as new educational products;
        ``(13) leadership at the Federal level should consider 
    guidelines to ensure that educational technology is accessible to 
    all users with maximum interoperability nationwide;
        ``(14) the rapidly changing nature of technology requires 
    coordination and flexibility in Federal leadership; and
        ``(15) technology has the potential to assist and support the 
    improvement of teaching and learning in schools and other settings.

``SEC. 3112. STATEMENT OF PURPOSE.

    ``The purpose of this part is to support a comprehensive system for 
the acquisition and use by elementary and secondary schools in the 
United States of technology and technology-enhanced curricula, 
instruction, and administrative support resources and services to 
improve the delivery of educational services. Such system shall 
include--
        ``(1) national leadership with respect to the need for, and the 
    provision of, appropriate technology-enhanced curriculum, 
    instruction, and administrative programs to improve learning in the 
    United States, and to promote equal access for all students to 
    educational opportunities in order to achieve the National 
    Education Goals by the year 2000;
        ``(2) funding mechanisms which will support the development, 
    interconnection, implementation, improvement, and maintenance of an 
    effective educational technology infrastructure, including 
    activities undertaken by State and local educational agencies to 
    promote and provide equipment, training for teachers and school 
    library and media personnel, and technical support;
        ``(3) support for technical assistance, professional 
    development, information and resource dissemination, in order to 
    help States, local educational agencies, teachers, school library 
    and media personnel, and administrators successfully integrate 
    technology into kindergarten through 12th grade classrooms and 
    library media centers;
        ``(4) support for the development of educational and 
    instructional programming in core subject areas, which shall 
    address the National Education Goals;
        ``(5) strengthening and building upon, but not duplicating, 
    existing telecommunications infrastructures dedicated to 
    educational purposes;
        ``(6) development and evaluation of new and emerging 
    educational technologies, telecommunications networks, and state-
    of-the-art educational technology products that promote the use of 
    advanced technologies in the classroom and school library media 
    center;
        ``(7) assessment data regarding state-of-the-art uses of 
    technologies in United States education upon which commercial and 
    noncommercial telecommunications entities, and governments can rely 
    for decisionmaking about the need for, and provision of, 
    appropriate technologies for education in the United States;
        ``(8) ensuring that uses of educational technology are 
    consistent with the overall national technology policy established 
    by the President, and ensuring that Federal technology-related 
    policies and programs will facilitate the use of technology in 
    education;
        ``(9) ensuring that activities supported under this part will 
    form the basis for sound State and local decisions about investing 
    in, sustaining, and expanding uses of technology in education;
        ``(10) establishing working guidelines to ensure maximum 
    interoperability nationwide and ease of access for the emerging 
    technologies so that no school system will be excluded from the 
    technological revolution;
        ``(11) ensuring that, as technological advances are made, the 
    educational uses of these advances are considered and their 
    applications are developed; and
        ``(12) encouragement of collaborative relationships among the 
    State agency for higher education, the State library administrative 
    agency, the State telecommunications agency, and the State 
    educational agency, in the area of technology support to strengthen 
    the system of education.

``SEC. 3113. DEFINITIONS.

    ``For purposes of this title--
        ``(1) the term `adult education' has the same meaning given 
    such term by section 312 of the Adult Education Act;
        ``(2) the term `all students' means students from a broad range 
    of backgrounds and circumstances, including disadvantaged students, 
    students with diverse racial, ethnic, and cultural backgrounds, 
    students with disabilities, students with limited English 
    proficiency, students who have dropped out of school, and 
    academically talented students;
        ``(3) the term `information infrastructure' means a network of 
    communication systems designed to exchange information among all 
    citizens and residents of the United States;
        ``(4) the term `instructional programming' means the full range 
    of audio and video data, text, graphics, or additional state-of-
    the-art communications, including multimedia based resources 
    distributed through interactive, command and control, or passive 
    methods for the purpose of education and instruction;
        ``(5) the terms `interoperable' and `interoperability' mean the 
    ability to exchange easily data with, and connect to, other 
    hardware and software in order to provide the greatest 
    accessibility for all students and other users;
        ``(6) the term `Office' means the Office of Educational 
    Technology;
        ``(7) the term `public telecommunications entity' has the same 
    meaning given to such term by section 397(12) of the Communications 
    Act of 1934;
        ``(8) the term `regional educational laboratory' means a 
    regional educational laboratory supported under section 941(h) of 
    the Educational, Research, Development, Dissemination, and 
    Improvement Act of 1994;
        ``(9) the term `State educational agency' includes the Bureau 
    of Indian Affairs for purposes of serving schools funded by the 
    Bureau of Indian Affairs in accordance with this part;
        ``(10) the term `State library administrative agency' has the 
    same meaning given to such term in section 3 of the Library 
    Services and Construction Act; and
        ``(11) the term `technology' means state-of-the-art technology 
    products and services, such as closed circuit television systems, 
    educational television and radio programs and services, cable 
    television, satellite, copper and fiber optic transmission, 
    computer hardware and software, video and audio laser and CD-ROM 
    discs, and video and audio tapes.

``SEC. 3114. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

    ``(a) Authorization of Appropriations.--
        ``(1) Subparts 1, 2, and 3.--There are authorized to be 
    appropriated $200,000,000 for fiscal year 1995 and such sums as may 
    be necessary for each of the four succeeding fiscal years to carry 
    out subparts 1, 2, and 3, of which--
            ``(A)(i) $3,000,000 shall be available to carry out subpart 
        1 (National Programs for Technology in Education) for any such 
        year for which the amount appropriated under this subsection is 
        less than $75,000,000; and
            ``(ii) $5,000,000 shall be available to carry out subpart 1 
        for any such year for which the amount appropriated under this 
        subsection is equal to or greater than $75,000,000;
            ``(B) $10,000,000 shall be available to carry out subpart 3 
        (Regional Technical Support and Professional Development) for 
        each such year; and
            ``(C) the remainder shall be available to carry out subpart 
        2 (State and Local Programs for School Technology Resources) 
        for each such year.
        ``(2) Subpart 4.--For the purpose of carrying out subpart 4, 
    there are authorized to be appropriated $50,000,000 for fiscal year 
    1995 and such sums as may be necessary for each of the four 
    succeeding fiscal years.
    ``(b) Funding Rule.--
        ``(1) Appropriations of less than $75,000,000.--For any fiscal 
    year for which the amount appropriated under subsection (a)(1) is 
    less than $75,000,000, from the remainder of funds made available 
    under subsection (a)(1)(C) the Secretary shall award grants for the 
    National Challenge Grants in accordance with section 3136.
        ``(2) Appropriations equal to or greater than $75,000,000.--For 
    any fiscal year for which the amount appropriated under subsection 
    (a)(1) is equal to or greater than $75,000,000, from the remainder 
    of funds made available under subsection (a)(1)(C) the Secretary 
    shall award grants to State educational agencies from allotments 
    under section 3131, except that the Secretary may reserve, from 
    such remainder, such funds as the Secretary determines necessary to 
    meet outstanding obligations for such fiscal year to continue the 
    National Challenge Grants for Technology awarded under section 
    3136.

``SEC. 3115. LIMITATION ON COSTS.

    ``Not more than 5 percent of the funds under this part that are 
made available to a recipient of funds under this part for any fiscal 
year may be used by such recipient for administrative costs or 
technical assistance.

       ``Subpart 1--National Programs for Technology in Education

``SEC. 3121. NATIONAL LONG-RANGE TECHNOLOGY PLAN.

    ``(a) In General.--The Secretary shall develop and publish not 
later than 12 months after the date of the enactment of the Improving 
America's Schools Act of 1994, and update when the Secretary determines 
appropriate, a national long-range plan that supports the overall 
national technology policy and carries out the purposes of this part.
    ``(b) Plan Requirements.--The Secretary shall--
        ``(1) develop the national long-range plan in consultation with 
    other Federal departments or agencies, State and local education 
    practitioners and policymakers, experts in technology and the 
    applications of technology to education, representatives of 
    distance learning consortia, representatives of telecommunications 
    partnerships receiving assistance under the Star Schools Act, and 
    providers of technology services and products;
        ``(2) transmit such plan to the President and to the 
    appropriate committees of the Congress; and
        ``(3) publish such plan in a form that is readily accessible to 
    the public.
    ``(c) Contents of the Plan.--The national long-range plan shall 
describe the Secretary's activities to promote the purposes of this 
title, including--
        ``(1) how the Secretary will encourage the effective use of 
    technology to provide all students the opportunity to achieve State 
    content standards and State student performance standards, 
    especially through programs administered by the Department;
        ``(2) joint activities in support of the overall national 
    technology policy with other Federal departments or agencies, such 
    as the Office of Science and Technology Policy, the National 
    Endowment for the Humanities, the National Endowment for the Arts, 
    the National Institute for Literacy, the National Aeronautics and 
    Space Administration, the National Science Foundation, the Bureau 
    of Indian Affairs, and the Departments of Commerce, Energy, Health 
    and Human Services, and Labor--
            ``(A) to promote the use of technology in education, 
        training, and lifelong learning, including plans for the 
        educational uses of a national information infrastructure; and
            ``(B) to ensure that the policies and programs of such 
        departments or agencies facilitate the use of technology for 
        educational purposes, to the extent feasible;
        ``(3) how the Secretary will work with educators, State and 
    local educational agencies, and appropriate representatives of the 
    private sector to facilitate the effective use of technology in 
    education;
        ``(4) how the Secretary will promote--
            ``(A) higher achievement of all students through the 
        integration of technology into the curriculum;
            ``(B) increased access to the benefits of technology for 
        teaching and learning for schools with a high number or 
        percentage of children from low-income families;
            ``(C) the use of technology to assist in the implementation 
        of State systemic reform strategies;
            ``(D) the application of technological advances to use in 
        education;
            ``(E) increased access to high quality adult and family 
        education services through the use of technology for 
        instruction and professional development; and
            ``(F) increased opportunities for the professional 
        development of teachers in the use of new technologies;
        ``(5) how the Secretary will determine, in consultation with 
    appropriate individuals, organizations, industries, and agencies, 
    the feasibility and desirability of establishing guidelines to 
    facilitate an easy exchange of data and effective use of technology 
    in education;
        ``(6) how the Secretary will promote the exchange of 
    information among States, local educational agencies, schools, 
    consortia, and other entities concerning the effective use of 
    technology in education;
        ``(7) how the Secretary will utilize the outcomes of the 
    evaluation undertaken pursuant to section 3123 to promote the 
    purposes of this part; and
        ``(8) the Secretary's long-range measurable goals and 
    objectives relating to the purposes of this part.

``SEC. 3122. FEDERAL LEADERSHIP.

    ``(a) Program Authorized.--In order to provide Federal leadership 
in promoting the use of technology in education, the Secretary, in 
consultation with the National Science Foundation, the Department of 
Commerce, the United States National Commission on Libraries and 
Information Sciences, and other appropriate Federal agencies, may carry 
out activities designed to achieve the purposes of this part directly 
or by awarding grants or contracts competitively and pursuant to a peer 
review process to, or entering into contracts with, State educational 
agencies, local educational agencies, institutions of higher education, 
or other public and private nonprofit or for-profit agencies and 
organizations.
    ``(b) Assistance.--
        ``(1) In general.--The Secretary shall provide assistance to 
    the States to enable such States to plan effectively for the use of 
    technology in all schools throughout the State in accordance with 
    the purpose and requirements of section 317 of the Goals 2000: 
    Educate America Act.
        ``(2) Other federal agencies.--For the purpose of carrying out 
    coordinated or joint activities consistent with the purposes of 
    this part, the Secretary may accept funds from, and transfer funds 
    to, other Federal agencies.
    ``(c) Uses of Funds.--The Secretary shall use funds made available 
to carry out this section for activities designed to carry out the 
purpose of this part, such as--
        ``(1) providing assistance to technical assistance providers to 
    enable such providers to improve substantially the services such 
    providers offer to educators regarding the uses of technology for 
    education, including professional development;
        ``(2) providing development grants to technical assistance 
    providers, to enable such providers to improve substantially the 
    services such providers offer to educators on the educational uses 
    of technology, including professional development;
        ``(3) consulting with representatives of industry, elementary 
    and secondary education, higher education, adult and family 
    education, and appropriate experts in technology and educational 
    applications of technology in carrying out activities under this 
    subpart;
        ``(4) research on, and the development of, guidelines to 
    facilitate maximum interoperability, efficiency and easy exchange 
    of data for effective use of technology in education;
        ``(5) research on, and the development of, applications for 
    education of the most advanced and newly emerging technologies 
    which research shall be coordinated, when appropriate, with the 
    Office of Educational Research and Improvement, and other Federal 
    agencies;
        ``(6) the development, demonstration, and evaluation of the 
    educational aspects of high performance computing and 
    communications technologies and of the national information 
    infrastructure, in providing professional development for teachers, 
    school librarians, and other educators; enriching academic 
    curricula for elementary and secondary schools; facilitating 
    communications among schools, local educational agencies, 
    libraries, parents, and local communities and in other such areas 
    as the Secretary deems appropriate;
        ``(7) the development, demonstration, and evaluation of 
    applications of existing technology in preschool education, 
    elementary and secondary education, training and lifelong learning, 
    and professional development of educational personnel;
        ``(8) the development and evaluation of software and other 
    products, including multimedia television programming, that 
    incorporate advances in technology and help achieve the National 
    Education Goals, State content standards and State student 
    performance standards;
        ``(9) the development, demonstration, and evaluation of model 
    strategies for preparing teachers and other personnel to use 
    technology effectively to improve teaching and learning;
        ``(10) the development of model programs that demonstrate the 
    educational effectiveness of technology in urban and rural areas 
    and economically distressed communities;
        ``(11) research on, and the evaluation of, the effectiveness 
    and benefits of technology in education;
        ``(12) a biennial assessment of, and report to the public 
    regarding, the uses of technology in elementary and secondary 
    education throughout the United States upon which private 
    businesses and Federal, State, tribal, and local governments may 
    rely for decisionmaking about the need for, and provision of, 
    appropriate technologies in schools, which assessment and report 
    shall use, to the extent possible, existing information and 
    resources;
        ``(13) conferences on, and dissemination of information 
    regarding, the uses of technology in education;
        ``(14) the development of model strategies to promote gender 
    equity concerning access to, and the use of, technology in the 
    classroom;
        ``(15) encouraging collaboration between the Department and 
    other Federal agencies in the development, implementation, 
    evaluation and funding of applications of technology for education, 
    as appropriate; and
        ``(16) such other activities as the Secretary determines will 
    meet the purposes of this subpart.
    ``(d) 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 section to share in the cost of the activities assisted under 
    such grant or contract, which non-Federal share shall be announced 
    through a notice in the Federal Register and may be in the form of 
    cash or in-kind contributions, fairly valued.
        ``(2) Increase.--The Secretary may increase the non-Federal 
    share that is required of a recipient of a grant or contract under 
    this section after the first year such recipient receives funds 
    under such grant or contract.
        ``(3) Maximum.--The non-Federal share required under this 
    section shall not exceed 50 percent of the cost of the activities 
    assisted pursuant to a grant or contract under this section.

``SEC. 3123. STUDY, EVALUATION AND REPORT OF FUNDING ALTERNATIVES.

    ``The Secretary, through the Office of Educational Technology, 
shall conduct a study to evaluate, and report to the Congress on, the 
feasibility of several alternative models for providing sustained and 
adequate funding for schools throughout the United States so that such 
schools are able to acquire and maintain technology-enhanced 
curriculum, instruction, and administrative support resources and 
services. Such report shall be submitted to the Congress not later than 
one year after the date of enactment of the Improving America's Schools 
Act of 1994.

 ``Subpart 2--State and Local Programs for School Technology Resources

``SEC. 3131. ALLOTMENT AND REALLOTMENT.

    ``(a) Allotment.--
        ``(1) In general.--Except as provided in paragraph (2), each 
    State educational agency shall be eligible to receive a grant under 
    this subpart for a fiscal year in an amount which bears the same 
    relationship to the amount made available under section 
    3114(a)(1)(C) for such year as the amount such State received under 
    part A of title I for such year bears to the amount received for 
    such year under such part by all States.
        ``(2) Minimum.--No State educational agency shall be eligible 
    to receive a grant under paragraph (1) in any fiscal year in an 
    amount which is less than one-half of one percent of the amount 
    made available under section 3115(a)(1)(C) for such year.
    ``(b) Reallotment of Unused Funds.--
        ``(1) In general.--The amount of any State educational agency's 
    allotment under subsection (a) for any fiscal year which the 
    Secretary determines will not be required for such fiscal year to 
    carry out this subpart shall be available for reallotment from time 
    to time, on such dates during such year as the Secretary may 
    determine, to other State educational agencies in proportion to the 
    original allotments to such State educational agencies under 
    subsection (a) for such year, but with such proportionate amount 
    for any of such other State educational agencies being reduced to 
    the extent such amount exceeds the sum the Secretary estimates such 
    State needs and will be able to use for such year.
        ``(2) Other reallotments.--The total of reductions under 
    paragraph (1) shall be similarly reallotted among the State 
    educational agencies whose proportionate amounts were not so 
    reduced. Any amounts reallotted to a State educational agency under 
    this subsection during a year shall be deemed a subpart of such 
    agencies allotment under subsection (a) for such year.

``SEC. 3132. SCHOOL TECHNOLOGY RESOURCE GRANTS.

    ``(a) Grants to States.--
        ``(1) In general.--From amounts made available under section 
    3131, the Secretary, through the Office of Educational Technology, 
    shall award grants to State educational agencies having 
    applications approved under section 3133.
        ``(2) Use of grants.--(A) Each State educational agency 
    receiving a grant under paragraph (1) shall use such grant funds to 
    award grants, on a competitive basis, to local educational agencies 
    to enable such local educational agencies to carry out the 
    activities described in section 3134.
        ``(B) In awarding grants under subparagraph (A), each State 
    educational agency shall ensure that each such grant is of 
    sufficient duration, and of sufficient size, scope, and quality, to 
    carry out the purposes of this part effectively.
    ``(b) Technical Assistance.--Each State educational agency 
receiving a grant under paragraph (1) shall--
        ``(1) identify the local educational agencies served by the 
    State educational agency that--
            ``(A) have the highest number or percentage of children in 
        poverty; and
            ``(B) demonstrate to such State educational agency the 
        greatest need for technical assistance in developing the 
        application under section 3133; and
        ``(2) offer such technical assistance to such local educational 
    agencies.

``SEC. 3133. STATE APPLICATION.

    ``To receive funds under this subpart, each State educational 
agency shall submit a statewide educational technology plan which may 
include plans submitted under the Goals 2000: Educate America Act or 
other statewide technology plans which meet the requirements of this 
section. Such application shall be submitted to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require. Each such application shall contain a 
systemic statewide plan that--
        ``(1) outlines long-term strategies for financing technology 
    education in the State and describes how business, industry, and 
    other public and private agencies, including libraries, library 
    literacy programs, and institutions of higher education, can 
    participate in the implementation, ongoing planning, and support of 
    the plan; and
        ``(2) meets such other criteria as the Secretary may establish 
    in order to enable such agency to provide assistance to local 
    educational agencies that have the highest numbers or percentages 
    of children in poverty and demonstrate the greatest need for 
    technology, in order to enable such local educational agencies, for 
    the benefit of school sites served by such local educational 
    agencies, to carry out activities such as--
            ``(A) purchasing quality technology resources;
            ``(B) installing various linkages necessary to acquire 
        connectivity;
            ``(C) integrating technology into the curriculum in order 
        to improve student learning and achievement;
            ``(D) providing teachers and library media personnel with 
        training or access to training;
            ``(E) providing administrative and technical support and 
        services that improve student learning through enriched 
        technology-enhanced resources, including library media 
        resources;
            ``(F) promoting in individual schools the sharing, 
        distribution, and application of educational technologies with 
        demonstrated effectiveness;
            ``(G) assisting schools in promoting parent involvement;
            ``(H) assisting the community in providing literacy-related 
        services;
            ``(I) establishing partnerships with private or public 
        educational providers or other entities to serve the needs of 
        children in poverty; and
            ``(J) providing assurances that financial assistance 
        provided under this part shall supplement, not supplant, State 
        and local funds.

``SEC. 3134. LOCAL USES OF FUNDS.

    ``Each local educational agency, to the extent possible, shall use 
the funds made available under section 3132(a)(2) for--
        ``(1) developing, adapting, or expanding existing and new 
    applications of technology to support the school reform effort;
        ``(2) funding projects of sufficient size and scope to improve 
    student learning and, as appropriate, support professional 
    development, and provide administrative support;
        ``(3) acquiring connectivity linkages, resources, and services, 
    including the acquisition of hardware and software, for use by 
    teachers, students and school library media personnel in the 
    classroom or in school library media centers, in order to improve 
    student learning by supporting the instructional program offered by 
    such agency to ensure that students in schools will have meaningful 
    access on a regular basis to such linkages, resources and services;
        ``(4) providing ongoing professional development in the 
    integration of quality educational technologies into school 
    curriculum and long-term planning for implementing educational 
    technologies;
        ``(5) acquiring connectivity with wide area networks for 
    purposes of accessing information and educational programming 
    sources, particularly with institutions of higher education and 
    public libraries; and
        ``(6) providing educational services for adults and families.

``SEC. 3135. LOCAL APPLICATIONS.

    ``Each local educational agency desiring assistance from a State 
educational agency under section 3132(a)(2) shall submit an 
application, consistent with the objectives of the systemic statewide 
plan, to the State educational agency at such time, in such manner and 
accompanied by such information as the State educational agency may 
reasonably require. Such application, at a minimum, shall--
        ``(1) include a strategic, long-range (three- to five-year), 
    plan that includes--
            ``(A) a description of the type of technologies to be 
        acquired, including specific provisions for interoperability 
        among components of such technologies and, to the extent 
        practicable, with existing technologies;
            ``(B) an explanation of how the acquired technologies will 
        be integrated into the curriculum to help the local educational 
        agency enhance teaching, training, and student achievement;
            ``(C) an explanation of how programs will be developed in 
        collaboration with existing adult literacy services providers 
        to maximize the use of such technologies;
            ``(D)(i) a description of how the local educational agency 
        will ensure ongoing, sustained professional development for 
        teachers, administrators, and school library media personnel 
        served by the local educational agency to further the use of 
        technology in the classroom or library media center; and
            ``(ii) a list of the source or sources of ongoing training 
        and technical assistance available to schools, teachers and 
        administrators served by the local educational agency, such as 
        State technology offices, intermediate educational support 
        units, regional educational laboratories or institutions of 
        higher education;
            ``(E) a description of the supporting resources, such as 
        services, software and print resources, which will be acquired 
        to ensure successful and effective use of technologies acquired 
        under this section;
            ``(F) the projected timetable for implementing such plan in 
        schools;
            ``(G) the projected cost of technologies to be acquired and 
        related expenses needed to implement such plan; and
            ``(H) a description of how the local educational agency 
        will coordinate the technology provided pursuant to this 
        subpart with other grant funds available for technology from 
        State and local sources;
        ``(2) describe how the local educational agency will involve 
    parents, public libraries, business leaders and community leaders 
    in the development of such plan;
        ``(3) describe how the acquired instructionally based 
    technologies will help the local educational agency--
            ``(A) promote equity in education in order to support State 
        content standards and State student performance standards that 
        may be developed; and
            ``(B) provide access for teachers, parents and students to 
        the best teaching practices and curriculum resources through 
        technology; and
        ``(4) describe a process for the ongoing evaluation of how 
    technologies acquired under this section--
            ``(A) will be integrated into the school curriculum; and
            ``(B) will affect student achievement and progress toward 
        meeting the National Education Goals and any challenging State 
        content standards and State student performance standards that 
        may be developed.
    ``(d) Formation of Consortia.--A local educational agency for any 
fiscal year may apply for financial assistance as part of a consortium 
with other local educational agencies, institutions of higher 
education, intermediate educational units, libraries, or other 
educational entities appropriate to provide local programs. The State 
educational agency may assist in the formation of consortia among local 
educational agencies, providers of educational services for adults and 
families, institutions of higher education, intermediate educational 
units, libraries, or other appropriate educational entities to provide 
services for the teachers and students in a local educational agency at 
the request of such local educational agency.
    ``(e) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance under this 
section has developed a comprehensive education improvement plan, in 
conjunction with requirements under this Act or the Goals 2000: Educate 
America Act, the State educational agency may approve such plan, or a 
component of such plan, notwithstanding the requirements of subsection 
(e) if the State educational agency determines that such approval would 
further the purposes of this subpart.

``SEC. 3136. NATIONAL CHALLENGE GRANTS FOR TECHNOLOGY IN EDUCATION.

    ``(a) Grants Authorized.--
        ``(1) In general.--From amounts made available under section 
    3115(b)(1) for any fiscal year the Secretary is authorized to award 
    grants, on a competitive basis, to consortia having applications 
    approved under subsection (d), which consortia shall include at 
    least one local educational agency with a high percentage or number 
    of children living below the poverty line and may include other 
    local educational agencies, State educational agencies, 
    institutions of higher education, businesses, academic content 
    experts, software designers, museums, libraries, or other 
    appropriate entities.
        ``(2) Duration.--Grants under this section shall be awarded for 
    a period of 5 years.
    ``(b) Use of Grants.--Grants awarded under subsection (a) shall be 
used for activities similar to the activities described in section 
3134.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to consortia which demonstrate in the 
application submitted under subsection (d) that--
        ``(1) the project for which assistance is sought is designed to 
    serve areas with a high number or percentage of disadvantaged 
    students or the greatest need for educational technology;
        ``(2) the project will directly benefit students by, for 
    example, integrating the acquired technologies into curriculum to 
    help the local educational agency enhance teaching, training, and 
    student achievement;
        ``(3) the project will ensure ongoing, sustained professional 
    development for teachers, administrators, and school library media 
    personnel served by the local educational agency to further the use 
    of technology in the classroom or library media center;
        ``(4) the project will ensure successful, effective, and 
    sustainable use of technologies acquired under this subsection; and
        ``(5) members of the consortia or other appropriate entities 
    will contribute substantial financial and other resources to 
    achieve the goals of the project.
    ``(d) Application.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require.

``SEC. 3137. FEDERAL ADMINISTRATION.

    ``(a) Evaluation Procedures.--The Secretary shall develop 
procedures for State and local evaluations of the programs under this 
subpart.
    ``(b) Evaluation Summary.--The Secretary shall submit to the 
Congress four years after the enactment of the Improving America's 
Schools Act of 1994 a summary of the State evaluations of programs 
under this subpart in accordance with the provisions of section 14701.

   Subpart 3--Regional Technical Support and Professional Development

``SEC. 3141. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL DEVELOPMENT.
    ``(a) Grants Authorized.--
        ``(1) Authority.--The Secretary, through the Office of 
    Educational Technology, shall make grants in accordance with the 
    provisions of this section, to regional entities such as the 
    Eisenhower Mathematics and Science Regional Consortia under part C 
    of title XIII, the regional education laboratories, the 
    comprehensive regional assistance centers, or such other regional 
    entities as may be designated or established by the Secretary. In 
    awarding grants under this section, the Secretary shall give 
    priority to such consortia and shall ensure that each geographic 
    region of the United States shall be served by such a consortium.
        ``(2) Requirements.--Each consortium receiving a grant under 
    this section shall--
            ``(A) be composed of State educational agencies, 
        institutions of higher education, nonprofit organizations, or a 
        combination thereof;
            ``(B) in cooperation with State and local educational 
        agencies, develop a regional program that addresses 
        professional development, technical assistance, and information 
        resource dissemination, with special emphasis on meeting the 
        documented needs of educators and learners in the region; and
            ``(C) foster regional cooperation and resource and 
        coursework sharing.
    ``(b) Functions.--
        ``(1) Technical assistance.--Each consortium receiving a grant 
    under this section shall, to the extent practicable--
            ``(A) collaborate with State educational agencies and local 
        educational agencies requesting collaboration, particularly in 
        the development of strategies for assisting those schools with 
        the highest numbers or percentages of disadvantaged students 
        with little or no access to technology in the classroom;
            ``(B) provide information, in coordination with information 
        available from the Secretary, to State educational agencies, 
        local educational agencies, schools and adult education 
        programs, on the types and features of various educational 
        technology equipment and software available, evaluate and make 
        recommendations on equipment and software that support the 
        National Education Goals and are suited for a school's 
        particular needs, and compile and share information regarding 
        creative and effective applications of technology in the 
        classroom and school library media centers in order to support 
        the purposes of this part;
            ``(C) collaborate with such State educational agencies, 
        local educational agencies, or schools requesting to 
        participate in the tailoring of software programs and other 
        supporting materials to meet challenging State content 
        standards or challenging State student performance standards 
        that may be developed; and
            ``(D) provide technical assistance to facilitate use of the 
        electronic dissemination networks by State and local 
        educational agencies and schools throughout the region.
        ``(2) Professional development.--Each consortium receiving a 
    grant under this section shall, to the extent practicable--
            ``(A) develop and implement, in collaboration with State 
        educational agencies and institutions of higher education, 
        technology-specific, ongoing professional development, such 
        as--
                ``(i) intensive school year and summer workshops that 
            use teachers, school librarians, and school library 
            personnel to train other teachers, school librarians, and 
            other school library media personnel; and
                ``(ii) distance professional development, including--

                    ``(I) interactive training tele-courses using 
                researchers, educators, and telecommunications 
                personnel who have experience in developing, 
                implementing, or operating educational and 
                instructional technology as a learning tool;
                    ``(II) onsite courses teaching teachers to use 
                educational and instructional technology and to develop 
                their own instructional materials for effectively 
                incorporating technology and programming in their own 
                classrooms;
                    ``(III) methods for successful integration of 
                instructional technology into the curriculum in order 
                to improve student learning and achievement;
                    ``(IV) video conferences and seminars which offer 
                professional development through peer interaction with 
                experts as well as other teachers using technologies in 
                their classrooms; and
                    ``(V) mobile education technology and training 
                resources;

            ``(B) develop training resources that--
                ``(i) are relevant to the needs of the region and 
            schools within the region;
                ``(ii) are relevant to the needs of adult literacy 
            staff and volunteers, including onsite courses on how to--

                    ``(I) use instructional technology; and
                    ``(II) develop instructional materials for adult 
                learning; and

                ``(iii) are aligned with the needs of teachers and 
            administrators in the region;
            ``(C) establish a repository of professional development 
        and technical assistance resources;
            ``(D) identify and link technical assistance providers to 
        State and local educational agencies, as needed;
            ``(E) ensure that training, professional development, and 
        technical assistance meet the needs of educators, parents, and 
        students served by the region;
            ``(F) assist colleges and universities within the region to 
        develop and implement preservice training programs for students 
        enrolled in teacher education programs; and
            ``(G) assist local educational agencies and schools in 
        working with community members and parents to develop support 
        from communities and parents for educational technology 
        programs and projects.
        ``(3) Information and resource dissemination.--Each consortium 
    receiving a grant under this section shall, to the extent 
    practicable--
            ``(A) assist State and local educational agencies in the 
        identification and procurement of financial, technological and 
        human resources needed to implement technology plans;
            ``(B) provide outreach and, at the request of a State or 
        local educational agency, work with such agency to assist in 
        the development and validation of instructionally based 
        technology education resources; and
            ``(C) coordinate activities and establish partnerships with 
        organizations and institutions of higher education that 
        represent the interests of the region as such interests pertain 
        to the application of technology in teaching, learning, 
        instructional management, dissemination, collection and 
        distribution of educational statistics, and the transfer of 
        student information.
        ``(4) Coordination.--Each consortium receiving a grant under 
    this section shall work collaboratively, and coordinate the 
    services the consortium provides, with appropriate regional and 
    other entities assisted in whole or in part by the Department.

                    ``Subpart 4--Product Development

``SEC. 3151. EDUCATIONAL TECHNOLOGY PRODUCT DEVELOPMENT.

    ``(a) Purpose.--It is the purpose of this subpart to--
        ``(1) support development of curriculum-based learning 
    resources using state-of-the-art technologies and techniques 
    designed to improve student learning; and
        ``(2) support development of long-term comprehensive 
    instructional programming and associated support resources that 
    ensure maximum access by all educational institutions.
    ``(b) Federal Assistance Authorized.--
        ``(1) In general.--The Secretary shall provide assistance, on a 
    competitive basis, to eligible consortia to enable such entities to 
    develop, produce, and distribute state-of-the-art technology-
    enhanced instructional resources and programming for use in the 
    classroom or to support professional development for teachers.
        ``(2) Grants and loans authorized.--In carrying out the 
    purposes of this section, the Secretary is authorized to pay the 
    Federal share of the cost of the development, production, and 
    distribution of state-of-the-art technology enhanced instructional 
    resources and programming--
            ``(A) by awarding grants to, or entering into contracts or 
        cooperative agreements with, eligible consortia; or
            ``(B) by awarding loans to eligible consortia which--
                ``(i) shall be secured in such manner and be repaid 
            within such period, not exceeding 20 years, as may be 
            determined by the Secretary;
                ``(ii) shall bear interest at a rate determined by the 
            Secretary which shall be not more than the total of one-
            quarter of 1 percent per annum added to the rate of 
            interest paid by the Secretary on funds obtained from the 
            Secretary of the Treasury; and
                ``(iii) may be forgiven by the Secretary, in an amount 
            not to exceed 25 percent of the total loan, under such 
            terms and conditions as the Secretary may consider 
            appropriate.
        ``(3) Matching requirement.--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 
    non-Federal share shall be announced through a notice in the 
    Federal Register and may be in the form of cash or in-kind 
    contributions, fairly valued.
        ``(4) Eligible consortium.--For the purpose of this subsection, 
    the term `eligible consortium' means a consortium--
            ``(A) that shall include--
                ``(i) a State or local educational agency; and
                ``(ii) a business, industry, or telecommunications 
            entity; and
            ``(B) that may include--
                ``(i) a public or private nonprofit organization; or
                ``(ii) a postsecondary institution.
        ``(5) Priorities.--In awarding assistance under this section, 
    the Secretary shall give priority to applications describing 
    programs or systems that--
            ``(A) promote the acquisition of higher-order thinking 
        skills and promise to raise the achievement levels of all 
        students, particularly disadvantaged students who are not 
        realizing their potential;
            ``(B) are aligned with challenging State content standards 
        and State and local curriculum frameworks;
            ``(C) may be adapted and applied nationally at a reasonable 
        cost over a broad technology platform;
            ``(D) convert technology resources developed with support 
        from the Department of Defense and other Federal agencies for 
        effective use in the classroom;
            ``(E) show promise of reducing the costs of providing high-
        quality instruction;
            ``(F) show promise of expanding access to high-quality 
        instruction in content areas which would otherwise not be 
        available to students in rural and urban communities or who are 
        served by other educational agencies with limited financial 
        resources;
            ``(G) are developed in consultation with classroom 
        teachers;
            ``(H) are developed through consultation and collaboration 
        with appropriate education entities in designing the product to 
        ensure relevance to the voluntary national content standards, 
        the voluntary national student performance standards and State 
        curriculum frameworks; and
            ``(I) are developed so that the product can be adapted for 
        use by adults in need of literacy services, including English 
        as a second language and preparation for a secondary school 
        diploma or its recognized equivalent.
        ``(6) Requirements for federal assistance.--Each eligible 
    consortium desiring Federal assistance under this section shall 
    submit an application to the Secretary at such time and in such 
    manner as the Secretary may prescribe. Each application shall 
    include--
            ``(A) a description of how the product will improve the 
        achievement levels of students;
            ``(B) a description of how the activities assisted under 
        this section will promote professional development of teachers 
        and administrators in the uses and applications of the product, 
        including the development of training materials;
            ``(C) a description of design, development, field testing, 
        evaluation, and distribution of products, where appropriate;
            ``(D) an assurance that the product shall effectively serve 
        a significant number or percentage of economically 
        disadvantaged students;
            ``(E) plans for dissemination of products to a wide 
        audience of learners;
            ``(F) a description of how the product can be adapted for 
        use by students with disabilities including provisions for 
        closed captioning or descriptive video, where appropriate;
            ``(G) a description of how ownership and rights to the use 
        and marketing of any product developed by the consortium, 
        including intellectual property rights, will be allocated among 
        consortium participants; and
            ``(H) a description of the contributions, including 
        services and funds, to be made by each member of the 
        consortium, and how any revenues derived from the sale of any 
        product developed by the consortium shall be distributed.
    ``(c) Consumer Report.--The Secretary shall provide for the 
independent evaluation of products developed under this section and 
shall disseminate information about products developed pursuant to 
provisions of this section to State and local educational agencies, and 
other organizations or individuals that the Secretary determines to be 
appropriate, through print and electronic media that are accessible to 
the education community at large.
    ``(d) Proceeds.--The Secretary shall not prohibit an eligible 
consortium or any of the members of such consortium from receiving 
financial benefits from the distribution of any products resulting from 
the assistance received under this section. Notwithstanding any other 
provision of law, any profits or royalties received by a State 
educational agency, local educational agency, or other nonprofit member 
of an eligible consortium receiving assistance under this section shall 
be used to support further development of curriculum-based learning 
resources, services, and programming or to provide access to such 
products for a wider audience.

                     ``PART B--STAR SCHOOLS PROGRAM

``SEC. 3201. SHORT TITLE.

    ``This part may be cited as the `Star Schools Act'.

``SEC. 3202. FINDINGS.

    ``The Congress finds that--
        ``(1) the Star Schools program has helped to encourage the use 
    of distance learning strategies to serve multi-State regions 
    primarily by means of satellite and broadcast television;
        ``(2) in general, distance learning programs have been used 
    effectively to provide students in small, rural, and isolated 
    schools with courses and instruction, such as science and foreign 
    language instruction, that the local educational agency is not 
    otherwise able to provide; and
        ``(3) distance learning programs may also be used to--
            ``(A) provide students of all ages in all types of schools 
        and educational settings with greater access to high-quality 
        instruction in the full range of core academic subjects that 
        will enable such students to meet challenging, internationally 
        competitive, educational standards;
            ``(B) expand professional development opportunities for 
        teachers;
            ``(C) contribute to achievement of the National Education 
        Goals; and
            ``(D) expand learning opportunities for everyone.

``SEC. 3203. PURPOSE.

    ``It is the purpose of this part to encourage improved instruction 
in mathematics, science, and foreign languages as well as other 
subjects, such as literacy skills and vocational education, and to 
serve underserved populations, including the disadvantaged, illiterate, 
limited-English proficient, and individuals with disabilities, through 
a star schools program under which grants are made to eligible 
telecommunication partnerships to enable such partnerships to--
        ``(1) develop, construct, acquire, maintain and operate 
    telecommunications audio and visual facilities and equipment;
        ``(2) develop and acquire educational and instructional 
    programming; and
        ``(3) obtain technical assistance for the use of such 
    facilities and instructional programming.

``SEC. 3204. GRANTS AUTHORIZED.

    ``(a) Authority.--The Secretary, through the Office of Educational 
Technology, is authorized to make grants, in accordance with the 
provisions of this part, to eligible entities to pay the Federal share 
of the cost of--
        ``(1) the development, construction, acquisition, maintenance 
    and operation of telecommunications facilities and equipment;
        ``(2) the development and acquisition of live, interactive 
    instructional programming;
        ``(3) the development and acquisition of preservice and 
    inservice teacher training programs based on established research 
    regarding teacher-to-teacher mentoring, effective skill transfer, 
    and ongoing, in-class instruction;
        ``(4) the establishment of teleconferencing facilities and 
    resources for making interactive training available to teachers;
        ``(5) obtaining technical assistance; and
        ``(6) the coordination of the design and connectivity of 
    telecommunications networks to reach the greatest number of 
    schools.
    ``(b) Duration.--
        ``(1) In general.--The Secretary shall award grants pursuant to 
    subsection (a) for a period of 5 years.
        ``(2) Renewal.--Grants awarded pursuant to subsection (a) may 
    be renewed for one additional three-year period.
    ``(c) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated 
    $35,000,000 for fiscal year 1995, and such sums as may be necessary 
    for each of the four succeeding fiscal years, to carry out this 
    part.
        ``(2) Availability.--Funds appropriated pursuant to the 
    authority of subsection (a) shall remain available until expended.
    ``(d) Limitations.--
        ``(1) In general.--A grant under this section shall not 
    exceed--
            ``(A) five years in duration; and
            ``(B) $10,000,000 in any one fiscal year.
        ``(2) Instructional programming.--Not less than 25 percent of 
    the funds available to the Secretary in any fiscal year under this 
    part shall be used for the cost of instructional programming.
        ``(3) Special rule.--Not less than 50 percent of the funds 
    available in any fiscal year under this part shall be used for the 
    cost of facilities, equipment, teacher training or retraining, 
    technical assistance, or programming, for local educational 
    agencies which are eligible to receive assistance under part A of 
    title I.
    ``(e) Federal Share.--
        ``(1) In general.--The Federal share of the cost of projects 
    funded under this section shall not exceed--
            ``(A) 75 percent for the first and second years for which 
        an eligible telecommunications partnership receives a grant 
        under this part;
            ``(B) 60 percent for the third and fourth such years; and
            ``(C) 50 percent for the fifth such year.
        ``(2) Reduction or waiver.--The Secretary may reduce or waive 
    the requirement of the non-Federal share under paragraph (1) upon a 
    showing of financial hardship.
    ``(f) Authority To Accept Funds From Other Agencies.--The Secretary 
is authorized to accept funds from other Federal departments or 
agencies to carry out the purposes of this section, including funds for 
the purchase of equipment.
    ``(g) Coordination.--The Department, the National Science 
Foundation, the Department of Agriculture, the Department of Commerce, 
and any other Federal department or agency operating a 
telecommunications network for educational purposes, shall coordinate 
the activities assisted under this part with the activities of such 
department or agency relating to a telecommunications network for 
educational purposes.
    ``(h) Closed Captioning and Descriptive Video.--Each entity 
receiving funds under this part is encouraged to provide--
        ``(1) closed captioning of the verbal content of such program, 
    where appropriate, to be broadcast by way of line 21 of the 
    vertical blanking interval, or by way of comparable successor 
    technologies; and
        ``(2) descriptive video of the visual content of such program, 
    as appropriate.

``SEC. 3205. ELIGIBLE ENTITIES.

    ``(a) Eligible Entities.--
        ``(1) Required participation.--The Secretary may make a grant 
    under section 3204 to any eligible entity, if at least one local 
    educational agency is participating in the proposed project.
        ``(2) Eligible entity.--For the purpose of this part, the term 
    `eligible entity' may include--
            ``(A) a public agency or corporation established for the 
        purpose of developing and operating telecommunications networks 
        to enhance educational opportunities provided by educational 
        institutions, teacher training centers, and other entities, 
        except that any such agency or corporation shall represent the 
        interests of elementary and secondary schools that are eligible 
        to participate in the program under part A of title I; or
            ``(B) a partnership that will provide telecommunications 
        services and which includes 3 or more of the following 
        entities, at least 1 of which shall be an agency described in 
        clause (i) or (ii):
                ``(i) a local educational agency that serves a 
            significant number of elementary and secondary schools that 
            are eligible for assistance under part A of title I, or 
            elementary and secondary schools operated or funded for 
            Indian children by the Department of the Interior eligible 
            under section 1121(b)(2);
                ``(ii) a State educational agency;
                ``(iii) adult and family education programs;
                ``(iv) an institution of higher education or a State 
            higher education agency;
                ``(v) a teacher training center or academy that--

                    ``(I) provides teacher pre-service and in-service 
                training; and
                    ``(II) receives Federal financial assistance or has 
                been approved by a State agency;

                ``(vi) (I) a public or private entity with experience 
            and expertise in the planning and operation of a 
            telecommunications network, including entities involved in 
            telecommunications through satellite, cable, telephone, or 
            computer; or
                ``(II) a public broadcasting entity with such 
            experience; or
                ``(vii) a public or private elementary or secondary 
            school.
    ``(b) Special Rule.--An eligible entity receiving assistance under 
this part shall be organized on a statewide or multistate basis.

``SEC. 3206. APPLICATIONS.

    ``(a) Applications Required.--Each eligible entity which desires to 
receive a grant under section 3204 shall submit an application to the 
Secretary, at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require.
    ``(b) Star School Award Applications.--Each application submitted 
pursuant to subsection (a) shall--
        ``(1) describe how the proposed project will assist in 
    achieving the National Education Goals, how such project will 
    assist all students to have an opportunity to learn to challenging 
    State standards, how such project will assist State and local 
    educational reform efforts, and how such project will contribute to 
    creating a high quality system of lifelong learning;
        ``(2) describe the telecommunications facilities and equipment 
    and technical assistance for which assistance is sought, which may 
    include--
            ``(A) the design, development, construction, acquisition, 
        maintenance and operation of State or multistate educational 
        telecommunications networks and technology resource centers;
            ``(B) microwave, fiber optics, cable, and satellite 
        transmission equipment or any combination thereof;
            ``(C) reception facilities;
            ``(D) satellite time;
            ``(E) production facilities;
            ``(F) other telecommunications equipment capable of serving 
        a wide geographic area;
            ``(G) the provision of training services to instructors who 
        will be using the facilities and equipment for which assistance 
        is sought, including training in using such facilities and 
        equipment and training in integrating programs into the 
        classroom curriculum; and
            ``(H) the development of educational and related 
        programming for use on a telecommunications network;
        ``(3) in the case of an application for assistance for 
    instructional programming, describe the types of programming which 
    will be developed to enhance instruction and training and provide 
    assurances that such programming will be designed in consultation 
    with professionals (including classroom teachers) who are experts 
    in the applicable subject matter and grade level;
        ``(4) describe how the eligible entity has engaged in 
    sufficient survey and analysis of the area to be served to ensure 
    that the services offered by the eligible entity will increase the 
    availability of courses of instruction in English, mathematics, 
    science, foreign languages, arts, history, geography, or other 
    disciplines;
        ``(5) describe the professional development policies for 
    teachers and other school personnel to be implemented to ensure the 
    effective use of the telecommunications facilities and equipment 
    for which assistance is sought;
        ``(6) describe the manner in which historically underserved 
    students (such as students from low-income families, limited 
    English proficient students, students with disabilities, or 
    students who have low literacy skills) and their families, will 
    participate in the benefits of the telecommunications facilities, 
    equipment, technical assistance, and programming assisted under 
    this part;
        ``(7) describe how existing telecommunications equipment, 
    facilities, and services, where available, will be used;
        ``(8) provide assurances that the financial interest of the 
    United States in the telecommunications facilities and equipment 
    will be protected for the useful life of such facilities and 
    equipment;
        ``(9) provide assurances that a significant portion of any 
    facilities and equipment, technical assistance, and programming for 
    which assistance is sought for elementary and secondary schools 
    will be made available to schools or local educational agencies 
    that have a high number or percentage of children eligible to be 
    counted under part A of title I;
        ``(10) provide assurances that the applicant will use the funds 
    provided under this part to supplement and not supplant funds 
    otherwise available for the purposes of this part;
        ``(11) if any member of the consortia receives assistance under 
    subpart 3 of part A, describe how funds received under this part 
    will be coordinated with funds received for educational technology 
    in the classroom under such section;
        ``(12) describe the activities or services for which assistance 
    is sought, such as--
            ``(A) providing facilities, equipment, training services, 
        and technical assistance;
            ``(B) making programs accessible to students with 
        disabilities through mechanisms such as closed captioning and 
        descriptive video services;
            ``(C) linking networks around issues of national importance 
        (such as elections) or to provide information about employment 
        opportunities, job training, or student and other social 
        service programs;
            ``(D) sharing curriculum resources between networks and 
        development of program guides which demonstrate cooperative, 
        cross-network listing of programs for specific curriculum 
        areas;
            ``(E) providing teacher and student support services 
        including classroom and training support materials which permit 
        student and teacher involvement in the live interactive 
        distance learning telecasts;
            ``(F) incorporating community resources such as libraries 
        and museums into instructional programs;
            ``(G) providing professional development for teachers, 
        including, as appropriate, training to early childhood 
        development and Head Start teachers and staff and vocational 
        education teachers and staff, and adult and family educators;
            ``(H) providing programs for adults to maximize the use of 
        telecommunications facilities and equipment;
            ``(I) providing teacher training on proposed or established 
        voluntary national content standards in mathematics and science 
        and other disciplines as such standards are developed; and
            ``(J) providing parent education programs during and after 
        the regular school day which reinforce a student's course of 
        study and actively involve parents in the learning process;
        ``(13) describe how the proposed project as a whole will be 
    financed and how arrangements for future financing will be 
    developed before the project expires;
        ``(14) provide an assurance that a significant portion of any 
    facilities, equipment, technical assistance, and programming for 
    which assistance is sought for elementary and secondary schools 
    will be made available to schools in local educational agencies 
    that have a high percentage of children counted for the purpose of 
    part A of title I;
        ``(15) provide an assurance that the applicant will provide 
    such information and cooperate in any evaluation that the Secretary 
    may conduct under this part; and
        ``(16) include such additional assurances as the Secretary may 
    reasonably require.
    ``(c) Priorities.--The Secretary, in approving applications for 
grants authorized under section 3204, shall give priority to 
applications describing projects that--
        ``(1) propose high-quality plans to assist in achieving one or 
    more of the National Education Goals, will provide instruction 
    consistent with State content standards, or will otherwise provide 
    significant and specific assistance to States and local educational 
    agencies undertaking systemic education reform;
        ``(2) will provide services to programs serving adults, 
    especially parents, with low levels of literacy;
        ``(3) will serve schools with significant numbers of children 
    counted for the purposes of part A of title I;
        ``(4) ensure that the eligible entity will--
            ``(A) serve the broadest range of institutions, programs 
        providing instruction outside of the school setting, programs 
        serving adults, especially parents, with low levels of 
        literacy, institutions of higher education, teacher training 
        centers, research institutes, and private industry;
            ``(B) have substantial academic and teaching capabilities, 
        including the capability of training, retraining, and inservice 
        upgrading of teaching skills and the capability to provide 
        professional development;
            ``(C) provide a comprehensive range of courses for 
        educators to teach instructional strategies for students with 
        different skill levels;
            ``(D) provide training to participating educators in ways 
        to integrate telecommunications courses into existing school 
        curriculum;
            ``(E) provide instruction for students, teachers, and 
        parents;
            ``(F) serve a multistate area; and
            ``(G) give priority to the provision of equipment and 
        linkages to isolated areas; and
        ``(5) involve a telecommunications entity (such as a satellite, 
    cable, telephone, computer, or public or private television 
    stations) participating in the eligible entity and donating 
    equipment or in-kind services for telecommunications linkages.
    ``(d) Geographic Distribution.--In approving applications for 
grants authorized under section 3204, the Secretary shall, to the 
extent feasible, ensure an equitable geographic distribution of 
services provided under this part.

``SEC. 3207. LEADERSHIP AND EVALUATION ACTIVITIES.

    ``(a) Reservation.--From the amount appropriated pursuant to the 
authority of section 3204(c)(1) in each fiscal year, the Secretary may 
reserve not more than 5 percent of such amount for national leadership, 
evaluation, and peer review activities.
    ``(b) Method of Funding.--The Secretary may fund the activities 
described in subsection (a) directly or through grants, contracts, and 
cooperative agreements.
    ``(c) Uses of Funds.--
        ``(1) Leadership.--Funds reserved for leadership activities 
    under subsection (a) may be used for--
            ``(A) disseminating information, including lists and 
        descriptions of services available from grant recipients under 
        this part; and
            ``(B) other activities designed to enhance the quality of 
        distance learning activities nationwide.
        ``(2) Evaluation.--Funds reserved for evaluation activities 
    under subsection (a) may be used to conduct independent evaluations 
    of the activities assisted under this part and of distance learning 
    in general, including--
            ``(A) analyses of distance learning efforts, including such 
        efforts that are assisted under this part and such efforts that 
        are not assisted under this part; and
            ``(B) comparisons of the effects, including student 
        outcomes, of different technologies in distance learning 
        efforts.
        ``(3) Peer review.--Funds reserved for peer review activities 
    under subsection (a) may be used for peer review of--
            ``(A) applications for grants under this part; and
            ``(B) activities assisted under this part.

``SEC. 3208. DEFINITIONS.

    ``As used in this part--
        ``(1) the term `educational institution' means an institution 
    of higher education, a local educational agency, or a State 
    educational agency;
        ``(2) the term `instructional programming' means courses of 
    instruction and training courses for elementary and secondary 
    students, teachers, and others, and materials for use in such 
    instruction and training that have been prepared in audio and 
    visual form on tape, disc, film, or live, and presented by means of 
    telecommunications devices; and
        ``(3) the term `public broadcasting entity' has the same 
    meaning given such term in section 397 of the Communications Act of 
    1934.

``SEC. 3209. ADMINISTRATIVE PROVISIONS.

    ``(a) Continuing Eligibility.--
        ``(1) In general.--In order to be eligible to receive a grant 
    under section 3204 for a second 3-year grant period an eligible 
    entity shall demonstrate in the application submitted pursuant to 
    section 3206 that such partnership shall--
            ``(A) continue to provide services in the subject areas and 
        geographic areas assisted with funds received under this part 
        for the previous 5-year grant period; and
            ``(B) use all grant funds received under this part for the 
        second 3-year grant period to provide expanded services by--
                ``(i) increasing the number of students, schools or 
            school districts served by the courses of instruction 
            assisted under this part in the previous fiscal year;
                ``(ii) providing new courses of instruction; and
                ``(iii) serving new populations of underserved 
            individuals, such as children or adults who are 
            disadvantaged, have limited-English proficiency, are 
            individuals with disabilities, are illiterate, or lack 
            secondary school diplomas or their recognized equivalent.
        ``(2) Special rule.--Grant funds received pursuant to paragraph 
    (1) shall be used to supplement and not supplant services provided 
    by the grant recipient under this part in the previous fiscal year.
    ``(b) Federal Activities.--The Secretary may assist grant 
recipients under section 3204 in acquiring satellite time, where 
appropriate, as economically as possible.

``SEC. 3210. OTHER ASSISTANCE.

    ``(a) Special Statewide Network.--
        ``(1) In general.--The Secretary, through the Office of 
    Educational Technology, may provide assistance to a statewide 
    telecommunications network under this subsection if such network--
            ``(A) provides 2-way full motion interactive video and 
        audio communications;
            ``(B) links together public colleges and universities and 
        secondary schools throughout the State; and
            ``(C) meets any other requirements determined appropriate 
        by the Secretary.
        ``(2) State contribution.--A statewide telecommunications 
    network assisted under paragraph (1) shall contribute, either 
    directly or through private contributions, non-Federal funds equal 
    to not less than 50 percent of the cost of such network.
    ``(b) Special Local Network.--
        ``(1) In general.--The Secretary may provide assistance, on a 
    competitive basis, to a local educational agency or consortium 
    thereof to enable such agency or consortium to establish a high 
    technology demonstration program.
        ``(2) Program requirements.--A high technology demonstration 
    program assisted under paragraph (1) shall--
            ``(A) include 2-way full motion interactive video, audio 
        and text communications;
            ``(B) link together elementary and secondary schools, 
        colleges, and universities;
            ``(C) provide parent participation and family programs;
            ``(D) include a staff development program; and
            ``(E) have a significant contribution and participation 
        from business and industry.
        ``(3) Special rule.--Each high technology demonstration program 
    assisted under paragraph (1) shall be of sufficient size and scope 
    to have an effect on meeting the National Education Goals.
        ``(4) Matching requirement.--A local educational agency or 
    consortium receiving a grant under paragraph (1) shall provide, 
    either directly or through private contributions, non-Federal 
    matching funds equal to not less than 50 percent of the amount of 
    the grant.
    ``(c) Telecommunications Programs for Continuing Education.--
        ``(1) Authority.--The Secretary is authorized to award grants, 
    on a competitive basis, to eligible entities to enable such 
    partnerships to develop and operate one or more programs which 
    provide on-line access to educational resources in support of 
    continuing education and curriculum requirements relevant to 
    achieving a secondary school diploma or its recognized equivalent. 
    The program authorized by this section shall be designed to advance 
    adult literacy, secondary school completion and the acquisition of 
    specified competency by the end of the 12th grade, as envisioned by 
    the Goals 2000: Educate America Act.
        ``(2) Application.--Each eligible entity desiring a grant under 
    this section shall submit an application to the Secretary. Each 
    such application shall--
            ``(A) demonstrate that the applicant will use publicly 
        funded or free public telecommunications infrastructure to 
        deliver video, voice and data in an integrated service to 
        support and assist in the acquisition of a secondary school 
        diploma or its recognized equivalent;
            ``(B) assure that the content of the materials to be 
        delivered is consistent with the accreditation requirements of 
        the State for which such materials are used;
            ``(C) incorporate, to the extent feasible, materials 
        developed in the Federal departments and agencies and under 
        appropriate federally funded projects and programs;
            ``(D) assure that the applicant has the technological and 
        substantive experience to carry out the program; and
            ``(E) contain such additional assurances as the Secretary 
        may reasonably require.

                  ``PART C--READY-TO-LEARN TELEVISION

``SEC. 3301. READY-TO-LEARN.

    ``(a) In General.--The Secretary is authorized to award grants to 
or enter into contracts or cooperative agreements with eligible 
entities described in section 3302(b) to develop, produce, and 
distribute educational and instructional video programming for 
preschool and elementary school children and their parents in order to 
facilitate the achievement of the National Education Goals.
    ``(b) Availability.--In making such grants, contracts, or 
cooperative agreements, the Secretary shall ensure that recipients make 
programming widely available with support materials as appropriate to 
young children, their parents, child care workers, and Head Start 
providers to increase the effective use of such programming.

``SEC. 3302. EDUCATIONAL PROGRAMMING.

    ``(a) Awards.--The Secretary shall award grants, contracts, or 
cooperative agreements to eligible entities to--
        ``(1) facilitate the development directly or through contracts 
    with producers of children and family educational television 
    programming, educational programming for preschool and elementary 
    school children, and accompanying support materials and services 
    that promote the effective use of such programming; and
        ``(2) enable such entities to contract with entities (such as 
    public telecommunications entities and those funded under the Star 
    Schools Act) so that programs developed under this section are 
    disseminated and distributed to the widest possible audience 
    appropriate to be served by the programming by the most appropriate 
    distribution technologies.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall be--
        ``(1) a nonprofit entity (including a public telecommunications 
    entity) able to demonstrate a capacity for the development and 
    distribution of educational and instructional television 
    programming of high quality for preschool and elementary school 
    children; and
        ``(2) able to demonstrate a capacity to contract with the 
    producers of children's television programming for the purpose of 
    developing educational television programming of high quality for 
    preschool and elementary school children.
    ``(c) Cultural Experiences.--Programming developed under this 
section shall reflect the recognition of diverse cultural experiences 
and the needs and experiences of both boys and girls in engaging and 
preparing young children for schooling.

``SEC. 3303. DUTIES OF SECRETARY.

    ``The Secretary is authorized--
        ``(1) to establish and administer a Special Projects of 
    National Significance program to award grants, contracts, or 
    cooperative agreements to public and nonprofit private entities, or 
    local public television stations or such public television stations 
    that are part of a consortium with one or more State educational 
    agencies, local educational agencies, local schools, institutions 
    of higher education, or community-based organizations of 
    demonstrated effectiveness, for the purpose of--
            ``(A) addressing the learning needs of young children in 
        limited English proficient households, and developing 
        appropriate educational and instructional television 
        programming to foster the school readiness of such children;
            ``(B) developing programming and support materials to 
        increase family literacy skills among parents to assist parents 
        in teaching their children and utilizing educational television 
        programming to promote school readiness; and
            ``(C) identifying, supporting, and enhancing the effective 
        use and outreach of innovative programs that promote school 
        readiness;
        ``(2) to establish within the Department a clearinghouse to 
    compile and provide information, referrals and model program 
    materials and programming obtained or developed under this part to 
    parents, child care providers, and other appropriate individuals or 
    entities to assist such individuals and entities in accessing 
    programs and projects under this part; and
        ``(3) to develop and disseminate training materials, 
    including--
            ``(A) interactive programs and programs adaptable to 
        distance learning technologies that are designed to enhance 
        knowledge of children's social and cognitive skill development 
        and positive adult-child interactions; and
            ``(B) support materials to promote the effective use of 
        materials developed under paragraph (2);
    among parents, Head Start providers, in-home and center based day 
    care providers, early childhood development personnel, and 
    elementary school teachers, public libraries, and after school 
    program personnel caring for preschool and elementary school 
    children;
        ``(4) coordinate activities with the Secretary of Health and 
    Human Services in order to--
            ``(A) maximize the utilization of quality educational 
        programming by preschool and elementary school children, and 
        make such programming widely available to federally funded 
        programs serving such populations; and
            ``(B) provide information to recipients of funds under 
        Federal programs that have major training components for early 
        childhood development, including Head Start, Even Start, and 
        State training activities funded under the Child Care 
        Development Block Grant Act of 1990 regarding the availability 
        and utilization of materials developed under paragraph (3) to 
        enhance parent and child care provider skills in early 
        childhood development and education.

``SEC. 3304. APPLICATIONS.

    ``Each eligible entity desiring a grant, contract, or cooperative 
agreement under section 3301 or 3303 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. 3305. REPORTS AND EVALUATION.

    ``(a) Annual Report to Secretary.--An entity receiving funds under 
section 3301 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 this section, including--
        ``(1) the programming that has been developed directly or 
    indirectly by the entity, and the target population of the programs 
    developed;
        ``(2) the support 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 programming developed under this 
    section has been distributed, including the distance learning 
    technologies that have been utilized to make programming available 
    and the geographic distribution achieved through such technologies; 
    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 which 
includes--
        ``(1) a summary of the information made available under section 
    3302(a); and
        ``(2) a description of the training materials made available 
    under section 3303(3), the manner in which outreach has been 
    conducted to inform parents and child care providers of the 
    availability of such materials, and the manner in which such 
    materials have been distributed in accordance with such section.

``SEC. 3306. ADMINISTRATIVE COSTS.

    ``With respect to the implementation of section 3302, entities 
receiving a grant, contract, or cooperative agreement from the 
Secretary may use not more than 5 percent of the amounts received under 
such section for the normal and customary expenses of administering the 
grant, contract, or cooperative agreement.

``SEC. 3307. DEFINITION.

    ``For the purposes of this part, the term `distance learning' means 
the transmission of educational or instructional programming to 
geographically dispersed individuals and groups via telecommunications.

``SEC. 3308. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part, $30,000,000 for fiscal year 1995, and such sums as may 
be necessary for each of the four succeeding fiscal years. Not less 
than 60 percent of the amounts appropriated under this subsection for 
each fiscal year shall be used to carry out section 3302.
    ``(b) Special Projects.--Of the amount appropriated under 
subsection (b) for each fiscal year, at least 10 percent of such amount 
shall be used for each such fiscal year for activities under section 
3303(1)(C).

   ``PART D--TELECOMMUNICATIONS DEMONSTRATION PROJECT FOR MATHEMATICS

``SEC. 3401. PROJECT AUTHORIZED.

    ``The Secretary is authorized to make grants to a nonprofit 
telecommunications entity, or partnership of such entities, for the 
purpose of carrying out a national telecommunications-based 
demonstration project to improve the teaching of mathematics. The 
demonstration project authorized by this part shall be designed to 
assist elementary and secondary school teachers in preparing all 
students for achieving State content standards.

``SEC. 3402. APPLICATION REQUIRED.

    ``(a) In General.--Each nonprofit telecommunications entity, or 
partnership of such entities, desiring a grant under this part shall 
submit an application to the Secretary. Each such application shall--
        ``(1) demonstrate that the applicant will use the existing 
    publicly funded telecommunications infrastructure to deliver video, 
    voice and data in an integrated service to train teachers in the 
    use of new standards-based curricula materials and learning 
    technologies;
        ``(2) assure that the project for which assistance is sought 
    will be conducted in cooperation with appropriate State educational 
    agencies, local educational agencies, State or local nonprofit 
    public telecommunications entities, and a national mathematics 
    education professional association that has developed content 
    standards;
        ``(3) assure that a significant portion of the benefits 
    available for elementary and secondary schools from the project 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
        ``(4) contain such additional assurances as the Secretary may 
    reasonably require.
    ``(b) Approval of Applications; Number of Demonstration Sites.--In 
approving applications under this section, the Secretary shall assure 
that the demonstration project authorized by this part is conducted at 
elementary and secondary school sites in at least 15 States.

``SEC. 3403. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part, 
$5,000,000 for the fiscal year 1995, and such sums as may be necessary 
for each of the four succeeding fiscal years.

     ``PART E--ELEMENTARY MATHEMATICS AND SCIENCE EQUIPMENT PROGRAM

``SEC. 3501. SHORT TITLE.

    ``This part may be cited as the `Elementary Mathematics and Science 
Equipment Act'.

``SEC. 3502. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to raise the quality of 
instruction in mathematics and science in the Nation's elementary 
schools by providing equipment and materials necessary for hands-on 
instruction through assistance to State and local educational agencies.

``SEC. 3503. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to make allotments to State 
educational agencies under section 3504 to enable such agencies to 
award grants to local educational agencies for the purpose of providing 
equipment and materials to elementary schools to improve mathematics 
and science education in such schools.

``SEC. 3504. ALLOTMENTS OF FUNDS.

    ``(a) In General.--From the amount appropriated under section 3509 
for any fiscal year, the Secretary shall reserve--
        ``(1) not more than one-half of 1 percent for allotment among 
    Guam, American Samoa, the Virgin Islands, and the Northern Mariana 
    Islands according to their respective needs for assistance under 
    this part; and
        ``(2) one-half of 1 percent for programs for Indian students 
    served by schools funded by the Secretary of the Interior which are 
    consistent with the purposes of this part.
    ``(b) Allotment.--
        ``(1) In general.--The remainder of the amount so appropriated 
    (after meeting requirements in subsection (a)) shall be allotted 
    among State educational agencies so that--
            ``(A) one-half of such remainder shall be distributed by 
        allotting to each State educational agency an amount which 
        bears the same ratio to such one-half of such remainder as the 
        number of children aged 5 to 17, inclusive, in the State bears 
        to the number of such children in all States; and
            ``(B) one-half of such remainder shall be distributed 
        according to each State's share of allocations under part A of 
        title I.
        ``(2) Minimum.--Except as provided in paragraph (3), no State 
    educational agency shall receive an allotment under this subsection 
    for any fiscal year in an amount that is--
            ``(A) less than one-half of 1 percent of the amount made 
        available under this subsection for such fiscal year; or
            ``(B) less than the amount allotted to such State for 
        fiscal year 1988 under title II of the Education for Economic 
        Security Act.
        ``(3) Ratable reductions.--(A) If the sums made available under 
    this part for any fiscal year are insufficient to pay the full 
    amounts that all State educational agencies are eligible to receive 
    under paragraph (2)(B) for such year, the Secretary shall ratably 
    reduce the allotment to such agencies for such year.
        ``(B) If additional funds become available for making payments 
    under paragraph (2)(B) for such fiscal year, allotments that were 
    reduced under subparagraph (A) shall be increased on the same basis 
    as such allotments were reduced.
    ``(c) Reallotment of Unused Funds.--The amount of any State 
educational agency's allotment under subsection (b) for any fiscal year 
to carry out this part which the Secretary determines will not be 
required for that fiscal year to carry out this part shall be available 
for reallotment from time to time, on such dates during that year as 
the Secretary may determine, to other State educational agencies in 
proportion to the original allotments to those State educational 
agencies under subsection (b) for that year but with such proportionate 
amount for any of those other State educational agencies being reduced 
to the extent it exceeds the sum the Secretary estimates that the State 
educational agency needs and will be able to use for that year, and the 
total of those reductions shall be similarly reallotted among the State 
educational agencies whose proportionate amounts were not so reduced. 
Any amounts reallotted to a State educational agency under this 
subsection during a year shall be deemed a part of the State 
educational agency's allotment under subsection (b) for that year.
    ``(d) Definition.--For the purposes of this part the term `State' 
means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    ``(e) Data.--The number of children aged 5 to 17, inclusive, in the 
State and in all States shall be determined by the Secretary on the 
basis of the most recent satisfactory data available to the Secretary.

``SEC. 3505. STATE APPLICATION.

    ``(a) Application.--Each State educational agency desiring to 
receive an allotment under this part shall file an application with the 
Secretary which covers a period of 5 fiscal years. Such application 
shall be filed at such time, in such manner, and containing or 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each application described in 
subsection (a) shall--
        ``(1) provide assurances that--
            ``(A) the State educational agency shall use the allotment 
        provided under this part to award grants to local educational 
        agencies within the State to enable such local educational 
        agencies to provide assistance to schools served by such agency 
        to carry out the purpose of this part;
            ``(B) the State educational agency will provide such fiscal 
        control and funds accounting as the Secretary may require;
            ``(C) every public elementary school in the State is 
        eligible to receive assistance under this part once over the 5-
        year duration of the program assisted under this part;
            ``(D) funds provided under this part will supplement, not 
        supplant, State and local funds made available for activities 
        authorized under this part;
            ``(E) during the 5-year period described in the 
        application, the State educational agency will evaluate its 
        standards and programs for teacher preparation and inservice 
        professional development for elementary mathematics and 
        science;
            ``(F) the State educational agency will take into account 
        the needs for greater access to and participation in 
        mathematics and science by students and teachers from 
        historically underrepresented groups, including females, 
        minorities, individuals with limited English proficiency, the 
        economically disadvantaged, and individuals with disabilities; 
        and
            ``(G) that the needs of teachers and students in areas with 
        high concentrations of low-income students and sparsely 
        populated areas will be given priority in awarding assistance 
        under this part;
        ``(2) provide, if appropriate, a description of how funds paid 
    under this part will be coordinated with State and local funds and 
    other Federal resources, particularly with respect to programs for 
    the professional development and inservice training of elementary 
    school teachers in science and mathematics; and
        ``(3) describe procedures--
            ``(A) for submitting applications for programs described in 
        section 3506 for distribution of assistance under this part 
        within the State; and
            ``(B) for approval of applications by the State educational 
        agency, including appropriate procedures to assure that such 
        agency will not disapprove an application without notice and 
        opportunity for a hearing.
    ``(c) State Administration.--Not more than 5 percent of the funds 
allotted to each State educational agency under this part shall be used 
for the administrative costs of such agency associated with carrying 
out the program assisted under this part.

``SEC. 3506. LOCAL APPLICATION.

    ``(a) Application.--A local educational agency that desires to 
receive a grant under this part shall submit an application to the 
State educational agency. Each such application shall contain 
assurances that each school served by the local educational agency 
shall be eligible for assistance under this part only once.
    ``(b) Contents of Application.--Each application described in 
subsection (a) shall--
        ``(1) describe how the local educational agency plans to set 
    priorities on the use and distribution among schools of grant funds 
    received under this part to meet the purpose of this part;
        ``(2) include assurances that the local educational agency has 
    made every effort to match on a dollar-for-dollar basis from 
    private or public sources the funds received under this part, 
    except that no such application shall be penalized or denied 
    assistance under this part based on failure to provide such 
    matching funds;
        ``(3) describe, if applicable, how funds under this part will 
    be coordinated with State, local, and other Federal resources, 
    especially with respect to programs for the professional 
    development and inservice training of elementary school teachers in 
    science and mathematics; and
        ``(4) describe the process which will be used to determine 
    different levels of assistance to be awarded to schools with 
    different needs.
    ``(c) Priority.--In awarding grants under this part, the State 
educational agency shall give priority to applications that--
        ``(1) assign highest priority to providing assistance to 
    schools which--
            ``(A) are most seriously underequipped; or
            ``(B) serve large numbers or percentages of economically 
        disadvantaged students;
        ``(2) are attentive to the needs of underrepresented groups in 
    science and mathematics;
        ``(3) demonstrate how science and mathematics equipment will be 
    part of a comprehensive plan of curriculum planning or 
    implementation and teacher training supporting hands-on laboratory 
    activities; and
        ``(4) assign priority to providing equipment and materials for 
    students in grades 1 through 6.

``SEC. 3507. PROGRAM REQUIREMENTS.

    ``(a) Coordination.--Each State educational agency receiving an 
allotment under this part shall--
        ``(1) disseminate information to school districts and schools, 
    including private nonprofit elementary schools, regarding the 
    program assisted under this part;
        ``(2) evaluate applications of local educational agencies;
        ``(3) award grants to local educational agencies based on the 
    priorities described in section 3506(c); and
        ``(4) evaluate local educational agencies' end-of-year 
    summaries and submit such evaluation to the Secretary.
    ``(b) Limitations on Use of Funds.--
        ``(1) In general.--Except as provided in paragraph (2), grant 
    funds and matching funds under this part only shall be used to 
    purchase science equipment, science materials, or mathematical 
    manipulative materials and shall not be used for computers, 
    computer peripherals, software, textbooks, or staff development 
    costs.
        ``(2) Capital improvements.--Grant funds under this part may 
    not be used for capital improvements. Not more than 50 percent of 
    any matching funds provided by the local educational agency may be 
    used for capital improvements of classroom science facilities to 
    support the hands-on instruction that this part is intended to 
    support, such as the installation of electrical outlets, plumbing, 
    lab tables or counters, or ventilation mechanisms.

``SEC. 3508. FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance and Evaluation Procedures.--The 
Secretary shall provide technical assistance and, in consultation with 
State and local representatives of the program assisted under this 
part, shall develop procedures for State and local evaluations of the 
programs assisted under this part.
    ``(b) Report.--The Secretary shall report to the Congress each year 
on the program assisted under this part in accordance with section 
10701.

``SEC. 3509. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $30,000,000 for fiscal 
year 1995, and such sums as may be necessary for each of the four 
succeeding fiscal years, to carry out this part.

   ``PART F--ELEMENTARY AND SECONDARY SCHOOL LIBRARY MEDIA RESOURCES 
                                PROGRAM

``SEC. 3601. PROGRAM AUTHORIZED.

    ``The Secretary shall award grants or make allocations in 
accordance with section 3602 for the acquisition of school library 
media resources for the use of students, library media specialists, and 
teachers in elementary and secondary schools in accordance with this 
part.

``SEC. 3602. ALLOCATION TO STATES.

    ``(a) From the amount appropriated pursuant to section 3605 in each 
fiscal year, the Secretary shall award funds to each State having an 
approved plan under section 3603 as follows:
        ``(1) Amounts below $50,000,000.--If the amount made available 
    under subsection (a) for a fiscal year is less than $50,000,000, 
    then the Secretary shall award grants to States, on a competitive 
    basis, taking into account such factors as age and condition of 
    existing school library media collections and the relative economic 
    need of the students to be served.
        ``(2) Amounts equal to or exceeding $50,000,000.--If the amount 
    made available under subsection (a) for a fiscal year equals or 
    exceeds $50,000,000, then the Secretary shall allocate to each 
    State an amount which bears the same relationship to such amount as 
    the amount such State received under title II for such year bears 
    to the amount all States received under such title for such year.

``SEC. 3603. STATE PLANS.

    ``(a) In General.--In order for a State to receive a grant or an 
allocation of funds under this part for any fiscal year, such State 
shall have in effect for such fiscal year a State plan. Such plan 
shall--
        ``(1) designate the State educational agency as the State 
    agency responsible for the administration of the program assisted 
    under this part;
        ``(2) set forth a program under which funds paid to the State 
    in accordance with section 3602 will be expended solely for--
            ``(A) acquisition of school library media resources, 
        including books and foreign language resources, for the use of 
        students, school library media specialists, and teachers in 
        elementary and secondary schools in the United States; and
            ``(B) administration of the State plan, including 
        development and revision of standards, relating to school 
        library media resources, except that the amount used for 
        administration of the State plan in any fiscal year shall not 
        exceed three percent of the amount available to such State 
        under section 3602 for such fiscal year; and
        ``(3) set forth criteria to be used in allotting funds for 
    school library media resources among the local educational agencies 
    of the State, which allotment shall take into consideration the 
    relative need of the students, school media specialists, and 
    teachers to be served.
    ``(b) Plan Submission.--The State plan may be submitted as part of 
a consolidated application under section 14302.

``SEC. 3604. DISTRIBUTION OF ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``From the funds allocated to a State under section 3602(2) in each 
fiscal year, such State shall distribute not less than 97 percent of 
such funds in such year to local educational agencies within such State 
according to the relative enrollment of students in elementary and 
secondary schools within the school districts of such State, adjusted 
to provide higher per pupil allotments to local educational agencies 
that have the greatest number or percentages of students whose 
education imposes a higher than average cost per child, such as those 
students--
        ``(1) living in areas with high concentrations of low-income 
    families;
        ``(2) from low-income families; and
        ``(3) living in sparsely populated areas.

``SEC. 3605. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$200,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the four succeeding fiscal years.

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

``SEC. 4001. SHORT TITLE.

    ``This title may be cited as the `Safe and Drug-Free Schools and 
Communities Act of 1994'.

``SEC. 4002. FINDINGS.

    ``The Congress finds as follows:
        ``(1) The seventh National Education Goal provides that by the 
    year 2000, all schools in America will be free of drugs and 
    violence and the unauthorized presence of firearms and alcohol, and 
    offer a disciplined environment that is conducive to learning.
        ``(2) The widespread illegal use of alcohol and other drugs 
    among the Nation's secondary school students, and increasingly by 
    students in elementary schools as well, constitutes a grave threat 
    to such students' physical and mental well-being, and significantly 
    impedes the learning process. For example, data show that students 
    who drink tend to receive lower grades and are more likely to miss 
    school because of illness than students who do not drink.
        ``(3) Our Nation's schools and communities are increasingly 
    plagued by violence and crime. Approximately 3,000,000 thefts and 
    violent crimes occur in or near our Nation's schools every year, 
    the equivalent of more than 16,000 incidents per school day.
        ``(4) Violence that is linked to prejudice and intolerance 
    victimizes entire communities leading to more violence and 
    discrimination.
        ``(5) The tragic consequences of violence and the illegal use 
    of alcohol and drugs by students are felt not only by students and 
    such students' families, but by such students' communities and the 
    Nation, which can ill afford to lose such students' skills, 
    talents, and vitality.
        ``(6) While use of illegal drugs is a serious problem among a 
    minority of teenagers, alcohol use is far more widespread. The 
    proportion of high school students using alcohol, though lower than 
    a decade ago, remains unacceptably high. By the 8th grade, 70 
    percent of youth report having tried alcohol and by the 12th grade, 
    about 88 percent have used alcohol. Alcohol use by young people can 
    and does have adverse consequences for users, their families, 
    communities, schools, and colleges.
        ``(7) Alcohol and tobacco are widely used by young people. Such 
    use can, and does, have adverse consequences for young people, 
    their families, communities, schools, and colleges. Drug prevention 
    programs for youth that address only controlled drugs send an 
    erroneous message that alcohol and tobacco do not present 
    significant problems, or that society is willing to overlook their 
    use. To be credible, messages opposing illegal drug use by youth 
    should address alcohol and tobacco as well.
        ``(8) Every day approximately 3,000 children start smoking. 
    Thirty percent of all secondary school seniors are smokers. Half of 
    all new smokers begin smoking before the age of 14, 90 percent of 
    such smokers begin before the age of 21, and the average age of the 
    first use of smokeless tobacco is under the age of 10. Use of 
    tobacco products has been linked to serious health problems. Drug 
    education and prevention programs that include tobacco have been 
    effective in reducing teenage use of tobacco.
        ``(9) Drug and violence prevention programs are essential 
    components of a comprehensive strategy to promote school safety and 
    to reduce the demand for and use of drugs throughout the Nation. 
    Schools and local organizations in communities throughout the 
    Nation have a special responsibility to work together to combat the 
    growing epidemic of violence and illegal drug use and should 
    measure the success of their programs against clearly defined goals 
    and objectives.
        ``(10) Students must take greater responsibility for their own 
    well-being, health, and safety if schools and communities are to 
    achieve the goals of providing a safe, disciplined, and drug-free 
    learning environment.

``SEC. 4003. PURPOSE.

    ``The purpose of this title is to support programs to meet the 
seventh National Education Goal by preventing violence in and around 
schools and by strengthening programs that prevent the illegal use of 
alcohol, tobacco, and drugs, involve parents, and are coordinated with 
related Federal, State, and community efforts and resources, through 
the provision of Federal assistance to--
        ``(1) States for grants to local educational agencies and 
    educational service agencies and consortia of such agencies to 
    establish, operate, and improve local programs of school drug and 
    violence prevention, early intervention, rehabilitation referral, 
    and education in elementary and secondary schools (including 
    intermediate and junior high schools);
        ``(2) States for grants to, and contracts with, community-based 
    organizations and other public and private nonprofit agencies and 
    organizations for programs of drug and violence prevention, early 
    intervention, rehabilitation referral, and education;
        ``(3) States for development, training, technical assistance, 
    and coordination activities;
        ``(4) public and private nonprofit organizations to conduct 
    training, demonstrations, and evaluation, and to provide 
    supplementary services for the prevention of drug use and violence 
    among students and youth; and
        ``(5) institutions of higher education to establish, operate, 
    expand, and improve programs of school drug and violence 
    prevention, education, and rehabilitation referral for students 
    enrolled in colleges and universities.

``SEC. 4004. FUNDING.

    ``There are authorized to be appropriated--
        ``(1) $630,000,000 for fiscal year 1995, and such sums as may 
    be necessary for each of the four succeeding fiscal years, for 
    State grants under subpart 1; and
        ``(2) $25,000,000 for fiscal year 1995, and such sums as may be 
    necessary for each of the four succeeding fiscal years, for 
    national programs under subpart 2.

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

  ``Subpart 1--State Grants for Drug and Violence Prevention Programs

``SEC. 4011. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount made available under section 
4004(a) to carry out this subpart for each fiscal year, the Secretary--
        ``(1) shall reserve 1 percent of such amount for grants under 
    this subpart to Guam, American Samoa, the Virgin Islands, and the 
    Commonwealth of the Northern Mariana Islands, to be allotted in 
    accordance with the Secretary's determination of their respective 
    needs;
        ``(2) shall reserve 1 percent of such amount for the Secretary 
    of the Interior to carry out programs under this part for Indian 
    youth;
        ``(3) may reserve not more than $1,000,000 for the national 
    impact evaluation required by section 4117(a); and
        ``(4) shall reserve 0.2 percent of such amount for programs for 
    Native Hawaiians under section 4118.
    ``(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 (or, for fiscal year 1995 only, sections 
        1005 and 1006 of this Act as such sections were in existence on 
        the day preceding the date of enactment of the Improving 
        America's Schools Act of 1994) 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.
        ``(3) Reallotment.--The Secretary may reallot any amount of any 
    allotment to a State if the Secretary determines that the State 
    will be unable to use such amount within two years of such 
    allotment. Such reallotments shall be made on the same basis as 
    allotments are made under paragraph (1).
        ``(4) Definitions.--For the purpose of this subsection--
            ``(A) the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico; and
            ``(B) the term `local educational agency' includes 
        educational service agencies and consortia of such agencies.

``SEC. 4112. STATE APPLICATIONS.

    ``(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, the Goals 2000: Educate 
    America Act, and other Acts, 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 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 educational agency were developed separately by such 
    officer or agency, respectively, but in consultation and 
    coordination with appropriate State officials and others, including 
    the chief State school officer, the chief executive officer, the 
    head of the State alcohol and drug abuse agency, the heads of the 
    State health and mental health agencies, the head of the State 
    criminal justice planning agency, the head of the State child 
    welfare agency, the head of the State board of education, or their 
    designees, and representatives of parents, students, and community-
    based organizations;
        ``(4) contains an assurance that the State will cooperate with, 
    and assist, the Secretary in conducting a national impact 
    evaluation of programs required by section 4117(a); and
        ``(5) includes any other information the Secretary may require.
    ``(b) State Educational Agency Funds.--A State's application under 
this section shall also contain a comprehensive plan for the use of 
funds under section 4113(a) by the State educational agency that 
includes--
        ``(1) a statement of the State educational agency's measurable 
    goals and objectives for drug and violence prevention and a 
    description of the procedures such agency will use for assessing 
    and publicly reporting progress toward meeting those goals and 
    objectives;
        ``(2) 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 4116;
        ``(3) a description of how the State educational agency will 
    use funds under section 4113(b);
        ``(4) a description of how the State educational agency will 
    coordinate such agency's activities under this subpart with the 
    chief executive officer's drug and violence prevention programs 
    under this subpart and with the prevention efforts of other State 
    agencies;
        ``(5) an explanation of the criteria the State educational 
    agency will use to identify which local educational agencies 
    receive supplemental funds under section 4113(d)(2)(A)(ii) and how 
    the supplemental funds will be allocated among such local 
    educational agencies; and
        ``(6) a description of the procedures the State educational 
    agency will use to review applications from local educational 
    agencies under section 4115.
    ``(c) Governor's Funds.--A State's application under this section 
shall also contain a comprehensive plan for the use of funds under 
section 4114(a) by the chief executive officer that includes--
        ``(1) a statement of the chief executive officer's measurable 
    goals and objectives for drug and violence prevention and a 
    description of the procedures to be used for assessing and publicly 
    reporting progress toward meeting such goals and objectives;
        ``(2) a description of how the chief executive officer will 
    coordinate such officer's activities under this part with the State 
    educational agency and other State agencies and organizations 
    involved with drug and violence prevention efforts;
        ``(3) a description of how funds reserved under section 4114(a) 
    will be used so as not to duplicate the efforts of the State 
    educational agency and local educational agencies with regard to 
    the provision of school-based prevention efforts and services and 
    how those funds will be used to serve populations not normally 
    served by the State educational agency, such as school dropouts and 
    youth in detention centers;
        ``(4) a description of how the chief executive officer will 
    award funds under section 4114(a) and a plan for monitoring the 
    performance of, and providing technical assistance to, recipients 
    of such funds;
        ``(5) a description of the special outreach activities that 
    will be carried out to maximize the participation of community-
    based organizations of demonstrated effectiveness which provide 
    services in low-income communities; and
        ``(6) a description of how funds will be used to support 
    community-wide comprehensive drug and violence prevention planning.
    ``(d) Peer Review.--The Secretary shall use a peer review process 
in reviewing State applications under this section.
    ``(e) Interim Application.--Notwithstanding any other provisions of 
this section, a State may submit for fiscal year 1995 a one-year 
interim application and plan for the use of funds under this subpart 
that are consistent with the requirements of this section and contain 
such information as the Secretary may specify in regulations. The 
purpose of such interim application and plan shall be to afford the 
State the opportunity to fully develop and review such State's 
application and comprehensive plan otherwise required by this section. 
A State may not receive a grant under this subpart for a fiscal year 
subsequent to fiscal year 1995 unless the Secretary has approved such 
State's application and comprehensive plan in accordance with this 
subpart.

``SEC. 4113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

    ``(a) Use of Funds.--
        ``(1) In general.--Except as provided in paragraph (2), an 
    amount equal to 80 percent of the total amount allocated to a State 
    under section 4111 for each fiscal year shall be used by the State 
    educational agency and its local educational agencies for drug and 
    violence prevention activities in accordance with this section.
        ``(2) Exception.--(A) If a State has, on or before January 1, 
    1994, established an independent State agency for the purpose of 
    administering all of the funds described in section 5121 of this 
    Act (as such section was in effect on the day preceding the date of 
    the enactment of the Improving America's Schools Act of 1994), 
    then--
            ``(i) an amount equal to 80 percent of the total amount 
        allocated to such State under section 4111 for each fiscal year 
        shall be used by the State educational agency and its local 
        educational agencies for drug and violence prevention 
        activities in accordance with this section; and
            ``(ii) an amount equal to 20 percent of such total amount 
        shall be used by such independent State agency for drug and 
        violence prevention activities in accordance with this section.
        ``(B) Not more than 5 percent of the amount reserved under 
    subparagraph (A)(ii) may be used for administrative costs of the 
    independent State agency incurred in carrying out the activities 
    described in such subparagraph.
        ``(C) For purposes of this paragraph, the term `independent 
    State agency' means an independent agency with a board of directors 
    or a cabinet level agency whose chief executive officer is 
    appointed by the chief executive officer of the State and confirmed 
    with the advice and consent of the senate of such State.
    ``(b) State Level Programs.--
        ``(1) In general.--A State educational agency shall use not 
    more than 5 percent of the amount available under subsection (a) 
    for activities such as--
            ``(A) training and technical assistance concerning drug and 
        violence prevention for local educational agencies and 
        educational service agencies, including teachers, 
        administrators, coaches and athletic directors, other staff, 
        parents, students, community leaders, health service providers, 
        local law enforcement officials, and judicial officials;
            ``(B) the development, identification, dissemination, and 
        evaluation of the most readily available, accurate, and up-to-
        date curriculum materials (including videotapes, software, and 
        other technology-based learning resources), for consideration 
        by local educational agencies;
            ``(C) making available to local educational agencies cost 
        effective programs for youth violence and drug abuse 
        prevention;
            ``(D) demonstration projects in drug and violence 
        prevention;
            ``(E) training, technical assistance, and demonstration 
        projects to address violence associated with prejudice and 
        intolerance;
            ``(F) financial assistance to enhance resources available 
        for drug and violence prevention in areas serving large numbers 
        of economically disadvantaged children or sparsely populated 
        areas, or to meet other special needs consistent with the 
        purposes of this subpart; and
            ``(G) the evaluation of activities carried out within the 
        State under this part.
        ``(2) Special rule.--A State educational agency may carry out 
    activities under this subsection directly, or through grants or 
    contracts.
    ``(c) State Administration.--A State educational agency may use not 
more than 4 percent of the amount reserved under subsection (a) for the 
administrative costs of carrying out its responsibilities under this 
part.
    ``(d) Local Educational Agency Programs.--
        ``(1) In general.--A State educational agency shall distribute 
    not less than 91 percent of the amount made available under 
    subsection (a) for each fiscal year to local educational agencies 
    in accordance with this subsection.
        ``(2) Distribution.--(A) Of the amount distributed under 
    paragraph (1), a State educational agency shall distribute--
            ``(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; and
            ``(ii) 30 percent of such amount to local educational 
        agencies that the State educational agency determines have the 
        greatest need for additional funds to carry out drug and 
        violence prevention programs authorized by this subpart.
        ``(B) Where appropriate and to the extent consistent with the 
    needs assessment conducted by the State, not less than 25 percent 
    of the amount distributed under subparagraph (A)(ii) for a fiscal 
    year shall be distributed to local educational agencies located in 
    rural and urban areas.
        ``(C)(i) A State educational agency shall distribute funds 
    under subparagraph (A)(ii) to not more than 10 percent of the local 
    educational agencies in the State, or five such agencies, whichever 
    is greater.
        ``(ii) In determining which local educational agencies have the 
    greatest need for additional funds, the State educational agency 
    shall consider objective data such as--
            ``(I) high rates of alcohol or 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- or alcohol-related crime;
            ``(IV) the extent of illegal gang activity;
            ``(V) high incidence of violence associated with prejudice 
        and intolerance;
            ``(VI) high rates of referrals of youths to drug and 
        alcohol abuse treatment and rehabilitation programs;
            ``(VII) high rates of referrals of youths to juvenile 
        court;
            ``(VIII) high rates of expulsions and suspensions of 
        students from schools; and
            ``(IX) high rates of reported cases of child abuse and 
        domestic violence.
    ``(e) Reallocation of Funds.--If a local educational agency chooses 
not to apply to receive the amount allocated to such agency under 
subsection (d), or if such agency's application under section 4115 is 
disapproved by the State educational agency, the State educational 
agency shall reallocate such amount to one or more of the local 
educational agencies determined by the State educational agency under 
subsection (d)(2)(C)(ii) to have the greatest need for additional 
funds.
    ``(f) Return of Funds to State Educational Agency; Reallocation.--
        ``(1) Return.--Except as provided in paragraph (2), upon the 
    expiration of the 1-year period beginning on the date that a local 
    educational agency or educational service agency under this title 
    receives its allocation under this title--
            ``(A) such agency shall return to the State educational 
        agency any funds from such allocation that remain unobligated; 
        and
            ``(B) the State educational agency shall reallocate any 
        such amount to local educational agencies or educational 
        service agencies that have plans for using such amount for 
        programs or activities on a timely basis.
        ``(2) Reallocation.--In any fiscal year, a local educational 
    agency, may retain for obligation in the succeeding fiscal year--
            ``(A) an amount equal to not more than 25 percent of the 
        allocation it receives under this title for such fiscal year; 
        or
            ``(B) upon a demonstration of good cause by such agency or 
        consortium, a greater amount approved by the State educational 
        agency.

``SEC. 4114. GOVERNOR'S PROGRAMS.

    ``(a) Use of Funds.--
        ``(1) In general.--An amount equal to 20 percent of the total 
    amount allocated to a State under section 4111(1) for each fiscal 
    year shall be used by the chief executive officer of such State for 
    drug and violence prevention programs and activities in accordance 
    with this section.
        ``(2) Law enforcement