No Child Left Behind Act of 2001/Title V

TITLE V—PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.

Title V (20 U.S.C. 7201 et seq.) is amended to read as follows:

``TITLE V—PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

``PART A—INNOVATIVE PROGRAMS

``SEC. 5101. PURPOSES, STATE AND LOCAL RESPONSIBILITY.

``(a) Purposes.—The purposes of this part are the following:

``(1) To support local education reform efforts that are consistent with and support statewide education reform efforts.

``(2) To provide funding to enable State educational agencies and local educational agencies to implement promising educational reform programs and school improvement programs based on scientifically based research.

``(3) To provide a continuing source of innovation and educational improvement, including support programs to provide library services and instructional and media materials.

``(4) To meet the educational needs of all students, including at-risk youth.

``(5) To develop and implement education programs to improve school, student, and teacher performance, including professional development activities and class size reduction programs.

``(b) State and Local Responsibility.—The State educational agency shall bear the basic responsibility for the administration of funds made available under this part, but it is the intent of Congress that the responsibility be carried out with a minimum of paperwork and that the responsibility for the design and implementation of programs assisted under this part be mainly that of local educational agencies, school superintendents and principals, and classroom teachers and supporting personnel, because local educational agencies and individuals have the most direct contact with students and are most likely to be able to design programs to meet the educational needs of students in their own school districts.

``Subpart 1—State and Local Programs

``SEC. 5111. ALLOTMENT TO STATES.

``(a) In General.—From the sums appropriated to carry out this part for each fiscal year and not reserved under subsection (b), the Secretary shall allot, and make available in accordance with this part, to each State educational agency an amount that bears the same ratio to such sums as the school-age population of the State bears to the school-age population of all States, except that no State shall receive less than an amount equal to one-half of 1 percent of such sums.

``(b) Reservation.—From the sums appropriated to carry out this part for each fiscal year, the Secretary shall reserve not more than 1 percent for payments to the outlying areas, to be allotted in accordance with their respective needs for assistance under this part.

``SEC. 5112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

``(a) Distribution Rule.—

``(1) Allocation of base amounts.—From the amount made available to a State educational agency under this part for a fiscal year, the State educational agency shall distribute, to local educational agencies within the State, an amount that is not less than 85 percent of the amount made available to the State educational agency under this part for fiscal year 2002, according to the relative enrollments in public and in private nonprofit schools within the jurisdictions of such local educational agencies, adjusted, in accordance with criteria approved by the Secretary, to provide higher per-pupil allocations to local educational agencies that have the greatest numbers or percentages of children whose education imposes a higher-than-average cost per child, such as—

``(A) children living in areas with high concentrations of economically disadvantaged families;

``(B) children from economically disadvantaged families; and

``(C) children living in sparsely populated areas.

``(2) Allocation of increased amounts.—From the amount made available to a State educational agency under this part for a fiscal year that exceeds the amount made available to the agency under this part for fiscal year 2002, the State educational agency shall distribute 100 percent (or, in the case of a State educational agency receiving a minimum allotment under section 5111(a), not less than 50 percent, notwithstanding subsection (b)) to local educational agencies within the State, on the same basis as the State educational agency distributes amounts under paragraph (1).

``(b) Limitations and Requirements.—Not more than 15 percent of funds made available under section 5111 for State programs under this part for any fiscal year may be used for State administration under section 5121.

``(c) Calculation of Enrollments.—

``(1) In general.—The calculation of relative enrollments under subsection (a)(1) shall be on the basis of the total of—

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

``(B) the number of children enrolled in private nonprofit schools that participated in programs assisted under this part, for the fiscal year preceding the fiscal year for which the determination is made.

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

``(3) Adjustments.—

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

``(i) children living in areas with high concentrations of economically disadvantaged families;

``(ii) children from economically disadvantaged families; or

``(iii) children living in sparsely populated areas.

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

``(d) Payment of Allocations.—

``(1) Distribution.—From the funds paid to a State educational agency under this subpart for a fiscal year, the State educational agency shall distribute to each eligible local educational agency that has submitted an application as required by section 5133 the amount of such local educational agency's allocation, as determined under subsection (a).

``(2) Additional funds.—

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

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

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

``Subpart 2—State Programs

``SEC. 5121. STATE USES OF FUNDS.

``A State educational agency may use funds made available for State use under section 5112(b) only for one or more of the following:

``(1) State administration of programs under this part, including—

``(A) allocating funds to local educational agencies;

``(B) planning, supervising, and processing State educational agency funds; and

``(C) monitoring and evaluating programs under this part.

``(2) Support for the planning, design, and initial implementation of charter schools as described in part B.

``(3) Statewide education reform, school improvement programs and technical assistance and direct grants to local educational agencies, which assist such agencies under section 5131.

``(4) Support for the design and implementation of high-quality yearly student assessments.

``(5) Support for implementation of challenging State and local academic achievement standards.

``(6) Support for arrangements that provide for independent analysis to measure and report on school district achievement.

``(7) Support for the program described in section 321 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001 (as enacted into law by section 1(a)(1) of Public Law 106-554).

``(8) Support for programs to assist in the implementation of the policy described in section 9507 which may include payment of reasonable transportation costs and tuition costs for such students.

``SEC. 5122. STATE APPLICATIONS.

``(a) Application Requirements.—Any State that desires to receive assistance under this part shall submit to the Secretary an application that includes each of the following:

``(1) Designation of the State educational agency as the State agency responsible for administration and supervision of programs assisted under this part.

``(2) Provision for an annual statewide summary of how assistance under this part is contributing toward improving student academic achievement or improving the quality of education for students.

``(3) Information setting forth the allocation of funds required to implement section 5142.

``(4) A provision that the State educational agency will keep such records, and provide such information to the Secretary, as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Secretary under this section).

``(5) An assurance that, apart from providing technical and advisory assistance and monitoring compliance with this part, the State educational agency has not exercised, and will not exercise, any influence in the decisionmaking processes of local educational agencies as to the expenditure made pursuant to an application submitted under section 5133.

``(6) An assurance that there is compliance with the specific requirements of this part.

``(7) Provision for timely public notice and public dissemination of the information provided under paragraph (3).

``(b) Statewide Summary.—The statewide summary referred to in subsection (a)(2) shall be submitted annually to the Secretary and shall be derived from the evaluation information submitted by local educational agencies to the State educational agency under section 5133(b)(8). The State educational agency shall determine the format and content of such summary and may include in the summary statistical measures, such as the number of students served by each type of innovative assistance program described in section 5131 and the number of teachers trained.

``(c) Period of Application.—An application submitted by the State educational agency under subsection (a) shall be for a period not to exceed 3 years. The agency may amend the application annually, as may be necessary to reflect changes, without filing a new application.

``(d) Audit Rule.—A local educational agency that receives less than an average of $10,000 under this part for any 3 consecutive fiscal years shall not be audited more frequently than once every 5 years.

``Subpart 3—Local Innovative Education Programs

``SEC. 5131. LOCAL USES OF FUNDS.

``(a) Innovative Assistance Programs.—Funds made available to local educational agencies under section 5112 shall be used for innovative assistance programs, which may include any of the following:

``(1) Programs to recruit, train, and hire highly qualified teachers to reduce class size, especially in the early grades, and professional development activities carried out in accordance with title II, that give teachers, principals, and administrators the knowledge and skills to provide students with the opportunity to meet challenging State or local academic content standards and student academic achievement standards.

``(2) Technology activities related to the implementation of school-based reform efforts, including professional development to assist teachers and other school personnel (including school library media personnel) regarding how to use technology effectively in the classrooms and the school library media centers involved.

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

``(4) Promising education reform projects, including magnet schools.

``(5) Programs to improve the academic achievement of educationally disadvantaged elementary school and secondary school students, including activities to prevent students from dropping out of school.

``(6) Programs to improve the literacy skills of adults, especially the parents of children served by the local educational agency, including adult education and family literacy programs.

``(7) Programs to provide for the educational needs of gifted and talented children.

``(8) The planning, design, and initial implementation of charter schools as described in part B.

``(9) School improvement programs or activities under sections 1116 and 1117.

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

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

``(12) Activities to promote, implement, or expand public school choice.

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

``(14) Expansion and improvement of school-based mental health services, including early identification of drug use and violence, assessment, and direct individual or group counseling services provided to students, parents, and school personnel by qualified school-based mental health services personnel.

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

``(16) Programs to establish or enhance prekindergarten programs for children.

``(17) Academic intervention programs that are operated jointly with community-based organizations and that support academic enrichment, and counseling programs conducted during the school day (including during extended school day or extended school year programs), for students most at risk of not meeting challenging State academic achievement standards or not completing secondary school.

``(18) Programs for cardiopulmonary resuscitation (CPR) training in schools.

``(19) Programs to establish smaller learning communities.

``(20) Activities that encourage and expand improvements throughout the area served by the local educational agency that are designed to advance student academic achievement.

``(21) Initiatives to generate, maintain, and strengthen parental and community involvement.

``(22) Programs and activities that expand learning opportunities through best-practice models designed to improve classroom learning and teaching.

``(23) Programs to provide same-gender schools and classrooms (consistent with applicable law).

``(24) Service learning activities.

``(25) School safety programs, including programs to implement the policy described in section 9507 and which may include payment of reasonable transportation costs and tuition costs for such students.

``(26) Programs that employ research-based cognitive and perceptual development approaches and rely on a diagnostic-prescriptive model to improve students' learning of academic content at the preschool, elementary, and secondary levels.

``(27) Supplemental educational services, as defined in section 1116(e).

``(b) Requirements.—The innovative assistance programs described in subsection (a) shall be—

``(1) tied to promoting challenging academic achievement standards;

``(2) used to improve student academic achievement; and

``(3) part of an overall education reform strategy.

``(c) Guidelines.—Not later than 120 days after the date of enactment of the No Child Left Behind Act of 2001, the Secretary shall issue guidelines for local educational agencies seeking funding for programs described in subsection (a)(23).

``SEC. 5132. ADMINISTRATIVE AUTHORITY.

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

``SEC. 5133. LOCAL APPLICATIONS.

``(a) Submission of Application.—A local educational agency may receive an allocation of funds under this part for any year for which the agency submits an application under this section that the State educational agency certifies under subsection (b).

``(b) Certification and Contents of Application.—The State educational agency shall certify each application submitted under subsection (a) that includes each of the following:

``(1) A description of locally identified needs relative to the purposes of this part and to the innovative assistance programs described in section 5131.

``(2) A statement that sets forth the planned allocation of funds, based on the needs identified in subparagraph (A), among innovative assistance programs described in section 5131, a description of the programs that the local educational agency intends to support, and a description of the reasons for the selection of such programs.

``(3) Information setting forth the allocation of such funds required to implement section 5142.

``(4) A description of how assistance under this part will contribute to improving student academic achievement or improving the quality of education for students.

``(5) An assurance that the local educational agency will comply with this part, including the provisions of section 5142 concerning the participation of children enrolled in private nonprofit schools.

``(6) An assurance that the local educational agency will keep such records, and provide such information to the State educational agency, as may be reasonably required for fiscal audit and program evaluation (consistent with the responsibilities of the State educational agency under this part).

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

``(8) An assurance that—

``(A) programs carried out under this part will be evaluated annually;

``(B) the evaluation will be used to make decisions about appropriate changes in programs for the subsequent year;

``(C) the evaluation will describe how assistance under this part affected student academic achievement and will include, at a minimum, information and data on the use of funds, the types of services furnished, and the students served under this part; and

``(D) the evaluation will be submitted to the State educational agency at the time and in the manner requested by the State educational agency.

``(9) If the local educational agency seeks funds under section 5131(a)(23), a description of how the agency will comply with the guidelines issued by the Secretary regarding same-gender schools and classrooms under section 5131(c).

``(c) Period of Application.—An application submitted by a local educational agency under subsection (a) may seek allocations under this part for a period not to exceed 3 fiscal years. The agency may amend the application annually, as may be necessary to reflect changes, without the filing of a new application.

``(d) Local Educational Agency Discretion.—

``(1) In general.—Subject to the limitations and requirements of this part, a local educational agency shall have complete discretion in determining how funds made available to carry out this subpart will be divided among programs described in section 5131.

``(2) Limitation.—In exercising the discretion described in paragraph (1), a local educational agency shall ensure that expenditures under this subpart carry out the purposes of this part and are used to meet the educational needs within the schools served by the local educational agency.

``Subpart 4—General Provisions

``SEC. 5141. MAINTENANCE OF EFFORT.

``(a) In general.—Except as provided in subsection (b), a State educational agency is entitled to receive its full allotment of funds under this part for any fiscal year only if the Secretary determines that either the combined fiscal effort per student or the aggregate expenditures within the State, with respect to the provision of free public education for the fiscal year preceding the fiscal year for which the determination is made, was not less than 90 percent of such combined fiscal effort or aggregate expenditures for the second fiscal year preceding the fiscal year for which the determination is made.

``(b) Reduction of Funds.—The Secretary shall reduce the amount of the allotment of funds under this part in any fiscal year in the exact proportion by which the State educational agency fails to meet the requirements of subsection (a) by falling below 90 percent of the fiscal effort per student or aggregate expenditures (using the measure most favorable to the State educational agency), and no such lesser amount shall be used for computing the effort or expenditures required under paragraph (1) for subsequent years.

``(c) Waiver.—The Secretary may waive, for 1 fiscal year only, the requirements of this section, if the Secretary determines that such a waiver would be equitable due to exceptional or uncontrollable circumstances, such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the State educational agency.

``SEC. 5142. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

``(a) Participation on Equitable Basis.—

``(1) In general.—To the extent consistent with the number of children in the school district of a local educational agency that is eligible to receive funds under this part, or that serves the area in which a program assisted under this part is located, who are enrolled in private nonprofit elementary schools and secondary schools, or, with respect to instructional or personnel training programs funded by the State educational agency from funds made available for State educational agency use, the local educational agency, after consultation with appropriate private school officials—

``(A) shall provide, as may be necessary, for the benefit of such children in such schools—

``(i) secular, neutral, and nonideological services, materials, and equipment, including the participation of the teachers of such children (and other educational personnel serving such children) in training programs; and

``(ii) the repair, minor remodeling, or construction of public facilities (consistent with subsection (c)); or

``(B) if such services, materials, and equipment are not feasible or necessary in one or more such private schools, as determined by the local educational agency after consultation with the appropriate private school officials, shall provide such other arrangements as will assure equitable participation of such children in the purposes and benefits of this part.

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

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

``(b) Equal Expenditures.—

``(1) In general.—Expenditures for programs under subsection (a) shall be equal (consistent with the number of children to be served) to expenditures for programs under this part for children enrolled in the public schools of the local educational agency.

``(2) Concentrated programs.—Taking into account the needs of the individual children and other factors that relate to the expenditures referred to in paragraph (1), and when funds available to a local educational agency under this part are used to concentrate programs on a particular group, attendance area, or grade or age level, children enrolled in private schools who are included within the group, attendance area, or grade or age level selected for such concentration shall, after consultation with the appropriate private school officials, be assured equitable participation in the purposes and benefits of such programs.

``(c) Administrative Requirements.—

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

``(2) Provision of services.—Services provided under this part shall be provided by employees of a public agency or through contract by such a public agency with a person, association, agency, or corporation that, in the provision of such services, is independent of the private school and of any religious organizations, and such employment or contract shall be under the control and supervision of such a public agency. The funds provided under this part shall not be commingled with State or local funds.

``(d) Waiver.—

``(1) State prohibition.—If a State educational agency or local educational agency is prohibited, by reason of any provision of law, from providing for the participation in programs of children enrolled in private elementary schools and secondary schools as required by subsections (a) through (c), the Secretary shall waive such requirements for the agency involved and shall arrange for the provision of services to such children through arrangements that shall be subject to the requirements of this section.

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

``(e) Withholding of Allotment or Allocation.—Pending final resolution of any investigation or complaint that could result in a waiver under subsection (d)(1) or (d)(2), the Secretary may withhold from the allotment or allocation of the affected State educational agency or local educational agency the amount estimated by the Secretary to be necessary to pay the cost of services to be provided by the Secretary under such subsection.

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

``(g) Payment From State Allotment.—When the Secretary arranges for services under subsection (d), the Secretary shall, after consultation with the appropriate public school and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the appropriate allotment of the State educational agency under this part.

``(h) Review of Determination.—

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

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

``(3) Remand to secretary.—The findings of fact by the Secretary with respect to a proceeding under paragraph (1), if supported by substantial evidence, shall be conclusive. The court, for good cause shown, may remand the case to the Secretary to take further evidence and the Secretary may make new or modified findings of fact and may modify the Secretary's previous action, and shall file in the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive, if supported by substantial evidence.

``(4) Court review.—Upon the filing of a petition under paragraph (2), the court shall have jurisdiction to affirm the action of the Secretary or to set such action aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court upon certiorari or certification, as provided in section 1254 of title 28, United States Code.

``(i) Prior Determination.—Any bypass determination by the Secretary under title VI (as such title was in effect on the day preceding the date of enactment of the No Child Left Behind Act of 2001) shall, to the extent consistent with the purposes of this part, apply to programs under this part.

``SEC. 5143. FEDERAL ADMINISTRATION.

``(a) Technical Assistance.—The Secretary, upon request, shall provide technical assistance to State educational agencies and local educational agencies under this part.

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

``(c) Availability of Appropriations.—Notwithstanding any other provision of law, unless expressly in limitation of this subsection, funds appropriated in any fiscal year to carry out programs under this part shall become available for obligation on July 1 of such fiscal year and shall remain available for obligation until the end of the subsequent fiscal year.

``SEC. 5144. SUPPLEMENT, NOT SUPPLANT.

``Funds made available under this part shall be used to supplement, and not supplant, any other Federal, State, or local education funds.

``SEC. 5145. DEFINITIONS.

``In this part:

``(1) Local educational agency.—The term `local educational agency' means a local educational agency or a consortium of such agencies.

``(2) Public school.—The term `public school' means a public elementary school or a public secondary school.

``(3) School-age population.—The term `school-age population' means the population aged 5 through 17.

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

``SEC. 5146. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this part—

``(1) $450,000,000 for fiscal year 2002;

``(2) $475,000,000 for fiscal year 2003;

``(3) $500,000,000 for fiscal year 2004;

``(4) $525,000,000 for fiscal year 2005;

``(5) $550,000,000 for fiscal year 2006; and

``(6) $600,000,000 for fiscal year 2007.

``PART B—PUBLIC CHARTER SCHOOLS

``Subpart 1—Charter School Programs

``SEC. 5201. PURPOSE.

``It is the purpose of this subpart to increase national understanding of the charter schools model by—

``(1) providing financial assistance for the planning, program design, and initial implementation of charter schools;

``(2) evaluating the effects of such schools, including the effects on students, student academic achievement, staff, and parents;

``(3) expanding the number of high-quality charter schools available to students across the Nation; and

``(4) encouraging the States to provide support to charter schools for facilities financing in an amount more nearly commensurate to the amount the States have typically provided for traditional public schools.

``SEC. 5202. PROGRAM AUTHORIZED.

``(a) In General.—The Secretary may award grants to State educational agencies having applications approved pursuant to section 5203 to enable such agencies to conduct a charter school grant program in accordance with this subpart.

``(b) Special Rule.—If a State educational agency elects not to participate in the program authorized by this subpart or does not have an application approved under section 5203, the Secretary may award a grant to an eligible applicant that serves such State and has an application approved pursuant to section 5203(c).

``(c) Program Periods.—

``(1) Grants to states.—Grants awarded to State educational agencies under this subpart shall be for a period of not more than 3 years.

``(2) Grants to eligible applicants.—Grants awarded by the Secretary to eligible applicants or subgrants awarded by State educational agencies to eligible applicants under this subpart shall be for a period of not more than 3 years, of which the eligible applicant may use—

``(A) not more than 18 months for planning and program design;

``(B) not more than 2 years for the initial implementation of a charter school; and

``(C) not more than 2 years to carry out dissemination activities described in section 5204(f)(6)(B).

``(d) Limitation.—A charter school may not receive—

``(1) more than one grant for activities described in subparagraphs (A) and (B) of subsection (c)(2); or

``(2) more than one grant for activities under subparagraph (C) of subsection (c)(2).

``(e) Priority Treatment.—

``(1) In general.—In awarding grants under this subpart for fiscal year 2002 or any succeeding fiscal year from any funds appropriated under section 5211 (other than funds reserved to carry out section 5205(b)), the Secretary shall give priority to States to the extent that the States meet the criteria described in paragraph (2) and one or more of the criteria described in subparagraph (A), (B), or (C) of paragraph (3).

``(2) Review and evaluation priority criteria.—The criteria referred to in paragraph (1) are that the State provides for periodic review and evaluation by the authorized public chartering agency of each charter school, at least once every 5 years unless required more frequently by State law, to determine whether the charter school is meeting the terms of the school's charter, and is meeting or exceeding the student academic achievement requirements and goals for charter schools as set forth under State law or the school's charter.

``(3) Priority criteria.—The criteria referred to in paragraph (1) are the following:

``(A) The State has demonstrated progress, in increasing the number of high-quality charter schools that are held accountable in the terms of the schools' charters for meeting clear and measurable objectives for the educational progress of the students attending the schools, in the period prior to the period for which a State educational agency or eligible applicant applies for a grant under this subpart.

``(B) The State—

``(i) provides for one authorized public chartering agency that is not a local educational agency, such as a State chartering board, for each individual or entity seeking to operate a charter school pursuant to such State law; or

``(ii) in the case of a State in which local educational agencies are the only authorized public chartering agencies, allows for an appeals process for the denial of an application for a charter school.

``(C) The State ensures that each charter school has a high degree of autonomy over the charter school's budgets and expenditures.

``(f) Amount Criteria.—In determining the amount of a grant to be awarded under this subpart to a State educational agency, the Secretary shall take into consideration the number of charter schools that are operating, or are approved to open, in the State.

``SEC. 5203. APPLICATIONS.

``(a) Applications From State Agencies.—Each State educational agency desiring a grant from the Secretary under this subpart shall submit to the Secretary an application at such time, in such manner, and containing or accompanied by such information as the Secretary may require.

``(b) Contents of a State Educational Agency Application.—Each application submitted pursuant to subsection (a) shall—

``(1) describe the objectives of the State educational agency's charter school grant program and a description of how such objectives will be fulfilled, including steps taken by the State educational agency to inform teachers, parents, and communities of the State educational agency's charter school grant program; and

``(2) describe how the State educational agency—

``(A) will inform each charter school in the State regarding—

``(i) Federal funds that the charter school is eligible to receive; and

``(ii) Federal programs in which the charter school may participate;

``(B) will ensure that each charter school in the State receives the charter school's commensurate share of Federal education funds that are allocated by formula each year, including during the first year of operation of the charter school; and

``(C) will disseminate best or promising practices of charter schools to each local educational agency in the State; and

``(3) contain assurances that the State educational agency will require each eligible applicant desiring to receive a subgrant to submit an application to the State educational agency containing—

``(A) a description of the educational program to be implemented by the proposed charter school, including—

``(i) how the program will enable all students to meet challenging State student academic achievement standards;

``(ii) the grade levels or ages of children to be served; and

``(iii) the curriculum and instructional practices to be used;

``(B) a description of how the charter school will be managed;

``(C) a description of—

``(i) the objectives of the charter school; and

``(ii) the methods by which the charter school will determine its progress toward achieving those objectives;

``(D) a description of the administrative relationship between the charter school and the authorized public chartering agency;

``(E) a description of how parents and other members of the community will be involved in the planning, program design, and implementation of the charter school;

``(F) a description of how the authorized public chartering agency will provide for continued operation of the school once the Federal grant has expired, if such agency determines that the school has met the objectives described in subparagraph (C)(i);

``(G) a request and justification for waivers of any Federal statutory or regulatory provisions that the eligible applicant believes are necessary for the successful operation of the charter school, and a description of any State or local rules, generally applicable to public schools, that will be waived for, or otherwise not apply to, the school;

``(H) a description of how the subgrant funds or grant funds, as appropriate, will be used, including a description of how such funds will be used in conjunction with other Federal programs administered by the Secretary;

``(I) a description of how students in the community will be—

``(i) informed about the charter school; and

``(ii) given an equal opportunity to attend the charter school;

``(J) an assurance that the eligible applicant will annually provide the Secretary and the State educational agency such information as may be required to determine if the charter school is making satisfactory progress toward achieving the objectives described in subparagraph (C)(i);

``(K) an assurance that the eligible applicant will cooperate with the Secretary and the State educational agency in evaluating the program assisted under this subpart;

``(L) a description of how a charter school that is considered a local educational agency under State law, or a local educational agency in which a charter school is located, will comply with sections 613(a)(5) and 613(e)(1)(B) of the Individuals with Disabilities Education Act;

``(M) if the eligible applicant desires to use subgrant funds for dissemination activities under section 5202(c)(2)(C), a description of those activities and how those activities will involve charter schools and other public schools, local educational agencies, developers, and potential developers; and

``(N) such other information and assurances as the Secretary and the State educational agency may require.

``(c) Eligible Applicant Application.—Each eligible applicant desiring a grant pursuant to section 5202(b) shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

``(d) Contents of Eligible Applicant Application.—Each application submitted pursuant to subsection (c) shall contain—

``(1) the information and assurances described in subparagraphs (A) through (N) of subsection (b)(3), except that for purposes of this subsection subparagraphs (J), (K), and (N) of such subsection shall be applied by striking `and the State educational agency' each place such term appears;

``(2) assurances that the State educational agency—

``(A) will grant, or will obtain, waivers of State statutory or regulatory requirements; and

``(B) will assist each subgrantee in the State in receiving a waiver under section 5204(e); and

``(3) assurances that the eligible applicant has provided its authorized public chartering authority timely notice, and a copy, of the application, except that the State educational agency (or the Secretary, in the case of an application submitted to the Secretary) may waive the requirement of this paragraph in the case of an application for a precharter planning grant or subgrant if the authorized public chartering authority to which a charter school proposal will be submitted has not been determined at the time the grant or subgrant application is submitted.

``SEC. 5204. ADMINISTRATION.

``(a) Selection Criteria for State Educational Agencies.—The Secretary shall award grants to State educational agencies under this subpart on the basis of the quality of the applications submitted under section 5203(b), after taking into consideration such factors as—

``(1) the contribution that the charter schools grant program will make to assisting educationally disadvantaged and other students in meeting State academic content standards and State student academic achievement standards;

``(2) the degree of flexibility afforded by the State educational agency to charter schools under the State's charter schools law;

``(3) the ambitiousness of the objectives for the State charter school grant program;

``(4) the quality of the strategy for assessing achievement of those objectives;

``(5) the likelihood that the charter school grant program will meet those objectives and improve educational results for students;

``(6) the number of high-quality charter schools created under this subpart in the State; and

``(7) in the case of State educational agencies that propose to use grant funds to support dissemination activities under subsection (f)(6)(B), the quality of those activities and the likelihood that those activities will improve student academic achievement.

``(b) Selection Criteria for Eligible Applicants.—The Secretary shall award grants to eligible applicants under this subpart on the basis of the quality of the applications submitted under section 5203(c), after taking into consideration such factors as—

``(1) the quality of the proposed curriculum and instructional practices;

``(2) the degree of flexibility afforded by the State educational agency and, if applicable, the local educational agency to the charter school;

``(3) the extent of community support for the application;

``(4) the ambitiousness of the objectives for the charter school;

``(5) the quality of the strategy for assessing achievement of those objectives;

``(6) the likelihood that the charter school will meet those objectives and improve educational results for students; and

``(7) in the case of an eligible applicant that proposes to use grant funds to support dissemination activities under subsection (f)(6)(B), the quality of those activities and the likelihood that those activities will improve student achievement.

``(c) Peer Review.—The Secretary, and each State educational agency receiving a grant under this subpart, shall use a peer review process to review applications for assistance under this subpart.

``(d) Diversity of Projects.—The Secretary and each State educational agency receiving a grant under this subpart, shall award grants and subgrants under this subpart in a manner that, to the extent possible, ensures that such grants and subgrants—

``(1) are distributed throughout different areas of the Nation and each State, including urban and rural areas; and

``(2) will assist charter schools representing a variety of educational approaches, such as approaches designed to reduce school size.

``(e) Waivers.—The Secretary may waive any statutory or regulatory requirement over which the Secretary exercises administrative authority except any such requirement relating to the elements of a charter school described in section 5210(1), if—

``(1) the waiver is requested in an approved application under this subpart; and

``(2) the Secretary determines that granting such a waiver will promote the purpose of this subpart.

``(f) Use of Funds.—

``(1) State educational agencies.—Each State educational agency receiving a grant under this subpart shall use such grant funds to award subgrants to one or more eligible applicants in the State to enable such applicant to plan and implement a charter school in accordance with this subpart, except that the State educational agency may reserve not more than 10 percent of the grant funds to support dissemination activities described in paragraph (6).

``(2) Eligible applicants.—Each eligible applicant receiving funds from the Secretary or a State educational agency shall use such funds to plan and implement a charter school, or to disseminate information about the charter school and successful practices in the charter school, in accordance with this subpart.

``(3) Allowable activities.—An eligible applicant receiving a grant or subgrant under this subpart may use the grant or subgrant funds only for—

``(A) post-award planning and design of the educational program, which may include—

``(i) refinement of the desired educational results and of the methods for measuring progress toward achieving those results; and

``(ii) professional development of teachers and other staff who will work in the charter school; and

``(B) initial implementation of the charter school, which may include—

``(i) informing the community about the school;

``(ii) acquiring necessary equipment and educational materials and supplies;

``(iii) acquiring or developing curriculum materials; and

``(iv) other initial operational costs that cannot be met from State or local sources.

``(4) Administrative expenses.—

``(A) State educational agency administrative expenses.—Each State educational agency receiving a grant pursuant to this subpart may reserve not more than 5 percent of such grant funds for administrative expenses associated with the charter school grant program assisted under this subpart.

``(B) Local administrative expenses.—A local educational agency may not deduct funds for administrative fees or expenses from a subgrant awarded to an eligible applicant, unless the eligible applicant enters voluntarily into a mutually agreed upon arrangement for administrative services with the relevant local educational agency. Absent such approval, the local educational agency shall distribute all such subgrant funds to the eligible applicant without delay.

``(5) Revolving loan funds.—Each State educational agency receiving a grant pursuant to this subpart may reserve not more than 10 percent of the grant funds for the establishment of a revolving loan fund. Such fund may be used to make loans to eligible applicants that have received a subgrant under this subpart, under such terms as may be determined by the State educational agency, for the initial operation of the charter school grant program of the eligible applicant until such time as the recipient begins receiving ongoing operational support from State or local financing sources.

``(6) Dissemination.—

``(A) In general.—A charter school may apply for funds under this subpart, whether or not the charter school has applied for or received funds under this subpart for planning, program design, or implementation, to carry out the activities described in subparagraph (B) if the charter school has been in operation for at least 3 consecutive years and has demonstrated overall success, including—

``(i) substantial progress in improving student academic achievement;

``(ii) high levels of parent satisfaction; and

``(iii) the management and leadership necessary to overcome initial start-up problems and establish a thriving, financially viable charter school.

``(B) Activities.—A charter school described in subparagraph (A) may use funds reserved under paragraph (1) to assist other schools in adapting the charter school's program (or certain aspects of the charter school's program), or to disseminate information about the charter school, through such activities as—

``(i) assisting other individuals with the planning and start-up of one or more new public schools, including charter schools, that are independent of the assisting charter school and the assisting charter school's developers, and that agree to be held to at least as high a level of accountability as the assisting charter school;

``(ii) developing partnerships with other public schools, including charter schools, designed to improve student academic achievement in each of the schools participating in the partnership;

``(iii) developing curriculum materials, assessments, and other materials that promote increased student achievement and are based on successful practices within the assisting charter school; and

``(iv) conducting evaluations and developing materials that document the successful practices of the assisting charter school and that are designed to improve student performance in other schools.

``(g) Tribally Controlled Schools.—Each State that receives a grant under this subpart and designates a tribally controlled school as a charter school shall not consider payments to a school under the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in determining—

``(1) the eligibility of the school to receive any other Federal, State, or local aid; or

``(2) the amount of such aid.

``SEC. 5205. NATIONAL ACTIVITIES.

``(a) In General.—The Secretary shall reserve for each fiscal year the greater of 5 percent or $5,000,000 of the amount appropriated to carry out this subpart, except that in no fiscal year shall the total amount so reserved exceed $8,000,000, to carry out the following activities:

``(1) To provide charter schools, either directly or through State educational agencies, with—

``(A) information regarding—

``(i) Federal funds that charter schools are eligible to receive; and

``(ii) other Federal programs in which charter schools may participate; and

``(B) assistance in applying for Federal education funds that are allocated by formula, including assistance with filing deadlines and submission of applications.

``(2) To provide for other evaluations or studies that include the evaluation of the impact of charter schools on student academic achievement, including information regarding—

``(A) students attending charter schools reported on the basis of race, age, disability, gender, limited English proficiency, and previous enrollment in public school; and

``(B) the professional qualifications of teachers within a charter school and the turnover of the teaching force.

``(3) To provide—

``(A) information to applicants for assistance under this subpart;

``(B) assistance to applicants for assistance under this subpart with the preparation of applications under section 5203;

``(C) assistance in the planning and startup of charter schools;

``(D) training and technical assistance to existing charter schools; and

``(E) for the dissemination to other public schools of best or promising practices in charter schools.

``(4) To provide (including through the use of one or more contracts that use a competitive bidding process) for the collection of information regarding the financial resources available to charter schools, including access to private capital, and to widely disseminate to charter schools any such relevant information and model descriptions of successful programs.

``(5) To carry out evaluations of, technical assistance for, and information dissemination regarding, the per-pupil facilities aid programs. In carrying out the evaluations, the Secretary may carry out one or more evaluations of State programs assisted under this subsection, which shall, at a minimum, address—

``(A) how, and the extent to which, the programs promote educational equity and excellence; and

``(B) the extent to which charter schools supported through the programs are—

``(i) held accountable to the public;

``(ii) effective in improving public education; and

``(iii) open and accessible to all students.

``(b) Per-Pupil Facilities Aid Programs.—

``(1) Definition of per-pupil facilities aid program.—In this subsection, the term `per-pupil facilities aid program' means a program in which a State makes payments, on a per-pupil basis, to charter schools to provide the schools with financing—

``(A) that is dedicated solely for funding charter school facilities; or

``(B) a portion of which is dedicated for funding charter school facilities.

``(2) Grants.—

``(A) In general.—From the amount made available to carry out this subsection under paragraphs (2) and (3)(B) of section 5211(b) for any fiscal year, the Secretary shall make grants, on a competitive basis, to States to pay for the Federal share of the cost of establishing or enhancing, and administering per-pupil facilities aid programs.

``(B) Period.—The Secretary shall award grants under this subsection for periods of not more than 5 years.

``(C) Federal share.—The Federal share of the cost described in subparagraph (A) for a per-pupil facilities aid program shall be not more than—

``(i) 90 percent of the cost, for the first fiscal year for which the program receives assistance under this subsection;

``(ii) 80 percent in the second such year;

``(iii) 60 percent in the third such year;

``(iv) 40 percent in the fourth such year; and

``(v) 20 percent in the fifth such year.

``(3) Use of funds.—

``(A) In general.—A State that receives a grant under this subsection shall use the funds made available through the grant to establish or enhance, and administer, a per-pupil facilities aid program for charter schools in the State.

``(B) Evaluations; technical assistance; dissemination.—From the amount made available to a State through a grant under this subsection for a fiscal year, the State may reserve not more than 5 percent to carry out evaluations, to provide technical assistance, and to disseminate information.

``(C) Supplement, not supplant.—Funds made available under this subsection shall be used to supplement, and not supplant, State and local public funds expended to provide per pupil facilities aid programs, operations financing programs, or other programs, for charter schools.

``(4) Requirements.—

``(A) Voluntary participation.—No State may be required to participate in a program carried out under this subsection.

``(B) State law.—To be eligible to receive a grant under this subsection, a State shall establish or enhance, and administer, a per-pupil facilities aid program for charter schools in the State, that—

``(i) is specified in State law; and

``(ii) provides annual financing, on a per-pupil basis, for charter school facilities.

``(5) Applications.—To be eligible to receive a grant under this subsection, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

``(6) Priorities.—In making grants under this subsection, the Secretary shall give priority to States that meet the criteria described in paragraph (2), and subparagraphs (A), (B), and (C) of paragraph (3), of section 5202(e).

``(c) Rule of Construction.—Nothing in this section shall be construed to require charter schools to collect any data described in subsection (a).

``SEC. 5206. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND FOR SUCCESSIVE ENROLLMENT EXPANSIONS.

``(a) In General.—For purposes of the allocation to schools by the States or their agencies of funds under part A of title I, and any other Federal funds which the Secretary allocates to States on a formula basis, the Secretary and each State educational agency shall take such measures as are necessary to ensure that every charter school receives the Federal funding for which the charter school is eligible not later than 5 months after the charter school first opens, notwithstanding the fact that the identity and characteristics of the students enrolling in that charter school are not fully and completely determined until that charter school actually opens. The measures similarly shall ensure that every charter school expanding its enrollment in any subsequent year of operation receives the Federal funding for which the charter school is eligible not later than 5 months after such expansion.

``(b) Adjustment and Late Openings.—

``(1) In general.—The measures described in subsection (a) shall include provision for appropriate adjustments, through recovery of funds or reduction of payments for the succeeding year, in cases where payments made to a charter school on the basis of estimated or projected enrollment data exceed the amounts that the school is eligible to receive on the basis of actual or final enrollment data.

``(2) Rule.—For charter schools that first open after November 1 of any academic year, the State, in accordance with guidance provided by the Secretary and applicable Federal statutes and regulations, shall ensure that such charter schools that are eligible for the funds described in subsection (a) for such academic year have a full and fair opportunity to receive those funds during the charter schools' first year of operation.

``SEC. 5207. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.

``To the extent practicable, the Secretary shall ensure that administrators, teachers, and other individuals directly involved in the operation of charter schools are consulted in the development of any rules or regulations required to implement this subpart, as well as in the development of any rules or regulations relevant to charter schools that are required to implement part A of title I, the Individuals with Disabilities Education Act, or any other program administered by the Secretary that provides education funds to charter schools or regulates the activities of charter schools.

``SEC. 5208. RECORDS TRANSFER.

``State educational agencies and local educational agencies, to the extent practicable, shall ensure that a student's records and, if applicable, a student's individualized education program as defined in section 602(11) of the Individuals with Disabilities Education Act, are transferred to a charter school upon the transfer of the student to the charter school, and to another public school upon the transfer of the student from a charter school to another public school, in accordance with applicable State law.

``SEC. 5209. PAPERWORK REDUCTION.

``To the extent practicable, the Secretary and each authorized public chartering agency shall ensure that implementation of this subpart results in a minimum of paperwork for any eligible applicant or charter school.

``SEC. 5210. DEFINITIONS.

``In this subpart:

``(1) Charter school.—The term `charter school' means a public school that—

``(A) in accordance with a specific State statute authorizing the granting of charters to schools, is exempt from significant State or local rules that inhibit the flexible operation and management of public schools, but not from any rules relating to the other requirements of this paragraph;

``(B) is created by a developer as a public school, or is adapted by a developer from an existing public school, and is operated under public supervision and direction;

``(C) operates in pursuit of a specific set of educational objectives determined by the school's developer and agreed to by the authorized public chartering agency;

``(D) provides a program of elementary or secondary education, or both;

``(E) is nonsectarian in its programs, admissions policies, employment practices, and all other operations, and is not affiliated with a sectarian school or religious institution;

``(F) does not charge tuition;

``(G) complies with the Age Discrimination Act of 1975, title VI of the Civil Rights Act of 1964, title IX of the Education Amendments of 1972, section 504 of the Rehabilitation Act of 1973, and part B of the Individuals with Disabilities Education Act;

``(H) is a school to which parents choose to send their children, and that admits students on the basis of a lottery, if more students apply for admission than can be accommodated;

``(I) agrees to comply with the same Federal and State audit requirements as do other elementary schools and secondary schools in the State, unless such requirements are specifically waived for the purpose of this program;

``(J) meets all applicable Federal, State, and local health and safety requirements;

``(K) operates in accordance with State law; and

``(L) has a written performance contract with the authorized public chartering agency in the State that includes a description of how student performance will be measured in charter schools pursuant to State assessments that are required of other schools and pursuant to any other assessments mutually agreeable to the authorized public chartering agency and the charter school.

``(2) Developer.—The term `developer' means an individual or group of individuals (including a public or private nonprofit organization), which may include teachers, administrators and other school staff, parents, or other members of the local community in which a charter school project will be carried out.

``(3) Eligible applicant.—The term `eligible applicant' means a developer that has—

``(A) applied to an authorized public chartering authority to operate a charter school; and

``(B) provided adequate and timely notice to that authority under section 5203(d)(3).

``(4) Authorized public chartering agency.—The term `authorized public chartering agency' means a State educational agency, local educational agency, or other public entity that has the authority pursuant to State law and approved by the Secretary to authorize or approve a charter school.

``SEC. 5211. AUTHORIZATION OF APPROPRIATIONS.

``(a) In General.—There are authorized to be appropriated to carry out this subpart $300,000,000 for fiscal year 2002 and such sums as may be necessary for each of the 5 succeeding fiscal years.

``(b) Reservation.—From the amount appropriated under subsection (a) for each fiscal year, the Secretary shall reserve—

``(1) $200,000,000 to carry out this subpart, other than section 5205(b); and

``(2) any funds in excess of $200,000,000, that do not exceed $300,000,000, to carry out section 5205(b); and

``(3)(A) 50 percent of any funds in excess of $300,000,000 to carry out this subpart, other than section 5205(b); and

``(B) 50 percent of any funds in excess of $300,000,000 to carry out section 5205(b).

``Subpart 2—Credit Enhancement Initiatives To Assist Charter School Facility Acquisition, Construction, and Renovation

``SEC. 5221. PURPOSE.

``The purpose of this subpart is to provide grants to eligible entities to permit the eligible entities to demonstrate innovative credit enhancement initiatives that assist charter schools to address the cost of acquiring, constructing, and renovating facilities.

``SEC. 5222. GRANTS TO ELIGIBLE ENTITIES.

``(a) Grants.—The Secretary shall use 100 percent of the amount available to carry out this subpart to award not less than three grants to eligible entities that have applications approved under this subpart to demonstrate innovative methods of assisting charter schools to address the cost of acquiring, constructing, and renovating facilities by enhancing the availability of loans or bond financing.

``(b) Grantee Selection.—

``(1) Evaluation of application.—The Secretary shall evaluate each application submitted under section 5223, and shall determine whether the application is sufficient to merit approval.

``(2) Distribution of grants.—The Secretary shall award at least one grant to an eligible entity described in section 5230(2)(A), at least one grant to an eligible entity described in section 5230(2)(B), and at least one grant to an eligible entity described in section 5230(2)(C), if applications are submitted that permit the Secretary to do so without approving an application that is not of sufficient quality to merit approval.

``(c) Grant Characteristics.—Grants under this subpart shall be of a sufficient size, scope, and quality so as to ensure an effective demonstration of an innovative means of enhancing credit for the financing of charter school acquisition, construction, or renovation.

``(d) Special Rule.—In the event the Secretary determines that the funds made available under this subpart are insufficient to permit the Secretary to award not less than three grants in accordance with subsections (a) through (c), such three-grant minimum and subsection (b)(2) shall not apply, and the Secretary may determine the appropriate number of grants to be awarded in accordance with subsection (c).

``SEC. 5223. APPLICATIONS.

``(a) In General.—To receive a grant under this subpart, an eligible entity shall submit to the Secretary an application in such form as the Secretary may reasonably require.

``(b) Contents.—An application submitted under subsection (a) shall contain—

``(1) a statement identifying the activities proposed to be undertaken with funds received under this subpart, including how the eligible entity will determine which charter schools will receive assistance, and how much and what types of assistance charter schools will receive;

``(2) a description of the involvement of charter schools in the application's development and the design of the proposed activities;

``(3) a description of the eligible entity's expertise in capital market financing;

``(4) a description of how the proposed activities will leverage the maximum amount of private-sector financing capital relative to the amount of government funding used and otherwise enhance credit available to charter schools;

``(5) a description of how the eligible entity possesses sufficient expertise in education to evaluate the likelihood of success of a charter school program for which facilities financing is sought;

``(6) in the case of an application submitted by a State governmental entity, a description of the actions that the entity has taken, or will take, to ensure that charter schools within the State receive the funding the charter schools need to have adequate facilities; and

``(7) such other information as the Secretary may reasonably require.

``SEC. 5224. CHARTER SCHOOL OBJECTIVES.

``An eligible entity receiving a grant under this subpart shall use the funds deposited in the reserve account established under section 5225(a) to assist one or more charter schools to access private sector capital to accomplish one or both of the following objectives:

``(1) The acquisition (by purchase, lease, donation, or otherwise) of an interest (including an interest held by a third party for the benefit of a charter school) in improved or unimproved real property that is necessary to commence or continue the operation of a charter school.

``(2) The construction of new facilities, or the renovation, repair, or alteration of existing facilities, necessary to commence or continue the operation of a charter school.

``SEC. 5225. RESERVE ACCOUNT.

``(a) Use of Funds.—To assist charter schools to accomplish the objectives described in section 5224, an eligible entity receiving a grant under this subpart shall, in accordance with State and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this subpart (other than funds used for administrative costs in accordance with section 5226) in a reserve account established and maintained by the eligible entity for this purpose. Amounts deposited in such account shall be used by the eligible entity for one or more of the following purposes:

``(1) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein, the proceeds of which are used for an objective described in section 5224.

``(2) Guaranteeing and insuring leases of personal and real property for an objective described in section 5224.

``(3) Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools.

``(4) Facilitating the issuance of bonds by charter schools, or by other public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue).

``(b) Investment.—Funds received under this subpart and deposited in the reserve account established under subsection (a) shall be invested in obligations issued or guaranteed by the United States or a State, or in other similarly low-risk securities.

``(c) Reinvestment of Earnings.—Any earnings on funds received under this subpart shall be deposited in the reserve account established under subsection (a) and used in accordance with such subsection.

``SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS.

``An eligible entity may use not more than 0.25 percent of the funds received under this subpart for the administrative costs of carrying out its responsibilities under this subpart.

``SEC. 5227. AUDITS AND REPORTS.

``(a) Financial Record Maintenance and Audit.—The financial records of each eligible entity receiving a grant under this subpart shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant.

``(b) Reports.—

``(1) Grantee annual reports.—Each eligible entity receiving a grant under this subpart annually shall submit to the Secretary a report of its operations and activities under this subpart.

``(2) Contents.—Each annual report submitted under paragraph (1) shall include—

``(A) a copy of the most recent financial statements, and any accompanying opinion on such statements, prepared by the independent public accountant reviewing the financial records of the eligible entity;

``(B) a copy of any report made on an audit of the financial records of the eligible entity that was conducted under subsection (a) during the reporting period;

``(C) an evaluation by the eligible entity of the effectiveness of its use of the Federal funds provided under this subpart in leveraging private funds;

``(D) a listing and description of the charter schools served during the reporting period;

``(E) a description of the activities carried out by the eligible entity to assist charter schools in meeting the objectives set forth in section 5224; and

``(F) a description of the characteristics of lenders and other financial institutions participating in the activities undertaken by the eligible entity under this subpart during the reporting period.

``(3) Secretarial report.—The Secretary shall review the reports submitted under paragraph (1) and shall provide a comprehensive annual report to Congress on the activities conducted under this subpart.

``SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

``No financial obligation of an eligible entity entered into pursuant to this subpart (such as an obligation under a guarantee, bond, note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit of the United States is not pledged to the payment of funds which may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this subpart.

``SEC. 5229. RECOVERY OF FUNDS.

``(a) In General.—The Secretary, in accordance with chapter 37 of title 31, United States Code, shall collect—

``(1) all of the funds in a reserve account established by an eligible entity under section 5225(a) if the Secretary determines, not earlier than 2 years after the date on which the eligible entity first received funds under this subpart, that the eligible entity has failed to make substantial progress in carrying out the purposes described in section 5225(a); or

``(2) all or a portion of the funds in a reserve account established by an eligible entity under section 5225(a) if the Secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such account to accomplish any purpose described in section 5225(a).

``(b) Exercise of Authority.—The Secretary shall not exercise the authority provided in subsection (a) to collect from any eligible entity any funds that are being properly used to achieve one or more of the purposes described in section 5225(a).

``(c) Procedures.—The provisions of sections 451, 452, and 458 of the General Education Provisions Act shall apply to the recovery of funds under subsection (a).

``(d) Construction.—This section shall not be construed to impair or affect the authority of the Secretary to recover funds under part D of the General Education Provisions Act.

``SEC. 5230. DEFINITIONS.

``In this subpart:

``(1) Charter school.—The term `charter school' has the meaning given such term in section 5210.

``(2) Eligible entity.—The term `eligible entity' means—

``(A) a public entity, such as a State or local governmental entity;

``(B) a private nonprofit entity; or

``(C) a consortium of entities described in subparagraphs (A) and (B).

``SEC. 5231. AUTHORIZATION OF APPROPRIATIONS.

``For the purpose of carrying out this subpart, there are authorized to be appropriated $150,000,000 for fiscal year 2002 and such sums as may be necessary for fiscal year 2003.

``Subpart 3—Voluntary Public School Choice Programs

``SEC. 5241. GRANTS.

``(a) Authorization.—From funds made available under section 5248 to carry out this subpart, the Secretary shall award grants, on a competitive basis, to eligible entities to enable the entities to establish or expand a program of public school choice (referred to in this subpart as a `program') in accordance with this subpart.

``(b) Duration.—Grants awarded under subsection (a) may be awarded for a period of not more than 5 years.

``SEC. 5242. USES OF FUNDS.

``(a) Required Use of Funds.—An eligible entity that receives a grant under this subpart shall use the grant funds to provide students selected to participate in the program with transportation services or the cost of transportation to and from the public elementary schools and secondary schools, including charter schools, that the students choose to attend under the program.

``(b) Permissible Uses of Funds.—An eligible entity that receives a grant under this subpart may use the grant funds for—

``(1) planning or designing a program (for not more than 1 year);

``(2) the cost of making tuition transfer payments to public elementary schools or secondary schools to which students transfer under the program;

``(3) the cost of capacity-enhancing activities that enable high-demand public elementary schools or secondary schools to accommodate transfer requests under the program;

``(4) the cost of carrying out public education campaigns to inform students and parents about the program; and

``(5) other costs reasonably necessary to implement the program.

``(c) Nonpermissible Uses of Funds.—An eligible entity that receives a grant under this subpart may not use the grant funds for school construction.

``(d) Administrative Expenses.—The eligible entity may use not more than 5 percent of the funds made available through the grant for any fiscal year for administrative expenses.

``SEC. 5243. APPLICATIONS.

``(a) Submission.—An eligible entity that desires a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require.

``(b) Contents.—An application submitted under subsection (a) shall include—

``(1) a description of the program for which the eligible entity seeks funds and the goals for such program;

``(2) a description of how and when parents of students will be given the notice required under section 5245(a)(2);

``(3) a description of how students will be selected for the program;

``(4) a description of how the program will be coordinated with, and will complement and enhance, other related Federal and non-Federal projects;

``(5) if the program is to be carried out by a partnership, the name of each partner and a description of the partner's responsibilities; and

``(6) such other information as the Secretary may require.

``SEC. 5244. PRIORITIES.

``In awarding grants under this subpart, the Secretary shall give priority to an eligible entity—

``(1) whose program would provide the widest variety of choices to all students in participating schools;

``(2) whose program would, through various choice options, have the most impact in allowing students in low-performing schools to attend higher-performing schools; and

``(3) that is a partnership that seeks to implement an interdistrict approach to carrying out a program.

``SEC. 5245. REQUIREMENTS AND VOLUNTARY PARTICIPATION.

``(a) Parent and Community Involvement and Notice.—In carrying out a program under this subpart, an eligible entity shall—

``(1) develop the program with—

``(A) the involvement of parents and others in the community to be served; and

``(B) individuals who will carry out the program, including administrators, teachers, principals, and other staff; and

``(2) provide to parents of students in the area to be served by the program with prompt notice of—

``(A) the existence of the program;

``(B) the program's availability; and

``(C) a clear explanation of how the program will operate.

``(b) Selection of Students.—An eligible entity that receives a grant under this subpart shall select students to participate in a program on the basis of a lottery, if more students apply for admission to the program than can be accommodated.

``(c) Voluntary Participation.—Student participation in a program funded under this subpart shall be voluntary.

``SEC. 5246. EVALUATIONS.

``(a) In General.—From the amount made available to carry out this subpart for any fiscal year, the Secretary may reserve not more than 5 percent—

``(1) to carry out evaluations;

``(2) to provide technical assistance; and

``(3) to disseminate information.

``(b) Evaluations.—In carrying out the evaluations under subsection (a), the Secretary shall, at a minimum, address—

``(1) how, and the extent to which, the programs promote educational equity and excellence;

``(2) the characteristics of the students participating in the programs; and

``(3) the effect of the programs on the academic achievement of students participating in the programs, particularly students who move from schools identified under section 1116 to schools not so identified, and on the overall quality of participating schools and districts.

``SEC. 5247. DEFINITIONS.

``In this subpart:

``(1) Charter school.—The term `charter school' has the meaning given such term in section 5210.

``(2) Eligible entity.—The term `eligible entity' means—

``(A) one or more State educational agencies;

``(B) one or more local educational agencies; or

``(C) a partnership of—

``(i) one or more—

``(I) State educational agencies; and

``(II) local educational agencies or other public, for-profit, or nonprofit entities; or

``(ii) one or more—

``(I) local educational agencies; and

``(II) public, for-profit, or nonprofit entities.

``(3) Low-performing school.—The term `low-performing school' means a public elementary school or secondary school that has failed to make adequate yearly progress, as described in section 1111(b), for two or more consecutive years.

``SEC. 5248. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this subpart $100,000,000 for fiscal year 2002 and each of the 5 succeeding fiscal years.

``PART C—MAGNET SCHOOLS ASSISTANCE

``SEC. 5301. FINDINGS AND PURPOSE.

``(a) Findings.—Congress makes the following findings:

``(1) Magnet schools are a significant part of the Nation's effort to achieve voluntary desegregation in our Nation's schools.

``(2) The use of magnet schools has increased dramatically since the inception of the magnet schools assistance program under this Act, with approximately 2,000,000 students nationwide attending such schools, of whom more than 65 percent are non-white.

``(3) Magnet schools offer a wide range of distinctive programs that have served as models for school improvement efforts.

``(4) It is in the best interests of the United States—

``(A) to continue the Federal Government's support of local educational agencies that are implementing court-ordered desegregation plans and local educational agencies that are voluntarily seeking to foster meaningful interaction among students of different racial and ethnic backgrounds, beginning at the earliest stage of such students' education;

``(B) to ensure that all students have equitable access to a high quality education that will prepare all students to function well in a technologically oriented and a highly competitive economy comprised of people from many different racial and ethnic backgrounds; and

``(C) to continue to desegregate and diversify schools by supporting magnet schools, recognizing that segregation exists between minority and nonminority students as well as among students of different minority groups.

``(5) Desegregation efforts through magnet school programs are a significant part of our Nation's effort to achieve voluntary desegregation in schools and help to ensure equal educational opportunities for all students.

``(b) Purpose.—The purpose of this part is to assist in the desegregation of schools served by local educational agencies by providing financial assistance to eligible local educational agencies for—

``(1) the elimination, reduction, or prevention of minority group isolation in elementary schools and secondary schools with substantial proportions of minority students, which shall include assisting in the efforts of the United States to achieve voluntary desegregation in public schools;

``(2) the development and implementation of magnet school programs that will assist local educational agencies in achieving systemic reforms and providing all students the opportunity to meet challenging State academic content standards and student academic achievement standards;

``(3) the development and design of innovative educational methods and practices that promote diversity and increase choices in public elementary schools and public secondary schools and public educational programs;

``(4) courses of instruction within magnet schools that will substantially strengthen the knowledge of academic subjects and the attainment of tangible and marketable vocational, technological, and professional skills of students attending such schools;

``(5) improving the capacity of local educational agencies, including through professional development, to continue operating magnet schools at a high performance level after Federal funding for the magnet schools is terminated; and

``(6) ensuring that all students enrolled in the magnet school programs have equitable access to high quality education that will enable the students to succeed academically and continue with postsecondary education or productive employment.

``SEC. 5302. DEFINITION.

``For the purpose of this part, the term `magnet school' means a public elementary school, public secondary school, public elementary education center, or public secondary education center that offers a special curriculum capable of attracting substantial numbers of students of different racial backgrounds.

``SEC. 5303. PROGRAM AUTHORIZED.

``The Secretary, in accordance with this part, is authorized to award grants to eligible local educational agencies, and consortia of such agencies where appropriate, to carry out the purpose of this part for magnet schools that are—

``(1) part of an approved desegregation plan; and

``(2) designed to bring students from different social, economic, ethnic, and racial backgrounds together.

``SEC. 5304. ELIGIBILITY.

``A local educational agency, or consortium of such agencies where appropriate, is eligible to receive a grant under this part to carry out the purpose of this part if such agency or consortium—

``(1) is implementing a plan undertaken pursuant to a final order issued by a court of the United States, or a court of any State, or any other State agency or official of competent jurisdiction, that requires the desegregation of minority-group-segregated children or faculty in the elementary schools and secondary schools of such agency; or

``(2) without having been required to do so, has adopted and is implementing, or will, if a grant is awarded to such local educational agency, or consortium of such agencies, under this part, adopt and implement a plan that has been approved by the Secretary as adequate under title VI of the Civil Rights Act of 1964 for the desegregation of minority-group-segregated children or faculty in such schools.

``SEC. 5305. APPLICATIONS AND REQUIREMENTS.

``(a) Applications.—An eligible local educational agency, or consortium of such agencies, desiring to receive a grant under this part shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may reasonably require.

``(b) Information and Assurances.—Each application submitted under subsection (a) shall include—

``(1) a description of—

``(A) how a grant awarded under this part will be used to promote desegregation, including how the proposed magnet school programs will increase interaction among students of different social, economic, ethnic, and racial backgrounds;

``(B) the manner and extent to which the magnet school program will increase student academic achievement in the instructional area or areas offered by the school;

``(C) how the applicant will continue the magnet school program after assistance under this part is no longer available, and, if applicable, an explanation of why magnet schools established or supported by the applicant with grant funds under this part cannot be continued without the use of grant funds under this part;

``(D) how grant funds under this part will be used—

``(i) to improve student academic achievement for all students attending the magnet school programs; and

``(ii) to implement services and activities that are consistent with other programs under this Act, and other Acts, as appropriate; and

``(E) the criteria to be used in selecting students to attend the proposed magnet school program; and

``(2) assurances that the applicant will—

``(A) use grant funds under this part for the purposes specified in section 5301(b);

``(B) employ highly qualified teachers in the courses of instruction assisted under this part;

``(C) not engage in discrimination based on race, religion, color, national origin, sex, or disability in—

``(i) the hiring, promotion, or assignment of employees of the applicant or other personnel for whom the applicant has any administrative responsibility;

``(ii) the assignment of students to schools, or to courses of instruction within the schools, of such applicant, except to carry out the approved plan; and

``(iii) designing or operating extracurricular activities for students;

``(D) carry out a high-quality education program that will encourage greater parental decisionmaking and involvement; and

``(E) give students residing in the local attendance area of the proposed magnet school program equitable consideration for placement in the program, consistent with desegregation guidelines and the capacity of the applicant to accommodate the students.

``(c) Special Rule.—No grant shall be awarded under this part unless the Assistant Secretary of Education for Civil Rights determines that the assurances described in subsection (b)(2)(C) will be met.

``SEC. 5306. PRIORITY.

``In awarding grants under this part, the Secretary shall give priority to applicants that—

``(1) demonstrate the greatest need for assistance, based on the expense or difficulty of effectively carrying out approved desegregation plans and the magnet school program for which the grant is sought;

``(2) propose to carry out new magnet school programs, or significantly revise existing magnet school programs; and

``(3) propose to select students to attend magnet school programs by methods such as lottery, rather than through academic examination.

``SEC. 5307. USE OF FUNDS.

``(a) In General.—Grant funds made available under this part may be used by an eligible local educational agency, or consortium of such agencies—

``(1) for planning and promotional activities directly related to the development, expansion, continuation, or enhancement of academic programs and services offered at magnet schools;

``(2) for the acquisition of books, materials, and equipment, including computers and the maintenance and operation of materials, equipment, and computers, necessary to conduct programs in magnet schools;

``(3) for the compensation, or subsidization of the compensation, of elementary school and secondary school teachers who are highly qualified, and instructional staff where applicable, who are necessary to conduct programs in magnet schools;

``(4) with respect to a magnet school program offered to less than the entire student population of a school, for instructional activities that—

``(A) are designed to make available the special curriculum that is offered by the magnet school program to students who are enrolled in the school but who are not enrolled in the magnet school program; and

``(B) further the purpose of this part;

``(5) for activities, which may include professional development, that will build the recipient's capacity to operate magnet school programs once the grant period has ended;

``(6) to enable the local educational agency, or consortium of such agencies, to have more flexibility in the administration of a magnet school program in order to serve students attending a school who are not enrolled in a magnet school program; and

``(7) to enable the local educational agency, or consortium of such agencies, to have flexibility in designing magnet schools for students in all grades.

``(b) Special Rule.—Grant funds under this part may be used for activities described in paragraphs (2) and (3) of subsection (a) only if the activities are directly related to improving student academic achievement based on the State's challenging academic content standards and student academic achievement standards or directly related to improving student reading skills or knowledge of mathematics, science, history, geography, English, foreign languages, art, or music, or to improving vocational, technological, and professional skills.

``SEC. 5308. PROHIBITION.

``Grants under this part may not be used for transportation or any activity that does not augment academic improvement.

``SEC. 5309. LIMITATIONS.

``(a) Duration of Awards.—A grant under this part shall be awarded for a period that shall not exceed 3 fiscal years.

``(b) Limitation on Planning Funds.—A local educational agency, or consortium of such agencies, may expend for planning (professional development shall not be considered to be planning for purposes of this subsection) not more than 50 percent of the grant funds received under this part for the first year of the program and not more than 15 percent of such funds for each of the second and third such years.

``(c) Amount.—No local educational agency, or consortium of such agencies, awarded a grant under this part shall receive more than $4,000,000 under this part for any 1 fiscal year.

``(d) Timing.—To the extent practicable, the Secretary shall award grants for any fiscal year under this part not later than July 1 of the applicable fiscal year.

``SEC. 5310. EVALUATIONS.

``(a) Reservation.—The Secretary may reserve not more than 2 percent of the funds appropriated under section 5311(a) for any fiscal year to carry out evaluations, provide technical assistance, and carry out dissemination projects with respect to magnet school programs assisted under this part.

``(b) Contents.—Each evaluation described in subsection (a), at a minimum, shall address—

``(1) how and the extent to which magnet school programs lead to educational quality and improvement;

``(2) the extent to which magnet school programs enhance student access to a high quality education;

``(3) the extent to which magnet school programs lead to the elimination, reduction, or prevention of minority group isolation in elementary schools and secondary schools with substantial proportions of minority students; and

``(4) the extent to which magnet school programs differ from other school programs in terms of the organizational characteristics and resource allocations of such magnet school programs.

``(c) Dissemination.—The Secretary shall collect and disseminate to the general public information on successful magnet school programs.

``SEC. 5311. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

``(a) Authorization.—For the purpose of carrying out this part, there are authorized to be appropriated $125,000,000 for fiscal year 2002 and such sums as may be necessary for each of the 5 succeeding fiscal years.

``(b) Availability of Funds for Grants to Agencies Not Previously Assisted.—In any fiscal year for which the amount appropriated pursuant to subsection (a) exceeds $75,000,000, the Secretary shall give priority in using such amounts in excess of $75,000,000 to awarding grants to local educational agencies or consortia of such agencies that did not receive a grant under this part in the preceding fiscal year.

``PART D—FUND FOR THE IMPROVEMENT OF EDUCATION

``SEC. 5401. AUTHORIZATION OF APPROPRIATIONS.

``There are authorized to be appropriated to carry out this part the following amounts:

``(1) $550,000,000 for fiscal year 2002.

``(2) $575,000,000 for fiscal year 2003.

``(3) $600,000,000 for fiscal year 2004.

``(4) $625,000,000 for fiscal year 2005.

``(5) $650,000,000 for fiscal year 2006.

``(6) $675,000,000 for fiscal year 2007.

``Subpart 1—Fund for the Improvement of Education

``SEC. 5411. PROGRAMS AUTHORIZED.

``(a) Authorization.—The Secretary is authorized to support nationally significant programs to improve the quality of elementary and secondary education at the State and local levels and help all children meet challenging State academic content and student academic achievement standards. The Secretary may carry out such programs directly, or through grants to, or contracts with—

``(1) States or local educational agencies;

``(2) institutions of higher education; and

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

``(b) Uses of Funds.—Funds made available under section 5401 to carry out this subpart may be used for any of the following programs:

``(1) Activities to promote systemic education reform at the State and local levels, including scientifically based research, development, and evaluation designed to improve—

``(A) student academic achievement at the State and local level; and

``(B) strategies for effective parent and community involvement.

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

``(3) Recognition programs, which may include financial awards to States, local educational agencies, and schools that have made the greatest progress, based on the Secretary's determination or on a nomination by the State in which the school is located (or in the case of a Bureau funded school, by the Secretary of the Interior) in—

``(A) improving the academic achievement of economically disadvantaged students and students from major racial and ethnic minority groups; and

``(B) closing the academic achievement gap for those groups of students farthest away from the proficient level on the academic assessments administered by the State under section 1111.

``(4) Scientifically based studies and evaluations of education reform strategies and innovations, and the dissemination of information on the effectiveness of such strategies and innovations.

``(5) Identification and recognition of exemplary schools and programs, such as Blue Ribbon Schools, including programs to evaluate the effectiveness of using the best practices of exemplary or Blue Ribbon Schools to improve academic achievement.

``(6) Activities to support Scholar-Athlete Games programs, including the World Scholar-Athlete Games and the U.S. Scholar-Athlete Games.

``(7) Programs to promote voter participation in American elections through programs, such as the National Student/Parent Mock Election and Kids Voting USA.

``(8) Demonstrations relating to the planning and evaluation of the effectiveness of programs under which local educational agencies or schools contract with private management organizations to reform a school or schools.

``(9) Other programs that meet the purposes of this Act.

``(c) Basis of Awards.—The Secretary is authorized to—

``(1) make awards under this subpart on the basis of competitions announced by the Secretary; and

``(2) support meritorious unsolicited proposals for awards under this subpart.

``(d) Effectiveness of Programs.—The Secretary shall ensure that programs supported under this subpart are designed so that their effectiveness is readily ascertainable, and shall ensure that such effectiveness is assessed using rigorous, scientifically based research and evaluations.

``SEC. 5412. APPLICATIONS.

``(a) Submission.—To be eligible for an award under this subpart, an entity shall submit an application to the Secretary, at such time, in such manner, and containing such information as the Secretary may require.

``(b) Contents.—Each application submitted under subsection (a) shall—

``(1) establish clear objectives, which are based on scientifically based research, for the proposed program; and

``(2) describe the activities the applicant will carry out in order to meet the objectives described in paragraph (1).

``(c) Peer Review.—The Secretary shall use a peer review process in reviewing applications for awards under this subpart and in recognizing States, local educational agencies, and schools under section 5411(b)(3), only if funds are used for such recognition programs. The Secretary may use funds appropriated under this subpart for the cost of such peer review.

``SEC. 5413. PROGRAM REQUIREMENTS.

``(a) Evaluations.—A recipient of an award under this subpart shall—

``(1) evaluate the effectiveness of the program funded under the award in achieving the objectives stated in applications submitted under section 5412; and

``(2) report to the Secretary such information as may be required to determine the effectiveness of such program, including evidence of progress toward meeting such objectives.

``(b) Dissemination of Evaluation Results.—The Secretary shall provide for the dissemination of the evaluations of programs funded under this subpart by making the evaluations publicly available upon request, and shall provide public notice that the evaluations are so available.

``(c) Matching Funds.—The Secretary may require recipients of awards under this subpart to provide matching funds from non-Federal sources, and shall permit the recipients to match funds in whole or in part with in-kind contributions.

``(d) Special Rule for Recognition Programs.—The application requirements of section 5412(b), and the evaluation requirements of subsections (a) and (b) of this section, do not apply to recognition programs under section 5411(b)(3).

``SEC. 5414. STUDIES OF NATIONAL SIGNIFICANCE.

``(a) Studies.—The Secretary shall conduct the following studies of national significance:

``(1) Unhealthy public school buildings.—A study regarding the health and learning impacts of environmentally unhealthy public school buildings on students and teachers. The study shall include the following information:

``(A) The characteristics of those public elementary school and secondary school buildings that contribute to unhealthy school environments.

``(B) The health and learning impacts of environmental unhealthy public school buildings on students that are attending or that have attended such schools.

``(C) Recommendations to Congress on how to assist schools that are out of compliance with Federal or State health and safety codes, and a cost estimate of bringing up environmentally unhealthy public school buildings to minimum Federal health and safety building standards.

``(2) Exposure to violent entertainment.—A study regarding how exposure to violent entertainment (such as in movies, music, television, Internet content, video games, and arcade games) affects children's cognitive development and educational achievement.

``(3) Sexual abuse in schools.—A study regarding the prevalence of sexual abuse in schools, including recommendations and legislative remedies for addressing the problem of sexual abuse in schools.

``(b) Completion Date.—The studies under subsection (a) shall be completed not later than 18 months after the date of enactment of the No Child Left Behind Act of 2001.

``(c) Public Dissemination.—The Secretary shall make the study conducted under subsection (a)(1) available to the public through the Educational Resources Information Center National Clearinghouse for Educational Facilities of the Department.

``Subpart 2—Elementary and Secondary School Counseling Programs

``SEC. 5421. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

``(a) Grants Authorized.—

``(1) In general.—The Secretary is authorized to award grants to local educational agencies to enable such agencies to establish or expand elementary school and secondary school counseling programs that comply with the requirements of subsection (c)(2).

``(2) Special consideration.—In awarding grants under this section, the Secretary shall give special consideration to applications describing programs that—

``(A) demonstrate the greatest need for new or additional counseling services among children in the schools served by the local educational agency, in part by providing information on current ratios of students to school counselors, students to school social workers, and students to school psychologists;

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

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

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

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

``(5) Maximum grant.—A grant awarded under this section shall not exceed $400,000 for any fiscal year.

``(6) Supplement, not supplant.—Funds made available under this section shall be used to supplement, and not supplant, other Federal, State, or local funds used for providing school-based counseling and mental health services to students.

``(b) Applications.—

``(1) In general.—Each local educational agency desiring a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

``(2) Contents.—Each application for a grant under this section shall—

``(A) describe the school population to be targeted by the program, the particular counseling needs of such population, and the current school counseling resources available for meeting such needs;

``(B) describe the activities, services, and training to be provided by the program and the specific approaches to be used to meet the needs described in subparagraph (A);

``(C) describe the methods to be used to evaluate the outcomes and effectiveness of the program;

``(D) describe how the local educational agency will involve community groups, social service agencies, and other public and private entities in collaborative efforts to enhance the program and promote school-linked services integration;

``(E) document that the local educational agency has the personnel qualified to develop, implement, and administer the program;

``(F) describe how diverse cultural populations, if applicable, will be served through the program;

``(G) assure that the funds made available under this subpart for any fiscal year will be used to supplement, and not supplant, any other Federal, State, or local funds used for providing school-based counseling and mental health services to students; and

``(H) assure that the applicant will appoint an advisory board composed of interested parties, including parents, teachers, school administrators, counseling services providers described in subsection (c)(2)(D), and community leaders, to advise the local educational agency on the design and implementation of the program.

``(c) Use of Funds.—

``(1) In general.—The Secretary is authorized to award grants to local educational agencies to enable the local educational agencies to initiate or expand elementary school or secondary school counseling programs that comply with the requirements of paragraph (2).

``(2) Requirements.—Each program funded under this section shall—

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

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

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

``(D) expand counseling services through qualified school counselors, school social workers, school psychologists, other qualified psychologists, or child and adolescent psychiatrists;

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

``(F) provide counseling services in settings that meet the range of student needs;

``(G) include in-service training appropriate to the activities funded under this Act for teachers, instructional staff, and appropriate school personnel, including in-service training in appropriate identification and early intervention techniques by school counselors, school social workers, school psychologists, other qualified psychologists, and child and adolescent psychiatrists;

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

``(I) involve community groups, social service agencies, or other public or private entities in collaborative efforts to enhance the program and promote school-linked integration of services;

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

``(K) ensure a team approach to school counseling in the schools served by the local educational agency by working toward ratios recommended by the American School Health Association of one school counselor to 250 students, one school social worker to 800 students, and one school psychologist to 1,000 students; and

``(L) ensure that school counselors, school psychologists, other qualified psychologists, school social workers, or child and adolescent psychiatrists paid from funds made available under this section spend a majority of their time counseling students or in other activities directly related to the counseling process.

``(d) Limitation on Administrative Costs.—Not more than 4 percent of the amounts made available under this section for any fiscal year may be used for administrative costs to carry out this section.

``(e) Definitions.—For the purpose of this section—

``(1) the term `child and adolescent psychiatrist' means an individual who—

``(A) possesses State medical licensure; and

``(B) has completed residency training programs in both general psychiatry and child and adolescent psychiatry;

``(2) the term `other qualified psychologist' means an individual who has demonstrated competence in counseling children in a school setting and who—

``(A) is licensed in psychology by the State in which the individual works; and

``(B) practices in the scope of the individual's education, training, and experience with children in school settings;

``(3) the term `school counselor' means an individual who has documented competence in counseling children and adolescents in a school setting and who—

``(A) is licensed by the State or certified by an independent professional regulatory authority;

``(B) in the absence of such State licensure or certification, possesses national certification in school counseling or a specialty of counseling granted by an independent professional organization; or

``(C) holds a minimum of a master's degree in school counseling from a program accredited by the Council for Accreditation of Counseling and Related Educational Programs or the equivalent;

``(4) the term `school psychologist' means an individual who—

``(A) has completed a minimum of 60 graduate semester hours in school psychology from an institution of higher education and has completed 1,200 clock hours in a supervised school psychology internship, of which 600 hours are in the school setting;

``(B) is licensed or certified in school psychology by the State in which the individual works; or

``(C) in the absence of such State licensure or certification, possesses national certification by the National School Psychology Certification Board; and

``(5) the term `school social worker' means an individual who—

``(A) holds a master's degree in social work from a program accredited by the Council on Social Work Education; and

``(B)(i) is licensed or certified by the State in which services are provided; or

``(ii) in the absence of such State licensure or certification, possesses a national credential or certification as a school social work specialist granted by an independent professional organization.

``(f) Report.—Not later than 2 years after assistance is made available to local educational agencies under subsection (c), the Secretary shall make publicly available a report—

``(1) evaluating the programs assisted pursuant to each grant under this subpart; and

``(2) outlining the information from local educational agencies regarding the ratios of students to—

``(A) school counselors;

``(B) school social workers; and

``(C) school psychologists.

``(g) Special Rule.—

``(1) Amount equals or exceeds $40,000,000.—If the amount of funds made available by the Secretary for this subpart equals or exceeds $40,000,000, the Secretary shall award not less than $40,000,000 in grants to local educational agencies to enable the agencies to establish or expand counseling programs in elementary schools.

``(2) Amount less than $40,000,000.—If the amount of funds made available by the Secretary for this subpart is less than $40,000,000, the Secretary shall award grants to local educational agencies only to establish or expand counseling programs in elementary schools.

``Subpart 3—Partnerships in Character Education

``SEC. 5431. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.

``(a) Program Authorized.—

``(1) In general.—The Secretary is authorized to award grants to eligible entities for the design and implementation of character education programs that—

``(A) are able to be integrated into classroom instruction and to be consistent with State academic content standards; and

``(B) are able to be carried out in conjunction with other educational reform efforts.

``(2) Eligible entity.—In this section, the term `eligible entity' means—

``(A) a State educational agency in partnership with—

``(i) one or more local educational agencies; or

``(ii) one or more—

``(I) local educational agencies; and

``(II) nonprofit organizations or entities, including an institution of higher education;

``(B) a local educational agency or consortium of local educational agencies; or

``(C) a local educational agency in partnership with one or more nonprofit organizations or entities, including an institution of higher education.

``(3) Duration.—Each grant under this section shall be awarded for a period not to exceed 5 years, of which the eligible entity may not use more than 1 year for planning and program design.

``(4) Amount of grants for state educational agencies.—

``Subject to the availability of appropriations, the amount of a grant made by the Secretary to a State educational agency under this section shall not be less than $500,000 if the State educational agency—

``(A) is in a partnership described in paragraph (2)(A); and

``(B) meets such requirements as the Secretary may establish under this section.

``(b) Contracts Under Program.—

``(1) Evaluation.—Each eligible entity awarded a grant under this section may contract with outside sources, including institutions of higher education and private and nonprofit organizations, for the purposes of—

``(A) evaluating the program for which the assistance is made available;

``(B) measuring the integration of such program into the curriculum and teaching methods of schools where the program is carried out; and

``(C) measuring the success of such program in fostering the elements of character selected by the recipient under subsection (c).

``(2) Materials and program development.—Each eligible entity awarded a grant under this section may contract with outside sources, including institutions of higher education and private and nonprofit organizations, for assistance in—

``(A) developing secular curricula, materials, teacher training, and other activities related to character education; and

``(B) integrating secular character education into the curricula and teaching methods of schools where the program is carried out.

``(c) Elements of Character.—

``(1) Selection.—

``(A) In general.—Each eligible entity awarded a grant under this section may select the elements of character that will be taught under the program for which the grant was awarded.

``(B) Consideration of views.—In selecting elements of character under subparagraph (A), the eligible entity shall consider the views of the parents of the students to be taught under the program and the views of the students.

``(2) Example elements.—Elements of character selected under this subsection may include any of the following:

``(A) Caring.

``(B) Civic virtue and citizenship.

``(C) Justice and fairness.

``(D) Respect.

``(E) Responsibility.

``(F) Trustworthiness.

``(G) Giving.

``(H) Any other elements deemed appropriate by the eligible entity.

``(d) Use of Funds by State Educational Agency Recipients.—Of the total funds received in any fiscal year under this section by an eligible entity that is a State educational agency—

``(1) not more than 3 percent of such funds may be used for administrative purposes; and

``(2) the remainder of such funds may be used for—

``(A) collaborative initiatives with and between local educational agencies and schools;

``(B) the preparation or purchase of materials, and teacher training;

``(C) providing assistance to local educational agencies, schools, or institutions of higher education; and

``(D) technical assistance and evaluation.

``(e) Application.—

``(1) In general.—Each eligible entity desiring a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require.

``(2) Required information.—Each application for a grant under this section shall include (together with any other information that the Secretary may require) information that—

``(A) demonstrates that the program for which the grant is sought has clear objectives that are based on scientifically based research;

``(B) describes any partnerships or collaborative efforts among the organizations and entities of the eligible entity;

``(C) describes the activities that will be carried out with the grant funds and how such activities will meet the objectives described in subparagraph (A), including—

``(i) how parents, students, students with disabilities (including those with mental or physical disabilities), and other members of the community, including members of private and nonprofit organizations, will be involved in the design and implementation of the program and how the eligible entity will work with the larger community to increase the reach and promise of the program;

``(ii) curriculum and instructional practices that will be used or developed; and

``(iii) methods of teacher training and parent education that will be used or developed;

``(D) describes how the program for which the grant is sought will be linked to other efforts to improve academic achievement, including—

``(i) broader educational reforms that are being instituted by the eligible entity or its partners; and

``(ii) State academic content standards;

``(E) in the case of an eligible entity that is a State educational agency, describes how the State educational agency—

``(i) will provide technical and professional assistance to its local educational agency partners in the development and implementation of character education programs; and

``(ii) will assist other interested local educational agencies that are not members of the original partnership in designing and establishing character education programs;

``(F) describes how the eligible entity will evaluate the success of its program—

``(i) based on the objectives described in subparagraph (A); and

``(ii) in cooperation with any national evaluation conducted pursuant to subsection (h)(2)(B)(iii); and

``(G) assures that the eligible entity annually will provide to the Secretary such information as may be required to determine the effectiveness of the program.

``(f) Selection of Recipients.—

``(1) Peer review.—

``(A) In general.—In selecting eligible entities to receive grants under this section from among the applicants for such grants, the Secretary shall use a peer review process that includes the participation of experts in the field of character education and development.

``(B) Use of funds.—The Secretary may use funds appropriated under this section for the cost of carrying out peer reviews under this paragraph.

``(2) Selection criteria.—Each selection under paragraph (1) shall be made on the basis of the quality of the application submitted, taking into consideration such factors as—

``(A) the extent to which the program fosters character in students and the potential for improved student academic achievement;

``(B) the extent and ongoing nature of parental, student, and community involvement;

``(C) the quality of the plan for measuring and assessing success; and

``(D) the likelihood that the objectives of the program will be achieved.

``(3) Equitable distribution.—In making selections under this subsection, the Secretary shall ensure, to the extent practicable under paragraph (2), that the programs assisted under this section are equitably distributed among the geographic regions of the United States, and among urban, suburban, and rural areas.

``(g) Participation by Private School Children and Teachers.—Each eligible entity that receives a grant under this section shall provide, to the extent feasible and appropriate, for the participation in programs and activities under this section of students and teachers in private elementary schools and secondary schools.

``(h) Evaluation and Program Development.—

``(1) State and local reporting and evaluation.—Each eligible entity receiving a grant under this section shall submit to the Secretary a comprehensive evaluation of the program assisted under this section, including its impact on students, students with disabilities (including those with mental or physical disabilities), teachers, administrators, parents, and others—

``(A) by the end of the second year of the program; and

``(B) not later than 1 year after completion of the grant period.

``(2) National research, dissemination, and evaluation.—

``(A) In general.—

``(i) Authorization.—The Secretary is authorized to award grants to, or enter into contracts or cooperative agreements with, State educational agencies or local educational agencies, institutions of higher education, tribal organizations, or other public or private agencies or organizations to carry out research, development, dissemination, technical assistance, and evaluation activities that support or inform State and local character education programs.

``(ii) Reservation of funds.—The Secretary shall reserve not more than 5 percent of the funds made available under this section to carry out this paragraph.

``(B) Uses.—Funds made available under subparagraph (A) may be used for the following:

``(i) Conducting research and development activities that focus on matters such as—

``(I) the extent to which schools are undertaking character education initiatives;

``(II) the effectiveness of instructional models for all students, including students with disabilities (including those with mental or physical disabilities);

``(III) materials and curricula for use by programs in character education;

``(IV) models of professional development in character education;

``(V) the development of measures of effectiveness for character education programs (which may include the factors described in paragraph (3)); and

``(VI) the effectiveness of State and local programs receiving funds under this section.

``(ii) Providing technical assistance to State and local programs, particularly on matters of program evaluation.

``(iii) Conducting evaluations of State and local programs receiving funding under this section, that may be conducted through a national clearinghouse under clause (iv).

``(iv) Compiling and disseminating, through a national clearinghouse or other means—

``(I) information on model character education programs;

``(II) information about high quality character education materials and curricula;

``(III) research findings in the area of character education and character development; and

``(IV) any other information that will be useful to character education program participants nationwide, including educators, parents, and administrators.

``(C) Partnerships.—In carrying out national activities under this paragraph, the Secretary may enter into partnerships with national nonprofit character education organizations and institutions of higher education with expertise and successful experience in implementing—

``(i) character education programs that had an effective impact on schools, students, students with disabilities (including those with mental or physical disabilities), and teachers; or

``(ii) character education program evaluation and research.

``(D) Partnership for activities under subparagraph (B)(iv).—In carrying out national activities under subparagraph (B)(iv), the Secretary may enter into a partnership with a national nonprofit character education organization that will disseminate information to educators, parents, administrators, and others nationwide, including information about the range of model character education programs, materials, and curricula.

``(E) Report.—Each entity awarded a grant or entering into a contract or cooperative agreement under this paragraph shall submit an annual report to the Secretary that—

``(i) describes the entity's progress in carrying out research, development, dissemination, evaluation, and technical assistance under this paragraph;

``(ii) identifies unmet and future information needs in the field of character education; and

``(iii) if applicable, describes the progress of the entity in carrying out the requirements of subparagraph (B)(iv), including a listing of—

``(I) the number of requests for information received by the entity in the course of carrying out such requirements;

``(II) the types of organizations making such requests; and

``(III) the types of information requested.

``(3) Factors.—Factors that may be considered in evaluating the success of programs funded under this section include the following:

``(A) Discipline issues.

``(B) Student academic achievement.

``(C) Participation in extracurricular activities.

``(D) Parental and community involvement.

``(E) Faculty and administration involvement.

``(F) Student and staff morale.

``(G) Overall improvements in school climate for all students, including students with disabilities (including those with mental or physical disabilities).

``(i) Permissive Match.—

``(1) In general.—The Secretary may require eligible entities to match funds awarded under this section with non-Federal funds, except that the amount of the match may not exceed the amount of the grant award.

``(2) Sliding scale.—The amount of a match under paragraph (1) shall be established based on a sliding scale that takes into account—

``(A) the poverty of the population to be targeted by the eligible entity; and

``(B) the ability of the eligible entity to obtain funding for the match.

``(3) In-kind contributions.—The Secretary shall permit eligible entities to match funds in whole or in part with in-kind contributions.

``(4) Consideration.—Notwithstanding this subsection, the Secretary in making awards under this section shall not consider the ability of an eligible entity to match funds.

``Subpart 4—Smaller Learning Communities

``SEC. 5441. SMALLER LEARNING COMMUNITIES.

``(a) Grant Authority.—The Secretary is authorized to award grants to local educational agencies to enable the agencies to create a smaller learning community or communities.

``(b) Application.—Each local educational agency desiring a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. The application shall include descriptions of the following:

``(1) Strategies and methods the local educational agency will use to create the smaller learning community or communities.

``(2) Curriculum and instructional practices, including any particular themes or emphases, to be used in the smaller learning environment.

``(3) The extent of involvement of teachers and other school personnel in investigating, designing, implementing, and sustaining the smaller learning community or communities.

``(4) The process to be used for involving students, parents, and other stakeholders in the development and implementation of the smaller learning community or communities.

``(5) Any cooperation or collaboration among community agencies, organizations, businesses, and others to develop or implement a plan to create the smaller learning community or communities.

``(6) The training and professional development activities that will be offered to teachers and others involved in the activities assisted under this subpart.

``(7) The objectives of the activities assisted under this subpart, including a description of how such activities will better enable all students to reach challenging State academic content standards and State student academic achievement standards.

``(8) The methods by which the local educational agency will assess progress in meeting the objectives described in paragraph (7).

``(9) If the smaller learning community or communities exist as a school-within-a-school, the relationship, including governance and administration, of the smaller learning community to the remainder of the school.

``(10) The administrative and managerial relationship between the local educational agency and the smaller learning community or communities, including how such agency will demonstrate a commitment to the continuity of the smaller learning community or communities (including the continuity of student and teacher assignment to a particular learning community).

``(11) How the local educational agency will coordinate or use funds provided under this subpart with other funds provided under this Act or other Federal laws.

``(12) The grade levels or ages of students who will participate in the smaller learning community or communities.

``(13) The method of placing students in the smaller learning community or communities, such that students are not placed according to ability or any other measure, but are placed at random or by their own choice, and not pursuant to testing or other judgments.

``(c) Authorized Activities.—Funds under this section may be used for one or more of the following:

``(1) To study—

``(A) the feasibility of creating the smaller learning community or communities; and

``(B) effective and innovative organizational and instructional strategies that will be used in the smaller learning community or communities.

``(2) To research, develop, and implement—

``(A) strategies for creating the smaller learning community or communities; and

``(B) strategies for effective and innovative changes in curriculum and instruction, geared to challenging State academic content standards and State student academic achievement standards.

``(3) To provide professional development for school staff in innovative teaching methods that—

``(A) challenge and engage students; and

``(B) will be used in the smaller learning community or communities.

``(4) To develop and implement strategies to include parents, business representatives, local institutions of higher education, community-based organizations, and other community members in the smaller learning communities as facilitators of activities that enable teachers to participate in professional development activities and provide links between students and their community.

``Subpart 5—Reading Is Fundamental—Inexpensive Book Distribution Program

``SEC. 5451. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING MOTIVATION.

``(a) Purpose.—The purpose of this subpart is to establish and implement a model partnership between a governmental entity and a private entity, to help prepare young children for reading and to motivate older children to read, through the distribution of inexpensive books. Local reading motivation programs assisted under this section shall use such assistance to provide books, training for volunteers, motivational activities, and other essential literacy resources and shall assign the highest priority to serving the youngest and neediest children in the United States.

``(b) Authorization.—The Secretary is authorized to enter into a contract with Reading Is Fundamental (RIF) (hereafter in this section referred to as the `contractor') to support and promote programs, which include the distribution of inexpensive books to young and school-age children, that motivate children to read.

``(c) Requirements of Contract.—Any contract entered into under subsection (b) shall contain each of the following:

``(1) A provision that the contractor will enter into subcontracts with local private nonprofit groups or organizations, or with public agencies, under which each subcontractor will agree to establish, operate, and provide the non-Federal share of the cost of reading motivation programs that include the distribution of books, by gift (to the extent feasible) or by loan, to children from birth through secondary school age, including children in family literacy programs.

``(2) A provision that funds made available to subcontractors will be used only to pay the Federal share of the cost of such programs.

``(3) A provision that, in selecting subcontractors for initial funding, the contractor will give priority to programs that will serve a substantial number or percentage of children with special needs, such as the following:

``(A) Low-income children, particularly in high-poverty areas.

``(B) Children at risk of school failure.

``(C) Children with disabilities.

``(D) Foster children.

``(E) Homeless children.

``(F) Migrant children.

``(G) Children without access to libraries.

``(H) Institutionalized or incarcerated children.

``(I) Children whose parents are institutionalized or incarcerated.

``(4) A provision that the contractor will provide such training and technical assistance to subcontractors as may be necessary to carry out the purpose of this subpart.

``(5) A provision that the contractor will annually report to the Secretary the number, and a description, of programs funded under paragraph (3).

``(6) Such other terms and conditions as the Secretary determines to be appropriate to ensure the effectiveness of such programs.

``(d) Restriction on Payments.—The Secretary shall make no payment of the Federal share of the cost of acquiring and distributing books under any contract under this section unless the Secretary determines that the contractor or subcontractor, as the case may be, has made arrangements with book publishers or distributors to obtain books at discounts at least as favorable as discounts that are customarily given by such publisher or distributor for book purchases made under similar circumstances in the absence of Federal assistance.

``(e) Special Rules for Certain Subcontractors.—

``(1) Funds from other federal sources.—Subcontractors operating programs under this section in low-income communities with a substantial number or percentage of children with special needs, as described in subsection (c)(3), may use funds from other Federal sources to pay the non-Federal share of the cost of the program, if those funds do not comprise more than 50 percent of the non-Federal share of the funds used for the cost of acquiring and distributing books.

``(2) Waiver authority.—Notwithstanding subsection (c), the contractor may waive, in whole or in part, the requirement in subsection (c)(1) for a subcontractor, if the subcontractor demonstrates that it would otherwise not be able to participate in the program, and enters into an agreement with the contractor with respect to the amount of the non-Federal share to which the waiver will apply. In a case in which such a waiver is granted, the requirement in subsection (c)(2) shall not apply.

``(f) Multi-Year Contracts.—The contractor may enter into a multi-year subcontract under this section, if—

``(1) the contractor believes that such subcontract will provide the subcontractor with additional leverage in seeking local commitments; and

``(2) the subcontract does not undermine the finances of the national program.

``(g) Federal Share Defined.—In this section, the term `Federal share' means, with respect to the cost to a subcontractor of purchasing books to be paid for under this section, 75 percent of such costs to the subcontractor, except that the Federal share for programs serving children of migrant or seasonal farmworkers shall be 100 percent of such costs to the subcontractor.

``Subpart 6—Gifted and Talented Students

``SEC. 5461. SHORT TITLE.

``This subpart may be cited as the `Jacob K. Javits Gifted and Talented Students Education Act of 2001´.

``SEC. 5462. PURPOSE.

``The purpose of this subpart is to initiate a coordinated program of scientifically based research, demonstration projects, innovative strategies, and similar activities designed to build and enhance the ability of elementary schools and secondary schools nationwide to meet the special educational needs of gifted and talented students.

``SEC. 5463. RULE OF CONSTRUCTION.

``Nothing in this subpart shall be construed to prohibit a recipient of funds under this subpart from serving gifted and talented students simultaneously with students with similar educational needs, in the same educational settings, where appropriate.

``SEC. 5464. AUTHORIZED PROGRAMS.

``(a) Establishment of Program.—

``(1) In general.—The Secretary (after consultation with experts in the field of the education of gifted and talented students) is authorized to make grants to, or enter into contracts with, State educational agencies, local educational agencies, institutions of higher education, other public agencies, and other private agencies and organizations (including Indian tribes and Indian organizations (as such terms are defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)) and Native Hawaiian organizations) to assist such agencies, institutions, and organizations in carrying out programs or projects authorized by this subpart that are designed to meet the educational needs of gifted and talented students, including the training of personnel in the education of gifted and talented students and in the use, where appropriate, of gifted and talented services, materials, and methods for all students.

``(2) Application.—Each entity seeking assistance under this subpart shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require. Each such application shall describe how—

``(A) the proposed gifted and talented services, materials, and methods can be adapted, if appropriate, for use by all students; and

``(B) the proposed programs can be evaluated.

``(b) Use of Funds.—Programs and projects assisted under this section may include each of the following:

``(1) Conducting—

``(A) scientifically based research on methods and techniques for identifying and teaching gifted and talented students and for using gifted and talented programs and methods to serve all students; and

``(B) program evaluations, surveys, and the collection, analysis, and development of information needed to accomplish the purpose of this subpart.

``(2) Carrying out professional development (including fellowships) for personnel (including leadership personnel) involved in the education of gifted and talented students.

``(3) Establishing and operating model projects and exemplary programs for serving gifted and talented students, including innovative methods for identifying and educating students who may not be served by traditional gifted and talented programs (such as summer programs, mentoring programs, service learning programs, and cooperative programs involving business, industry, and education).

``(4) Implementing innovative strategies, such as cooperative learning, peer tutoring, and service learning.

``(5) Carrying out programs of technical assistance and information dissemination, including assistance and information with respect to how gifted and talented programs and methods, where appropriate, may be adapted for use by all students.

``(6) Making materials and services available through State regional educational service centers, institutions of higher education, or other entities.

``(7) Providing funds for challenging, high-level course work, disseminated through technologies (including distance learning), for individual students or groups of students in schools and local educational agencies that would not otherwise have the resources to provide such course work.

``(c) Special Rule.—To the extent that funds appropriated to carry out this subpart for a fiscal year beginning with fiscal year 2002 exceed such funds appropriated for fiscal year 2001, the Secretary shall use such excess funds to award grants, on a competitive basis, to State educational agencies, local educational agencies, or both, to implement activities described in subsection (b).

``(d) Center for Research and Development.—

``(1) In General.—The Secretary (after consultation with experts in the field of the education of gifted and talented students) shall establish a National Research Center for the Education of Gifted and Talented Children and Youth through grants to, or contracts with, one or more institutions of higher education or State educational agencies, or a combination or consortium of such institutions and agencies and other public or private agencies and organizations, for the purpose of carrying out activities described in subsection (b).

``(2) Director.—The National Center shall be headed by a Director. The Secretary may authorize the Director to carry out such functions of the National Center as may be agreed upon through arrangements with institutions of higher education, State educational agencies, local educational agencies, or other public or private agencies and organizations.

``(3) Funding.—The Secretary may use not more than 30 percent of the funds made available under this subpart for fiscal year 2001 to carry out this subsection.

``(e) Coordination.—Scientifically based research activities supported under this subpart—

``(1) shall be carried out in consultation with the Office of Educational Research and Improvement to ensure that such activities are coordinated with and enhance the research and development activities supported by such Office; and

``(2) may include collaborative scientifically based research activities which are jointly funded and carried out with such Office.

``SEC. 5465. PROGRAM PRIORITIES.

``(a) General Priority.—In carrying out this subpart, the Secretary shall give highest priority to programs and projects designed to develop new information that—

``(1) improves the capability of schools to plan, conduct, and improve programs to identify and serve gifted and talented students; and

``(2) assists schools in the identification of, and provision of services to, gifted and talented students (including economically disadvantaged individuals, individuals with limited English proficiency, and individuals with disabilities) who may not be identified and served through traditional assessment methods.

``(b) Service Priority.—The Secretary shall ensure that not less than 50 percent of the applications approved under section 5464(a)(2) in a fiscal year address the priority described in subsection (a)(2).

``SEC. 5466. GENERAL PROVISIONS.

``(a) Participation of Private School Children and Teachers.—In making grants and entering into contracts under this subpart, the Secretary shall ensure, where appropriate, that provision is made for the equitable participation of students and teachers in private nonprofit elementary schools and secondary schools, including the participation of teachers and other personnel in professional development programs serving such students.

``(b) Review, Dissemination, and Evaluation.—The Secretary shall—

``(1) use a peer review process in reviewing applications under this subpart;

``(2) ensure that information on the activities and results of programs and projects funded under this subpart is disseminated to appropriate State educational agencies, local educational agencies, and other appropriate organizations, including nonprofit private organizations; and

``(3) evaluate the effectiveness of programs under this subpart in accordance with section 9601, in terms of the impact on students traditionally served in separate gifted and talented programs and on other students, and submit the results of such evaluation to Congress not later than 2 years after the date of enactment of the No Child Left Behind Act of 2001.

``(c) Program Operations.—The Secretary shall ensure that the programs under this subpart are administered within the Department by a person who has recognized professional qualifications and experience in the field of the education of gifted and talented students and who shall—

``(1) administer and coordinate the programs authorized under this subpart;

``(2) serve as a focal point of national leadership and information on the educational needs of gifted and talented students and the availability of educational services and programs designed to meet such needs;

``(3) assist the Assistant Secretary for Educational Research and Improvement in identifying research priorities that reflect the needs of gifted and talented students; and

``(4) shall disseminate, and consult on, the information developed under this subpart with other offices within the Department.

``Subpart 7—Star Schools Program

``SEC. 5471. SHORT TITLE.

``This subpart may be cited as the `Star Schools Act´.

``SEC. 5472. PURPOSES.

``The purposes of this subpart are the following:

``(1) To encourage improved instruction in mathematics, science, and foreign languages as well as other subjects (such as literacy skills and vocational education).

``(2) To serve underserved populations, including disadvantaged, illiterate, limited English proficient populations, and individuals with disabilities through a Star Schools program under which grants are made to eligible telecommunication partnerships to enable such partnerships—

``(A) to develop, construct, acquire, maintain, and operate telecommunications audio and visual facilities and equipment;

``(B) to develop and acquire educational and instructional programming; and

``(C) to obtain technical assistance for the use of such facilities and instructional programming.

``SEC. 5473. GRANT PROGRAM AUTHORIZED.

``(a) Authorization.—The Secretary, in conjunction with the Office of Educational Technology, is authorized to make grants, in accordance with the provisions of this subpart, to eligible entities to pay the Federal share of the cost of the following:

``(1) Development, construction, acquisition, maintenance, and operation of telecommunications facilities and equipment.

``(2) Development and acquisition of live, interactive instructional programming.

``(3) Development and acquisition of preservice and inservice teacher training programs based on established research regarding teacher-to-teacher mentoring, and ongoing, in-class instruction.

``(4) Establishment of teleconferencing facilities and resources for making interactive training available to teachers.

``(5) Obtaining technical assistance.

``(6) Coordination of the design and connectivity of telecommunications networks to reach the greatest number of schools.

``(b) Duration and Amount.—

``(1) In general.—A grant under this section may not exceed—

``(A) 5 years in duration (subject to subsection (c)); and

``(B) $10,000,000 in any single fiscal year.

``(c) Renewal.—

``(1) In general.—Grants awarded under subsection (a) may be renewed for a single additional period of 3 years.

``(2) Continuing Eligibility.—In order to be eligible to receive a grant renewal under this subsection, a grant recipient shall demonstrate, to the satisfaction of the Secretary, in an addendum to its application submitted under section 5474, that the grant recipient will—

``(A) continue to provide services in the subject areas and geographic areas assisted with funds received under this subpart for the previous grant period; and

``(B) use all grant funds received under this subpart for the 3 year renewal period to provide expanded services by—

``(i) increasing the number of students, schools, or school districts served by the courses of instruction assisted under this part in the previous fiscal year;

``(ii) providing new courses of instruction; and

``(iii) serving new populations of underserved individuals, such as children or adults who are disadvantaged, have limited English proficiency, are individuals with disabilities, are illiterate, or lack secondary school diplomas or their recognized equivalent.

``(3) Supplement, not supplant.—Grant funds received under this subsection shall be used to supplement, and not supplant, services provided by the grant recipient under this subpart in the previous fiscal year.

``(d) Reservations.—

``(1) Instructional programming.—At least 25 percent of the funds made available to the Secretary for any fiscal year under this subpart shall be used for the cost of instructional programming.

``(2) Local educational agency assistance.—At least 50 percent of the funds available in any fiscal year under this subpart shall be used for the cost of facilities, equipment, teacher training or retraining, technical assistance, or programming, for local educational agencies that are eligible to receive assistance under part A of title I.

``(e) Federal Share.—

``(1) Amount.—The Federal share of the cost of projects funded under this section shall not exceed the following amounts:

``(A) 75 percent for the first and second years for which an eligible telecommunications partnership receives a grant under this subpart.

``(B) 60 percent for the third and fourth such years.

``(C) 50 percent for the fifth such year.

``(2) Reduction or waiver.—The Secretary may reduce or waive the corresponding non-Federal share under paragraph (1) upon a showing of financial hardship.

``(f) Required local educational agency participation.—The Secretary is authorized to make a grant under this section to any eligible entity, if at least one local educational agency is participating in the proposed program.

``(g) Assistance Obtaining Satellite Time.—The Secretary may assist recipients of grants made under this section in acquiring satellite time, where appropriate, as economically as possible.

``SEC. 5474. APPLICATIONS.

``(a) Submission.—Each eligible entity that desires to receive a grant under section 5473 shall submit an application to the Secretary, at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require.

``(b) Contents.—An application submitted under subsection (a) shall include each of the following:

``(1) A description of how the proposed program will assist all students to have an opportunity to meet challenging State academic achievement standards, how such program will assist State and local educational reform efforts, and how such program will contribute to creating a high-quality system of educational development.

``(2) A description of the telecommunications facilities and equipment and technical assistance for which assistance is sought, which may include—

``(A) the design, development, construction, acquisition, maintenance, and operation of State or multistate educational telecommunications networks and technology resource centers;

``(B) microwave, fiber optics, cable, and satellite transmission equipment or any combination thereof;

``(C) reception facilities;

``(D) satellite time;

``(E) production facilities;

``(F) other telecommunications equipment capable of serving a wide geographic area;

``(G) the provision of training services to instructors who will be using the facilities and equipment for which assistance is sought, including training in using such facilities and equipment and training in integrating programs into the classroom curriculum; and

``(H) the development of educational and related programming for use on a telecommunications network.

``(3) In the case of an application for assistance for instructional programming, a description of the types of programming that will be developed to enhance instruction and training and provide an assurance that such programming will be designed in consultation with professionals (including classroom teachers) who are experts in the applicable subject matter and grade level.

``(4) A description of how the eligible entity has engaged in sufficient survey and analysis of the area to be served to ensure that the services offered by the eligible entity will increase the availability of courses of instruction in English, mathematics, science, foreign languages, arts, history, geography, or other disciplines.

``(5) A description of the professional development policies for teachers and other school personnel to be implemented to ensure the effective use of the telecommunications facilities and equipment for which assistance is sought.

``(6) A description of the manner in which historically underserved students (such as students from low-income families, limited English proficient students, students with disabilities, or students who have low literacy skills) and their families, will participate in the benefits of the telecommunications facilities, equipment, technical assistance, and programming assisted under this subpart.

``(7) A description of how existing telecommunications equipment, facilities, and services, where available, will be used.

``(8) An assurance that the financial interest of the United States in the telecommunications facilities and equipment will be protected for the useful life of such facilities and equipment.

``(9) An assurance that a significant portion of any facilities and equipment, technical assistance, and programming for which assistance is sought for elementary schools and secondary schools will be made available to schools or local educational agencies that have a high number or percentage of children eligible to be counted under part A of title I.

``(10) An assurance that the applicant will use the funds provided under this subpart to supplement, and not supplant, funds available for the purposes of this subpart.

``(11) A description of how funds received under this subpart will be coordinated with funds received for educational technology in the classroom.

``(12) A description of the activities or services for which assistance is sought, such as—

``(A) providing facilities, equipment, training services, and technical assistance;

``(B) making programs accessible to students with disabilities through mechanisms such as closed captioning and descriptive video services;

``(C) linking networks around issues of national importance (such as elections) or to provide information about employment opportunities, job training, or student and other social service programs;

``(D) sharing curriculum resources between networks and development of program guides which demonstrate cooperative, cross-network listing of programs for specific curriculum areas;

``(E) providing teacher and student support services, including classroom and training support materials which permit student and teacher involvement in the live interactive distance learning telecasts;

``(F) incorporating community resources, such as libraries and museums, into instructional programs;

``(G) providing professional development for teachers, including, as appropriate, training to early childhood development and Head Start teachers and staff and vocational education teachers and staff, and adult and family educators;

``(H) providing programs for adults to maximize the use of telecommunications facilities and equipment;

``(I) providing teacher training on proposed or established models of exemplary academic content standards in mathematics and science and other disciplines as such standards are developed; and

``(J) providing parent education programs during and after the regular school day which reinforce a student's course of study and actively involve parents in the learning process.

``(13) A description of how the proposed program as a whole will be financed and how arrangements for future financing will be developed before the program expires.

``(14) An assurance that a significant portion of any facilities, equipment, technical assistance, and programming for which assistance is sought for elementary schools and secondary schools will be made available to schools in local educational agencies that have a high percentage of children counted for the purpose of part A of title I.

``(15) An assurance that the applicant will provide such information and cooperate in any evaluation that the Secretary may conduct under this subpart.

``(16) Such additional assurances as the Secretary may reasonably require.

``(c) Approval.—In approving applications submitted under subsection (a) for grants under section 5473, the Secretary shall—

``(1) to the extent feasible, ensure an equitable geographic distribution of services provided under this subpart.

``(2) give priority to applications describing programs that—

``(A) propose high-quality plans, will provide instruction consistent with State academic content standards, or will otherwise provide significant and specific assistance to States and local educational agencies undertaking systemic education reform;

``(B) will provide services to programs serving adults, especially parents, with low levels of literacy;

``(C) will serve schools with significant numbers of children counted for the purposes of part A of title I;

``(D) ensure that the eligible entity will—

``(i) serve the broadest range of institutions, programs providing instruction outside of the school setting, programs serving adults, especially parents, with low levels of literacy, institutions of higher education, teacher training centers, research institutes, and private industry;

``(ii) have substantial academic and teaching capabilities, including the capability of training, retraining, and inservice upgrading of teaching skills and the capability to provide professional development;

``(iii) provide a comprehensive range of courses for educators to teach instructional strategies for students with different skill levels;

``(iv) provide training to participating educators in ways to integrate telecommunications courses into existing school curriculum;

``(v) provide instruction for students, teachers, and parents;

``(vi) serve a multistate area; and

``(vii) give priority to the provision of equipment and linkages to isolated areas; and

``(E) involve a telecommunications entity (such as a satellite, cable, telephone, computer, or public or private television stations) participating in the eligible entity and donating equipment or in-kind services for telecommunications linkages.

``SEC. 5475. OTHER GRANT ASSISTANCE.

``(a) Special Statewide Network.—

``(1) In general.—The Secretary, in conjunction with the Office of Educational Technology, may provide assistance to a statewide telecommunications network if such network—

``(A) provides 2-way full-motion interactive video and audio communications;

``(B) links together public colleges and universities and secondary schools throughout the State; and

``(C) meets any other requirements determined appropriate by the Secretary.

``(2) Matching contribution.—A statewide telecommunications network assisted under paragraph (1) shall contribute, either directly or through private contributions, non-Federal funds equal to not less than 50 percent of the cost of such network.

``(b) Special Local Network.—

``(1) In general.—The Secretary is authorized to provide assistance, on a competitive basis, to a local educational agency, or a consortium of such agencies, to enable such agency or consortium to establish a high-technology demonstration program.

``(2) Program requirements.—A high-technology demonstration program assisted under paragraph (1) shall—

``(A) include 2-way full-motion interactive video, audio, and text communications;

``(B) link together elementary schools and secondary schools, colleges, and universities;

``(C) provide parent participation and family programs;

``(D) include a staff development program; and

``(E) have a significant contribution and participation from business and industry.

``(3) Matching requirement.—A local educational agency or consortium receiving a grant under paragraph (1) shall provide, either directly or through private contributions, non-Federal matching funds equal to not less than 50 percent of the amount of the grant.

``(c) Telecommunications Programs for Continuing Education.—

``(1) Authority.—The Secretary is authorized to award grants, on a competitive basis, to eligible entities to develop and operate one or more programs that provide online access to educational resources in support of continuing education and curriculum requirements relevant to achieving a secondary school diploma or its recognized equivalent. The program authorized by this subsection shall be designed to advance adult literacy, secondary school completion, and the acquisition of specified competency by the end of the 12th grade.

``(2) Applications.—Each eligible entity desiring a grant under this subsection shall submit an application to the Secretary. The application shall include each of the following:

``(A) A demonstration that the applicant will use publicly funded or free public telecommunications infrastructure to deliver video, voice, and data in an integrated service to support and assist in the acquisition of a secondary school diploma or its recognized equivalent.

``(B) An assurance that the content of the materials to be delivered is consistent with the accreditation requirements of the State for which such materials are used.

``(C) To the extent feasible, materials developed in the Federal departments and agencies and under appropriate federally funded programs.

``(D) An assurance that the applicant has the technological and substantive experience to carry out the program.

``(E) Such additional assurances as the Secretary may reasonably require.

``SEC. 5476. ADMINISTRATIVE PROVISIONS.

``(a) Leadership, Evaluation, and Peer Review.—

``(1) Reservation of funds.—The Secretary may reserve not more than 5 percent of the amount made available to carry out this subpart for a fiscal year for national leadership, evaluation, and peer review activities, which the Secretary may carry out directly or through grants, contracts, and cooperative agreements.

``(2) Leadership.—Funds reserved for leadership activities under paragraph (1) may be used for—

``(A) disseminating information, including lists and descriptions of services available from grant recipients under this subpart; and

``(B) other activities designed to enhance the quality of distance learning activities nationwide.

``(3) Evaluation.—Funds reserved for evaluation activities under paragraph (1) may be used to conduct independent evaluations of the activities assisted under this subpart and of distance learning in general, including—

``(A) analyses of distance learning efforts (including such efforts that are, or are not, assisted under this subpart); and

``(B) comparisons of the effects (including student outcomes) of different technologies in distance learning efforts.

``(4) Peer review.—Funds reserved for peer review activities under paragraph (1) may be used for peer review of—

``(A) applications for grants under this subpart; and

``(B) activities assisted under this subpart.

``(b) Coordination.—The Department, the National Science Foundation, the Department of Agriculture, the Department of Commerce, and any other Federal department or agency operating a telecommunications network for educational purposes, shall coordinate the activities assisted under this subpart with the activities of such department or agency relating to a telecommunications network for educational purposes.

``(c) Funds From Other Agencies.—The Secretary may accept funds from other Federal departments or agencies to carry out the purposes of this subpart, including funds for the purchase of equipment.

``(d) Availability of Funds.—Funds made available to carry out this subpart shall remain available until expended.

``(e) Closed Captioning and Descriptive Video.—The Secretary shall encourage each entity receiving funds under this subpart to provide—

``(1) closed captioning of the verbal content of the entity's programming, as appropriate; and

``(2) descriptive video of the visual content of the entity's programming, as appropriate.

``SEC. 5477. DEFINITIONS.

``In this subpart:

``(1) Educational institution.—The term `educational institution' means an institution of higher education, a local educational agency, or a State educational agency.

``(2) Eligible entity.—The term `eligible entity' includes any of the following that is organized on a Statewide or multistate basis:

``(A) A public agency or corporation established for the purpose of developing and operating telecommunications networks to enhance educational opportunities provided by educational institutions, teacher training centers, and other entities, except that any such agency or corporation shall represent the interests of elementary schools and secondary schools that are eligible to participate in the program under part A of title I.

``(B) A partnership that will provide telecommunications services and that includes three or more of the following entities, at least one of which shall be an agency described in clause (i) or (ii):

``(i) A local educational agency that serves a significant number of elementary schools and secondary schools that are eligible for assistance under part A of title I, or elementary schools and secondary schools operated or funded for Indian children by the Department of the Interior eligible under section 1121(d)(1)(A).

``(ii) A State educational agency.

``(iii) An adult and family education program.

``(iv) An institution of higher education or a State higher education agency (as that term is defined in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003)).

``(v) A teacher training center or academy that—

``(I) provides teacher preservice and inservice training; and

``(II) receives Federal financial assistance or has been approved by a State agency;

``(vi)(I) A public or private entity with experience and expertise in the planning and operation of a telecommunications network, including entities involved in telecommunications through satellite, cable, telephone, or computer; or

``(II) a public broadcasting entity with such experience.

``(vii) A public or private elementary school or secondary school.

``(3) Instructional programming.—The term `instructional programming' means courses of instruction and training courses for elementary and secondary students, teachers, and others, and materials for use in such instruction and training that have been prepared in audio and visual form on tape, disc, film, or live, and presented by means of telecommunications devices.

``(4) Public broadcasting entity.—The term `public broadcasting entity' has the same meaning given such term in section 397 of the Communications Act of 1934 (47 U.S.C. 397).

``Subpart 8—Ready to Teach

``SEC. 5481. GRANTS.

``(a) In General.—The Secretary is authorized to award grants to a nonprofit telecommunications entity, or partnership of such entities, for the purpose of carrying out a national telecommunications-based program to improve teaching in core curriculum areas. The program shall be designed to assist elementary school and secondary school teachers in preparing all students to achieve challenging State academic content and student academic achievement standards in core curriculum areas.

``(b) Digital Educational Programming.—The Secretary is authorized to award grants, as provided for in section 5484, to eligible entities described in subsection (b) of such section, to enable such entities to develop, produce, and distribute innovative educational and instructional video programming that is designed for use by elementary schools and secondary schools and based on challenging State academic content and student academic achievement standards. In awarding such grants, the Secretary shall ensure that eligible entities enter into multiyear content development collaborative arrangements with State educational agencies, local educational agencies, institutions of higher education, businesses, or other agencies or organizations.

``SEC. 5482. APPLICATION REQUIRED.

``(a) General Application.—

``(1) In general.—To be eligible to receive a grant under section 5481(a), a nonprofit telecommunications entity, or partnership of such entities shall submit an application to the Secretary. Each such application shall—

``(A) demonstrate that the applicant will use the public broadcasting infrastructure, the Internet, and school digital networks, where available, to deliver video and data in an integrated service to train teachers in the use of materials and learning technologies for achieving challenging State academic content and student academic achievement standards;

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

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

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

``(2) Sites.—In approving applications under paragraph (1), the Secretary shall ensure that the program authorized by section 5481(a) is conducted at elementary school and secondary school sites throughout the United States.

``(b) Programming Application.—To be eligible to receive a grant under section 5481(b), an entity shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require.

``SEC. 5483. REPORTS AND EVALUATION.

``An entity receiving a grant under section 5481(a) shall prepare and submit to the Secretary an annual report that contains such information as the Secretary may require. At a minimum, such report shall describe the program activities undertaken with funds received under the grant, including—

``(1) the core curriculum areas for which program activities have been undertaken and the number of teachers using the program in each core curriculum area; and

``(2) the States in which teachers using the program are located.

``SEC. 5484. DIGITAL EDUCATIONAL PROGRAMMING GRANTS.

``(a) Grants.—The Secretary is authorized to award grants under section 5481(b) to eligible entities to facilitate the development of educational programming that shall—

``(1) include student assessment tools to provide feedback on student academic achievement;

``(2) include built-in teacher utilization and support components to ensure that teachers understand and can easily use the content of the programming with group instruction or for individual student use;

``(3) be created for, or adaptable to, challenging State academic content standards and student academic achievement standards; and

``(4) be capable of distribution through digital broadcasting and school digital networks.

``(b) Eligible Entities.—To be eligible to receive a grant under section 5481(b), an entity shall be a local public telecommunications entity, as defined in section 397(12) of the Communications Act of 1934, that is able to demonstrate a capacity for the development and distribution of educational and instructional television programming of high quality.

``(c) Competitive Basis.—Grants under section 5481(b) shall be awarded on a competitive basis as determined by the Secretary.

``(d) Matching Requirement.—To be eligible to receive a grant under section 5481(b), an entity shall contribute to the activities assisted under such grant non-Federal matching funds in an amount equal to not less than 100 percent of the amount of the grant. Such matching funds may include funds provided for the transition to digital broadcasting, as well as in-kind contributions.

``(e) Duration.—A grant under section 5481(b) shall be awarded for a period of 3 years in order to provide a sufficient period of time for the creation of a substantial body of significant content.

``SEC. 5485. ADMINISTRATIVE COSTS.

``An entity that receives a grant under this subpart may not use more than 5 percent of the amount received under the grant for administrative costs.

``Subpart 9—Foreign Language Assistance Program

``SEC. 5491. SHORT TITLE.

``This subpart may be cited as the `Foreign Language Assistance Act of 2001´.

``SEC. 5492. PROGRAM AUTHORIZED.

``(a) Program Authority.—

``(1) In general.—The Secretary is authorized to make grants, on a competitive basis, to State educational agencies or local educational agencies to pay the Federal share of the cost of innovative model programs providing for the establishment, improvement, or expansion of foreign language study for elementary school and secondary school students.

``(2) Duration.—Each grant under paragraph (1) shall be awarded for a period of 3 years.

``(b) Requirements.—

``(1) Grants to state educational agencies.—In awarding a grant under subsection (a) to a State educational agency, the Secretary shall support programs that promote systemic approaches to improving foreign language learning in the State.

``(2) Grants to local educational agencies.—In awarding a grant under subsection (a) to a local educational agency, the Secretary shall support programs that—

``(A) show the promise of being continued beyond the grant period;

``(B) demonstrate approaches that can be disseminated and duplicated in other local educational agencies; and

``(C) may include a professional development component.

``(c) Federal Share.—

``(1) In general.—The Federal share for each fiscal year shall be 50 percent.

``(2) Waiver.—Notwithstanding paragraph (1), the Secretary may determine the Federal share for any local educational agency which the Secretary determines does not have adequate resources to pay the non-Federal share of the cost of the activities assisted under this subpart.

``(d) Special rule.—Not less than \3/4\ of the funds made available under section 5401 to carry out this subpart shall be used for the expansion of foreign language learning in the elementary grades.

``(e) Reservation.—The Secretary may reserve not more than 5 percent of funds made available under section 5401 to carry out this subpart for a fiscal year to evaluate the efficacy of programs assisted under this subpart.

``SEC. 5493. APPLICATIONS.

``(a) In General.—Any State educational agency or local educational agency desiring a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and containing such information and assurances as the Secretary may require.

``(b) Special Consideration.—The Secretary shall give special consideration to applications describing programs that—

``(1) include intensive summer foreign language programs for professional development;

``(2) link nonnative English speakers in the community with the schools in order to promote two-way language learning;

``(3) promote the sequential study of a foreign language for students, beginning in elementary schools;

``(4) make effective use of technology, such as computer-assisted instruction, language laboratories, or distance learning, to promote foreign language study;

``(5) promote innovative activities, such as foreign language immersion, partial foreign language immersion, or content-based instruction; and

``(6) are carried out through a consortium comprised of the agency receiving the grant and an elementary school or secondary school.

``SEC. 5494. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

``(a) Incentive Payments.—From amounts made available under section 5401 to carry out this subpart, the Secretary shall make an incentive payment for each fiscal year to each public elementary school that provides to students attending such school a program designed to lead to communicative competency in a foreign language.

``(b) Amount.—The Secretary shall determine the amount of the incentive payment under subsection (a) for each public elementary school for each fiscal year on the basis of the number of students participating in a program described in such subsection at such school for such year compared to the total number of such students at all such schools in the United States for such year.

``(c) Requirement.—The Secretary shall consider a program to be designed to lead to communicative competency in a foreign language if such program is comparable to a program that provides not less than 45 minutes of instruction in a foreign language for not fewer than 4 days per week throughout an academic year.

``Subpart 10-Physical Education

``SEC. 5501. SHORT TITLE.

``This subpart may be cited as the `Carol M. White Physical Education Program´.

``SEC. 5502. PURPOSE.

``The purpose of this subpart is to award grants and contracts to initiate, expand, and improve physical education programs for all kindergarten through 12th-grade students.

``SEC. 5503. PROGRAM AUTHORIZED.

``(a) Authorization.—The Secretary is authorized to award grants to local educational agencies and community-based organizations (such as Boys and Girls Clubs, Boy Scouts and Girl Scouts, and the Young Men's Christian Organization (YMCA) and Young Women's Christian Organization (YWCA)) to pay the Federal share of the costs of initiating, expanding, and improving physical education programs (including after-school programs) for kindergarten through 12th-grade students by—

``(1) providing equipment and support to enable students to participate actively in physical education activities; and

``(2) providing funds for staff and teacher training and education.

``(b) Program Elements.—A physical education program funded under this subpart may provide for one or more of the following:

``(1) Fitness education and assessment to help students understand, improve, or maintain their physical well-being.

``(2) Instruction in a variety of motor skills and physical activities designed to enhance the physical, mental, and social or emotional development of every student.

``(3) Development of, and instruction in, cognitive concepts about motor skill and physical fitness that support a lifelong healthy lifestyle.

``(4) Opportunities to develop positive social and cooperative skills through physical activity participation.

``(5) Instruction in healthy eating habits and good nutrition.

``(6) Opportunities for professional development for teachers of physical education to stay abreast of the latest research, issues, and trends in the field of physical education.

``(c) Special Rule.—For the purpose of this subpart, extracurricular activities, such as team sports and Reserve Officers' Training Corps (ROTC) program activities, shall not be considered as part of the curriculum of a physical education program assisted under this subpart.

``SEC. 5504. APPLICATIONS.

``(a) Submission.—Each local educational agency or community-based organization desiring a grant or contract under this subpart shall submit to the Secretary an application that contains a plan to initiate, expand, or improve physical education programs in order to make progress toward meeting State standards for physical education.

``(b) Private School and Home-Schooled Students.—An application for funds under this subpart may provide for the participation, in the activities funded under this subpart, of—

``(1) students enrolled in private nonprofit elementary schools or secondary schools, and their parents and teachers; or

``(2) home-schooled students, and their parents and teachers.

``SEC. 5505. REQUIREMENTS.

``(a) Annual Report to the Secretary.—In order to continue receiving funding after the first year of a multiyear grant or contract under this subpart, the administrator of the grant or contract for the local educational agency or community-based organization shall submit to the Secretary an annual report that—

``(1) describes the activities conducted during the preceding year; and

``(2) demonstrates that progress has been made toward meeting State standards for physical education.

``(b) Administrative Expenses.—Not more than 5 percent of the grant funds made available to a local educational agency or community-based organization under this subpart for any fiscal year may be used for administrative expenses.

``SEC. 5506. ADMINISTRATIVE PROVISIONS.

``(a) Federal Share.—The Federal share under this subpart may not exceed—

``(1) 90 percent of the total cost of a program for the first year for which the program receives assistance under this subpart; and

``(2) 75 percent of such cost for the second and each subsequent such year.

``(b) Proportionality.—To the extent practicable, the Secretary shall ensure that grants awarded under this subpart shall be equitably distributed among local educational agencies and community-based organizations serving urban and rural areas.

``(c) Report to Congress.—Not later than June 1, 2003, the Secretary shall submit a report to Congress that—

``(1) describes the programs assisted under this subpart;

``(2) documents the success of such programs in improving physical fitness; and

``(3) makes such recommendations as the Secretary determines appropriate for the continuation and improvement of the programs assisted under this subpart.

``(d) Availability of Funds.—Amounts made available to the Secretary to carry out this subpart shall remain available until expended.

``SEC. 5507. SUPPLEMENT, NOT SUPPLANT.

``Funds made available under this subpart shall be used to supplement, and not supplant, any other Federal, State, or local funds available for physical education activities.

``Subpart 11—Community Technology Centers

``SEC. 5511. PURPOSE AND PROGRAM AUTHORIZATION.

``(a) Purpose.—It is the purpose of this subpart to assist eligible applicants—

``(1) to create or expand community technology centers that will provide disadvantaged residents of economically distressed urban and rural communities with access to information technology and related training; and

``(2) to provide technical assistance and support to community technology centers.

``(b) Program Authorization.—The Secretary is authorized, in conjunction with the Office of Educational Technology, to award grants, contracts, or cooperative agreements, on a competitive basis, for a period of not more than 3 years, to eligible applicants in order to assist such applicants in—

``(1) creating or expanding community technology centers; or

``(2) providing technical assistance and support to community technology centers.

``(3) Service of americorps participants.—The Secretary may collaborate with the Chief Executive Officer of the Corporation for National and Community Service on the use in community technology centers of participants in National Service programs carried out under subtitle C of title I of the National and Community Service Act of 1990 (42 U.S.C. 12571 et seq.).

``SEC. 5512. ELIGIBILITY AND APPLICATION REQUIREMENTS.

``(a) Eligible Applicants.—In order to be eligible to receive an award under this subpart, an applicant shall—

``(1) be an entity (such as a foundation, museum, library, for-profit business, public or private nonprofit organization, or community-based organization), an institution of higher education, a State educational agency, a local education agency, or a consortium of such entities, institutions, or agencies; and

``(2) have the capacity to significantly expand access to computers and related services for disadvantaged residents of economically distressed urban and rural communities (who would otherwise be denied such access).

``(b) Application Requirements.—In order to receive an award under this subpart, an eligible applicant shall submit an application to the Secretary at such time, and containing such information, as the Secretary may require. The application shall include each of the following:

``(1) A description of the proposed project, including a description of the magnitude of the need for the services and how the project would expand access to information technology and related services to disadvantaged residents of an economically distressed urban or rural community.

``(2) A demonstration of—

``(A) the commitment, including the financial commitment, of entities (such as institutions, organizations, business and other groups in the community) that will provide support for the creation, expansion, and continuation of the proposed project; and

``(B) the extent to which the proposed project coordinates with other appropriate agencies, efforts, and organizations providing services to disadvantaged residents of an economically distressed urban or rural community.

``(3) A description of how the proposed project would be sustained once the Federal funds awarded under this subpart end.

``(4) A plan for the evaluation of the program, which shall include benchmarks to monitor progress toward specific project objectives.

``(c) Matching Requirements.—The Federal share of the cost of any project funded under this subpart shall not exceed 50 percent. The non-Federal share of such project may be in cash or in kind, fairly evaluated, including services.

``SEC. 5513. USES OF FUNDS.

``(a) Required Uses.—A recipient shall use funds under this subpart for—

``(1) creating or expanding community technology centers that expand access to information technology and related training for disadvantaged residents of distressed urban or rural communities; and

``(2) evaluating the effectiveness of the project.

``(b) Permissible Uses.—A recipient may use funds under this subpart for activities, described in its application, that carry out the purposes of this subpart, such as—

``(1) supporting a center coordinator, and staff, to supervise instruction and build community partnerships;

``(2) acquiring equipment, networking capabilities, and infrastructure to carry out the project; and

``(3) developing and providing services and activities for community residents that provide access to computers, information technology, and the use of such technology in support of preschool preparation, academic achievement, educational development, and workforce development, such as the following:

``(A) After-school activities in which children and youths use software that provides academic enrichment and assistance with homework, develop their technical skills, explore the Internet, and participate in multimedia activities, including web page design and creation.

``(B) Adult education and family literacy activities through technology and the Internet, including—

``(i) General Education Development, Language Instruction Educational Programs, and adult basic education classes or programs;

``(ii) introduction to computers;

``(iii) intergenerational activities; and

``(iv) educational development opportunities.

``(C) Career development and job preparation activities, such as—

``(i) training in basic and advanced computer skills;

``(ii) resume writing workshops; and

``(iii) access to databases of employment opportunities, career information, and other online materials.

``(D) Small business activities, such as—

``(i) computer-based training for basic entrepreneurial skills and electronic commerce; and

``(ii) access to information on business start-up programs that is available online, or from other sources.

``(E) Activities that provide home access to computers and technology, such as assistance and services to promote the acquisition, installation, and use of information technology in the home through low-cost solutions such as networked computers, web-based television devices, and other technology.

``Subpart 12—Educational, Cultural, Apprenticeship, and Exchange Programs for Alaska Natives, Native Hawaiians, and Their Historical Whaling and Trading Partners in Massachusetts

``SEC. 5521. SHORT TITLE.

``This subpart may be cited as the `Alaska Native and Native Hawaiian Education Through Cultural and Historical Organizations Act´.

``SEC. 5522. FINDINGS AND PURPOSES.

``(a) Findings.—Congress finds the following:

``(1) Alaska Natives and Native Hawaiians have been linked for over 200 years to the coastal towns of Salem, Massachusetts, and New Bedford, Massachusetts, through the China trade from Salem and whaling voyages from New Bedford.

``(2) Nineteenth-century trading ships sailed from Salem, Massachusetts, around Cape Horn of South America, and up the Northwest coast of the United States to Alaska, where their crews traded with Alaska Native people for furs, and then went on to Hawaii to trade for sandalwood with Native Hawaiians before going on to China.

``(3) During the 19th century, over 2,000 whaling voyages sailed out of New Bedford, Massachusetts to the Arctic region of Alaska, and joined Alaska Natives from Barrow, Alaska and other areas in the Arctic region in subsistence whaling activities.

``(4) Many New Bedford whaling voyages continued on to Hawaii, where they joined Native Hawaiians from the neighboring islands.

``(5) From those commercial and whaling voyages, a rich cultural exchange and strong trading relationships developed among the three peoples involved.

``(6) In the past decades, awareness of the historical trading, cultural, and whaling links has faded among Alaska Natives, Native Hawaiians, and the people of the continental United States.

``(7) In 2000, the Alaska Native Heritage Center in Alaska, the Bishop Museum in Hawaii, and the Peabody-Essex Museum in Massachusetts initiated the New Trade Winds project to use 21st-century technology, including the Internet, to educate students and their parents about historic and contemporary cultural and trading ties that continue to link the diverse cultures of the peoples involved.

``(8) The New Bedford Whaling Museum, in partnership with the New Bedford Whaling National Historical Park, has developed a cultural exchange and educational program with the Inupiat Heritage Center in Barrow, Alaska to bring together the children, parents, and elders from the Arctic region of Alaska with children and families of Massachusetts to learn about their historical ties and about each other's contemporary cultures.

``(9) Within the fast-growing cultural sector, meaningful educational and career opportunities based on traditional relationships exist for Alaska Natives, Native Hawaiians, and low-income youth in Massachusetts.

``(10) Cultural institutions can provide practical, culturally relevant, education-related internship and apprentice programs, such as the Museum Action Corps at the Peabody-Essex Museum and similar programs at the New Bedford Oceanarium and other institutions, to prepare youths and their families for careers in the cultural sector.

``(11) The resources of the institutions described in paragraphs (7) and (8) provide unique opportunities for illustrating and interpreting the contributions of Alaska Natives, Native Hawaiians, the whaling industry, and the China trade to the economic, social, and environmental history of the United States, for educating students and their parents, and for providing opportunities for internships and apprenticeships leading to careers with cultural institutions.

``(b) Purposes.—The purposes of this subpart are the following:

``(1) To authorize and develop innovative culturally-based educational programs and cultural exchanges to assist Alaska Natives, Native Hawaiians, and children and families of Massachusetts linked by history and tradition to Alaska and Hawaii to learn about shared culture and traditions.

``(2) To authorize and develop internship and apprentice programs to assist Alaska Natives, Native Hawaiians, and children and families of Massachusetts linked by history and tradition with Alaska and Hawaii to prepare for careers with cultural institutions.

``(3) To supplement programs and authorities in the area of education to further the objectives of this subpart.

``SEC. 5523. PROGRAM AUTHORIZATION.

``(a) Grants and Contracts.—In order to carry out programs that fulfill the purposes of this subpart, the Secretary is authorized to make grants to, or enter into contracts with, the following:

``(1) The Alaska Native Heritage Center in Anchorage, Alaska.

``(2) The Inupiat Heritage Center in Barrow, Alaska.

``(3) The Bishop Museum in Hawaii.

``(4) The Peabody-Essex Museum in Salem, Massachusetts.

``(5) The New Bedford Whaling Museum and the New Bedford Oceanarium in New Bedford, Massachusetts.

``(6) Other Alaska Native and Native Hawaiian cultural and educational organizations.

``(7) Cultural and educational organizations with experience in developing or operating programs that illustrate and interpret the contributions of Alaska Natives, Native Hawaiians, the whaling industry, and the China trade to the economic, social, and environmental history of the United States.

``(8) Consortia of the organizations and entities described in this subsection.

``(b) Uses of Funds.—Activities provided through programs carried out under this subpart may include one or more of the following:

``(1) Development and implementation of educational programs to increase understanding of cultural diversity and multicultural communication among Alaska Natives, Native Hawaiians, and the people of the continental United States, based on historic patterns of trading and commerce.

``(2) Development and implementation of programs using modern technology, including the Internet, to educate students, their parents, and teachers about historic and contemporary cultural and trading ties that continue to link the diverse cultures of Alaska Natives, Native Hawaiians, and the people of Massachusetts.

``(3) Cultural exchanges of elders, students, parents, and teachers among Alaska Natives, Native Hawaiians, and the people of Massachusetts to increase awareness of diverse cultures among each group.

``(4) Sharing of collections among cultural institutions designed to increase awareness of diverse cultures and links among them.

``(5) Development and implementation of internship and apprentice programs in cultural institutions to train Alaska Natives, Native Hawaiians, and low-income students in Massachusetts for careers with cultural institutions.

``(6) Other activities, consistent with the purposes of this subpart, to meet the educational needs of Alaska Natives, Native Hawaiians, and students and their parents in Massachusetts.

``SEC. 5524. ADMINISTRATIVE PROVISIONS.

``(a) Application Required.—No grant may be made under this subpart, and no contract may be entered into under this subpart, unless the entity seeking the grant or contract submits an application to the Secretary at such time, in such manner, and containing such information as the Secretary may determine to be necessary to carry out the provisions of this subpart.

``(b) Local Educational Agency Coordination.—Each applicant for a grant or contract under this subpart shall inform each local educational agency serving students who will participate in the program to be carried out under the grant or contract about the application.

``SEC. 5525. AVAILABILITY OF FUNDS.

``If sufficient funds are made available under section 5401 to carry out this subpart for a fiscal year, the Secretary shall make available, to support activities described in section 5523(b), the following amounts:

``(1) Not less than $2,000,000 each to—

``(A) the New Bedford Whaling Museum, in partnership with the New Bedford Oceanarium, in Massachusetts; and

``(B) the Inupiat Heritage Center in Alaska.

``(2) For the New Trade Winds project, not less than $1,000,000 each to—

``(A) the Alaska Native Heritage Center in Alaska;

``(B) the Bishop Museum in Hawaii; and

``(C) the Peabody-Essex Museum in Massachusetts.

``(3) For internship and apprenticeship programs (including the Museum Action Corps of the Peabody-Essex Museum), not less than $1,000,000 each to—

``(A) the Alaska Native Heritage Center in Alaska;

``(B) the Bishop Museum in Hawaii; and

``(C) the Peabody-Essex Museum in Massachusetts.

``SEC. 5526. DEFINITIONS.

``In this subpart:

``(1) Alaska native.—The term `Alaska Native' has the meaning given that term in section 7306.

``(2) Native hawaiian.—The term `Native Hawaiian' has the meaning given that term in section 7207.

``Subpart 13—Excellence in Economic Education

``SEC. 5531. SHORT TITLE.

``This subpart may be cited as the `Excellence in Economic Education Act of 2001´.

``SEC. 5532. PURPOSE AND GOALS.

``(a) Purpose.—The purpose of this subpart is to promote economic and financial literacy among all students in kindergarten through grade 12 by awarding a competitive grant to a national nonprofit educational organization that has as its primary purpose the improvement of the quality of student understanding of personal finance and economics.

``(b) Objectives.—The objectives of this subpart are the following:

``(1) To increase students' knowledge of, and achievement in, economics to enable the students to become more productive and informed citizens.

``(2) To strengthen teachers' understanding of, and competency in, economics to enable the teachers to increase student mastery of economic principles and the practical application of those principles.

``(3) To encourage economic education research and development, to disseminate effective instructional materials, and to promote replication of best practices and exemplary programs that foster economic literacy.

``(4) To assist States in measuring the impact of education in economics.

``(5) To leverage and expand private and public support for economic education partnerships at national, State, and local levels.

``SEC. 5533. GRANT PROGRAM AUTHORIZED.

``(a) Authorization.—The Secretary is authorized to award a competitive grant to a national nonprofit educational organization that has as its primary purpose the improvement of the quality of student understanding of personal finance and economics through effective teaching of economics in the Nation's classrooms (referred to in this subpart as the `grantee').

``(b) Uses of Funds.—

``(1) Direct activities.—The grantee shall use 25 percent of the funds made available through the grant for a fiscal year—

``(A) to strengthen and expand the grantee's relationships with State and local personal finance, entrepreneurial, and economic education organizations;

``(B) to support and promote training of teachers who teach a grade from kindergarten through grade 12 regarding economics, including the dissemination of information on effective practices and research findings regarding the teaching of economics;

``(C) to support research on effective teaching practices and the development of assessment instruments to document student understanding of personal finance and economics; and

``(D) to develop and disseminate appropriate materials to foster economic literacy.

``(2) Subgrants.—The grantee shall use 75 percent of the funds made available through the grant for a fiscal year to award subgrants to State educational agencies or local educational agencies, and State or local economic, personal finance, or entrepreneurial education organizations (referred to in this section as the `recipient'). The grantee shall award such a subgrant to pay for the Federal share of the cost of enabling the recipient to work in partnership with one or more of the entities described in paragraph (3) for one or more of the following purposes:

``(A) Collaboratively establishing and conducting teacher training programs that use effective and innovative approaches to the teaching of economics, personal finance, and entrepreneurship.

``(B) Providing resources to school districts that desire to incorporate economics and personal finance into the curricula of the schools in the districts.

``(C) Conducting evaluations of the impact of economic and financial literacy education on students.

``(D) Conducting economic and financial literacy education research.

``(E) Creating and conducting school-based student activities to promote consumer, economic, and personal finance education (such as saving, investing, and entrepreneurial education) and to encourage awareness and student academic achievement in economics.

``(F) Encouraging replication of best practices to promote economic and financial literacy.

``(3) Partnership entities.—The entities described in this paragraph are the following:

``(A) A private sector entity.

``(B) A State educational agency.

``(C) A local educational agency.

``(D) An institution of higher education.

``(E) An organization promoting economic development.

``(F) An organization promoting educational excellence.

``(G) An organization promoting personal finance or entrepreneurial education.

``SEC. 5534. APPLICATIONS.

``(a) Grantee Applications.—To be eligible to receive a grant under this subpart, the grantee shall submit to the Secretary an application at such time, in such manner, and accompanied by such information as the Secretary may require.

``(b) Recipient Applications.—

``(1) Submission.—To be eligible to receive a subgrant under this section, a recipient shall submit an application to the grantee at such time, in such manner, and accompanied by such information as the grantee may require.

``(2) Review.—The grantee shall invite the individuals described in paragraph (3) to review all applications from recipients for a subgrant under this section and to make recommendations to the grantee regarding the approval of the applications.

``(3) Reviewers.—The individuals described in this paragraph are the following:

``(i) Leaders in the fields of economics and education.

``(ii) Such other individuals as the grantee determines to be necessary, especially members of the State and local business, banking, and finance communities.

``SEC. 5535. REQUIREMENTS.

``(a) Administrative Costs.—The grantee and each recipient receiving a subgrant under this subpart for a fiscal year may use not more than 5 percent of the funds made available through the grant or subgrant for administrative costs.

``(b) Teacher Training Programs.—In carrying out the teacher training programs described in section 5533(b)(2)(A), a recipient shall—

``(1) train teachers who teach a grade from kindergarten through grade 12; and

``(2) encourage teachers from disciplines other than economics and financial literacy to participate in such teacher training programs, if the training will promote the economic and financial literacy of those teachers' students.

``(c) Involvement of Business Community.—In carrying out the activities assisted under this subpart, the grantee and recipients are strongly encouraged to—

``(1) include interactions with the local business community to the fullest extent possible to reinforce the connection between economic and financial literacy and economic development; and

``(2) work with private businesses to obtain matching contributions for Federal funds and assist recipients in working toward self-sufficiency.

``(d) Additional Requirements and Technical Assistance.—The grantee shall—

``(1) meet such other requirements as the Secretary determines to be necessary to assure compliance with this section; and

``(2) receive from the Secretary such technical assistance as may be necessary to carry out this section.

``SEC. 5536. ADMINISTRATIVE PROVISIONS.

``(a) Federal Share.—The Federal share of the cost described in section 5533(b)(2) shall be 50 percent.

``(b) Payment of Non-Federal Share.—The non-Federal share may be paid in cash or in kind (fairly evaluated, including plant, equipment, or services).

``(c) Reports to Congress.—Not later than 2 years after the date funds are first made available to carry out this subpart, and every 2 years thereafter, the Secretary shall submit to the appropriate committees of Congress a report regarding activities assisted under this subpart.

``SEC. 5537. SUPPLEMENT, NOT SUPPLANT.

``Funds made available to carry out this subpart shall be used to supplement, and not supplant, other Federal, State, and local funds expended for the purpose described in section 5532(a).

``Subpart 14—Grants to Improve the Mental Health of Children

``SEC. 5541. GRANTS FOR THE INTEGRATION OF SCHOOLS AND MENTAL HEALTH SYSTEMS.

``(a) Authorization.—The Secretary is authorized to award grants to, or enter into contracts or cooperative agreements with, State educational agencies, local educational agencies, or Indian tribes, for the purpose of increasing student access to quality mental health care by developing innovative programs to link local school systems with the local mental health system.

``(b) Duration.—With respect to a grant, contract, or cooperative agreement awarded or entered into under this section, the period during which payments under such grant, contract or agreement are made to the recipient may not exceed 5 years.

``(c) Use of Funds.—A State educational agency, local educational agency, or Indian tribe that receives a grant, contract, or cooperative agreement under this section shall use amounts made available through such grant, contract, or cooperative agreement for the following:

``(1) To enhance, improve, or develop collaborative efforts between school-based service systems and mental health service systems to provide, enhance, or improve prevention, diagnosis, and treatment services to students.

``(2) To enhance the availability of crisis intervention services, appropriate referrals for students potentially in need of mental health services, and ongoing mental health services.

``(3) To provide training for the school personnel and mental health professionals who will participate in the program carried out under this section.

``(4) To provide technical assistance and consultation to school systems and mental health agencies and families participating in the program carried out under this section.

``(5) To provide linguistically appropriate and culturally competent services.

``(6) To evaluate the effectiveness of the program carried out under this section in increasing student access to quality mental health services, and make recommendations to the Secretary about sustainability of the program.

``(d) Applications.—To be eligible to receive a grant, contract, or cooperative agreement under this section, a State educational agency, local educational agency, or Indian tribe shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require. The application shall include each of the following:

``(1) A description of the program to be funded under the grant, contract, or cooperative agreement.

``(2) A description of how such program will increase access to quality mental health services for students.

``(3) A description of how the applicant will establish a crisis intervention program to provide immediate mental health services to the school community when necessary.

``(4) An assurance that—

``(A) persons providing services under the grant, contract, or cooperative agreement are adequately trained to provide such services;

``(B) the services will be provided in accordance with subsection (c);

``(C) teachers, principal administrators, and other school personnel are aware of the program; and

``(D) parents of students participating in services under this section will be involved in the design and implementation of the services.

``(5) An explanation of how the applicant will support and integrate existing school-based services with the program to provide appropriate mental health services for students.

``(6) An explanation of how the applicant will establish a program that will support students and the school in maintaining an environment conducive to learning.

``(e) Interagency Agreements.—

``(1) Designation of lead agency.—The recipient of each grant, contract, or cooperative agreement shall designate a lead agency to direct the establishment of an interagency agreement among local educational agencies, juvenile justice authorities, mental health agencies, and other relevant entities in the State, in collaboration with local entities and parents and guardians of students.

``(2) Contents.—The interagency agreement shall ensure the provision of the services described in subsection (c), specifying with respect to each agency, authority, or entity—

``(A) the financial responsibility for the services;

``(B) the conditions and terms of responsibility for the services, including quality, accountability, and coordination of the services; and

``(C) the conditions and terms of reimbursement among the agencies, authorities, or entities that are parties to the interagency agreement, including procedures for dispute resolution.

``(f) Evaluation.—The Secretary shall evaluate each program carried out by a State educational agency, local educational agency, or Indian tribe under this section and shall disseminate the findings with respect to each such evaluation to appropriate public and private entities.

``(g) Distribution of Awards.—The Secretary shall ensure that grants, contracts, and cooperative agreements awarded or entered into under this section are equitably distributed among the geographical regions of the United States and among urban, suburban, and rural populations.

``(h) Rule of Construction.—Nothing in Federal law shall be construed—

``(1) to prohibit an entity involved with a program carried out under this section from reporting a crime that is committed by a student to appropriate authorities; or

``(2) to prevent State law enforcement and judicial authorities from exercising their responsibilities with regard to the application of Federal and State law to crimes committed by a student.

``(i) Supplement, Not Supplant.—Any services provided through programs carried out under this section must supplement, and not supplant, existing mental health services, including any services required to be provided under the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).

``SEC. 5542. PROMOTION OF SCHOOL READINESS THROUGH EARLY CHILDHOOD EMOTIONAL AND SOCIAL DEVELOPMENT.

``(a) Authorization.—The Secretary, in consultation with the Secretary of Health and Human Services, may award grants (to be known as `Foundations for Learning Grants') to local educational agencies, local councils, community-based organizations, and other public or nonprofit private entities to assist eligible children to become ready for school.

``(b) Applications.—To be eligible to receive a grant under this section, a local educational agency, local council, community-based organization, or other public or nonprofit private entity, or a combination of such entities, shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require. The application shall include each of the following:

``(1) A description of the population that the applicant intends to serve and the types of services to be provided under the grant.

``(2) A description of the manner in which services under the grant will be coordinated with existing similar services provided by public and nonprofit private entities within the State.

``(3) An assurance that—

``(A) services under the grant shall be provided by or under the supervision of qualified professionals with expertise in early childhood development;

``(B) such services shall be culturally competent;

``(C) such services shall be provided in accordance with subsection (c);

``(D) funds received under this section shall be used to supplement, and not supplant, non-Federal funds; and

``(E) parents of students participating in services under this section will be involved in the design and implementation of the services.

``(c) Uses of Funds.—A local educational agency, local council, community-based organization, or other public or nonprofit private entity that receives funds under this section may use such funds to benefit eligible children, for one or more of the following:

``(1) To deliver services to eligible children and their families that foster eligible children's emotional, behavioral, and social development and take into consideration the characteristics described in subsection (f)(1).

``(2) To coordinate and facilitate access by eligible children and their families to the services available through community resources, including mental health, physical health, substance abuse, educational, domestic violence prevention, child welfare, and social services.

``(3) To provide ancillary services such as transportation or child care in order to facilitate the delivery of any other services or activities authorized by this section.

``(4) To develop or enhance early childhood community partnerships and build toward a community system of care that brings together child-serving agencies or organizations to provide individualized supports for eligible children and their families.

``(5) To evaluate the success of strategies and services provided pursuant to this section in promoting young children's successful entry to school and to maintain data systems required for effective evaluations.

``(6) To pay for the expenses of administering the activities authorized under this section, including assessment of children's eligibility for services.

``(d) Limitations.—

``(1) Services not otherwise funded.—A local educational agency, local council, community-based organization, or other public or nonprofit private entity may use funds under this section only to pay for services that cannot be paid for using other Federal, State, or local public resources or through private insurance.

``(2) Administrative expenses.—A grantee may not use more than 3 percent of the amount of the grant to pay the administrative expenses described in subsection (c)(6).

``(e) Evaluations.—The Secretary shall directly evaluate, or enter into a contract for an outside evaluation of, each program carried out under this section and shall disseminate the findings with respect to such evaluation to appropriate public and private entities.

``(f) Definitions.—In this section:

``(1) Eligible child.—The term `eligible child' means a child who has not attained the age of 7 years, and to whom two or more of the following characteristics apply:

``(A) The child has been abused, maltreated, or neglected.

``(B) The child has been exposed to violence.

``(C) The child has been homeless.

``(D) The child has been removed from child care, Head Start, or preschool for behavioral reasons or is at risk of being so removed.

``(E) The child has been exposed to parental depression or other mental illness.

``(F) The family income with respect to the child is below 200 percent of the poverty line.

``(G) The child has been exposed to parental substance abuse.

``(H) The child has had early behavioral and peer relationship problems.

``(I) The child had a low birth weight.

``(J) The child has a cognitive deficit or developmental disability.

``(2) Local council.—The term `local council' means a council that is established or designated by a local government entity, Indian tribe, regional corporation, or native Hawaiian entity, as appropriate, which is composed of representatives of local agencies directly affected by early learning programs, parents, key community leaders, and other individuals concerned with early learning issues in the locality, such as elementary education, child care resource and referral services, early learning opportunities, child care, and health services.

``(3) Provider of early childhood services.—The term `provider of early childhood services' means a public or private entity that has regular contact with young children, including child welfare agencies, child care providers, Head Start and Early Head Start providers, preschools, kindergartens, libraries, mental health professionals, family courts, homeless shelters, and primary care providers.

``Subpart 15—Arts in Education

``SEC. 5551. ASSISTANCE FOR ARTS EDUCATION.

``(a) Purposes.—The purposes of this subpart are the following:

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

``(2) To help ensure that all students meet challenging State academic content standards and challenging State student academic achievement standards in the arts.

``(3) To support the national effort to enable all students to demonstrate competence in the arts.

``(b) Authority.—The Secretary is authorized to make grants to, or enter into contracts or cooperative agreements with, eligible entities described in subsection (c).

``(c) Eligible Entities.—The Secretary may make assistance available under subsection (b) to each of the following eligible entities:

``(1) State educational agencies.

``(2) Local educational agencies.

``(3) Institutions of higher education.

``(4) Museums or other cultural institutions.

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

``(d) Use of Funds.—Assistance made available under this subpart may be used for any of the following:

``(1) Research on arts education.

``(2) Planning, developing, acquiring, expanding, improving, or disseminating information about model school-based arts education programs.

``(3) The development of model State arts education assessments based on State academic achievement standards.

``(4) The development and implementation of curriculum frameworks for arts education.

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

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

``(7) Supporting model projects and programs in the performing arts for children and youth through arrangements made with the John F. Kennedy Center for the Performing Arts.

``(8) Supporting model projects and programs by Very Special Arts which assure the participation in mainstream settings in arts and education programs of individuals with disabilities.

``(9) Supporting model projects and programs to integrate arts education into the regular elementary school and secondary school curriculum.

``(10) Other activities that further the purposes of this subpart.

``(e) Special Rule.—If the amount made available to the Secretary to carry out this subpart for any fiscal year is $15,000,000 or less, then such amount shall only be available to carry out the activities described in paragraphs (7) and (8) of subsection (d).

``(f) Conditions.—As conditions of receiving assistance made available under this subpart, the Secretary shall require each entity receiving such assistance—

``(1) to coordinate, to the extent practicable, each project or program carried out with such assistance with appropriate activities of public or private cultural agencies, institutions, and organizations, including museums, arts education associations, libraries, and theaters; and

``(2) to use such assistance only to supplement, and not to supplant, any other assistance or funds made available from non-Federal sources for the activities assisted under this subpart.

``(g) Consultation.—In carrying out this subpart, the Secretary shall consult with Federal agencies or institutions, arts educators (including professional arts education associations), and organizations representing the arts (including State and local arts agencies involved in arts education).

``Subpart 16—Parental Assistance and Local Family Information Centers

``SEC. 5561. PURPOSES.

``The purposes of this subpart are the following:

``(1) To provide leadership, technical assistance, and financial support to nonprofit organizations (including statewide nonprofit organizations) and local educational agencies to help the organizations and agencies implement successful and effective parental involvement policies, programs, and activities that lead to improvements in student academic achievement.

``(2) To strengthen partnerships among parents (including parents of children from birth through age 5), teachers, principals, administrators, and other school personnel in meeting the educational needs of children.

``(3) To develop and strengthen the relationship between parents and their children's school.

``(4) To further the developmental progress of children assisted under this subpart.

``(5) To coordinate activities funded under this subpart with parental involvement initiatives funded under section 1118 and other provisions of this Act.

``(6) To provide a comprehensive approach to improving student learning, through coordination and integration of Federal, State, and local services and programs.

``SEC. 5562. GRANTS AUTHORIZED.

``(a) Parental Information and Resource Centers.—The Secretary is authorized to award grants in each fiscal year to nonprofit organizations (including statewide nonprofit organizations), and consortia of such organizations and local educational agencies, to establish school-linked or school-based parental information and resource centers that provide comprehensive training, information, and support to—

``(1) parents of children enrolled in elementary schools and secondary schools;

``(2) individuals who work with the parents of children enrolled in elementary schools and secondary schools;

``(3) State educational agencies, local educational agencies, schools, organizations that support family-school partnerships (such as parent-teacher associations and Parents as Teachers organizations), and other organizations that carry out parent education and family involvement programs; and

``(4) parents of children from birth through age 5.

``(b) Geographic Distribution.—In awarding grants under this subpart, the Secretary shall, to the extent practicable, ensure that such grants are distributed in all geographic regions of the United States.

``SEC. 5563. APPLICATIONS.

``(a) Submission.—Each nonprofit organization (including a statewide nonprofit organization), or a consortia of such an organization and a local educational agency, that desires a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require.

``(b) Contents.—Each application submitted under subsection (a), at a minimum, shall include assurances that the organization or consortium will—

``(1)(A) be governed by a board of directors the membership of which includes parents; or

``(B) be an organization or consortium that represents the interests of parents;

``(2) establish a special advisory committee the membership of which includes—

``(A) parents of children enrolled in elementary schools and secondary schools, who shall constitute a majority of the members of the special advisory committee;

``(B) representatives of education professionals with expertise in improving services for disadvantaged children; and

``(C) representatives of local elementary schools and secondary schools, including students and representatives from local youth organizations;

``(3) use at least 50 percent of the funds received under this subpart in each fiscal year to serve areas with high concentrations of low-income families, in order to serve parents who are severely educationally or economically disadvantaged;

``(4) operate a center of sufficient size, scope, and quality to ensure that the center is adequate to serve the parents in the area;

``(5) serve both urban and rural areas;

``(6) design a center that meets the unique training, information, and support needs of parents of children enrolled in elementary schools and secondary schools, particularly such parents who are educationally or economically disadvantaged;

``(7) demonstrate the capacity and expertise to conduct the effective training, information, and support activities for which assistance is sought;

``(8) network with—

``(A) local educational agencies and schools;

``(B) parents of children enrolled in elementary schools and secondary schools;

``(C) parent training and information centers assisted under section 682 of the Individuals with Disabilities Education Act;

``(D) clearinghouses; and

``(E) other organizations and agencies;

``(9) focus on serving parents of children enrolled in elementary schools and secondary schools who are parents of low-income, minority, and limited English proficient children;

``(10) use at least 30 percent of the funds received under this subpart in each fiscal year to establish, expand, or operate Parents as Teachers programs, Home Instruction for Preschool Youngsters programs, or other early childhood parent education programs;

``(11) provide assistance to parents in areas such as understandingState and local standards and measures of student and school academic achievement;

``(12) work with State educational agencies and local educational agencies to determine parental needs and the best means for delivery of services;

``(13) identify and coordinate Federal, State, and local services and programs that support improved student learning, including programs supported under this Act, violence prevention programs, nutrition programs, housing programs, Head Start programs, adult education, and job training; and

``(14) work with and foster partnerships with other agencies that provide programs and deliver services described in paragraph (13) to make such programs and services more accessible to children and families.

``SEC. 5564. USES OF FUNDS.

``(a) In General.—Grant funds received under this subpart shall be used for one or more of the following:

``(1) To assist parents in participating effectively in their children's education and to help their children meet State and local standards, such as assisting parents—

``(A) to engage in activities that will improve student academic achievement, including understanding the accountability systems in place within their State educational agency and local educational agency and understanding their children's educational academic achievement in comparison to State and local standards;

``(B) to provide follow-up support for their children's educational achievement;

``(C) to communicate effectively with teachers, principals, counselors, administrators, and other school personnel;

``(D) to become active participants in the development, implementation, and review of school-parent compacts, parent involvement policies, and school planning and improvement;

``(E) to participate in the design and provision of assistance to students who are not making adequate academic progress;

``(F) to participate in State and local decisionmaking; and

``(G) to train other parents (such as training related to Parents as Teachers activities).

``(2) To obtain information about the range of options, programs, services, and resources available at the national, State, and local levels to assist parents and school personnel who work with parents.

``(3) To help the parents learn and use the technology applied in their children's education.

``(4) To plan, implement, and fund activities for parents that coordinate the education of their children with other Federal, State, and local services and programs that serve their children or their families.

``(5) To provide support for State or local educational personnel, if the participation of such personnel will further the activities assisted under the grant.

``(6) To coordinate and integrate early childhood programs with school-age programs.

``(b) Permissive Activities.—Grant funds received under this subpart may be used to assist schools with activities including one or more of the following:

``(1) Developing and implementing the schools' plans or activities under sections 1118 and 1119.

``(2) Developing and implementing school improvement plans, including addressing problems that develop in the implementation of the schools' plans or activities under sections 1118 and 1119.

``(3) Providing information about assessment and individual results to parents in a manner and a language the family can understand.

``(4) Coordinating the efforts of Federal, State, and local parent education and family involvement initiatives.

``(5) Providing training, information, and support to—

``(A) State educational agencies;

``(B) local educational agencies and schools, especially low-performing local educational agencies and schools; and

``(C) organizations that support family-school partnerships.

``SEC. 5565. ADMINISTRATIVE PROVISIONS.

``(a) Matching Funds for Grant Renewal.—For each fiscal year after the first fiscal year in which an organization or consortium receives assistance under this subpart, the organization or consortium shall demonstrate in the application submitted for such fiscal year, that a portion of the services provided by the organization or consortium is supported through non-Federal contributions, which contributions may be in cash or in kind.

``(b) Submission of Information.—

``(1) In general.—Each organization or consortium receiving assistance under this subpart shall submit to the Secretary, on an annual basis, information concerning the parental information and resource centers assisted under this subpart, including the following information:

``(A) The number of parents (including the number of minority and limited English proficient parents) who receive information and training.

``(B) The types and modes of training, information, and support provided under this subpart.

``(C) The strategies used to reach and serve parents of minority and limited English proficient children, parents with limited literacy skills, and other parents in need of the services provided under this subpart.

``(D) The parental involvement policies and practices used by the center and an evaluation of whether such policies and practices are effective in improving home-school communication, student academic achievement, student and school academic achievement, and parental involvement in school planning, review, and improvement.

``(E) The effectiveness of the activities that local educational agencies and schools are carrying out, with regard to parental involvement and other activities assisted under this Act, that lead to improved student academic achievement and improved student and school academic achievement.

``(2) Dissemination.—The Secretary shall disseminate annually to Congress and the public the information that each organization or consortium submits under paragraph (1).

``(c) Technical Assistance.—The Secretary shall provide technical assistance, by grant or contract, for the establishment, development, and coordination of parent training, information, and support programs and parental information and resource centers.

``(d) Rule of Construction.—Nothing in this subpart shall be construed to prohibit a parental information and resource center from—

``(1) having its employees or agents meet with a parent at a site that is not on school grounds; or

``(2) working with another agency that serves children.

``(e) Parental Rights.—Notwithstanding any other provision of this subpart—

``(1) no person (including a parent who educates a child at home, a public school parent, or a private school parent) shall be required to participate in any program of parent education or developmental screening under this subpart; and

``(2) no program or center assisted under this subpart shall take any action that infringes in any manner on the right of a parent to direct the education of their children.

``(f) Continuation of Awards.—The Secretary shall use funds made available under this subpart to continue to make grant or contract payments to each entity that was awarded a multiyear grant or contract under title IV of the Goals 2000: Educate America Act (as such title was in effect on the day before the date of enactment of the No Child Left Behind Act of 2001) for the duration of the grant or contract award.

``SEC. 5566. LOCAL FAMILY INFORMATION CENTERS.

``(a) In General.—If the amount made available to carry out this subpart for a fiscal year is more than $50,000,000, the Secretary is authorized to award 50 percent of the amount that exceeds $50,000,000 as grants to, and enter into contracts and cooperative agreements with, local nonprofit parent organizations to enable the organizations to support local family information centers that help ensure that parents of students in elementary schools and secondary schools assisted under this subpart have the training, information, and support the parents need to enable the parents to participate effectively in their children's early childhood education, in their children's elementary and secondary education, and in helping their children to meet challenging State academic content and student academic achievement standards.

``(b) Local Nonprofit Parent Organization Defined.—In this section, the term `local nonprofit parent organization' means a private nonprofit organization (other than an institution of higher education) that—

``(1) has a demonstrated record of working with low-income individuals and parents;

``(2)

``(A) has a board of directors, the majority of whom are parents of students in elementary schools and secondary schools assisted under part A of title I and located in the geographic area to be served by a local family information center; or

``(B) has a special governing committee to direct and implement a local family information center, a majority of the members of whom are parents of students in schools assisted under part A of title I; and

``(3) is located in a community with elementary schools and secondary schools that receive funds under part A of title I, and is accessible to the families of students in those schools.

``Subpart 17—Combatting Domestic Violence

``SEC. 5571. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY SCHOOL CHILDREN.

``(a) Definitions.—In this section:

``(1) Domestic violence.—The term `domestic violence' has the meaning given that term in section 2003 of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-2).

``(2) Expert.—The term `expert' means—

``(A) an expert on domestic violence, sexual assault, and child abuse from the educational, legal, youth, mental health, substance abuse, or victim advocacy field; and

``(B) a State or local domestic violence coalition or community-based youth organization.

``(3) Witness domestic violence.—

``(A) In general.—The term `witness domestic violence' means to witness—

``(i) an act of domestic violence that constitutes actual or attempted physical assault; or

``(ii) a threat or other action that places the victim in fear of domestic violence.

``(B) Witness.—In subparagraph (A), the term `witness' means—

``(i) to directly observe an act, threat, or action described in subparagraph (A), or the aftermath of that act, threat, or action; or

``(ii) to be within earshot of an act, threat, or action described in subparagraph (A), or the aftermath of that act, threat, or action.

``(b) Grants Authorized.—

``(1) Authority.—The Secretary is authorized to award grants to local educational agencies that work with experts to enable the elementary schools and secondary schools served by the local educational agency—

``(A) to provide training to school administrators, faculty, and staff, with respect to issues concerning children who experience domestic violence in dating relationships or who witness domestic violence, and the impact of the violence on the children;

``(B) to provide educational programming for students regarding domestic violence and the impact of experiencing or witnessing domestic violence on children;

``(C) to provide support services for students and school personnel to develop and strengthen effective prevention and intervention strategies with respect to issues concerning children who experience domestic violence in dating relationships or who witness domestic violence, and the impact of the violence on the children; and

``(D) to develop and implement school system policies regarding appropriate and safe responses to, identification of, and referral procedures for, students who are experiencing or witnessing domestic violence.

``(2) Award basis.—The Secretary is authorized to award grants under this section—

``(A) on a competitive basis; and

``(B) in a manner that ensures that such grants are equitably distributed among local educational agencies located in rural, urban, and suburban areas.

``(3) Policy dissemination.—The Secretary shall disseminate to local educational agencies any Department policy guidance regarding the prevention of domestic violence and the impact on children of experiencing or witnessing domestic violence.

``(c) Uses of Funds.—Funds made available to carry out this subpart may be used for one or more of the following purposes:

``(1) To provide training for elementary school and secondary school administrators, faculty, and staff that addresses issues concerning elementary school and secondary school students who experience domestic violence in dating relationships or who witness domestic violence, and the impact of such violence on those students.

``(2) To provide education programs for elementary school and secondary school students that are developmentally appropriate for the students' grade levels and are designed to meet any unique cultural and language needs of the particular student populations.

``(3) To develop and implement elementary school and secondary school system policies regarding—

``(A) appropriate and safe responses to, identification of, and referral procedures for, students who are experiencing or witnessing domestic violence; and

``(B) to develop and implement policies on reporting and referral procedures for those students.

``(4) To provide the necessary human resources to respond to the needs of elementary school and secondary school students and personnel who are faced with the issue of domestic violence, such as a resource person who is either on-site or on-call and who is an expert.

``(5) To provide media center materials and educational materials to elementary schools and secondary schools that address issues concerning children who experience domestic violence in dating relationships or who witness domestic violence, and the impact of the violence on those children.

``(6) To conduct evaluations to assess the impact of programs and policies assisted under this subpart in order to enhance the development of the programs.

``(d) Confidentiality.—Policies, programs, training materials, and evaluations developed and implemented under subsection (c) shall address issues of safety and confidentiality for the victim and the victim's family in a manner consistent with applicable Federal and State laws.

``(e) Application.—To be eligible for a grant under this section for a fiscal year, a local educational agency, in consultation with an expert, shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. The application shall include each of the following:

``(1) A description of the need for funds provided under the grant and the plan for implementation of any of the activities described in subsection (c).

``(2) A description of how the experts will work in consultation and collaboration with the local educational agency.

``(3) Measurable objectives for, and expected results from, the use of the funds provided under the grant.

``(4) Provisions for appropriate remuneration for collaborating partners.

``Subpart 18—Healthy, High-Performance Schools

``SEC. 5581. GRANT PROGRAM AUTHORIZED.

``The Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, is authorized to award grants to State educational agencies to permit such State educational agencies to carry out section 5582.

``SEC. 5582. STATE USES OF FUNDS.

``(a) Subgrants.—

``(1) In general.—A State educational agency receiving a grant under this subpart shall use funds made available under the grant to award subgrants to local educational agencies to permit such local educational agencies to carry out the activities described in section 5583.

``(2) Limitation.—A State educational agency shall award subgrants under this subsection to local educational agencies that are the neediest, as determined by the State, and that have made a commitment to develop healthy, high-performance school buildings in accordance with the plan developed and approved under paragraph (3)(A).

``(3) Implementation.—

``(A) Plans.—A State educational agency shall award subgrants under this subsection only to local educational agencies that, in consultation with the State educational agency and State agencies with responsibilities relating to energy and health, have developed plans that the State educational agency determines to be feasible and appropriate in order to achieve the purposes for which the subgrants are made.

``(B) Supplementing grant funds.—The State educational agency shall encourage local educational agencies that receive subgrants under this subsection to supplement their subgrant funds with funds from other sources in order to implement their plans.

``(b) Administration.—A State educational agency receiving a grant under this subpart shall use the grant funds made available under this subpart for one or more of the following:

``(1) To evaluate compliance by local educational agencies with the requirements of this subpart.

``(2) To distribute information and materials on healthy, high-performance school buildings for both new and existing facilities.

``(3) To organize and conduct programs for school board members, school district personnel, and others to disseminate information on healthy, high-performance school buildings.

``(4) To provide technical services and assistance in planning and designing healthy, high-performance school buildings.

``(5) To collect and monitor information pertaining to healthy, high-performance school building projects.

``SEC. 5583. LOCAL USES OF FUNDS.

``(a) In General.—A local educational agency that receives a subgrant under section 5582(a) shall use the subgrant funds to plan and prepare for healthy, high-performance school building projects that—

``(1) reduce energy use to at least 30 percent below that of a school constructed in compliance with standards prescribed in chapter 8 of the 2000 International Energy Conservation Code, or a similar State code intended to achieve substantially equivalent results;

``(2) meet Federal and State health and safety codes; and

``(3) support healthful, energy efficient, and environmentally sound practices.

``(b) Use of Funds.—A local educational agency that receives a subgrant under section 5582(a) shall use funds for one or more of the following:

``(1) To develop a comprehensive energy audit of the energy consumption characteristics of a building and the need for additional energy conservation measures necessary to allow schools to meet the guidelines set out in subsection (a).

``(2) To produce a comprehensive analysis of building strategies, designs, materials, and equipment that—

``(A) are cost effective, produce greater energy efficiency, and enhance indoor air quality; and

``(B) can be used when conducting school construction and renovation or purchasing materials and equipment.

``(3) To obtain research and provide technical services and assistance in planning and designing healthy, high-performance school buildings, including developing a timeline for implementation of such plans.

``SEC. 5584. REPORT TO CONGRESS.

``The Secretary shall conduct a biennial review of State actions implementing this subpart and carrying out the plans developed under this subpart through State and local funding, and shall submit a report to Congress on the results of such reviews.

``SEC. 5585. LIMITATIONS.

``No funds received under this subpart may be used for any of the following:

``(1) Payment of maintenance of costs in connection with any projects constructed in whole or in part with Federal funds provided under this subpart.

``(2) Construction, renovation, or repair of school facilities.

``(3) Construction, renovation, repair, or acquisition of a stadium or other facility primarily used for athletic contests or exhibitions, or other events for which admission is charged to the general public.

``SEC. 5586. HEALTHY, HIGH-PERFORMANCE SCHOOL BUILDING DEFINED.

``In this subpart, the term `healthy, high-performance school building' means a school building in which the design, construction, operation, and maintenance—

``(1) use energy-efficient and affordable practices and materials;

``(2) are cost-effective;

``(3) enhance indoor air quality; and

``(4) protect and conserve water.

``Subpart 19—Grants for Capital Expenses of Providing Equitable Services for Private School Students

``SEC. 5591. GRANT PROGRAM AUTHORIZED.

``The Secretary is authorized to award grants to State educational agencies, from allotments made under section 5593, to enable the State educational agencies to award subgrants to local educational agencies to pay for capital expenses in accordance with this subpart.

``SEC. 5592. USES OF FUNDS.

``A local educational agency that receives a subgrant under this subpart shall use the subgrant funds only to pay for capital expenses incurred in providing equitable services for private school students under section 1120.

``SEC. 5593. ALLOTMENTS TO STATES.

``From the funds made available to carry out this subpart for a fiscal year, the Secretary shall allot to each State an amount that bears the same ratio to the funds made available as the number of private school students who received services under part A of title I in the State in the most recent year for which data, satisfactory to the Secretary, are available bears to the number of such students in all States in such year.

``SEC. 5594. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

``(a) Applications.—A local educational agency that desires to receive a subgrant under this subpart shall submit an application to the State educational agency involved at such time, in such manner, and containing such information as the State educational agency may require.

``(b) Distribution.—A State educational agency shall award subgrants to local educational agencies within the State based on the degree of need set forth in their respective applications submitted under subsection (a).

``SEC. 5595. CAPITAL EXPENSES DEFINED.

``In this subpart, the term `capital expenses' means—

``(1) expenditures for noninstructional goods and services, such as the purchase, lease, or renovation of real and personal property, including mobile educational units and leasing of neutral sites or spaces;

``(2) insurance and maintenance costs;

``(3) transportation; and

``(4) other comparable goods and services.

``SEC. 5596. TERMINATION.

``The authority provided by this subpart terminates effective October 1, 2003.

``Subpart 20—Additional Assistance for Certain Local Educational Agencies Impacted by Federal Property Acquisition

``SEC. 5601. RESERVATION.

``The Secretary is authorized to provide additional assistance to meet special circumstances relating to the provision of education in local educational agencies eligible to receive assistance under section 8002.

``SEC. 5602. ELIGIBILITY.

``A local educational agency is eligible to receive additional assistance under this subpart only if such agency—

``(1) received a payment under both section 8002 and section 8003(b) for fiscal year 1996 and is eligible to receive payments under those sections for the year of application;

``(2) provided a free public education to children described under subparagraph (A), (B), or (D) of section 8003(a)(1);

``(3) had a military installation located within the geographic boundaries of the local educational agency that was closed as a result of base closure or realignment and, at the time at which the agency is applying for a payment under this subpart, the agency does not have a military installation located within its geographic boundaries;

``(4) remains responsible for the free public education of children residing in housing located on Federal property within the boundaries of the closed military installation but whose parents are on active duty in the uniformed services and assigned to a military activity located within the boundaries of an adjoining local educational agency; and

``(5) demonstrates to the satisfaction of the Secretary that such agency's per-pupil revenue derived from local sources for current expenditures is not less than that revenue for the preceding fiscal year.

``SEC. 5603. MAXIMUM AMOUNT.

``(a) Maximum Amount.—The maximum amount that a local educational agency is eligible to receive under this subpart for any fiscal year, when combined with its payment under section 8002(b), shall not be more than 50 percent of the maximum amount determined under section 8002(b).

``(b) Insufficient Funds.—If funds appropriated under section 5401 are insufficient to pay the amount determined under subsection (a), the Secretary shall ratably reduce the payment to each local educational agency eligible under this subpart.

``(c) Excess Funds.—If funds appropriated under section 5401 are in excess of the amount determined under subsection (a), the Secretary shall ratably distribute any excess funds to all local educational agencies eligible for payment under section 8002(b).

``Subpart 21—Women's Educational Equity Act

``SEC. 5611. SHORT TITLE AND FINDINGS.

``(a) Short Title.—This subpart may be cited as the `Women's Educational Equity Act of 2001´.

``(b) Findings.—Congress finds that—

``(1) since the enactment of title IX of the Education Amendments of 1972, women and girls have made strides in educational achievement and in their ability to avail themselves of educational opportunities;

``(2) because of funding provided under the Women's Educational Equity Act of 2001, more curricula, training, and other educational materials concerning educational equity for women and girls are available for national dissemination;

``(3) teaching and learning practices in the United States are frequently inequitable as such practices relate to women and girls, for example—

``(A) sexual harassment, particularly that experienced by girls, undermines the ability of schools to provide a safe and equitable learning or workplace environment;

``(B) classroom textbooks and other educational materials do not sufficiently reflect the experiences, achievements, or concerns of women and, in most cases, are not written by women or persons of color;

``(C) girls do not take as many mathematics and science courses as boys, girls lose confidence in their mathematics and science ability as girls move through adolescence, and there are few women role models in the sciences; and

``(D) pregnant and parenting teenagers are at high risk for dropping out of school and existing dropout prevention programs do not adequately address the needs of such teenagers;

``(4) efforts to improve the quality of public education also must include efforts to ensure equal access to quality education programs for all women and girls;

``(5) Federal support should address not only research and development of innovative model curricula and teaching and learning strategies to promote gender equity, but should also assist schools and local communities implement gender equitable practices;

``(6) Federal assistance for gender equity must be tied to systemic reform, involve collaborative efforts to implement effective gender practices at the local level, and encourage parental participation; and

``(7) excellence in education, high educational achievements and standards, and the full participation of women and girls in American society, cannot be achieved without educational equity for women and girls.

``SEC. 5612. STATEMENT OF PURPOSE.

``It is the purpose of this subpart—

``(1) to promote gender equity in education in the United States;

``(2) to provide financial assistance to enable educational agencies and institutions to meet the requirements of title IX of the Educational Amendments of 1972; and

``(3) to promote equity in education for women and girls who suffer from multiple forms of discrimination based on sex, race, ethnic origin, limited English proficiency, disability, or age.

``SEC. 5613. PROGRAMS AUTHORIZED.

``(a) In General.—The Secretary is authorized—

``(1) to promote, coordinate, and evaluate gender equity policies, programs, activities, and initiatives in all Federal education programs and offices;

``(2) to develop, maintain, and disseminate materials, resources, analyses, and research relating to education equity for women and girls;

``(3) to provide information and technical assistance to assure the effective implementation of gender equity programs;

``(4) to coordinate gender equity programs and activities with other Federal agencies with jurisdiction over education and related programs;

``(5) to assist the Assistant Secretary of the Office of Educational Research and Improvement in identifying research priorities related to education equity for women and girls; and

``(6) to perform any other activities consistent with achieving the purposes of this subpart.

``(b) Grants Authorized.—

``(1) In general.—The Secretary is authorized to award grants to, and enter into contracts and cooperative agreements with, public agencies, private nonprofit agencies, organizations, institutions, student groups, community groups, and individuals, for a period not to exceed 4 years, to—

``(A) provide grants to develop model equity programs; and

``(B) provide funds for the implementation of equity programs in schools throughout the Nation.

``(2) Support and technical assistance.—To achieve the purposes of this subpart, the Secretary is authorized to provide support and technical assistance—

``(A) to implement effective gender-equity policies and programs at all educational levels, including—

``(i) assisting educational agencies and institutions to implement policies and practices to comply with title IX of the Education Amendments of 1972;

``(ii) training for teachers, counselors, administrators, and other school personnel, especially preschool and elementary school personnel, in gender equitable teaching and learning practices;

``(iii) leadership training for women and girls to develop professional and marketable skills to compete in the global marketplace, improve self-esteem, and benefit from exposure to positive role models;

``(iv) school-to-work transition programs, guidance and counseling activities, and other programs to increase opportunities for women and girls to enter a technologically demanding workplace and, in particular, to enter highly skilled, high paying careers in which women and girls have been underrepresented;

``(v) enhancing educational and career opportunities for those women and girls who suffer multiple forms of discrimination, based on sex, and on race, ethnic origin, limited English proficiency, disability, socioeconomic status, or age;

``(vi) assisting pregnant students and students rearing children to remain in or to return to secondary school, graduate, and prepare their preschool children to start school;

``(vii) evaluating exemplary model programs to assess the ability of such programs to advance educational equity for women and girls;

``(viii) introduction into the classroom of textbooks, curricula, and other materials designed to achieve equity for women and girls;

``(ix) programs and policies to address sexual harassment and violence against women and girls and to ensure that educational institutions are free from threats to the safety of students and personnel;

``(x) nondiscriminatory tests of aptitude and achievement and of alternative assessments that eliminate biased assessment instruments from use;

``(xi) programs to increase educational opportunities, including higher education, vocational training, and other educational programs for low-income women, including underemployed and unemployed women, and women receiving assistance under a State program funded under part A of title IV of the Social Security Act;

``(xii) programs to improve representation of women in educational administration at all levels; and

``(xiii) planning, development, and initial implementation of—

``(I) comprehensive institutionwide or districtwide evaluation to assess the presence or absence of gender equity in educational settings;

``(II) comprehensive plans for implementation of equity programs in State educational agencies and local educational agencies and institutions of higher education, including community colleges; and

``(III) innovative approaches to school-community partnerships for educational equity; and

``(B) for research and development, which shall be coordinated with each of the research institutes of the Office of Educational Research and Improvement to avoid duplication of research efforts, designed to advance gender equity nationwide and to help make policies and practices in educational agencies and institutions, and local communities, gender equitable, including—

``(i) research and development of innovative strategies and model training programs for teachers and other education personnel;

``(ii) the development of high-quality and challenging assessment instruments that are nondiscriminatory;

``(iii) the development and evaluation of model curricula, textbooks, software, and other educational materials to ensure the absence of gender stereotyping and bias;

``(iv) the development of instruments and procedures that employ new and innovative strategies to assess whether diverse educational settings are gender equitable;

``(v) the development of instruments and strategies for evaluation, dissemination, and replication of promising or exemplary programs designed to assist local educational agencies in integrating gender equity in their educational policies and practices;

``(vi) updating high-quality educational materials previously developed through awards made under this subpart;

``(vii) the development of policies and programs to address and prevent sexual harassment and violence to ensure that educational institutions are free from threats to safety of students and personnel;

``(viii) the development and improvement of programs and activities to increase opportunity for women, including continuing educational activities, vocational education, and programs for low-income women, including underemployed and unemployed women, and women receiving assistance under the State program funded under part A of title IV of the Social Security Act; and

``(ix) the development of guidance and counseling activities, including career education programs, designed to ensure gender equity.

``SEC. 5614. APPLICATIONS.

``An application under this subpart shall—

``(1) set forth policies and procedures that will ensure a comprehensive evaluation of the activities assisted under this subpart, including an evaluation of the practices, policies, and materials used by the applicant and an evaluation or estimate of the continued significance of the work of the project following completion of the award period;

``(2) demonstrate how the applicant will address perceptions of gender roles based on cultural differences or stereotypes;

``(3) for applications for assistance under section 5613(b)(1), demonstrate how the applicant will foster partnerships and, where applicable, share resources with State educational agencies, local educational agencies, institutions of higher education, community-based organizations (including organizations serving women), parent, teacher, and student groups, businesses, or other recipients of Federal educational funding which may include State literacy resource centers;

``(4) for applications for assistance under section 5613(b)(1), demonstrate how parental involvement in the project will be encouraged; and

``(5) for applications for assistance under section 5613(b)(1), describe plans for continuation of the activities assisted under this subpart with local support following completion of the grant period and termination of Federal support under this subpart.

``SEC. 5615. CRITERIA AND PRIORITIES.

``(a) Criteria and Priorities.—

``(1) In general.—The Secretary shall establish separate criteria and priorities for awards under paragraphs (1) and (2) of section 5613(b) to ensure that funds under this subpart are used for programs that most effectively will achieve the purposes of this subpart.

``(2) Criteria.—The criteria described in paragraph (1) may include the extent to which the activities assisted under this subpart—

``(A) address the needs of women and girls of color and women and girls with disabilities;

``(B) meet locally defined and documented educational equity needs and priorities, including compliance with title IX of the Education Amendments of 1972;

``(C) are a significant component of a comprehensive plan for educational equity and compliance with title IX of the Education Amendments of 1972 in the particular school district, institution of higher education, vocational-technical institution, or other educational agency or institution; and

``(D) implement an institutional change strategy with long-term impact that will continue as a central activity of the applicant after the grant under this subpart has terminated.

``(b) Priorities.—In awarding grants under this subpart, the Secretary may give special consideration to applications—

``(1) submitted by applicants that have not received assistance under this subpart or this subpart's predecessor authorities;

``(2) for projects that will contribute significantly to directly improving teaching and learning practices in the local community; and

``(3) for projects that will—

``(A) provide for a comprehensive approach to enhancing gender equity in educational institutions and agencies;

``(B) draw on a variety of resources, including the resources of local educational agencies, community-based organizations, institutions of higher education, and private organizations;

``(C) implement a strategy with long-term impact that will continue as a central activity of the applicant after the grant under this subpart has terminated;

``(D) address issues of national significance that can be duplicated; and

``(E) address the educational needs of women and girls who suffer multiple or compound discrimination based on sex and on race, ethnic origin, disability, or age.

``(c) Special Rule.—To the extent feasible, the Secretary shall ensure that grants awarded under this subpart for each fiscal year address—

``(1) all levels of education, including preschool, elementary and secondary education, higher education, vocational education, and adult education;

``(2) all regions of the United States; and

``(3) urban, rural, and suburban educational institutions.

``(d) Coordination.—Research activities supported under this subpart—

``(1) shall be carried out in consultation with the Office of Educational Research and Improvement to ensure that such activities are coordinated with and enhance the research and development activities supported by the Office; and

``(2) may include collaborative research activities which are jointly funded and carried out with the Office of Educational Research and Improvement.

``(e) Limitation.—Nothing in this subpart shall be construed as prohibiting men and boys from participating in any programs or activities assisted with funds under this subpart.

``SEC. 5616. REPORT.

``Not later than January 1, 2006, the Secretary shall submit to the President and Congress a report on the status of educational equity for girls and women in the Nation.

``SEC. 5617. ADMINISTRATION.

``(a) Evaluation and Dissemination.—Not later than January 1, 2005, the Secretary shall evaluate and disseminate materials and programs developed under this subpart and shall report to Congress regarding such evaluation materials and programs.

``(b) Program Operations.—The Secretary shall ensure that the activities assisted under this subpart are administered within the Department by a person who has recognized professional qualifications and experience in the field of gender equity education.

``SEC. 5618. AMOUNT.

``From amounts made available to carry out this subpart for a fiscal year, not less than two-thirds of such amount shall be used to carry out the activities described in section 5613(b)(1).´´.

SEC. 502. CONTINUATION OF AWARDS.

(a) In General.—

Notwithstanding any other provision of this Act or the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), in the case of any agency or consortium that was awarded a grant under section 5111 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7211) or any person or agency that was awarded a contract or grant under part B, D, or E of title X of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 et seq., 8131 et seq.), prior to the date of enactment of this Act, the Secretary of Education shall continue to provide funds in accordance with the terms of such award until the date on which the award period terminates under such terms.

(b) Special Rule.—

Notwithstanding any other provision of this Act, any person or agency that was awarded or entered into a grant, contract, or cooperative agreement under part B of title V of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7231 et seq.), prior to the date of enactment of this Act shall continue to receive funds in accordance with the terms of such grant, contract, or agreement until the date on which the grant, contract, or agreement period terminates under such terms.