PUBLIC LAW 101-600 —NOV. 16, 1990 104 STAT. 3043 (1) by amending subsection (a) to read as follows: "(a) GENERAL RULE.— "(1) A local educational agency may use— "(A) not to exceed 50 percent of funds paid under this part in any fiscal year for dropout prevention and reentry activities pursuant to subsection (c); and "(B) the remainder of such funds for secondary schools basic skills improvement activities pursuant to subsection (b). "(2) A community-based organization shall use all funds paid under this part in any fiscal year for dropout prevention and reentry activities pursuant to subsection (c)."; (2) by amending subsection (d) to read as follows: "(d) WITHIN-STATE ALLOCATION. — "(1) Each State educational agency, from funds received under this part— "(A) shall first reserve an amount equal to 5 percent of such funds for programs consistent with the purpose of this part for school dropout prevention and reentry programs conducted by community-based organizations that have demonstrated effectiveness in programs for dropout prevention and reentry activities or basic skills improvement activities; and "(B) shall then allocate funds among local educational agencies in the State on the basis of— "(i) the eligibility of such agency for funds under section 1005; and "(ii) the criteria described in section 1105. "(2) Each local educational agency may carry out the activities described in section 1103 in cooperation with community- based organizations.". (c) PLAN FOR PROGRAM TO INCREASE THE SECONDARY SCHOOL COMPLETION RATE.—Section 1104 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 2764) is amended— (1) in subsection (a), by inserting "or community-based organization" after "local educational agency"; (2) in subsection (b)— (A) by redesignating paragraphs (1) through (10) as paragraphs (3) through (12), respectively; (B) by inserting before paragraph (3) (as redesignated by subparagraph (A) of this paragraph) the following: "(1) contain a plan that describes specific proposals for a program to increase the secondary school completion rate of the State by not later than January 1, 2001, by a percentage equal to one-half the difference between 100 percent and the secondary school completion rate for individuals in the State aged 18 to 35, inclusive, as of January 1, 1990; "(2) assure that requirements for obtaining a certificate of graduation from a school providing secondary education or its equivalent will not be lowered;"; (C) in paragraph (4) (as redesignated by subparagraph (A) of this paragraph), by inserting "or community-based organization" after "local educational agency"; (D) in paragraph (5) (as redesignated by subparagraph (A) of this paragraph), by inserting "or areas" after "schools"; (E) in paragraph (9) (as redesignated by subparagraph (A) of this paragraph), by striking "community-based organiza-
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