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DOCUMENT RESUME ED 290 539 PS 017 027 AUTHOR Hawkins, Augustus F. TITLE School Improvement Act of 1987. House of Representatives, 100th Congress, 1st Session. Report TogkZher with Additional Views To Accompany H.R. 5. INSTITUTION Congress of the U.S., Washington, D.C. House Committee on Education and Labor. REPORT NO House-R-100-95 PUB DATE 15 May 87 NOTE 318p. PUB TYPE Legal/Legislative/Regulatory Materials (090) EDRS PRICE MF01/PC13 Plus Postage. DESCRIPTORS *Educational Improvement; *Educational Legislation; Elementary Secondary Education; 'Federal Legislation; *Federal Programs; *Public Schools IDENTIFIERS Amendments; Legislative History; *Reauthorization Legislation ABSTRACT The School Improvement Act of 1987 revises and extends through 1993 the 14 following Federal elementary and secondary education programs: (1) Chapter 1 of the Education Consolidation and Improvement Act (ECIA), compensatory education for disadvantaged children; (2) Chapter 2 of ECIA, elementary and secondary education block grants to States; (3) Title II of the Education for Economic Security Act (EESA), the mathematics and science education program; (4) The Adult Education Act for adult literacy; (5) The Magnet Schools Assistance Progr,n (Title VII of EESA); (6) The Drug-Free Schools and Communities Act of 1986; (7) The Women's Educational Equity Act; (8) The Allen J. Ellender Fellowship Program; (9) The Emergency Immigrant Education Act; (10) the territorial assistance programs for teacher training and general assistance to the Virgin Islands; (11) the Excellence in Education demonstration grant program (Title VI of EESA); (12) the Bilingual Education Act; (13) the various Indian Education programs; (14) and the Impact Aid program of assistance to schools in Federally-affected areas. In addition, the legislation: (1) creates a new program for gifted and talented children's education; (2) focuses new resources on dropout prevention, secondary school basic skills improvement, and preschool education; and (3) makes revisions in the Federal processes of auditing education and gathering statistics. This report to the 100th Congress includes the bill, as amen-.4, additional views on the leH) gislation, and a cost estimate of the Congressional Budget Office. (R *********************************************************************** Reproductions supplied by EDRS are the best Vat can be made from the original document. ************************************************%********************** M 100TH CONGRESS I REPORT HOUSE OF REPRESENTATIVES { 100-95 U-1 1st Session U S DEPARTMENT OF EDUCATION 0 Minor changes have been made to Improve Office of Educational Research and improvement reproduction quality I Cr% EDUCATIONAL RESOURCES INFORMATION CENTER (ERIC) Points of view or opinions stated in this docu- )4,1:a document has been reproduced as ment do not necessarily represent official OERI Position or 3fiCy cured from the person or organization OnginlitInc) SCHOOL IMPROVEMENT ACT OF 1987 Zs_ MAY 15, 1987 Committed to the Committee of the Whole House on the State of the Union aril ordered to be printed Mr. HAWKINS, from the Committee on Education and Labor, submitted the following REPORT to7ether with ADI'll'10NAL VIEWS aczompany H R 5] [Including cost estimate of the Congressional Budget Office] The Committee on Education and Labor to whom was referred the bill (H.R. 5) to improve Plementary and secondary education, and for other purposes, having considered the same, report favor- ably thereon with an amendment and recommends that the bill as amended do pass. toThe amendment strikes out all after the enacting clause of the bill and inserts a new text which appears in italic type in the re- ported bill. SUMMARY OF THE LEGISLATION H.R. 5, the School Improvement Act, is the most far-reaching education bill of the decade. It makes good on the Federal promise to join with States and local school districts in enhancing the qual- ity of our Nation's elementary a;-Ad secondary schools. It does so by rill offering a package of programs that collectively reaffirm the twin Feder& commitments to: (1) access to quality education for disad- vantaged students and other students with special needs; and (2) excellence in education for the Nation as a whole. 72-850 BEST COPY AVAILABLE 2 H.R. 5 is an omnibus bill. It extends and revises the 14 following Federal elementary and secondary education programs that are slated to expire in fiscal years 1987, 1988, or 1989: Chapter 1 of the Education Consolidation and Improvement Act (ECIA), compensatory education for disadvantaged chil- dren (former', Title I of the Elementary and Secondary Educa- tion Act); Chapter 2 of ECIA, elementary and secondary education block grants to States; Title II of the Education for Economic Security Act (EESA), the mathematics and science education program; The Adult Education Act for adult literacy; The Magnet Schools Assistance program (Title VII of EESA); The Drug-Free Schools and Communities Act of 1986; The Women's Educational Equity Act; The Allen J. El lender Fellowship program; The Emergency Immigrant Education Act; The territorial assistance programs for teacher training and for general assistance to the Virgin Islands; The Excellence in Education demonstration grant program (Title VI of EESA); The Bilingual Education Act; The various Indian Education programs; and The Impact Aid program of assistance to schools in Federal- ly-affected areas. In addition, the legislation: Creates a new program for gifted and talented children's education; Focuses new resources on dropout prevention, secondary 'hool basic skills improvement, and preschool education; and Makes overdue revisions in the Federal education auditing and statistics-gathering processes. All of these programs are extended through fiscal year 1993, so that they will expire at the same time and can be considered com- prehensively in future reauthorizations. Throughout the 1970's, most of the Federal elementary and secondary programs did expire concurrently; however, the enactment of EC1A in 1981 put several of the programs on different authorization schedules. The Commit- tee bill will reinstate the comprehensive approach. The Committee proposes H.R. 5 at a time when interest in educa- tion is high. During the past five years, a plethora of national re- ports has made numerous recommendations to improve our schools. The public has demanded reform and supported fiscal and legislative measures to accomplish it. In fact, a recent Louis Harris poll showed that 77% of the public said they would pay higher taxes to improve education. State and local gove-nments have re- sponded to and in some cases been at the foref' ,t of the call for educational reform, enacting comprehensive legislative packages. The Committee believes that now it is the right time for the Fed- eral government to fulfill its role in education reform, as delineat- ed in the following education reform reports: The Federal government, in cooperation with States and loca'ities, should help meet the needs of key groups of stu- 3 YqC,`,1 f ,-.3a 3 dents such as the gifted and talented, the socioeconomical- ly disadvantaged, minority and language minority stu- dents, and the handicapped. (A Nation At Risk, repo.t of the National Commission on Excellence in Education.) Federally-supported remedial programs, most of which have been concentrated in the early grades, have demon- strated that improvement can be made in the academic achievement of even the most disadvantaged child. We rec- ommend, therefore, that the federally-funded Elementary and Secondary Education Act (Title I) be fully funded to support all students who are eligible to participate in this effective program. (High School, report of the Carnegie Foundation for the Advancement of Teaching.) This is no time for the federal government to shirk these responsibilities, or to shrink suddenly from the issue of education as a national priority. The federal government's role, to be sure, is a supporting role. But that role is essen- tial. (Action for Excellence, report of the Education Commis- sion for the States' Task Force on Education for Economic Growth.) The federal government must continue to help meet the special needs of poor and minority students while taking the lead in meeting the general and overwhelming need for educational quality. (Making the Grade, report of the Twentieth Century Fund Task Force on Federal Elementary and Secondary Education Policy.) H.R. 5 embodies these principles of promoting access and excel- lence. The Federal commitment to access for special needs students is underscored through the continuation of the Chapter 1 program, the largest Federal elementary and secondary program, as the cor- nerstone of this reauthorization. In the bill, the central purpose of Chapter 1educating low-achieving students in poor areas, a goal in which the Federal government has been extremely successful remains the same and, in fact, is strengthened through provisions to target more funds on the neediest areas and to expand the pro- gram to the preschool and secondary school k ,els. In connection with this targeting on secondary schools, the bil. adds a new initia- tive for dropout prevention programs. The bill also seeks to im- prove the quality of Chapter 1 programs by instituting new provi- sions to hold schools more accountable for the outcomes of Chapter 1 and to encourage successful i_rograms. H.R. 5 would expand access to special needs groups in other ways, too. The adult education section of the bill focuses additional dollars on the most disadvantaged, illiterate adults. The bilingual education program for students with limited-Englishproficiency is improved and expanded. The bill also reauthorizes other equity-re- lated programs: the Women's Educational Equity Act to provide demonstration grants for developing model programs and materi- 4 4 als; education for immigrant children; the magnet schools program to help districts meet their desegregation needs with schools that attract students from throughout the school district; and the sever- al Indian education programs to address the particular problems of Native American students. H.R. 5 contains several components aimed at generally upgrad- ing the quality of instruction of our nation's schools. The Chapter 2 block grant is refocused in a way that makes clear that these funds are to be on the cutting edge of educational improvement in the school district; Chapter 2 is the pot of money to be used to help school districts implement innovative programs or make special in- structional purchases that they do not have the local funds to sup- port. Another noteworthy "excellence" program in the bill is the mathematics an science education program in Title II, which au- thorizes funds for teacher training and other activities to strength- en math and science instruction. Finally, the bill institutes a new authorization for education of gifted and talented children. The bill accomplishes these ends without an excessive amcl,nt of administrative burden or an undue hampering of local flexibility. In fact, several provisions of the billthe new schoolwide projects option in Chapter 1 and the new program improvement thrust in Chapter 2, for exampleare intended to maximize local flexibility, with the understanding that the programs are expected to show re- sults. Local complaints about administrative complexity will also be reduced by the long-awaited audit reform and statistics reform amendments contained in Title IX of H.R. 5. The Committee hopes that with the enactment of H.R. 5, the Federal Government will' become a better partner in education. Federal funding for elementary and secondary education suffered severe budget cuts in the early 1980's; even after the budget reduc- tions leveled off, several years of static budgets meant that these programs lost ground to inflation. In general, the Federal contribu- tion to public education spending declined from 9% in 1980 to 6.5% in 1984. The oecimes in Federal program spending are particularly sharp: Chapter i lost 17% in its purchasing power between fiscal years 1d80 and 1987; Chapter 2 lost 55%; bilingual education 45%; impact aid 36%; and adult education 28%. H.R. 5 would restore some of the ground these programs lost by increasing the fiscal year 1988 authorizations to a level ad..:quate to allow for some modest growth. In the five years beginning with fiscal year 1989, the authorizations for the programs would be set at such sums as necessary. From introduction through Committee consideration, H.R. 5 maintained strong bipartisan support. In addition, the bill was written with maximum opportunity for comment from education, parent, advocacy, business and other segments of the community, so it enjoys wide support. The Committee commends this bill to the whole House as a comprehensive package that will have a mean- ingful impact on education through the end of this decade and the beginning of the next. 5 5 LEGISLATIVE HISTORY SUMMARY H.R. 5 was introduced on January 6, 1987 by Congressman Au- gustus F. Hawkins and Congressman William F. Good ling. The Subcommittee conducted hearings on H.R. 5 in Washington, D.C. on February 26, 1987; March 3, 5, 10, 16, 19, 24, 26 and 31; and April 2. The March 16 hearing was joint with the Senate Subcom- mittee on Education, Arts and Humanities. The Subcommittee also conducted regional hearings on P R. 5 on February 13 in Vermont, March 9 in Wisconsin, and March 30 in New York City. On April 7 and 8, the Subcommittee held mark-up sessions on H.R. 5 and reported the bill, with amendments, by voice vote on April 8. On April 21 and 22, the full Committee on Education and Labor held mark-up sessions and at the end of the April 22 session ordered the bill reported by voice vote. FORMAT OF THE LEGISLATION As introduced, H.R. 5 simply extended through fiscal year 1993 all of the Federal elementary and secondary education programs that were due to expire during fiscal years 1987, 1988, or 1989 Con- gressman Hawkins and Congressman Good ling chose to introduce a skeletal legislative framework into which more substantive amend- ments could be inserted during mark-up sessions. Soon after H.R. 5's introduction, several Committee members put forward more substantive reauthorization bills that would provide the basis for different components of the omn'bus bill, H.R. 5. These included: H.R. 950, legislation introduced by Mr. Hawkins and Mr. Good- ling to reauthorize Chapter 1 of ECIA; H.R. 1795, a bill introduced by Mr Good ling and Mr. Hawkins reauthorizing Chapter 2 of ECIA; H.R. 1755, a Bilingual Education Act reauthorization bill, in- troduced by Congressman Hawkins, Congressman Kildee, Con- gressman Martinez, and Congressman Richardson, H.R. 1862, Congressman Williams' Adult Education Act reau- thorization bill; H.R. 1896, Congressman Kildee's legislation to reauthorize the magnet schools assistance program; H.R. 1958, Congressman Sawyer's bill reauthorizing the mathe- matics anir sch-mce education program under Title II of the Educatio:i for Economic Security Act; --H.R. 6, the Effective Schools and Even Start Act, introduced by Congressman Hawkins and Congressman Good ling; H.R. 543, the Jacob K. Javits Gifted ar.d Talented Children and Youth Education Act, intrc"luced by Congressman Biaggi; H.R. 738, the School Dropout Demonstration Assistance Act in- troduced by Congressman Hayes; and H.R. 1227, the Secondary School Basic Skills AO, introduced by Congressman Williams. These bills were used either as basic mark-up documents to which amendments were offered or as the source of amendments to 6 6 H.R. 5. The various components were folded into the omnibus bill by a unanimous consent request during the mark-up. Throughout its Subcommittee and ;1.111 Committee consideration, H.R. 5 enjoyed bipartisan support. The bill currently has 53 cospon- sors. In addition, several of the other measures incorporated have bipartisan support; in fact, the dropout prevention bill and the gifted and talented education bill both passed the House by over- whelming margins last year, but were never taken up by the Senate. RELATED LEGISLATIVE ACTIVITIES Because of the magnitude of the omnibus reauthorization and the importance of the programs it encompasses, preparation for this reauthorization began in the 99th Congress. Beginning on Oc- tober 17, 1986, the Chairman and Ranking Republican sponsored a series of weekly forums on particular reauthorization issues for the Committee Members and staff and certain other Congressional staff. A'. these forums, experts representing different viewpoints discussed with staff the current issues and recommendations for legislative changes for the programs in H.R. 5. The Subcommittee sponsored 16 of these forums throughout late 1986 and early 1987, ending with one on January 30, 1987. The Subcommittee also undertook several other activities to lay the groundwork for H.R. 5. In late 1986, the Chairman called to- gether a task force on audit reform, involving representatives of the Committee, the education community, the Department of Edu- cation, the civil rights community and the legal community. The outcome of these meetings was a package of audit reform amend- ments that was eventually incorporated into H.R. 5. Chairman Hawkins and Congressman Good ling also solicited rec- ommendations for improvements to the expiring programs by send- ing letters to approximately 66 organizations concerned with ele- mentary and secondary education. These included not only educa- tion groups, but also civil rights groups, business groups, advocacy groups, and parent groups. Many of these organizations submitted very useful recommendations, which were used to draft the Chap- ter 1 bill, H.R. 950, or were later incorporated as amendments to other programs in H.R. 5. The Chairman and other Members of the Committee also asked the General Accounting Offic to undertake a series of studies on selected reauthorization irzues. The Subcommittee staff also car- ried out two staff investigations on the targeting provisions under Chapter 1 and on Federal adult illiteracy programs. Both of these staff investigations culminated in staff reports, the findings of which guided discussion of amendments on Chapter 1 and adult education. Finally, the Committee staff held periodic briefings on the progress and findings of the congressionallv-mandated National Assessment of Chapter 1. In addition to the aforementioned hearings on H.R. 5, the Sub- committee and full Committee held several related oversight hear- ings that produced information relevant to the Subcommittee's con- sideration of the legislation. These included Subcommittee over- sight hearings on Indian education on March 2 and March 6, 1987, 7 7 a full Committee hearing on March 11 at which Secretary of Edu- cation Bennett testified on the expiring programs, and a full Com- mittee hearing in Los Angeles on March 20 addressing bilingual education and illiteracy. NEED FOR THE LEGISLATION AND PROVISIONS OF THE BIT.,L CHAPTER 1-FINANCIAL ASSISTNCE TO MEET SPEC AL EDUCATIONAL NEEDS OF CHILDREN A. Background and Need 1. Introduction Chapter 1 is the bedrock on which Federal aid to elementary and secondary schools has been built. Since its enactment as Title I of the Elementary and Secondary Education Act cf 1965, the proram has provided Federal funds to school districts to meet the special educational needs of educationally-deprived children in low-income areas. During its 20-year history, the program has called attention to the plight of poor and low-achieving children through locaily-oper- ated "compensatory education" programs and of migrant, handi- capped, and neglected and delinquent children through the three State-operated special programs. Title I/Chapter 1 has served as the prototype for more recent Federal programs aiding other spe- cial groups. It has spawned State-funded compensatory education programs in 19 States and thousands of local programs tar0-.E..ted en the poor and disadvantaged. It has grown from a $960 million com- mitment in school year 1965-1966 to a $3.9 billion commitment in 1987-88, making it the largest Federal elementary and secondary program. Most importantly, it has fulfilled its original sponsors' dream by offering a "passport from poverty" for perhaps 100 million children over its duration, giving them a boost toward success in school and later life. It has documented that disadvantaged children can hold their own with their more advantaged peers, if given the services and resources they need. About 90% of the nation's school districts now participate in Chapter 1. (The program was renamed when the Education Con- solidation and Improvement Act of 1981 made substantial revisions in it.' Funds are distributed to local educational agencies (LEAs) on the basis of a formula which counts school-age children from low- income families. School districts are required to focus the funds on the poorest school buildings. This distribution method was original- ly selected and has been retained because: (1) as the Congressional- ly-mandated National Assessment of Chapter 1 has recently noted, there is a correlation between poverty and education disadvantage which increases as the concentration of poverty and length of time in poverty goes up; (2) schools serving low-income areas are less likely to have the resources to provide supplementary services; and (3) the census poverty data in one of the few types of nationally- uniform data available. However, once the Chapter 1 funds reach the school building, children are selected for participation based on educational need, not income. 8 Chapter 1 has always been a program largely administered 1.y State educational agencies (SEAs) and conducted by LEAs or state agencies. The law contains several requirements to protect the fiscal integrity and focus of the programfunds must be supple- mentary to State and local money and must be used for the intend- ed beneficiaries. But within the fiscal and target.ng restraints, local and State agencies have been free to design projects that best meet the educational needs of their children, with full discretion over such matters as curricular strategy and subjects of instruc- tion. About 4 9 million children participated in Chapter 1 in school year 1984-85 (the most recent for which data is available). Al- though the law does not circumscribe the grade levels at which projects can be operated, in actual practice about 76 percent of the children served are in grad's kindergaten through six. And al- though the law does not so mandate, Chapter 1 is primarily focused on basic skills. Reading is the subject offered most often as part of Chapter 1. Schools usually provide instruction in a ,ombination of subjects which generally includes both reading and math. Three-quarters of Chapter 1 funds are used for direct instruction- al services: in 1983-84, approximately 155,000 teachers and class- room aides were paid with Chapter 1 funds The remainder pays for related or support services and administration. On top of the Chapter 1, LEA program for disadvantaged chil- dren, the law has for many years funded three separately-author- ized programs operated at the State level. These so-called "State agency" programs provide special services for: (1) children of mi- gratory workers, (2) children in State-supported institutions for the handicapped, and (3) children in neglected and delinquent institu- tions and adult correctional facilities. 2. Effectiveness of Chapter 1 "Apparently Title I has developed some of the qualities of the flag and home cooking," former U.S. Commissioner of Education Francis Keppel commented as he surveyed the bipartisan, diverse crowd at the programs 20th Anniversary celebration. Title 1/Chapter 1 does enjoy broad, bipartisan support, and one need not look far for the reasons for its longevity and popularity. Simply put, it is a successful, effective program. It is channeling funds to the poorest schools, it is Leaching its intended benefici- aries, and it is raising educational achievement. The following preliminary fndings of the National Assessment of Chapter 1, the mandated study being conducted by the Department of Education, show that Chapter 1 is targeted on poorer than aver- age schools: Among the districts receiving Chapter 1, participating students are more likely to reside in districts with high poverty rates than in districts with low rates of poverty. Chapter 1 elementary schools have higher concentra- tions of poor children than do non-Chapter 1 schools. Chapter 1 services are most likely to be provided in schools with high concentrations of poor, minority, and low-achieving students. 9 9 Discussion has ensued recently about whether Chapter 1 is ade- quately targeted or he children with greatest need. The interim report of the National Assessment raised this issue with a refer- ence to a 1976 study which showed that about 60% of Title I stu- dents were not poor and that 10% of students in reading programs and 20% of those in math were not low-achieving. Concerned about this question, the Subcommittee staff undertook a thorough investigation of current practices, including a survey of States, the results of which are detailed in the Committee staff reportTargeting Students for Chapter 1 Services: Are the Stu- dents in Greatest Need Eeing Served? In addition, the General Ac- counting Office (GAO) published a report on this issue entitled Compensatory Education: Chapter 1 Participants Generally Meet Selection Criteria. The GAO "found few errors in the choice of students to receive Chapter 1 reading services"the error rate in piecing Chapter 1 students, GAO noted, was less than 3%. GAO concluded that par- ticipants generally meet selection criteria. The Subcommittee staff's State survey also showed a high degree of compliance with proper selection procedures. GAO went on to note that of the low- achieving children not being served by Chapter 1, many were served by other special programs or were not included for equally valid reasons. The Subcommittee report pointed out that the law does not require students to be selected on the basis of their family incomes, so it is unfair to criticize the program for serving some children who are not poor. The report also called attention to the perils of drawing conclusions about the current program from ten- year-old data. One issue about which there is little disagreement is Chapter l's positive effect on student learning. A large body of evidence now exists to document Chapter l's impact on achievement: The National Assessment of Chapter 1 report on effectiveness concluded, "Students receiving Chapter 1 services experience larger increases in their standardized achievement test scores than comparable students who do not." The same report added, "The achievement of disadvantaged stu- dents has improved since 1965, especially in reading, relative to the achievement to the general population." The National Assessment of Educational Progress, the only na- tionally-representative achievement data colletted over time, found higher than average achievement gains over the past decade fo those groups targetei for Chapter 1 services, namely, minority chil- dren, children in poor urban and rural areas, and the elementary school age children in their sample. These gains occurred at a time when the achievement of other children was declining. The Department of Education's Chapter 1 Evaluation and Re- porting System shows upward movement in the percentile ranks of Chapter 1 students in reading and mathematics for every grade except twelfth grade. A Congressional Budget Office report on achievement test scores found that a pattern of declining test scores began to reverse itself with children born around 1963, children who entered school three years after the passage of the Elementary and Secondary Educa- tion Act. CBO found that scores of students in the upper elementa- 1 0 10 ry grades are at their highest level in three decades and that the upturn in scores is particularly strong among minority students. Vice President Bush aptly charactelized the wide support for Chapter 1 when he stated, "Even though every area of the budget is coming under very close examination and tough decisions have to be made, there is a broad consensus in terms of the funding for the Title I program." Chapter 1 is also a cost effective program. The Chapter 1 per pupil costin the range of $600 per childis less than one-fourth the cost of grade repetition for the same child. 3. Impact of Budget Cuts and Continuing Need for the Pro- gram Chapter 1 has never been fully funded, so the percentage of eligi- ble children served is far lower than initially envisioned. If one uses as a proxy of eligibility the number of children in poverty (recall that the dual nature of the program means that there is no single definition of eligibility), the 4.9 million children served con- stitute only 55% of the 8.8 million children in poverty. If one uses achievement as an indicator of need, the Congressional Research Service has calculated that the program is reaching only 43% of those below the 25th achievement percentile, 31% of those below the 16th percentile, and 22% of those below the 50th percentile. From all indications, the target population for Chapter 1 is grow- ing. The percentage of children living in poverty increased from 16% in 1979 to 22% in 1983. The number of students at riskpoor children, minority children, children of teenage mothers, children in single parent homesare quickly rising. In fact, a new study by the Council for Educational Development and Research concluded that disadvantaged students "are about to become the majority in our public schools." At the same time the need for the program is growing, the fund- ing is contracting. Chapter 1 was the target of budget cuts in 1981, 1982, and 1986. Although the funding increased slightly in some of the interim years, the program has failed to keep pace with infla- tion; in adjusted dollars, the program has suffered a 17% cut since 1980. As a result of these cuts, participation in the program has fallen from 5.4 million in 1980-81 to its current level of 4.9 million. The number of Chapter 1 teachers and aides also dropped from 200,000 in 1979 -80 to 155,000 in 1983-84. The grim conclusion is that unless there is a massive campaign to restore this program's buying power, we will be facing a nation- al crisis. Underinvesting in Chapter 1 will have severe conse- quences, in terms of more expensive remediation for older students, retraining unskilled workers, foregone tax revenues, and lost pro- ductivity. Americans are beginning to recognize that enhancing education- al opportunities is an investment. On March 16, 1987, a panel of five zenior executives of major corporations testified in support of Chapter 1 before a joint session of the Subcommittee on Elementa- ry, Secondary, and Vocational Education and the Senate Subcom- mittee on Education, Arts, and Humanities. The joint statement 11 issued by there leaders in manufacturing, banking, and telecom- munications eloquently summarizes what our agenda must be: Chapter 1, because of its widespread acceptance both po- litically and educationally, must remain the central ele- ment of our compensatory education initiatives . . . For Chapter 1 to remain the centerpiece of a national effort to improve education for disadvantaged and low-income chil- dren, the program must be reauthorized and given suffi- cient resources to do the job Congress intended . . . [W]e urge you to consider the continuing costs that will be the consequence of children who are eligible but not now helped. B. Explanation of the bill (LEA Grant program and Administrative Provisions) 1. General Themes In reauthorizing the Chapter 1 program for six ad.litional years, H.R. 5 does not radically alter current law. Rather, the bill refines the program in ways that will carry it into the 1990s. These revi- sions can be grouped into 6 major themes: exptuiding, targeting, improving, permitting flexibility, fostering parental involvement, and clarifying provisions for private school children. In maintaining the program's current structure and focus, the Committee heeded studies, testimony, and comments of State and local people which affirmed that the program is working well. For example, a survey of 3,000 local Chapter 1 administrators and of all the States, conducted by the National Association of State Chapter 1 Coordinators and analyzed in a report to the Committee, "indicate(s) a general satisfaction with the program's administra- tive policies" and concludes there is "an overall sense that the pro- gram is doing a good job in providing reading and mathematics in- struction annually to almost five million children." The Committee recognizes the need to maintain stability in a program that has become an accepted and often welcome part of the total educational program in participating schools. The Com- mittee did not accept several proposals afloat during the reauthor- ization that at a minimum would have disrupted the program and at worst would have completely changed its nature and harmed its progress. However, the Committee also realizes that it has been nearly a decadedating back to the Education Amendments of 1978 (Pl. 95-561)since the program has received a thorough review as part of a reauthorization process. The last set of major amendments to the program, the ECIA statute that changed Title I to Chapter 1 was contained in the Omnibus Budget Reconciliation Act of 1981 (Pl. 97-35). Because of the unusual procedure by which the recon- ciliation bill passed the Housesweeping authorization and pro- grammatic changes to numerous Federal laws were attached to a budget bill as a floor substitutethe authorizing Committees were bypassed, and there was minimal opportunity for public comment or legislative deliberation. Thus, as discussed in the legislative history section above, the Committee spent several months reviewing in detail the current , ; 2 12 issues and needs in Chapter 1. Our review took i.ito account tF e hearing testimony, the recommendations made in the Subcommit- tee reauthorization forums, studies and evaluations, and the com- ments submitted by over 20 organizations and associations. H.R. 5 incorporates the best of theses recommendations for improving Chapter 1. It also responds to :merging problems, such as the alarming dropout rate, the growing demands reschool educa- tion, and interest in promoting excellence it cr I programs. A discussion of the particular provisions, easons why they were adopted, and how they differ from current, aw foiiows. ,". Format Chapt- 1 of the School Improvement Act reauthorizes and ex- tends through fiscal year 1993 Chapter 1 of the Educat,:on Consoli- dation and Improvement Act (ECIA). The expiration date in the Chapter 1 ECIA, statute is September 30, 1987. However, the General Education Provisions Act (GEPA) governing all Federal Department of Education programs allows for an automatic two-: ear extension ofChapter 1 (or any other for- ward-funded education authorization), so the program really does not expire until September CO, 1989. This automatic extension will protect the autht, isy of the Appropriations Committee, in an FY 88 appropriations bill, to appropriate funds that will be used, for the most part, in FY 89. Chapter 1 of ECIA is a unique statute, and not only because of its unorthodox enactment. To sa. i on verbiag" at a time when leg- islators wanted to cut down on 'he number of Federal require- ments, the Chapter 1 law incorporated by cross reference several applicable provisions of the Title I law it was replacing, instead of repeating them verbatim. An additional set of technical and clari- fying amendments was enacted in 1983 in P.L. 98-211. This meant that in order to comprehend all the statutory provisions and carry out the program, administrat' -s needed to have on hand the Chap- ter 1, FCIA law, the defur. I law, and the 1981 technical amendments law. Chapter 1 of the School Improvement Act replaces and repeals Title I of the Elementary and Secondary Education Act of 1965 and Chapter 1 of ECIA (as amended in the 1983 technical amendments). In H.R. 5, all the applicable provisions are together in one law for the first time in six yearsa decision that William Dallam, Presi- dent of the State Chapter 1 coordinators association, termed "a humane act" in testimony. 3. Provisions to Expand the Program a. Encouraging full funding.H.R. 5 continue, the cur: -nt au- thorization for Chapter 1, which is in the form of a self-ge. sating formula where the ceiling depends on the number of children counted under the formula and certain per pupil expenditure data. The Chapter 1 authorization has operated this way since the pro- gram was enacted as Title I in 1965, and 'his type of authorization will allow for growth in the appropriation, for the program. To-e Committee also adopted an amendment to Chapter l's state- ment of purpose, stating that the Corlress declares it to be the policy of the U.S. to expand the program over the next six years to +3 13 serve all educationally deprived children, though increasing the r funding by at least $500 million per year over the baseline figure I for fiscal years 1989 through 1993. The Committee estimate:: this is the minimum amount needed to approach some reasonable level of service for all eligible children, not taking into account inflation or increases in child poverty. b. "Even Start" program. H R. 5 authorizes two new programs to expand Chapter 1-type services into the preschool and the sec- ondary school levels. Although current law permits funds to be used for these ages already, most school districts have decided to r ncentrate limited resources on the elementary grades in an early intervention" strategy. For example, only one percent of all Chapter 1 students served ar ' ;4- the prekindergarten level. The two new authorizations in the bill for preschool and second- ary school programs are intended to remove this barrier to expan- sion by providing funds specifically for programs at these levels. Both of these programs have modest authorizations for fiscal year 1988, then authorize such sums as necessary in the outyears to allow for growth in the number of such projects. The first new program is the "Even Start" program to combine adult basic education for parents with limited skills and school readiness training for their young children into a single education- al program. The name and the concept come from legislation intro- duced by Congressman Goodling that passed the House last year but was not considered by the Senate. H.R. 5 authorizes $50 million for FY 88 and such sums for the five following years for Even Start demonstration programs as described below. The Committee's jurisdiction encompasses adult illiteracy, early childhood education, and education for disadvantaged students. During the 99th Congress, hearings were held on each of these issues, and the Committee determined that there was a continuing need for a strong Federal role in all three areas. In addition, the Committee heard testimony regarding the relationship between these problems, and, more specifically, the effects of adult illiteracy on the early educational development of children. Two recent publications by the Department of Education, A Nation of Readers and What Works, summarize a body of research on the importance of the early learning that occurs in the home for the later development of literacy skills. Unfortunately, for those minims of parents who can not read themselves, this is empty advice. Even Start directly addresses this problem by combining adult education for parents with earls childhood education for their children into a single program. Parents will not only be in- structed in basic skills themselves, but in addition, will be assisted in becoming partners in their own children's education. It is the purpose of the Even Start program to successfully com- bine adult basic education for parents and school readiness train- ing for children into a single educational program. In many cases there may already be existing programs and other community re- sources for these purposes. Rather than supercede or compete, Even Start funds are intended to build on these resour ;n order to create the specific programs described in this Part. Under this Part each State will receive a grant from that year's appropriation that is proportionate to its allocation under the basic i4 14 grants section of Chapter 1. In order to assure that each State will receie an adequate share of the funding to operate a demonstra- tion program, no State will receive less than .75 of one percent nor more than five percent of the Even Start funding up to $50 million. Of the funds appropriated over $50 million, the five percent cap will no longer apply, while the .75 of one percent State minimum will apply to all Even Start funding. If there is only a minimal level of appropriations, then no State will receive less than $100,00" The Committee has found through its deliberations that the chil- dren of migrant agricultural workers are among the most disad- vitaged students in the nation. Section 1052 sets aside three per- ( At of the Even Start funds for migrant programs to assure that migrant parents and their children are included in this program. It is the intent of this Committee that such a program be conducted through the Office of Migrant Education to take advantage of their expertise and to coordinate this program with others conducted by the Office. Programs assisted with funds under this Part must have two basic characteristics. First, they must be family centered. This means that they must focus on both the parents and the children as a unit. Services should take place in the home when possible and be designed so that parents and children can work on activities together. Second, the aim of the program must be to help the par- ents become active in their own children's development. Programs should not merely teach parents in one setting and children in an- other. The primary goal of Even Start is to help parents be their children's first teacher and become more literate in the process, rather than teach the parents and children in separate and distinct programs. The elements of any program assisted under this Part are clearly spelled out. It is noted, however, that many grantees will need to develop new methods of outreach, staff training, and curriculum design in order to successfully carry out the unique aspect:; of these programs. The specialized training of staff has been shown to pro- vide a solid foundation for positive results in a wide range of adult education, early childhood education, and child care settings. Because the goals of Even Start are to be accomplished through a combination of adult literacy, parent education, and early child- hood education, it is important that programs provide adequate training opportunities for staff in each of these areas. The most ef- fective staff are those who are skilled at working collaboratively with parents to bridge the child's home and early learning environ- ments. For reasons of age or program capacity, some young chil- dren may be in child care while their parents and siblings directly participate in Even Start programs. Extending access to special Even Start training to supporting child care staff on a space avail- able basis will allow all eligible children in participating families to have the benefit of a quality early learning experience. Section 1053 allows the use of Even Start funds of support serv- ices to allow families to participate in the program. It should be stressed, however, that Even Start funds should only be used for support services as a last resort. Communities should attempt to utilize other resources (including other federal programs) for non- ;. 1 5 15 instructional costs in order to maximize the level of educational services provided to parents and children. Part B is designed as a demonstration program. Application showing the greatest promise will be funded for le r years with a decreasing federal share each year. The intention of this provision is to encourage grantees to become self sufficient so that programs will continue to exist when the federal funds are withdrawn and grants awarded to other worthy applicants. The committee encour- ages grantees to use any other source of funds to create this match, including other Federal funds. It is likely that such a use of funds will lead to greater coordiantion between programs with similar goals. The bill clearly describ:s the population eligible for this pro- gram: parents who lack literacy skills, and their children who reside in Chapter 1 eligible attendance areas. The committee ex- pects these to be general guidelines for grantees to select those families who are most in need of these services. H.R. 5 also clearly outlines the requirements of applications re- quired to receive a grant under this Part. The Committee would call special attention to subsection (cX5) which requires a descrip- tion of coordination with other programs. Given the lin ited size of the Even Start authorization and the large number of existing local, State, and Federal programs focused on literacy and early childhood education, it is critical that applicants use Even Start funds as the extra piece needed to fashion an Even Start program out of these various sources of support. Each State will award grants based on the applications filed under Section 1055, with the proposals being evaluated on the basis of the criteria listed in subsection (a). The review panel created by subsection (b) should be made up of prominent, respected individ- uals from the State who would bring special expertise to the review of applications. They shall use the criteria for applications in Sec- tion 1054 and the award criteria in Section 1055 as the basis for their awards. The evaluatio. section of this Part is modeled on the evaluation section of the Head Start program. The Committee feels that the successful evaluation of demonstration programs, and the dissemi- nation of those results, is the heart of Even Start. Without the vali- dation and distribution of this knowledge, the results will not have the widespread impact that the problem requii es. c. Secondary school basic skills/dropout prevention.Existing Chapter 1 programs do not begin to reach a significant portion of disadvantaged secondary school students. Only 24% of Chapter 1 students are in grades 7 through 12; only 6% are in grades 10 through 12. The situation has become worse in recent years, with many school districts absorbing Chapter 1 budget cuts and freezes by eliminating all secondary programs. H.R. 5 proposes a new, two-pronged approach for addressing the special problems of disadvantaged, secondary-school-age youth. This approach authorizes $100 million in FY 88 and such sums as neces- sary for the five following years, first for demonstration projects, then for implementation grants aimed at (1) effective dropout pre- vention and re-entry strategies; and (2) effective secondary school basic skills improvement programs. 16 The bill includes both components because the problems of drop- outs and low achievement among secondary students are inter- twined. A General Accounting Office study of the dropout problem cited poor grades and other school-related problems as a major rea- sons why students drop out. Students who are two or more years behind grade level are one of the highest risk groups of potential dropouts. There is no single, reliable source of data on the number of school dropouts in the United States, but even the most conserva- tive estimates reveal a serious problem. The Bureau of the Census Current Population Survey estimates that 14 percent of youth ages 18-19 are dropouts and that the dropout rate for youth ages 16-24 has remained roughly the same for the past decade. The U.S. De- partment of Education estimates the national average dropout rate to t. ..9.1%. Other sources place the rate somewhere in between these percentages. In contrast, all but 7% of the students in Japan complete high school. These different estimates result from varying data collection methods, definitions, and groups of youth studied. Regardless of these variations, the data sources together are a powerful indicator of a national problem. If 20% of all students drop out before grad- uation, then each year the number of new dropouts would total 750,000. Particularly alarming are the dropout rates for inner city, minority, and poor youth. In some individual school districts, the dropout rates far exceed the national averages. Though school district dropout statistics are often incomplete and of variable quality, they indicate severe prob- lems in such r' ,tes as Los Angeles and Chicago, both of which have 43% dropout rates. Lagging achievement among our secondary school students also presents an extremely serious threat to our society. A study of the high school by the Carnegie Foundation for the Advancement of Teaching noted: A larger percentage of studentsperhaps 20 to 30 % mark time in school or drop out. For them, the high school experience occasionally may be socially supportive, but academically it is a failure. According to the National Assessment of Educational Progress' examination of reading achievement, "the average reading profi- ciency of these students [minority and disadvantaged urban stu- dents) is quite low and in need of further improvement." The National Commission on Excellence in Education in the report A Nation at Risk cited the following indicators of the dimen- sions of the problem: About 13 percent of all 17-year-olds in the United States can be considered functionally illiterate. Functional illiter- acy among minority youth may run as high as 40 percent. Average achievement of high school students on most standardized tests is now lower than 26 years ago when Sputnik was launched. Many 17-year-olds do not possess the "higher order" in- tellectual skills we should expect of them. Nearly 40 per- 17 cent cannot draw inferences from written material; only one-fifth can write a persuasive essay; and only one-third can solve a mathematics problem requiring several steps. In the opinion of some experts, the educational reform move- ment's emphasis on competency testing and stiffer graduation re- quirements may aggravate achievement and dropout problems. The Association for Supervision and Curriculum Development task force on high school graduation requirements drew the following conclusion in a report: Many fourth-quartile students have not been well served by the traditional acadernk! subjects. Imposing increased course requirements in these studies (with a stronger focus on drill and repetition) is likely to lead to lower success rates for this group. Students' self-esteem and sense of fate control will ultimately deteriorate, further depressing achievement and initiating an unhealthy downward spiral. Consequently, many of these borderline students may drop out of school earlier and in greater numbers. At a minimum, increased graduation requirements will surely heighten the need for good basic skills programs designed to help disadvantaged secondary school students compete in this climate of school reform. These young people are forfeiting their ability to earn a decent wage, secure decent housing, raise a family, function effectively in society, or simply enjoy the rewards of American life. Addressing the problem through basic skills and dropout prevention programs in school, or through reentry programs for out of school youth, is less costly than allowing the problem to go unattended. The Chica- go 1'anel on Public School Finances estimated that each dollar spent now on dropout prevention stands to save the taxpayer $12 in other costs in the future. H.R. 5 therefore proposes a new program of grants to establish, demonstrate, and implement dropout prevention and secondary L ;1001 basic skills improvement programs. The program will have two, 3-year phases: Phase One will extend over the first three years of the authorization (FY 88-90). In this phase, the Secretary of Education will make national competitive grants for projects that demonstrate effective approaches to dropout prevention or second- ary basic skills improvement. In Phase Two, which covers FY 91- 93, States will receive grants on a formula basis to implement the effective techniques that have emerged from Phase One. The Com- mittee felt that $100 million in the first year would be better spent on selected, promising programs run by grantees with great needs, rather than on a widely dispersed formula grant program. The Committee anticipates that the appropriations will increase over time, so that when Phase Two is reached, there will be adequate funding for a nationwide implementation program. After 3 percent f the Phase One funds are reserved for migrant programs, the Secretary will divide the appropriation, with half going to dropout prevention activities and half to secondary basic skills improvement activities. If funds remain after the funding needs (based on the number of applications and types of programs 1.3 18 proposed) are met for one activity, the Secretary may adjust the 50/50 split and shift funds to the other activity. The Committee re- alizes that dropout prevention projects will probably include basic skills components and vice versa and does not mean to discourage that from occurring. Where applicants propose both types of activi- ties, the Secretary shall calculate whether the 50/50 split is being met by attributing amounts to one or the other type of project based on the estimates of costs for the various activities provided by the applicant. Through this and other provisions in the bill, the Committee hopes to promote coordination between the two types of activities. The bill requires specific percentages of the Phase One dropout prevention funds to be allotted to categories of school districts that are based on enrollment size. The Secretary may use leftover funds from one category for projects in another category, only if all the applicants in the original category have received grants sufficiently addressing their needs. The bill contains criteria for selecting grantees for dropout prevention projects based on numbers and needs and the value of the proposed projects as demonstrations. The bill also specifies matching requirements for Phase One drop- out prevention programs. The Secretary shall award Phase One secondary basic skills pro- gram grants based on the quality of the proposals, the way in which the proposals address specific problems of secondary stu- dents, and in a manner that distributes funds equitably in terms of geography, urban/rural mix, size of LEA, and characteristics of students. Under Phase Two, the Secretary, after reserving 3 percent of the funds for migrant program implementation grants from the national level, will make grants to States for dropout prevention and sec- ondary basic skills programs, distributed in proportion to the States' regular Chapter 1 grants. Within State, the SEA shall dis- tribute funds to LEAs with the greatest need for services based on numbers or proportions of secondary school age poor children, low- achieving children, or dropouts; that are representative of urban and rural regions of the State; and that have the greatest financial need for funds. LEAs may use Phase Two funds for dropout prevention, second- ary school basic skills programs, or a combination. These programs are held to the general fiscal requirements for Chapter 1 LEA pro- grams. LEAs operating secondary school programs with Chapter 1 funds must continue the same aggregate level of funding for sec- ondary programs, although the funds do not have to be spent at the same secondary schools in future years. Applications for both Phase One and Phase Two must contain certain assurances in th ; bill, with respect to serving the neediest schools and students; coordinating the programs with other rele- vant programs; involving business, the community, and parents; evaluating the programs; and serving private school students Dropout programs must meet additional requirements, such as de- veloping a dropout information collection and reporting system. Dropout prevention activities include identification activities; early intervention for students at risk of dropping out; establishing systemwide plans and policies; guidance and social work services; 19 19 ombudsman and mentor services; staff training; and other services as listed in the bill for students who have dropped out or are poten- tial dropouts. Secondary school basic skills improvement activities include ini- tiating or expanding programs to meet the special needs of second- ary students; developing remedial programs; developing innovative approaches to surmount the barriers that make secondary pro- grams difficult to administer; staff training; counseling and support services; peer tutoring; and other activities listed in the bill. The bill defines the term "secondary school" in a manner that may in- clude, to the extent consistent with State law, middle schools and junior high schools, as well as senior high schools. Grants under this program are not intended to fund projects in- volving public schools in the provision of family planning and re- porductive health services to minors, through school-based clinics or other means. Such services, with appropriate safeguards and limitations, are funded through various Federal and State health programs, and it is not the Committee's intent to duplicate such funding through the education budget. The Committee is aware that another Committee of the House will soon begin hearings on this issue. That Committee is the more appropriate forum for a discussion of the issue since it is the Com- mittee of jurisdiction over health matters. The bill includes limits on administrative costs at the State and local levels for the dropout/basic skills programs. 4. Provisions for Better Targeting As noted earlier in the background section, much recent discus- sion has revolved around whether the Chapter 1 program needs to be better targeted. While all the evidence from the Committee in- vestigation and GAO study on this issue refutes inferences made in the Department's budget document that ineligible children are being served, and while the GAO found that States and LEAs are properly targeting according to the provisions of the law, the ques- tion must still be asked whether the provisions of the law could be improved. Trying to improve targeting is a delicate balancing act. On one hand, Chapter 1 is a popular and widely-supported program be- cause it does reach every area of the country and is available to help all children who need compensatory education, not just poor children. Targeting too narrowly could undermine a philosophy that has been at the heart of the program. On the other hand, the rising numbers of children in poverty and children at risk make it essential that the funds reach th3 schools and the children with the greatest needs. H.R. 5 attempts to strike the appropriate balance with the fol- lowing provisions: a. Concentration grants.The Committee has responded to con- cerns about targeting Chapter 1 funds on areas of high poverty by requiring the first $400 million of new Chapter 1 appropriations to be distributed on the basis of a formula more concentrated than the basic one. These funds do not constitute a separate program or are not to be separately accounted; they are for the purposes of the regular Chapter 1 LEA program. .(4: 0 20 The Committee adopted a concentration provision in recognition of the finding of the National Assessment of Chapter 1 that there is a strong relationship between low achievement and the concen- tration of poor students attending a child's school. The Administra- tion strongly advocated concentration grants in its bill. However, the Committee bill differs from the Administration's proposal in that H.R. 5 will not redistribute current money, as the Administra- tion bill would have. H.R. 5 affects $400 million in new moneythi. level of funds appropriated for Chapter 1 in the fiscal year 1987 ap- propriations bill for use in school year 1987-88 would be the base year, and the increase would be calculated from that. When the $400 million funding level for concentration grants is reach?d, about 10 percent of Chapter 1 money will be distributed according to the more concentrated formula, so the bill does not institute massive shifts in the future distribution of funds. The concentration formula in H.R. 5 is the product of many hours of labor to find the factors that will equitably treat urban and rural areas and all regions of the country, yet still be concen- trated. A compromise amendment in the full Committee markup achieves this equitability. A concentration formula, by definition, will not benefit everyone; however, if it fairly reaches the areas of need in a program, the purpose of which is to help needy children, it is a creditable formula worthy of support. Under the bill, counties with over 6,500 low-income children (using the regular Chapter 1 formula child count) or with over 15 percent of their school age children from low income families will qualify. These threshulds were adopted in Committee to shift a greater proportion of concentration funds to poor, rural areas. Counties receive amounts based on the number of poor children over the threshold for counties qualifying by means of the numeri- cal threshold, or based on the count of all poor children for coun- ties qualifying by means of the percentage threshold, whichever is greater. Small States are guaranteed one-fourth of one percent. The form'ila uses county-wide data because that is the lowest level for which there is accurate, nationally uniform census pover- ty data. But the bill does spell out procedures for distribution within county to ensure the LEAs with the greatest concentrations within county receive the most. In general, only those LEAs which individually meet the 6,500 or 15% poverty thresholds will receive concentration funds, in amounts proportionate to their numbers or percentages. The State determines which LEAs qualify based on the best available local poverty data. However, there are certain exceptions to this procedure. First, in counties which have exceeded the threshold but in which no LEA qualifies on its own, the SEA will allocate funds in rank order of numbers and concentrations of poverty, but only to those LEAs which exceed the county-wide average of poverty. Second, in States which receive the minimum grant amount for concentration grants, the SEA may allocate funds to LEAs without regard to counties, in rank order of the LEAs' concentrations and numbers of poverty, but only to those LEAs that exceed the State- wide average of poverty. Third, an amendment accepted in Committee ensures that the State may reserve 2 percent of the concentration money for grants 21 21 to individual school districts that qualify under the thresholds but which are in counties that do not qualify. b. Targeting schools.The Committee has added several clarify- ing provisions to current law to eradicate any questions about tar- geting schools and selecting students within school districts. H.R. 5 restores a number of former Title I provisions that ex- plained in more detail how to target schools. One of the goals of the 1981 Chapter 1 law was simplification, but in the rush to sim- plify and reduce the number of Federal requirements in the law, some clarity was lost. The 1983 technical amendments rectified the most urgent problems. The Committee has used this reauthoriza- tion to further clarify, but only where needed. As will be discussed in the flexibility section, the new Chapter 1 in H.R. 5 does not go back to the degree of detail found in the old Title I law and is in keeping with the flexible spirit of Chapter 1 of ECIA. One such provision reinstates explicitly the principle that was found in Title I and implied in Chapter 1 requiring school districts to rank their school attendance areas in order of poverty and serve only those above the district average. As in both Title I and Chap- ter 1, H.R. 5 continues the "local discretion" provisions authorizing certain options and exceptions to this general requirement. In de- ciding how many attendance areas will receive services, the LEA should ensure that Chapter 1 resources in each building are suffi- ciently concentrated to meet the requirement in the law that pro- grams be of "sufficient size, scope and quality." The bill tightens up the provision in current law allowing LEAs to serve all their school attendance areas if they have uniformly high concentrations of poverty. A regulatory change made by the Department after enactment of Chapter 1 relaxed this provision, applying it to LEAs with no more than 10% variation from the av- erage, in the poverty of all the schools in their district. The Nation- al Assessment of Chapter 1 found that the relaxation of this stand- ard increased the percentage of LEAs using this option from 29% of all LEAs (that are not exempted from ranking) in school year 1981-82 to 43% in school year 1985-86. In the districts with the lowest poverty rates, use of the option increased even more, from 25% of such districts to 65%. From other data in the National As- sessment, it is clear that these are the LEAs most likely to be serv- ing the children who are the least poor or low-achieving. H.R. 5 revises this provision to apply only to LEAs where the variation from the district-wide poverty average is only 5% for any school. This is based on the 5% "no wide variance" in the former Title I regulations. Other changes in school targeting and selection include provi- sions: Restoring a Title I fiscal requirement for LEAs that use the option to serve any school with 25% or more poverty; Clarifying that LEAs must use the same measure of low- income to qualify all their schools; and Deleting an ambiguous reference to "either of the two preced- ing years" in the provision allowing schools to be "grandfa- thered" in the program for an additional year, and inserting instead that this provision applies to schools that were eligible "in the immediately preceding year." -Amommimmsse 22 c. Selecting students.A basic principle of Title I/Chapter 1 has been to serve the children in greatest need first. One key targeting provision of H.R. 5 requires that districts identify the children in each school building, according to educationally-related objective criteria which include written or oral testing instruments uniform- ly appliet.1 across grades, and then serve those children with the greatest necKI for supplemental services (as based on the needs as- sessment). This provision derives from Title I law and longstanding practice and was recommended by the Chapter 1 coordinators as a necessary clarification. As with school selection, the options and ex- ceptions for local discretion are continued. The bill also clarifies the frequently-confusing issue of participa- tion of handicapped and limited English proficient children in Chapter 1. The confusion sometimes stems from Federal or State statutes mandating certain services to these children, and how those mandates interact with the Chapter 1 provision prohibiting supplanting of funds. The bill states that handicapped and limited English proficient children are eligible to receive Chapter 1 serv- ices if they have needs stemming from educational deprivation and not related solely to their handicapping condition or limited Eng- lish proficiency. The language clearly states that Chapter 1 funds caniiot be used to provide services that are otherwise required by law to such chil- dren. However, under the language in the bill, these children are fully eligible to participate in all Chapter 1 services, under the con- ditions described, and should not be discriminated against. In fact, the Committee encourages LEAs to have provisions to ensure maxi- mum coordination between Chapter 1 services and other programs that address such children's handicapping conditions or limited English proficiency, in order to increase program effectiveness, eliminate duplication, and reduce fragmentation of the students' programs. A final provision regarding student selection conforms the ages of eligible students with the preschool through secondary school concept of the bill. 5. Provisions to Encourage Program Improvement A crit'cism of Chapter 1 that surfaces frequently is that the pro- gram "penalizes success." Those who raise this point seem to be re- ferring to the fact that since an eligible school building's amount of Chapter 1 money is based, by law, on the numbers and needs of the children served, the allocations to schools could decline if their Chapter 1 students increase their achievement enough to "test out" of the program. The Committee has been responsive to the widespread interest in including some incentives into the Chapter 1 program that will "reward success." Most Chapter 1 programs are producing satisfac- tory results, but the existence of truly exemplary programs sug- gests that more programs could do even better. Moreover, there is no reason why any Chapter 1 program should be operating poorly or why a program should "give up' on any child who is making no progress. H.R. 5 contains several provisions to promote quality in Chapter 1. 23 23 a. Evaluation and program improvement. The Committee con- tinued the provisions requiring regular evaluation of Chapter 1 programs (including evaluation of whether achievement gains are sustained), with several important clarifications. Each LEA must do an annual review of the effectiveness of its Chapter 1 program. Local educational agencies are to report evaluation data to State educational agencies once every three years using nationally estab- lished evaluation models. States must inform the LEAs in advance what type of data will be needed. These provisions allow States to aggregate the data to report to the Department of Education so that it can assemble and present a national picture of how well Chapter 1 is accomplishing its intended goals of improving achieve- ment. _'he bill newly requires local districts to use their annual evalua- tion results for program improvement purposes. An entire new sec- tion of program improvement amendments is the centerpiece of the Committee's efforts to improve the quality of Chapter 1. These amendments specifically require each LEA to annually identify any school building which has shown no improvement, or a decline, in the aggregate achievement of students served in Chapter 1. The LEA must work with the school to formulate and implement a plan for program improvement for the following school year, sharing the plan with the parents of children served, the local school board, and the State educational agency. This plan shall incorporate changes in the program with the greatest promise for success, in- cluding such changes as technical assistance, alternative curricu- lum, coordination with the regular program, evaluation of parental involvement, and inserj-ice training. If achievement in that school declines or shows no improvement for a second year, the LEA shall, in consultation with the SEA, school staff and parents, construct a joint plan for improvement to be in effect until improved achievement is sustained for more than one year. In this situation, the SEA shall provide appropriate tech- nical assistance and shall jointly establish with the LEA the meas- ure of educational performance to be used. In carrying out these program improvement provisions, SEAS and LEAs must consider a list of possible mitigating factors delin- eated in the bill, such as the mobility of the student population and the extent of educational deprivation. The Committee realizes there is no hard and fast way to measure what is happening with the achievement of a group of children in the aggregate. In complying with these provisions, the Committee expects SEAs and LEAs to adopt policies that are strict enough to be meaningful but are consistent with the purpose and operation of Chapter 1, with respect to such issues as when to do pre-testing and post-testing, how to examine achievement across grade levels, and how to aggregate achievement scores. A similar kind of accountability for individual students is re- quired. The LEA must identify students who have been served by the program for a year and shown no improvement or a decline and must consider modifications in the program to better serve these children. For children who show a decline or no improvement after two consecutive years in the program, the LEA must conduct a thorough assessment of those children's needs. 24 In implementing all these provisions, SEAs and LEAs shall use the resources of the Chapter 1 regional technical assistance centers to their fullest extent. b. Innovative projects.A provision that is intended to promote program improvement as well as provide more local flexibility in operating Chapter 1 is the new authority in H.R. 5 for innovative projects. The bill permits no more than 5 percent of an LEA's allo- cation to be used for several types of innovative projects listed in the bill, if the district matches that amount dollar for dollar from State or local funds. The matching provision is waived for poor LEAs which can demonstrate to the State that they do not have the resources to provide matching funds. These projects are limited to the following activities: continuing services to children who had been eligible for Chap- ter 1 for a period sufficient for them to maintain their achieve- ment; Providing incentives to schools that have demonstrated signifi- cant progress in attaining chapter 1 goals; Training Chapter 1 and non-Chapter 1 teachers and librarians to integrate Chapter 1 activities into the regular classroom; Extending the availability of services for children transferred to ineligible areas as part of a desegregation plan; Programs to encourage innovative approaches to parental in- volvement or rewards to or expansion of exemplary parental programs; and Encouraging community and private sector involvement in Chapter 1. Some of these acitivities build on what can already be done under Chapter 1, while others, such as incentive grants, are new uses. With this provision, the Committe.., does not intend to restrict funds LEAs are already using for activities similar or related to those above; for example, if a project were using a greater percent- age of the gran' for an innovative parent program. Rather, the intent of this provision is to highlight some activities LEAs may not have considered because of current statutory or regulatory pro- visions and to encourage LEAs to carry out such activities in more innovative ways than they can presently. c. More advanced skills.Language is inserted in several places in the bill to make clear that in carrying out Chapter 1 programs, LEAs and SEAs should consider achievement not only in basic skills, but also more advanced skills. Recent reports from the Na- tional Assessment of Educational Progress emphasize that it is in the area of the more advanced, or "higher order" skills of reason- ing, analysis, interpretation, problem-solving, and decision-making, that American students are particularly deficient. By emphasizing this in Chapter 1, the Committee hopes to foster a climate of expec- tation that all students can master these neceosary and appropri- ate skills. Consequently, the bill includes language in the statement of pur- poses stating that the goal of Chapter 1 is grade-level proficiency for educationally deprived students and success in the regular school program; and includes references throughout the bill regard- ing the need to improve achievement, in more advanced skills. 25 25 An amendment to the application section of the bill also requires LEAs to describe the desired outcomes of the Chapter 1 program, with a focus on mastery of those basic and more advanced skills that will not only spell success in Chapter 1 but will also consider the skills expected of students in the regular program. d. Coordination with the regular program.In its application, the LEA must, for the first time in Chapter 1, assure that it will allo- cate time and resources for frequent and regular coordination of the Chapter 1 curriculum with the regular instructional program in the LEA. Other amendments discussed earlier highlight the need to train regular program staff to work with educationally de- prived children. This coordination is a two-way street. While Chap- ter 1 should be structured in a way that does not detract from and in fact fits smoothly into the regular program, LEAs should also examine which aspects of the regular program may be facilitating or frustrating the success of Chaper 1 students. This provision makes clear that the Chapter 1 program should be coordinated with the regular program to increase the efficiency of the Chaper 1 program. In addition, the Committee is aware of the importance of the need for children in Chapter 1 programs to spend the maximum possible time in receiving instructional serv- ices, and urges State educational agencies, when reviewing local applications, to make certain this is achieved. e. Rewarding success.Other program improvement amend- ments: Allow LEAs, in determining the number and needs of Chap- ter 1 children for purposes of calculating the amount of a school's Chapter 1 grant, to count for two additional years those children who have "tested out" of Chapter 1 and are no longer eligible. This will eliminate the "success penalty" that has been a complaint under current law. Allow children who are still educationally deprived and therefore eligible, but are no longer in greatest need, to receive Chapter 1 services for two additional years instead of one, in order to maintain their gains. f Federal improvement activities.H.R. 5 has three new provi- sions to bring about a more active Federal role in program im- pr9vement: Tne Secretary is authorized to make small grants for applied research and innovative projects on promising educational models for serving Chapter 1 children and promoting parental involvement. Priority is to be given to research on tutoring programs using postsecondary students and research on the problems of providing effective programs in rural districts and those with declining enrollments. The Secretary is directed to continue and expand the techni- cal assistance centers. The Secretary shall provide information en exemplary pro- grams in the National Diffusion Network. As mentioned earlier, the Secretary is required, in consulta- ton with SEAS, LEAs, boards of education and parents, to de- velop national standards for evaluation. The Committee does not intend these standards to be unduly burdensome or to entail a national standard test; the existing Chapter 1 Evalua- 26 tion and Information Reporting System and the existing eval- uation models would be appropriate. The Committee does not intend that these provisions or any other provisions of the bill be construed to authorize the Secretary to use any of the national program funds under this Chapter to conduct any type of voucher program. 6. Provisions to Provide Greater Flexibility H.R. 5 retains the underlyinb principle of Chapter 1, tO provide Federal assistance "in a way which eliminates unncessary adminis- trativc burden and paperworl 'rd overly prescriptive regulations and provides flexibility to State and local educational agencies in making educational decisions." (Frcm H.R. 5's statement of pur- pose.) While adding new program improvement provisions, the bill at the same time loosens some of the rules for operating programs. The theory behind this approach is to offer more flexibility, as long as LEAs can demonstrate results. The key provision giving greater flexibility expands the author- ity in current law for LEAs to operate "schoolwide projects"to use Chari er 1 funds in high poverty school buildings to upgrade the entire educational program in that school. Although current law permits schools with 75% or more poor children to implement schoolwide projects, this provision has not been widely used, pri- marily because of the stringent local matching requirement govern- ing its use. According to the National Assessment of Chapter 1, less than 5% of schools that are currently permitted to operate school- wide projects take advantage of this provision. H.R. 5 loosens the requirements for schoolwide projects by delet- ing the provision requiring a matching contribution of State and local funds for every child who does not meet Chapter 1 eligibility. The schoolwide provision in H.R. 5 will continue to apply to schools with 75% or more poor children; in these buildings, funds can be used for activities to improve the instructional program in the entire school. such as reducing class size, training staff and parents in the whole school, implementing extended school day programs, or implementing rn "effective schools program" (see the Chapter 2 sect! on below for a more detailed discussi5n of the effective schools concept) This essentially means that Chapter 1 funds will not have to be separately accounted for to show that they are spent only on Chapter 1 children, but can be used for activities benefitting all children in these very needy schools. The National Assessment's data correlating increasing concentrations of poverty on a school with decreasing achievement suggests that it makes sound educa- tional senre in these schools to attack the entire problem, not just a portion .if it. As a protection against Chapter 1 funds replacing funds that had already been provided to that school from State and local funds, the bill requires the LEA to maintain the level of State and local funds per child in that building in the previous year (ex- cluding State compensatory education and certain o'her funds) and holds these s.:.hools to the Chapter 1 g ..ral fiscal requirements. In addition, the Federal funds per educationally deprived child in the schoolwide project must equal or exceed such amounts in other Chapter 1 schools in the LEA. 27 Because this concept represents a stril ng departure from the long-standing prohibition against using Chapter 1 for general aid, the Committee has moved cautiously. The Committee did not incor- porate recommendations to lower tae percentage of poor children needed to qualify. According to the National Assessment, leaving the percentage at 75% will qualify 7,000 schools, or about 15% of all Chapter 1 schools nationwide. This is certainly an adequate number to test the validity of the schoolwide concept. The Committee bill encourages the schoolwide projects to move toward total educational reform of the school program. This has not occurred in most schoolwide projects operated under the cur- rent, law, according to the National Assessment. H.R. 5 moves in that directlJn by requiring LEAs that desire to operate such projects to submit to the State a plan, detailing how the school will implement an effective schools program and including several other assurances. The bill also holds these schoolwide projects to certain account- ability standards. The SEA will decide, based on the plan, which LEAs may operate schoolwide projects for a three-year period. At the end of that period, the schools must demonstrate that the achievement level of Chapter 1-eligible children in that school: (1) exceeds the average achievement of children participating in Chap- ter 1 districtwide or (2) exceeds the average achievement of Chap- ter 1 children in that school in the three preceding fiscal years. Secondary schools may comply by demonstrating lower dropout rates, increased retention rates, or increased graduation rates. Only schools which meet these achivement criteria will be allowed to continue the schoolwide projects for an additional three-year period. Other provisions allowing greater flexibility, such as the afore- mentioned authority for innovative projects, are scattered through- out the legislation. 7. Provisions to Strengthen Parental Involv.iment The greatest change between the former Title I law and the 1981 Chapter 1 law was in the area of parental involvement. The 1981 Chapter 1 deleted from the statute the mandates for district-level and building-level parental advisory councils and other provisions relating to the makeup and role of these councils. The result, according to a number of studies and objective infor- mation, was a decline in parental participation in Chapter 1 pro- grams. As Ms. Charlotte Northern, a parent representing the Na- tional Coalition of Title I/Chapter 1 Parents testified before the Subcommittee: "Under the present legislation, parent involvement is not working. With the dismantling of Title I and the adoption of Chapter 1, school systems across the country discarded parental in- volvement." Mr. Chrys Dougherty, author of a study conducted for the Sub- committee on the changes between Title I and Chapter 1, reached a similar conclusion after surveying State administrators: "The trou- bling picture many Chapter 1 directors paint of stagnating or de- clining parent involvement provides a powerful argument that Congress should strengthen Chapter l's parent involvement provi- sions." r. Q. ricl-. 28 The Committee has heeded this advice and attempted to strengthen parental involvement. In doing so, the Committee con- fronted the difficult problem of striking a balance: On one hand, program administrators had had legitimate problems carrying out what many felt were overly-prescriptive provisions of Chapter 1, particularly in sparsely populated areas where it was hard to get a sufficient number of parents to attend regular council meetings. On the other hand, there is a persuasive body of evidence docu- menting that parental involvement has a very positive impact on student achievement. H.R. 5 does not mandate the particular format of involvement (i.e., advisory councils) but does incorporate new requirements which school districts mu, t carry out. The H.R. 5 provisions for parental involvement have two themes: (1) spelling out more precisely how parents must be given input into the planning, design and implementation of Chapter 1 pro- grams, and (2) providing parents with training and other means to work with teachers and school staff to promote Chapter 1 learning objectives in the home. As regards the first objective, the bill requires LEAs to: Implement programs, activities, and procedures for parent in- volvement that are planned and implemented with the mean- ingful consultation of parents and are of sufficient size, scope, and quality; Develop written policies, after consultation with and review by parents, to ensure parents are involved in program planning, design, and implementation and make these policies available to Chapter 1 parents; Provide such reasonable support for parental involvement ac- tivities as parents may request; Convene an annual meeting for all parents of participating children (as is currently required) to explain the program; Provide Chapter 1 parents with reports on their children's progress and to the extent practical hold a parent-teacher con- ference with each Chapter 1 child's parents; Provide opportunities for regular parent meetings, if the Chap- ter 1 parents so desire, in order for them to have input into the program; and Provide parents with timely information about the program and make parents aware of the parental involvement and other relevant provisions. As regards the second goal, the Committee bill contains a new emphasis on training parents to work with their children, an activ- ity that is now permissible but has infrequently been implemented to a very meaningful extent. The Committee made several modifications of existing parental involvement provisions to ensure that parents and teachers are en- couraged and enabled to become fully cooperating partners in the educational success of students participating in Chapter 1 compen- satory education programs. These include the expansion of the con- cept of local parental involvement to encompass programs, train- ing, and materials which build the capacity of both parents and teachers to effectively assume this partnership role. Local school districts are allowed to hire parental involvement liaison workers to facilitate parental activities and communications Letween the 29 29 home and the school. The new language enables local districts to develop or utilize existing special complementary curriculum mate- rills which family members with limited time or formal education could use at home to complement and underscore the in-school learning activities of their children. Expenditures for reasonable and necessary costs attendant to parents participating in training sessions are also permitted, as is the training and support of teach- ers and other school staff to work with parents. It should be noted that the Even Start program for parents and young children is another extension of this concept of training par- ents to work with their children. In addition to the activities listed above, parental involvement activities may also include parent resource centers, use of parents as classroom volunteers, tutors, and aides, parent advisory councils, and other activities to enlist the support and participation of par- ents. Strengthening parent involvement requirements is intended to ensure that local education agencies actively involve patents in their children's education, both at school and at home, as well as providing training to help promote parent participation. The bill establishes goals for parental participation and then gives school districts the flexibility of using various mechanisms to achieve these goals. One of these mechanisms involves reasonable and nec- essary expenditures associated with the attendance of parents at local training sessions and hiring parental involvement liaison workers and use of parentq as classroom tutors and aides. If a school district chooses to use this mechanism for parental partici- pation, then such a district should notify parents of the amount of funds which would be available for these purposes. Due to account- ing problems, it is not intended that teachers' or administrators's time and salaries be inclefle? in any such estimates of expendi- tures. Pare-at programs must be coordinated with the Adult Education Act, and information, programs and activities for parents must be provided in a language or form which the parents understand. Such information may be transmitted in writing or orally. The bill defines parent to include a legal guardian or other person standing in loco parentis. It is the intent of the Committee that Cie tc n "in loco parentis" refers to persons designated by the parent or legal guardian of the child or children participating in the Chapter 1 program who can represent the parent or legal guardian at all activities which are permitted under Section 1016(b), (c), and (d) of the Act. These persons include grandparents, aunts, uncles, and older siblings of children in Chapter 1 programs. The Committee recognizes there are rare occasions when the parent or legal guardian has no relatives who can represent him or her. In these instances, the parent or leg,: guardian can designate a non-relative, provided a written statement is provided which clarifies this of:casion. The Committee also intends that the particu- lar parent or legal guardian must provide a written statement of the designated parent representative and for what period of time this person is to serve in the place of the parent or lef. guardian. 30 30 8. Provisions for Participation of Private School Children H.R. 5 maintains the requirement that LEAs provide services on an equitable basis to educationally deprived children enrolled in private elementary and secondary schools. This has been a basic re- quirement since the enactment of Title I of the Elementary and Secondary Education Act of 1965 and the Committee, in section 1017, affirms its strong commitment to ensuring that these chil- dren will receive the needed services to which they are entitled. The Committee recognizes that there have been and continue to be disruptions in and decreased levels of the educational services provided to private school children as a result of the Supreme Court's decision in Aguilar v. Felton on July 1, 1985. Three new provisions, discussed below, have been added to section 1017 which are intended to ameliorate these adverse effects. a. Timely and meaningful consultation.The Committee has in- cluded in section 1017(a) a requirement that, in making provisions for including services for private school children in Chapter 1 pro- grams, LEAs must consult on a timely and meaningful basis with appropriate private school officials. At present, the statutory lan- guage in section 557 of ECIA does not require local educational agencies to consult with private school officials when developing programs for eligible children enrolled in private schools. Timely and meaningful consultation is essentual for the development of practical and effective delivery systems. Including a specific statu- tory requirement will help to insure that such consultation will take place. In developing regulations implementing the require- ment of "timely and meaningful consultation," the Department of Education should be guided by the answers provided to questions 24 through 28 of the June 1986 Guidance on Aguilar v. Felton and Chapter 1 Of the Education Consolidation and Improvement Act (ECIA) issued by the Department of Education, which incorporates principles from existing regulations not applicable to Chapter 1. (See 34 C.F.R. 76.652) b. Timely resolution of complaints.A new provision requires the Department of Education to develop and implement written proce- dures for receiving, investigating and resolving complaints, within 120 days of receipt, relating to failures by LEAs to meet their stat- utory obligation to provide equitable services to children enrolled in private schools. To insure that educationally deprived children n private schools do not go without needed services for long peri- ods of time, it is critical that the statute contain a mandatory time in which to investigate and make a determination on how such complaints will be resolved. This is particularly so in the wake of Aguilar where there are large numbers of private school children not being served or being served inadequately. Determinations of the Secretary pursuant to this new provision would be subject to the 45-day notice requirement in section 1017(b)(4XA). c. Capital expenses.The Committee recognizes that there has been a substantial decrease in both the numbers of, and quality of services provided to, private school children participating in Chap- ter 1 programs since the Supreme Court's decision in Aguilar on July 1, 1985. In the 1985-86 school year participation nationwide decreased by about 35% (apprwimately 50,000 students) from pi e- 31 Aguilar levels. Slight increases were made during the 1986-87 school year, but the level of participation remains unacceptably low. The financial strain on LEAs to pay for alternative delivery sys- tems for private school children contributed significantly to the de- crease in participation. Recognizing this the Committee has added a new section 1017(d) which authorizes additional funds, $30 mil- lion in fiscal 1988, and such sums as are necessary in 1989 through 1993, to be used solely to assist in funding increased capital ex- penses incurred by LEAs since July 1, 1985 in meeting their statu- tory obligations to provide equitable Chapter 1 services to children attending private schools. The Committee intends that the addi- tional funding be usaa solely to reimburse school districts for prior increased capital expenses and to pay for new increased capital ex- penses, as defined in new section 1017(dX4), and that the additional funding not be taken into account for the purposes of meeting the equitability and equal expenditures requirements of section 1017(a). The Committee's intent in adopting the new provision is to pro- vide sufficient funding to enable needy LEAs, to the extent possi- ble, to restore Chapter 1 services for private school children to their pre-Aguilar levels and quality. It is not the Committee's intent that the additional funds be used to maintain the status quo in LEAs which are now serving proportionately fewer private school children than were served prior to Aguilar. However, if an LEA has restored services to private school children to their pre- Aguilar levels and quality, then it can be reimbursed for increased capital expenses made from Chapter 1 funds in reaching these levels and attaining this quality of the services. Under section 1017(dX1) SEAS are required to distribute funds to applying LEAs on the basis of need. In evaluating an LEA's needs, the Committee's intent is that SEAS may consider a number of rel- evant factors. One method an SEA could use would be to consider: (1) the e (tent to which additional funding will be used by the LEA to increase the number of, or quality of services provided to, pri- vate school children, and (2) using the 1984-85 school year as a basis (with steijustments for inflation), amounts expe, ded by the LEA in providing services to private school children. In order to show need for additional capital expense funds, an LEA must be able to demonstrate that, without the additional funds, it will spend at least as much as it would have spent in 1984-85 (adjusted for inflation) to serve private school children. Of those LEAs that meet this threshold requirement, priority should be to those LEAs whose applications demonstrate that additional funding will .esult in the greatest increases in the number of, or quality of serv- ices provided to, private school children. LEAs which have provided and are providing the same level and quality of services as in 1984- 85 may apply for additional funds to offset increased capital ex- penses incurred in prior years. Another method an SEA could use would be for the SEA to fund local educational agencies which qualify on a "cutoff' point on de- scending rank order of need that would be compiled on the basis of those local educational agencies incurring the highest percentages of capital expenditures for compliance with Aguilar v. Felton in re- lation to their respective basic local grant. To determine the 111,6. r 32 amount of funding to any local educational agency, a similar objec- tive system should be established, such as awarding each educa- tional agency an amount of the State allocation which is in propor- tion to the cost of compliance with Aguilar relative to the cost of Aguilar experienced by all qualifying local educational agencies in the State. Whichever method is chosen by the SEAS, the Committee reiter- ates that the purpose of this provision is to restore the degree of participation of private school children in Chapter 1 as close as pos- sible to the time before the Aguilar decision. If an LEA has achieved that goal, then any retroactive reimbursement can be placed into the Chapter 1 program for the benefit of services to all children. The Comptroller General is directed to conduct a study of the ef- fects of the Aguilar v. Felton decision on Chapter 1 services to pri- vate schoolchildren and to report those findings to Congress by April 15, 1989, and annually on that date thereafter throughout the life of the bill. 9. Other Provisions a. Funds distribution.Aside from the concentration grant provi- sions discussed above, the bill retains the existing formula for dis- tributing Chapter 1 LEA grants with three exceptions: (1) A new provision is added guaranteeing small States a minimum basic grant of one-fourth of one percent of the basic grant funds. This provision applies only after the concentration grants are fully funded at $400 million and only when the basic grant appropriations exceed the FY 1987 level. There is also a provision holding all the other States harmless at their FY 87 levels and limiting the annual increase for any State af- fected by this minimum to 50% annually. Thus, the provision has no effect on current money. (2) The distribution of a small portion of funds on the basis the 1975 Survey of Income and Education is eliminated. (3) The definition of poverty for purposes of determining which children are from low-income families is changed from the 1970 definition to the definition used in the most recent de- cenniel census. The redistribution effects of these latter two provisions are minimal. b. Uses of funds.The bill clarifies that as part of a Chapter 1 program, funds may be used for the following purposes that are not expressly listed in the current law (subject, of course, to the gener- al Chapter 1 requirements that funds be for supplemental services to meet the special educational needs of educationally-deprived children): Books and school library materials for Chapter 1 students; Employing special instructional personnel, school counselors, and other pupil services personnel; raining teachers, librarians, pupil services, and other person- nel and early childhood education professionals; Parental involvement activities; and Planning and evaluation. The bill also encourages year round and intensive summer pro- grams. 33 c. Fiscal requirements.H.R. 5 fiscal requirements are largely the same as current law. One exception is the clarification of the comparability requirement. H.R. 5 contains new provisions that ex- plicitly sts to what is currently implied, or offer additional guidance about how to implement comparability: Require LEAs to implement the comparability policies which have been filed as assurances with the State; Require LEAs to develop procedures to comply with compara- bility; Require LEAs to maintain annual records documenting compa- rability; Exempt LEAs with only one building per grade span from com- parability requirements; and Require SEAS to monitor comparability and to withhold funds from LEAs which are not in compliance only to the degree by which they have failed to comply. The bill reinstates the provision in Title I (deleted by Chapter 1) which prohibits States from taking Chapter 1 funds into consider- ation when determining an LEA's eligibility for or amount of State aid.H.R. 5 clarifies which special State or local programs are ex- cluded from the anti-supplanting and comparability requirements and reinstates the Title I provision that the Secretary or the SEA approve the applicable State or local program in advance. It should be noted that H.R. 5 states a position of Federal neu- trality on the issue of whether LEAs should use pullout or in-class Chapter 1 programs. Such decisions should be based on which ap- proach is the most educationally sound, given local circumstances. d. Carryover of funds.A new provision phases in limits on the amount of Chapter 1 funds LEAs can carry over from year to year. In FY 1988, carryover will be limited to 25%, then decline to 15% in the following years. There is an exemption for LEAs with alloca- tions of less than $50,000, and any district may request the State to waive the limit for good cause once every three-year application period. The limitation does not apply in any fiscal year in which supplemental Chapter 1 funds are appropriated. The Committee hopes through these provisions to ensure a consistent expenditure of Chapter 1 funds and to curtail the temptation to carry over too large of an amount. e. State administration.The Committee adopted two provisions affecting the amount of State administrative funds for Chapter 1. First, it raised the minimum amount for State administreion from $225,000 to $300,000. These small States have not had cost of living increases in several years, even when the Chapter 1 apprepriaton has gone up. Second, the bill limits the amount of State adminis- trative funds that can be used for indirect costs to 15%. The Com- mittee has been informed about instances where States have attrib- uted in excess of 40% of the Chapter 1 administrative money to in- direct costs, which means a much smaller amount than was intend- ed is available for direct administration of Chapter 1. The Committee also clarified States' authority to make rules and regulations affecting Chapter 1. Seemingly contradictory language in Chapter 1, ECIA was rewritten to make clear that States may issue regulations pursuant to State law which are not inconsistent 72-850 87 - 2 34 with the provisions of Chapter 1 law, Chapter 1 regulations, or other Federal laws and regulations. However, the bill circumscribes areas where the State may not adopt rules, regulations, or policies which limit local Chapter 1 discretion. This include the following areas: grade levels to be served, basic skills areas to be addressed; instructional settings or teaching techniques; certified or licensed instructional staff to be employed; or other essential support serv- ices to be provided. In adopting this provision, the Committee was reacting to testimony from the hearings indicating that some States were preventing LEAs from offering certain basic subjects, serving certain grades, or using certain instructional models in Chapter 1. These provisions are not meant to interfere with a State's authority to review and approve LEA Chapter 1 applica- tions or to ensure that funds are used in accordance with Chapter 1 requirements. The bill also assures that State rule-making will be consistent with local concerns by requiring State rules and regulations to be reviewed by a committee of practitioners before being issued. f. Federal administration.The Secretary must also convene re- gional panels of practitioners before publishing proposed regula- tions for Chapter 1. The Secretary has several other responsibilities under the bill, in addition to those mentioned earlier in this report. The bill author- izes $12 million !z FY 88 and such sums for the five following fiscal years for the Secretary to carry out all the Federal Chapter 1 evaluation, studies, technical assistance, and research activities and responsibilities under this legislation. New responsibilities of the Secretary not mentioned earlier include: Preparing and distributing a national policy manual for Chap- ter 1. This had been a requirement in previous authorization legislation but was never implemented The Committee directs the Secretary to comply with this provision expeditiously; Responding, within 90 days, to written requests from SEAs and LEAs regarding Chapter 1 policies, questions, or interpreta- tions. This provision is intended to work in tandem with the new audit provisions in Title IX of H.R. 5; Formally reviewing State and local administration in such areas as policies, guidance materials, monitoring and enforce- ment activities, and detecting and resolving compliance prob- lems; and Contracting with the National Assessment for Educational Progress for a national longitudinal study of the impact of Chapter 1 on children over the long term. Funding for this study shall come from the Secretary's national Chapter 1 eval- uation and studies fund, not from NAEP's own contract funds. H.R. 5 continues the current provisions with respect to applica- bility of the General Education Provisions Act, except that the sec- tion numbers of Chapter 1 which supersede certain GEPA provi- sions are upuated in conformance with the new section numbers of H.R. 5. g. Assignment of personnel.The provision relating to use of public school personnel, fully paid with Chapter 1 funds, has been rewritten to provide additional flexibility to local educational agen- cies. The provision will allow Chapter 1 paid staff, on a limited 35 basis, to participate in activities related to the operation of the school in the same manner as other personnel not paid with Chap- ter 1 funds. The word "rotaf ng," which appears in the current Chapter 1 statute, has been dropped, making clear that certain standard duties, such as homeroom supervision, may be carried out. The Committee also is aware that certain other duties, such as service on curriculum committees involving more than one school, may also be carried out by school employees. To the extent that these duties are carried out by non-Chapter 1 personnel, they too may be performed by fully paid Chapter 1 personnel, up to the maximum time allowed. In addition, the maximum amount of time Chapter 1 personnel may be used to carry out these activities has been changed from 10% to one period. This is to allow use of Chap- ter 1 teachers for those activities, such as study hall supervision, whose time may vary from one school to another. Finally, it is not necessary that this limitation be met on a daily basis. Personnel may be used, on a given day, for several hours of duties not limited to Chapter 1. However, in the aggregate, those duties may not exceed the equivalent of one period per day. Audits performed by the Department of Education in the recent past resulted in audit exceptions being made against States when they used Chapter 1 funds to train personnel who were then used interchangeably between comparable Chapter 1 state-funded pro- grams and the Federal Chapter 1 programs. While the Committee firmly believes in the full and effective use of resources available to States and local educational agencies in providing compensatory education to disadvantaged children, including the use of Chapter 1 trained personnel to provide services to those children in state- funded compersatory programs, the Committee agrees with the De- partment that such use should not be allowed without States being required to maintain appropriate records. Therefore, the Commit- tee has authorized a new Section 1453. Assignment of Personnel, which gives States and local educational agencies the flexibility they should. have in this respect, but requires such States and LEAs to maintain time distribution records reflecting the actual amount of time spent by each such employee, and that such records be signed by the responsible supervisor of those employees. This new provision in the law also requires that such expenditures be charged, on , pro-rata basis, to both programs as appropriate. C. Chapter 1 Migrant Education Program 1. Background The Chapter 1 migrant program authorizes grants to SEAs for special programs meeting the needs of children of migratory work- ers. This program was first enacted in 1966 in recognition of the particularly difficult educational problems migrant children face. The dropout rate for migrant students is extremely high; the last study of the national situation done in 1974 estimated the national dropout rate for migrants at 90 percent. The typical migrant child lags 6 to 18 months behind his expected grade level. Many migrant children are very poor, and English is not their primary language. Their mobility retards educational progress; they are often difficult to find and to serve. 36 Because of the transient nature of the population, the program is administered through the SEAs, which make project grants, usual- ly to LEAs. Migrant funds are distributed to States based on the number of currently and formerly migrant students (those who were migrant within the last five years), with full-time equivalent counts of those who reside in a State part-time. Estimates of the numbers of migrant children are based primarily on information from the Migrant Student Record Transfer System. The program provides services to currently migrant children and to formerly migrant children with priority services given to cur- rently migrant children. Approximately 350,000 students receive special basic skills instruction and other support services, to im- prove their educational participation and achievement. In addit;on to elementary/secondary school-year programs, the statute author- izes preschool and summer programs. The statute also authorizes contracts with SEAs for a Migrant Student Record Transfer System and other coordination activities. All o these programs and activities help provide continuity of in- struction for students who travel from State to State and also pro- vide for the transfer of vital academic and health records. H.R. 5 continues the migrant program in its present form. The Chapter 1 migrant program, it has been demonstrated, is a success- ful, viable means of helping this group of students overcome their disadvantages. During the program's 20-year history, this Nation has made tremendous strides in improving migrant childrens' achievement and attendance, lowering the dropout rates (according to recent infomation, the migrant student dropout rate may have declined to around 50 to 60 percent), preparing students for higher education, and creating a national student record system and a co- ordinated national approach to serving migrants. Within this context, H.R. 5 makes several amendments which the Committee believes will strengthen the program. These changes are discussed below. 2. Authorization and Funding H.R. 5 retains current law by establishing that the migrant edu- cation program, along with other Chapter 1 State administered programs, be given first priority for full funding when Chapter 1 program appropriations are insufficient. The Committee wishes to reaffirm its position that the scarce Federal dollars should be di- rected to those children who have been found most in need of spe- cial services, such as those identified and served by the migrant education program. Under the Education Consolidation and Improvement Act of 1981, funding of the migrant education and other State adminis- tered programs was capped at 14.6 percent of the total amount ap- propriated for all Chapter 1 programs. This cap remained in effect through fiscal year 1984. However, in subsequent years the Appro- priations Committee has con'Inued the practice of capping these three State administered programs in a similar fashion. The Corl- mittee notes that this funding cap has narmed the migrant educa- tion program and urges increased funding for all Chapter 1 pro- grams, including State administered programs. 37- I r 37 In fiscal year 1987 the migrant education program received an appropriation of $257,458,400 to provide services to children aged 5 to 17. This amount represents a 7 percent loss in constant dollars over the past 20 years to this program Moreover, it is half the amount needed to serve the number of children who are identified as eligible for servicesand there are likely many others not iden- tified because there is no incentive to increase the pool of eligible children when funding is so inadequate. The bill continues, with a few changes, the current formula for distributing funds to the SEAs for programs for migratory chil- dren. This formula takes into account the number of migrant chil- dren residing in the State (on a full-time equivalent basis) multi- plied by an average per pupil expenditure factor. One of the major changes to the allocation formula is to extend the age range of those children counted for purposes of allocating funds among the States. Currently, States may serve children be- tween the ages of 3 and 21, but only those migrant children be- tween the ages of 5 and 17 are counted for funding purposes. By expanding the age range being counted for funding purposes, the Committee hopes to draw attention to the need to correlate to some degree those children who are served with the amount of funding provided. Furthermore, this provision highlights the need to estab- lish a national policy which recognizes and addresses the severe educational needs of children of migrant workers, beginning before they enter formal schooling and continuing well beyond the aver- age age of graduation from high school. 3. Student Eligibility The bill allows a 5 percent error rate in a State's determination of student eligibility. This change from current law helps to make the migrant program statute consistent with other Federal pro- grams. The Committee believes SEAs should take reasonable steps to verify the eligibility of children. The 5 percent error rate allows a degree of variability because there is some inconsistency in the reliability of data sources when obtaining information on these children. 4. Parental Involvement The bill encourages parents to continue their strong participa- tion in all aspects of their children's education by requiring that the migrant education program be planned and operated in consul- tation with parent advisory councils (for full school year programs). Programs of lesser duration are not required to consult with coun- cils but must still meet the general parental involvement provi- sions of the Chapter 1 LEA program. Parent councils are one way of bringing about the involvement of parents in the educational process of migrant children. At the same time, State and local edu- cational agencies will be given flexibility to design parent activities which conform to the length of their migrant programs. The Committee wishes to stress that the definition of parent ad- visory council under Section 1471(20) which state that councils are to be composed "primarily of members who are parents of chil- dren being served . . . and who are elected by such parents" is not intended to reflect a change from current law and applies to coun- R s 38 cils at the local educational agency, project area, project scho')l level and State level. 5. Coordination with Other Programs The bill expands the requirement that the migrant program be coordinated with other Federal programs from which migrant chil- dren can benefit. The intent of this provision is to formalize the re- lationship between the migrant education program and other Fed- eral programs. It would also encourage migrant educators to pro- vide referral services appropriate to the children being served and to identify prospective candidates who may wish to continue their education beyond high school and who could benefit from programs such as the College Assistance Migrant program. 6. Eoaluation The bill requires Cud the migrant programs be evaluated in terms of their effectiveness for all students. In the case of formerly migrant students, the bill requires that this evaluation also include information on whether achievement gains are sustained. The Committee recognizes that it is extremely difficult and costly to at- tempt to gather sustained-gains information on mobile, currently migrant students who move among districts during the school year. In addition, achievement data are not the only measure of whether the program is successful; such factors as improved school attend- ance for currently migrant children may also be appropriate. Therefore, sustained achievement gain measures are made applica- ble or ly to migrant students who have been served for at least 2 years in a full school-year program. 7. State Coordination The bill continues the authority for the Secretary to make grants and contracts to SEAS for activities to improve the interstate and intrastate coordination of migrant programs. The Committee wishes to note the accomplishment of the Migrant Student Record Transfer System in monitoring accurate and complete records on the health and educational status of migrant children. In order for this system to be effect;ve, each program and State must partici- pate in providing up-to-date information on the children being served. The Committee wishes to encourage full participation by all States in providing the MSRTS complete and timely information and in utilizing the system to its best advantage. At the same time, the Committee wishes to note that some concerns have been ex- pressed about high administrative costs which may be attributed in part to record keeping. The Committee encourages States, State Di- rectors of Migrant Education and the MSRTS to attempt to identi- fy and reduce administrative costs wherever possible. 8. Commission on Migrant Education Finally, the bill establishes a Commission on Migrant Education. Among other things, this Commission will examine the changing demographics of the migrant student population in an effort to assure that the patterns of migrancy are anticipated and the chil- dren are served to the best extent possible. In addition, the Com- mission would explore the need to establish a National Center for 39 Migrant Affairs to help coordinate and disseminate information pertinent to migrants. In March 1987, the Department of Educa- tion received a report from the Policy Studies Associates, inc. which noted "there is no central repository either at Department of Education or elsewhere, for products associated with the Section 143 grants (coordination of migrant activities) program." This would indicate that researching such a center would be productive. The Commission would also explore various aspects of the migrant education program to help develop a blueprint of changes that ought to be made so that this program continues to meet the edu- catic lal needs of migrant children over the remainder of this cen- tury. 9. Handicapped Migrant Children The bill provides thrt the Migrant Student Record Transfer System include the "individualized education program" of any mi- grant special education student. This provision is not intended to affect the current requirements governing the confidentiality of a special education student's records, including confidential informa- tion which may appear on the individualized education program. D. Chapter 1 State Handicapped Program 1. Summary Subpart 2Programs for Handicapped Childrenof Chapter 1 of the Education Consolidation and Improvement Act, in general, was amended in the following manner: To indicate that the State Education Agency (SEA) is eligible to receive a grant under this subpart; current law states "a State agency"; To add specific requirements for a receipt uf a grant; To change the date of the child count from October 1 to De- cember 1, to correspond to the child count date for Part B (P.L. 94-142) of the Education of the Handicapped Act (EHA); To simplify the application procedures for local educational agencies (LEAs) which serve children transferred from State operated or supported programs, when such an application re- flects services to 5 or fewer children or when such an applica- tion has a single purpose; To add assurances on the use of funds and examples of ac- ceptable uses of funds; To add reporting requirements for within-State applications; To add a definition of eligible children; and To require a General Accounting Office study of the imple- mentation of the State operated program for handicapped chil- dren and its relationship to Part B and Part H of EHA. The purposes and intent of these amendments are outlined below, following an overview of the Chapter 1 Handicapped Pro- gram and a review of pertinent testimony. 2. Background In November, 1965, title I of the Elementary and Secondary Edu- cation Act was amended to provide the first Federal support to state agency handicapped programs. It has continued since that 40 40 time, and is now authorized through Chapter 1 of the Educational Consolidation and Improvement Act (ECIA1 which must be reau- thorized this fiscal year. The purpose of this program is to provide Federal assistance to States to help with the education of handicapped children in State operated schools or programs or in programs supported by a State through contract. If a child served with these funds transfers from such a program into a local educational agency program, these funds remain available to use for this child. Such a child is re- ferred to as an LEA transfer. There is no time limit on transfer funds. Once a child is counted az; a Chapter 1 handicapped child, the child may continue to be so counted indefinitely, regardless of where the child is served. In the early years of this program much of the money was used to educate handicapped children in state institutions or schools for the mentally retarded, blind, or deaf. Now the use of funds is more diversified. In addition to the traditional uses of these funds, they are presently used to support preschool programs for the handi- capped, educational programs for multiply-handicapped and low-in- cidence handicapped children, some of whom are served in public schools; and finally, to support handicapped children in public schools who at one time were served in State opera xi or supported programs. As of October 1, 1986, 255,420 children were served with these funds. The appropriation for FY 1987 (which is based on this count) is $150,170,000; the amount of assistance ;enerated per child is esti- mated to range from $445 to $668 (the actual amount is influenced by each State's average per pupil expenditure). The average assist- ance per child is $E88. 3. Testimony Two witnesses made recommendations specifically on the Chap- ter 1 Handicapped Program. On February 10, 1987, Richard Shaat- man, Director of Special Education, Franklin NW Supervisory Unien, Swanton, Vermont, testified in St. Johnsbury, Vermont before a joint hearing of the Senate Subcommittee on Education, Arts and the Humanities ,.:nd the House Subcommittt. e on Elemen- tary, Secondary, and Vocational Education. On March 5, 1987, Marc Hull, Chief, Special Education Unit, Vermont Department of Education, testified in Washngton, D.C. before the House Subcom- mittee on Elementary, Secondary, and Vocational Educat ,n. Both witnesses gave several examples of how Chapter 1 Hanc.',capped funds . -e being used to maintain and expand opportunities for handicapped children in regulL.. ducational environments, and in the case of Dr. Hull, examples of how such funds are being used to provide supported employment experiences for handicapped youth in Vermont. Each witness gave recommendations related ti ,..authorization of the Chapter 1 Handicapped Program. Dr. Shaatman endorsed the continuation of the LEA transfer provision, increased monitoring of the peograin at the State level, and the adoption of a State plan for these funds. Dr. Hull urged simplincation of application procedures, making reporting requirements consistent with those for Part B of EHA, 41 clarification of fiscal requirements, updating evaluation require- ments, and shifting administration of the Chapter 1 Handicapped Program to he State office which administers Part B of EHA (if such is not the case). 4. Amendments to the Chapter 1 Hzndicapped Program The amendments to the Chapter 1 Handicapped Program of the Education Consolidation and Improvement Act are contained in sections 1221 through 1226 of H.R. 5, the School Improvement Act. These sections are an intact replacement for sections 146 and 147 in Chapter 1 of ECIA. Through these amendments program re- quirements are clarified, simplified, and made to correspond to re- porting requirements of Part B of EHA. These amendments do not alter the funding formula for the Mapter 1 Handicapped Program. They maintain the rights and protections guaranteed to children participating in this program by Part B of EHA, and generally, update the legislative language to correspond to current practice and recent amendments to EHA. a. Section 1221. Amount and eligibility.This section has 4 main purposes: (a) to designate the SEA as the State agency that is eligi- ble to receive a grant under the Chapter 1 Handicapped Program; (b) to describe the assurances and requirements that must be speci- fied in the SEA's application for Chapter 1 Handicapped funds; (c) to delineate the funding formula; and (d) to specify the conditions for counting children transferring from a State to a local program. In dispensing Chapter 1 Handicapped funds the Department of Education awards such funds to the SEA which then allocates the funds to various State agencies which operate or support programs and schools for handicapped children. These agencies, including the SEA, on the basis of approved applications for projects allocate the funds to such schools and programs; and to LEAs which have Chap- ter 1 Handicapped Program children who formerly were in such schools and programs (LEA transfers). The SEA is to distribute these funds on the basis of the Child Count for December 1 of the previous fiscal year. Section 1221(b) of H.R. 5 delineates 8 assurances and 1 program requirement which must be included in the SEA application for Chapter 1 Handicapped funds. These requirements are additions to current law. The 8 assurances are contained in section 1221(bXl) which specifies that in the application the SEA must give assur- ances that: (1) All grant recipients within the State shall comply with Part B and if appropriate Part H of EHA; (2) the SEA shall monitor com- pliance with Parts B and H of EHA; (3) program and projects funded with Chapter 1 Handicapped funds shall be coordinated with those funded under 'TIA; (4) for fiscal year 1991 and thereaf- ter the Chapter 1 Handicapped Program shall be administered by the same State Office responsible for administering Part B of EHA; (5) the SEA shall re t annually the number of children served under the Chapter 1 .A ndicap pe d Program for each disability and age category as described in section 616(bX1) of Part B of EHA; (6) the SEA shall report such children by educational placements de- scribed in section 618(b)(2' reporting separately for children served in (1) State operated, (2) btate supported, and (3) LEA transfer pro- 42 grams; (7) the SEA shall report annually on the uses of funds and the allocations of such funds to various purposes; and (8) other in- formation the Secretary may request. By the provisions in section 1221(bX1) the Committee wishes to emphasize three points: Children served under this program are entitled to all the rights and protections of children served under Part B, and if appropriate Part H, of EHA. The Committee expects the SEA to monitor to ensure that such children are receiving these rights and protections. The Committee intends that reporting requirements, services and by fiscal year 1991, the administration of this program, are consistent with those for Part B of EHA. This section also adds a new requirement (section 1221(bX2)) mandating that in the application the SEA ". . . set forth policies, procedures and guidelines for transferring children from State op- erated or supported institutions and programs and from separate schools and programs operated or supported by local educational agencies into regular educational environments operated by a local education agency." Such policies, procedures, and guidelines must be consistent with Part B of EHA and the regulations pertaining to the least restrictive environment provisions of Part B of EHA. The Committee expects the state to describe such policies, procedures, and guidelines for transferring children in its application for fund- ing under this program. This requirement does not change but sup- ports current law. For example, under section 612 (5) of EHA the State is required to establish: . . . procedures to assure that, to the miximum extent ap- propriate, handicapped children, including children in public or private institutions or other care facilities, are educated with children who are not handicapped, and that special classes, separate schools, or other removal of handi- capped children from the regular educate al environment occurs only when the nature or severity of the handi- capped is such that education in regular classes with the use of supplementary aids and services cannot be achieved satisfactorily. . . . The Committee wishes to emphasize that by this amendment it does not expect or intend additions to or modifications of current regulations. Moreover, the Committee wishes to indicate that this amendment does not imply any quota for transfers of children, al- though the articul `,ion of such policies, procedures, and guidelines should provide some momentum for dealing with the issue of handicapped children in segregated settings. The Committee ex- pects that such policies, procedures, and guidelines should include the following principles: that placement decisions related to handi- capped children should be made on an individual basis, and if the parents and school personnel agree, then such a placement is deemed appropriate. The provisions in section 1221(c), relating to the funding formula, are a restatement of current law with two exceptions: the child count date is changed from October 1 to December And the refer- ence to "children in average daily attendance" is changed to "chil- dren enrolled". This latter change is a reflection of current prac- tice. The former change is made so that the child count for this 43 program will correspond to that of Part B of EHA. The Committee wishes to clarify that December 1 of the immediately preceding year is the date the Department of Education should use when computing Chapter 1 allotments for the States. This dale will allow a timely disbursement of such lands and effective program plan- ning for the ensuing year. The provisions is section 1221(d) are a restatement of current 1 aw.b. Section 12fl. Prcgram requirements. This section gives pro- gram guidance to the SEA. It reaffirms the need to comply with Parts B and H c: EriA, as well as subpart 2 of Part F' of this bill. It clarifies fiscal and evaluation requirements. It simplifies applica- tion requirements for some LEAs, those with 5 or fewer Chapter 1 Handicapped Program transfers and those that intend to spend Chapter 1 Handicapped funds for a single purpose. Section 1222(a) directs the SEA to use funds from this program for projects and programs which supplement the special education- al needs of handicapped ch"dren and early intervention services for handicapped infants, and , do this in a manner consistent with Part B, and if appropriate Part H, of EHA. The Committee wishes to clarify the applicability of Part H of EHA. Part H of the Education of the Handicapped Act is a discre- tionary grant program to encourage and meat States establish comprehensive, coordinated, multidisciplinary early intervention services for handicapped infants and toddlers from birth through age 2. It was added to EHA in 1986. States which choose to partici- pate in this program are not require 1 to fully comply with the rights, protections, and services provisions until the fifth year of participation. (The requirements for participation in this program vary during years 1 through 4 of six.: participation.) Compliance with Part H by programs s'3rving handicapped chil- dren between birth through 2 years, inclusive, counted for reim- bursement under this subpart applies only at the time when Part H requirements are fully in effect in a State. Such time will vary from State to State. Until that time is reached in qich Str.te, handicapped children between bi-th through 2 years inclusive, who ere served with Chapter 1 Han6ic.Ipped Program funds, are entitled to the rights and pr' -tions under Part B of EHA. Section 1222(b) specificall iii ; that these funds be uses to supplement the provision 1 ,.lucation and related set, .es for handicapped chldren ( intervention: sew vices for handi- capped infants. It is the Cc' ee's intent that if a State has a mandate to serve a tai. Lain agy group of children, then Chapter 1 Handicapped Program funds may be used only to supplement the provision of services to such children. The test for compliance with this provision is the foliowi.,crif the Chapter 1 Handicapped Pro- gram funds were not available such children would still be receiv- ing an appropriate education. With section 1222(c) it is the Committee's intent that Chapter 1 Handicapped Program funds rni--1 not' .sed for any part of a pro- gram, project, activity or service whit. was funded with State or local funds the previous year unless the Secretar:; of Education grants a waiver. 44 With the provisions in sectiGns 1222 (b) and (c), the Committee clarifies key fiscal requirements associated with this program. Such requirements are complementary to the mandate to provide handi- capped children with a free appropriate public education as delin- eated in Part B (P.L. 94-142) of the Education of the Handicapped Act, allow flexibility in the area of initiating new or expanded ac- tivities, and reflect reasonable limitations with the "previous year" criterion. Section 1222(d) requires that recipients of funds under this pro- gram collect and maintain information about their programs and projects that demonstrate that the children served benefited. The Committee expects that the methods and plans used to collect and maintain such evaluation information shall be influenced by the purpose(s) and size of the project, and therefore, view it as inappro- priate to establish specific, inflexible evaluation requirements to be followed by all recipients of Chapter 1 Handicapped Program funds within the State. For example, it would be inappropriate to evalu- ate the level of mathematical achievement in severely handicapped students if the purpose of the _project was to teach self-help skills. Section 1222(e) allows the SEA at its discretion to grant an LEA which is serving children transferred from a State operated or sup- ported program, to submit to the SEA a letter of request for Chap ter 1 Handicappedirrozram funds instead of an application, under two conditions: if the LEA is serving 5 or fewer transfer children or intends to use these funds for a single purpose. In such a letter an LEA must also give an assurance that these Chapter 1 funds will be used to supplement the provision of special education and relat- ed services to the targeted children. The Committee intends for this provision to serve two purposes. First, by leaving the option of a letter to State discretion, the provi- sion will not undermine State efforts to encourage collaboration and cooperative projects among LEAs with limited number of eligi- ble children. Second, the Committee hopes that LEAs which viewed the application process as onerous will be given an incentive to participate by the letter option, ana decide to request funds if con- ditions allow it. The Committee hopes that this change will lead to increased use of the LEA transfer provision, whereappropriate. c. Section 1223. Uses of funds.This section is an addition to cur- rent law. The Committee believes that this addition will provide useful guidance to fund recipients. This section delineates examples of acceptable uses of Chapter 1 Handicapped Program funds. The eleven examples are representa- tive, but are not exhaustive. The examples were drawn from three sources(1) SEAs, (.) professional and advocacy organizations, and (3) programs, schoo.s, and projects which have shared information with the Committee. They reflect innovation, creativity, a commit- ment to the Epplementary nature of the support, and an interest in expanding opportunities for handicapped children to participate with their nonhandicapped peers in a wide range of activities. The Committee anticipates that in the future Chapter 1 Handi- capped Program funds will be used to an increasing degree to foster new mid expanded opportunities for handicapped children to participate with their nonhandicapped peers in a wide variety of educational settings and experiences. Such funds have historically 45 45 been used to stretch and expand local and State capacity to im- prove the quality of educational opportunities for targeted chil- dren. The suggested uses of funds in this section reaffirms this precedent, and could contribute to improvements in the develop- ment of individualized education programs, personnel and parent training uses of educational technologies, such as new behavior intervention strategies, new learning techniques and curricula; and informing parents about educational placement alternatives and working with parents to select appropriate placements for their children. The specific eAamples in section 1223 include the following: (1) services provided in early intervention, preschool, elementary, sec- ondary, and transition programs; (2) the acquisition of equipment and instructional materials; (3) employment of special personnel; (4) the training and employment of education aides; (5) training in the use and provision of assistive devices; (6) the training of teach- ers and other personnel; (7) training of parents of handicapped in- fants, children, and youth; (8) training of nonhandicapped children to participate with handicapped children in joint activities; (9) training of employers and independent living personnel involved in assisting in the transition of handicapped children from school to the world of work and independent living; (10) outreach activities to identify and involve handicapped infants and children and their families more fully in a wide range of educational and recreational activities in their communities; (11) planning for such programs and projects assisted by Chapter 1 Handicapped funds. d. Section 1224. Applications.This section delineates the provi- sions related to within-State applications for Chapter 1 Handi- capped Programs funds. It is an addition to current law. The sec- tion addresses general requirements, assurances to be included in within-State applications, and program information to be included in within-State applications. Section 1224(a) addresses general requirements. A State agency or local educational agency must have an application approved by the SEA on file with the SEA. Such application for assistance may be for no more than a period of 3 years. It must describe the serv- ices, programs, and projects to be conducted with Chapter 1 Handi- capped funds. Section 1224(b) specifies 3 assurances that mu.t be included in a within-State application. The 3 assurances are: an assurance that the applicant shall comply with Part B, and if appropriate Part H, EHA; an assurance that the applicant will conduct services, pro- g,..ams, and projects of sufficient size, scope, and quality to provide a demonstrable benefit to the children served; and an assurance t comply with reporting requirements in a timely manner. Section 1224(c) lists program information which must be included in the application: the number of children served; the ages and handicapped conditions of the children served; and a description of the purpose(s) of the project and the method(s) of judging the effec- tiveness of the services, project, or program; specification of the services to be provided with Chapter 1 Handicapped Program funds; other i1 formation the Secretary of Education may request. It should be noted that section 1221 sets forth the SEA require- ments for initial receipt of Chapter 1 Handicapped Program finds. 4 6 46 This section 1224 sets forth application requirements for within- State disbursement. The Committee considers it to be helpful to de- lineate reasonable application requirements for within-State appli- cations, and to distinguish such applications from the SEA applica- tion for the initial recent of program funds. e. Section 1225. Eligible children.This section is a clarification ?.urrent law. Children who are eligible for services assisted thi ugh the Chapter 1 Handicapped Program are handicapped chil- dren from birth through 21 years of age for whom the State is le- gally responsible for providing education, who are participating in a State operated or State supported school or program for handi- capped children, or who previously participated in such a program or school and are now being educated by local educational agencies. Other handicapped children may participate if children described in the previous sentence have been fully served. The Committee intends that when a State is legally responsible for providing education to a child and the State delegates direct re- sponsibility of a child's educational program to a local educational agency for administrative purposes, the State may count that child for the purposes of reimbursement under the Chapter 1 Handi- capped Program. For example, when a State is legally responsible for providing education to a child, and the State places the child away from his or her home community and delegates direct responsibility for a child's educational program to the local educational agency for ad- ministrative purposes, the child may be counted for the purposes of reimbursement under the Chapter 1 Handicapped Program. The Committee wishes to clarify that the determination of whether a State is legally responsible for providing education to a child in a State operated or State supported program is not affected by the amount of financial support that a State contributes to a child's education whether that financial support assists in the payment of administrative or educational costs. 1 Section 1226. General Accounting Office study.This section di- rects GAO to study the implementation of the Chapter 1 Handi- capped Program and to study its relationship to Parts B and Ti of EHA, to reporting to appropriate Congressional Committee. on its findings by January 30, 1989. The Committee is interested in many issues, including but not limited to, the following: a comparison of various educational place- ments under EHA and the Chapter 1 Handicapped Program, espe- cially on the tendency to use segregated settings; the extent of uni- formity in the administration of the program by the Department of Education and the consistency in guidance from the Department to program participants; an assessment of whether or not funds gen- erated by Chapter 1 Handicapped Program children are being used to assist with their education in a manner consistent with program provisions; and an evaluation of whether these provisions, particu- larly the LEA transfer provision, are being implemented in a manner consistent with the intent of Congress. 4 7 47 E. Chapter 1 Neglected and Dehnquent Program 1. Background Since the enactment of P.L. 89-750 in 1966, the Title I/Chapter 1 legislation has authorized grants to State agencies for the educa- tion of neglected and delinquent children. This program involves only those neglected and delinquent children and youth for whose education State agencies are responsible. Such children for whom education is provided by local educational agencies are included both in terms of b-ing counted in the allocation formula and eligi- bility for Chapter 1 servicesin the Chapter 1 LEA basic grant program. Those served under the State agency program include children and youth residing in State-supported orphanages or simi- lar institutions for neglected children, detention centers for juve- nile delinquents, andif under age 2Iin adult correctional facili- ties. As with other Chapter 1 programs, the State agency program for the neglected and delinquent is intended to provide supplemen- tary educational services to this very disadvantaged group of pupils. The program currently serves about 60,000 students, approxi- mately 74% of those eligible, according to data from State reports. Of these students, about 33,000 are in juvenile delinquent facilities, about 23,000 are in adult correctioi 11 facilities, and 3,800 are in in- stitutions for the neglected. In 1983-84, 588 facilities received Chapter 1 funds. The typical participant is a male in his mid to late teens, who has dropped out of school and has a low-achievement level. Most participants receive basic skills instruction, with some funding also supporting vocational education and guidance services. The neglected and delinquent population continues to suffer from extreme educational need and is all too often "neglected" as well in the distribution of State and local resources. A study of the Chapter 1 State neglected and delinquent program conducted by the Systems Development Corporation (SDC) found a high degree of educational disadvantage among virtually all youths in a repre- sentative sample of institutions. An overview of recent research on this program by Policy Studies Associates found that in adult con rk ctional facilities, 46% of the inmates had one to three years of high school and 25% had less than a ninth grade education. Ac- cording to a GAO study, nearly half of these institutionalized youth could be classified as handicapped, as well as educationally disad- vantaged. The wide dispersion of youth among different types of institu- tions, the high rate of student turnover, the social needs of the pop- ulation, and the limited resources devoted to their education from other sources contribute to their educational problems. Most such students continue to fall further behind in grade level equivalency, and many never complete school. For participating students, the level of educational services pro- vided by Chapter 1 neglected and delinquent programs is relatively limited, largely due to funding constraints. According to the SDC report, the average period of institutionalization was six months, during which a typical Title I/Chapter 1 pupil would be scheduled for three hours of reading and 2.5 hours of mathematics instruction 48 48 per week. Title I/Chapter 1 provided about one-third of the total educational funding for this population. Even with the limited funds end instructional time, program ad- ministrators reported several positive program effects, sach as greater Lophasis on basic skills, regular needs assessments, and in- dividualized instruction. The Committee bill contains several amendments designed to im- prove services to this very needy population. 2. Funding H.R. 5 continues the provision requiring the State neglected and delinquent program to be fully funded "off the top" of the Chapter 1 appropriation. This provision is intended to emphasize the need for increases in Chapter 1 neglected and delinquent appropriations. Although a cap on the funding of State agency programs enacted as part of the 1981 Omnibus Budget Reconciliation Act was lifted after fiscal year 1984, the Appropriations Committees have contin- ued to freeze funding for this program. In fact, appropriations for the neglected and delinquent program have remained virtually the samehovering around $30 millionsince 1977. Thus, the program has suffered a tremendous loss in purchasing power during the past decade. Even without inflationary adjustments, the program's current funding of $32.6 million is below the 1981 level of $34 mil- lion. 3. Eligible Institutions The Committee bill makes clarifications in the types of programs eligible for ) "glected and delinquent funds. Amendments make clear that if the State is responsible for providing free public edu- cation for children in neglected and delinquent institutions or adult correctional institutions, programs for those children can be funded under this Chapter 1 SEA program. This includes situations where the SEA is responsible but is not providing the services di- rectly, such as where services are provided under contract with a LEA or other entity or by other arrangement with a State agency. These programs may also cover students who were placed voluntar- ily rather than by court order. H.R. 5 also specifies that children attending community day pro- grams for neglected and delinquent children are eligible. 4. Supplement, Not Supplant The bill retains the provision requiring the Chapter 1 neglected and delinquent services to be supplementary to those provided with State a.nd local funds, but contains a special interpretation of how this provision is to apply to State and neglected and delinquent programs. Both a GAO study and the aforementioned SDC study noted that program adniinistrators commonly criticized what they deemed to be inappropriate or unnecessarily rigid interpretations of the arti- supplanting provision in a setting where virtually all youth are educationally disadvantaged and have a wide variety of serious educational, health, and social service needs. Consequently, the Committee bill clarifies that neglected and de- linquent programs which are supplementary in terms of the total 49 49 number of hours of instruction students are receiving from State and local sources shall be considered in compliance with the anti- supplanting provision without regard to the subject areas in which instruction is given. 5. Evaluation As noted earlier with regard to migrant students, it is diffict.lt to assess the effectiveness of neglected and delinquent programs purely in terms of educational achievement, let alone to evaluate whether achievement gains are sustained. Given the program's high pupil turnover, short learning exposure time, the students rel- atively short stays in the institutions, large educational deficits to overcome, lack of institutional commitment to educational (as op- posed to disciplinary or custodial) goals, and lack of funding, large achievement gains may be unrealistic. Thus, while maintaining a requirement for annual eaulation, the bill adds several other fac- tors that may be considered in neglected and delinquent program evaluations, including students' ability to maintain achievement credit and to make the transition to a regular, LEA program. It also makes inapplicable the requirement for evaluating whether achievement gains are sustained. 6'. Transition Services H.R. 5 also seeks to improve the transition of neglected --id de- linquent students to regular classroom programs. This goal is very important, since a Departmental study found that 90% of school- age ex-inmates failed to complete a semester of school following their release. Progress made under Chapter 1 can be quickly negat- ed if there is inadequate or non-existent follow-up. Both the SDC and GAO studies were critical of a lack of transi- tion services for those released from institutions for the neglected and delinquent. A special, separate authorization of 5% of the ag- gregate neglected and delinquent appropriation, to be used by the Secretary for transition services, was created in the Education Amendments of 1978 (P.L. 95-561); however, funds have been ap- propriated for the transition services program only in fiscal years 1981 and 1982. The Committee bill revises this provision to allow SEAs to pro- vide transition services with up to 10% of their State grants. This will bypass the need for a separate appropriation, which is unlikely to be provided. In addition, the Chapter 1 LEA program is amended to facilitate transition services for neglected and delinquent children. Such chil- dren who participate in the SEA program in the previous two years are to be considered eligible for Chapter 1 LEA services. 7. Handicapped Neglected and Delinquent Children The bill requires that records of neglected and delinquent stu- dents transferred among State and local educational agencies shall include the individualized Aducation program of students who have them. It also provides that neglected and &Unguent children under the State program who are also eligible for the Chapter 1 State handi- 5 0 50 capped program may be counted under both programs for formula purposes and may be served under both programs. CHAPTER 2-FEDERAL, STATE AND LOCAL PARTNERSHIP FOR EDUCATIONAL :NNOVATION A. Background The passage of an educational block grant as part of P.L. 97-35 in tho 1st Session of the 97th Congress constituted a major change in the Federal role in elementary and secondary education. Effec- tive with the 1982-83 school year, 20 fiscal year 1981 appropria- tions and over 40 authorizations were consolidated into a single block grant to State and local education agencies (LEAs), Chapter 2 of the Education Consolidation and Improvement Act of 1981. Under this new law, funds are distributed to States on the basis of their school-age population, with at least 80 percent being passed through to LEAs by State-developed formulas. Educational agen- cies are allowed to use their funds for any of the over 30 approved activities. Most of these allowable uses of Chapter 2 funds derived from the purposes of the antecedent programs The provisions of Chapter 2 are grouped under three program subchaptersbasic skills development, educational improvement, and support services. State and local education agencies are allowed the maximum degree of flexibility in choosing how their grants would be used within these categories. Chapter 2 has thus become a Federal source of funds to meet locally identified educational needs and pri- orities. In field hearings held around the country and hearings in Wash- ington, DC, the Education and Labor Committee heard strong en- dorsements from parer ts, students, teachers and administrators for continuation of the Chapter 2 program. Specifically, witnesses con- sistently requested that Congress retain the flexibility that current- ly exist in Chapter 2. Without question, Chapter 2 is broadly supported. Studies of the program and State reports submitted to the Committee make clear that the program has enabled school districts to strengthen their instructional programs in ways they could not have done without this supportpurchasing essential instructional materials and equipment, enhancing the quality of school libraries, providing staff development and cu-riculum development, funding support services, initiating innovative projer,ts. However, the Committee has also taken note of several studies and other new evidence sug- gesting how the programs can be improved. Without restricting the flexibility that has maet. r"!--rater L so popular, the Committee bill takes into ac "ount the following new evidence related to Chapter 2. First, some studies have been critical of Chapter 2's "unfocused" nature. The Committee did not wish to retarget Chapter 2 on a few specific areas, as has Len proposed from some quarters. The Com- mittee's response has been to make Chapter 2 a better vehicle for school improvement by recasting the uses of funds in general terms, but with an identifiable theme of improving quality and pro- moting innovation. These changes are in keeping with the national reports that urge the Federal government to take a leadership role in school excellence and reform. 51 51 Second, the Committee has sought to get the best available infor- mation on the uses of the Chapter 2 State set-aside funds. Accord- ing to a summary of State reports prepared by the Department of Education, States use the State Chapter 2 set-aside for a variety of purposes, including administration of the program itself, technical assistance to LEAs, professional development and curriculum de- velopment, basic State management functions, supporting Str' school improvement programs and many others. In order to examine more closely the State uses of State Chapter 2 funds, Chairman Hawkins, Congressman Goodling, and Congress- man Obey had requested the General Accounting Office to examine the question of what proportion of State Chapter 2 funds was being used to support State educational agency administrative functions. According to their report issued in May, 1986, "GAO was unable to estimate the amount of block grant finds used for administration due to the absence of standardized definitions of administration and the different manner in which the two states accounted for their funds. To obtain consistent information on the amount of block grant funds used for state administrative activities, the Fed- eral government would have to define administrative costs and re- quire states to report information consistent with that definition." GAO also noted that the block grant is used to fund salaries of some State education employees and a variety of State activities re- lated to State programs and functions. Rather than unduly reduce the amount of money States could retain or strictly limit the uses of State set-aside funds, the Committee bill attempts to define and limit administrative costs, clarify State uses while leaving them flexible, and reserve at least one-quarter of the State set-aside for effective schools programs as discussed in the next paragraph. Third, related to this interest in focusing Chapter 2 on program inprovement and providing guidance on State uses of funds, the Committee has decided on Chapter 2 as the most appropriate source of Federal encouragement for the "effective schools' con- cept. The Committee has for the past few years been exploring ways to promote Federal support for more effective schools, first by holding several hearings on the issue and later by shepherding through the House in the 99th Congress an effective schools bill, H.R. 4463. A body of research has validated that some schools, including those in poor areas and with disadvantaged students, have been highly successful in improving student achievement. This "effective schools" research has also found that certain characteristics are shared by these schools and can be replicated in other schools. These characteristics include: strong leadership at the school level; high ..xpectationt that no child will fall below minimum levels of achievement; an orderly school atmosphere conducive to learning and teaching; students' acquisition of basic and higher order skills taking precedence over all other school activity; and frequent and consistent evaluation of student progress. In addressing the nationwide school reform agenda, some 35 States have mandated school improvement programs. Although very precise numbers are not available, there is evidence that a substantial number of these State school improvement mandates utilize the effective schools research framework and that 15 to 25 52 States have specific programs on effective schools. Testimony before the Subcommittee on Elementary, Secondary and Vocational Education indicates that according to a 1985 National Institute of Education report, 7,500 schools in 1,750 school districts had effec- tive schools. The actual total may be much higher because many schools have informally adopted effective schools policies and be- cause many more programs have been started since 1985. The Department of Education has also recognized the validity of the effective schools concept by including a discussion of it in the 1986 report, What Works. To date, an impressive number of state- wide effective schools programs, and local school district effective schools programs are experiencing reasonable to outstanding progress. The effective schools techniques hold great promise for improving education in many other areas where they have not been tried. This is true for secondary school improvement as well as for elementary schools. With States and school districts that have not yet tried these pro- grams, effective schools efforts could expand appreciably over the next few years. Frequently, the concepts have remained untried be- cause school officials are unfamiliar with the programs or the evi- dence, because the leadership needed to initiate programs is lack- ing, or because school districts do not have the technical expertise or start up funding. Congress can provide the leadership to encour- age this type of educational reform on a national level. A Federal program, implemented in a coordinated way through the States, can provide the funding, the technical assistance, and the national attention needed to make effective schools programs available to all schools that could benefit ftom them. A modest amount of Fed- eral seed money could go a long way in promoting a national effec- tive schools effort. The Committee views the new Chapter 2 part- nership for educational innovation as the most appropriate vehicle for this effort. With these views in mind, on March 25, 1987, Congressman Goodling and Chairman Hawkins intrc 1.uced H.R. 17.35, the Part- nership for Educational Innovation Act. This legislation would re- authorize Chapter 2 through 1993. At Subcommittee markup of H.R. 5, the omnibus reauthorization bill was amended by adding H.R. 1795 as Chapter 2. B. Explanation of Chapter 2 of H.R. 5 Section 1501. The Committee affirms the success of Chapter 2 in meeting its original goals of providing State and local education agencies Federal funds with a maximum degree of flexibility and minimum amount of paper work. The Committee feels that, in most cases, State and local agencies can best determine what are the priorities within a given State or school district. It is the intent of Congress that these funds be used by such agencies to try new and promising approaches to improving educational opportunities. After such programs or projects are implemented and tested for their effectiveness, State or local agencies should provide for their continuing support, allowing Chapter 2 funds to be utilized for fur- ther innovation and improvement activities. This statement, along with several other provisions of the bill, places a greater emphasis than current law on using Chapter 2 53 funds for program improvement. This will help the Federal Gov- ernment become a better partner io the educational reforms under- way at present. Section 1511. Chapter 2 is authorized at $580 million dollars for fiscal year 1988, and such sums through 1993. Currently, such sums are authorized for FY 87, but the actual appropriation for this year is $529 million. Section 1512. Allotments of Chapter 2 funds to individual States is unchanged from current law. However, the reservation of funds for the outlying areas has been reduced, at the request of the De- partment of Education, from a guaranteed one percent to not more than one percent. According to the Department, the Compacts of Free Association being negotiated as part of the arrangements toward independence of the Trust Territory of the Pacific will mean that fewer territorial entities will be participating in Chapter 2 and that less funding may be needed. Section 1513. H.R. 5 continues current law by allowing a State to reserve up to 20 percent of its grant for State programs, with a minimum of 80 percent of the funds passing through to the local level. Funds are distributed to the local level in a fashion similar to current law, based on adjusted relative enrollments of both public and private nonprofit school children. H.R. 5 does clarify the provisions in current law regarding the adjustment of local allocations ((aX3XA)). First, the State shall make such adjustments only for those local agencies whic'i have thP greatest numbers or percentages of high cost children. The Committee does not intend that all school districts with any such numbers of students receive increased allocations. Se,ond, the Committee has clarified that only two criterianumbem or per- centages of (1) children from low-income families or (2) children living in sparsely populated areasare to be used to make determi- nations of adjusted allocations. Third, the Secretary shall approve a State distribution formula only after having determined that its adjusted allocations properly meet the requirements of this Section. Fourth, this Section specifies that within a local education agency, both public and private schools must receive adjusted allo- cations proportional to their Jnrollm ent of such high cost students. The bill specifically requires that additional funds generated by greater numbers or percentages of high-cost students as defined in the bill may be used by local educational agencies only for expendi- tures for children in public and private schools in direct proportion to the number of such children enrolled in such schools within the local educational agency. In other words, the public and private schools with the children who generated the adjusted, "high cost" allocations should receive their proportionate share of those dol- lars, and schools without such children should not receive such ad- justed allocations. While the Committee is aware that the Chapter 2 block grant is not poverty-based in its approach to providing educational services to children, it is clear that services to children who are at risk are apt to cost more per pupil. Having singled out children from low- income families and those living in sparsely populated areas as "high-cost" children generating higher allocations on the formula, the Committee does intend that the practice of "averaging out" the 54 costs between high-cost children .,nd non-hie cost children will cease. For example, the Committee finds that when a school (either public or private) having 100 students, receives Chapter 2 funded services equally distributed based on total enrollments, or "aver- aged out" to cost approximately $11 per child, that school receives a total of $1,100 in services. But when a school (private or public), having 100 students, two of whom a- high-cost children, and 98 of whom are non-high-cost children, receives $32 ($16 each) for tv o high-cost students actually enrolled, and $588 ($6 each) for the 98 regular children enrolled, that say I would receive a total of $620--$480 less than when costs are "averaged out". This new provision in law is not intended to deprive any school, public or private, from receiving adequate Chapter 2 allocations to serve the children enrolled, but is ir tended to assure that the stat- ute is adhered to by requiring that higher per pupil allocations ac- tually follow the high-cost clAdren who generate the funds in the first place. This should enable the Chapter 2 program funds to reach more children in mon hoots serving the greater numbers of at-risk children while, at the same time, confirming to serve all eligible children. The, provisions fo- adjusted aLocations should also help lessen the ineycities that a recent Office of Technology Assessment report found exist between poor schools and more ad- vantaged schor's in terms of access to instructional technology (a frequent use of Chapter 2 funds). Section 1521. 5.'.thte application procedures have largely been car- ried over from current law, including the ec tablishment of the ad- visory committee. Applications are for a period r_ot to exceed three years. Section 1522. State uses of funds under Chapter 2 have changed under H.R. 5 when compared to current law. State funds can be used for administration of the Chapter 2 program, assistance to local education agencies to achieve the purposes of this Chapter, and effective schools programs. No more than 25 percent of such funds may be used for administration of the Chapter 2 grant and not less than 25 percent may be used for effective schools pro- grams. Permitting State education agencies to retain up to 20 percent of each State's Chapter 2 alloc%tion recognizes that States have a role not only in administering tli, program, but also in providing educa- tional leadership and building the capacity of local edufmtion agen- cies to achieve the purposes of this Chapter. With th3 funds not used for administrative pu poses, States may provide technical as- sistance to local education agencies (including training and person- nel developm-nt, curriculum development and improvement, re- search and ( monstrations, evaluation and dissemination); direct grants to local education agencies; and statewide activities which assist local education agencies in meeting the purposes outlined in Section 1532. Section 1531. The Committee encourages local education agencies receiving relatively small grant uncle, this Chapter to form ccn- sortia with other local education agencies in order to make the best use of funds. The local application otherwise remains similar to current law. Local education agencies are provided complete discre- 55 tion in determining how funds are to be used within the allowable uses of funds outlined in Section 532. Section 1532. The Committee heard in testimony on Chapter 2 that a major strength of the -1---:ogram was its broad flexi' ility to local education agencies. The Committee was also aware of some criticism of the program based on the fact that it did not delineate clearly enough the purposes of Chapter 2. The Committee intended in As Section to continue to proside local and State education agencies a great deal of flexibility in their use of funds while pro- viding a more ra ,ional set of allowable uses of funds than the 30 cited in current law. Thus, the bill substitutes five broad program eas for the long list of activities, based on Chapter 2's antecedent programs, in current law. The five categories set out in this section have considerable over- lap with the three subchapters in current law, but are more de- scriptive of what the program does now and ought to be doing in the future. The five general areas are: programs for at-risk and high-cost children; effect; ve schools programs; instructional and educational materials improvement; personnel enhancement; and special projects. The categories in H.R. 5 were based on recommen- dations of the State Director of Chapter 2 and input from many other interested parties. H.R. 5 lists several examples of particular uses of funds under the "special projects" activity. These include gifted and talented education, programs for youth suicide, technology, education, com- munity schools, and career education. Child abuse is another grow- ing and serious problem which can adversely affect a child's per- formance in school. The Committee encourr ;es local school dis- tricts to consider using their Chapter 2 funds for the development of educational curricula which would help children avoid poter tial- ly abusive situations, and make teachers better aware of children who may have been physically or mentally abused. The Committee also suggests that school districts consider using Chapter 2 funds to adopt programs that have been deemed success- ful by the National Diffusion Network funded under section 1562, or to submit their effective Chapter 2-funded project to the Net- work for possible dissemination. Sections 1541 and 1542. As noted earlier, H.R. 5 requires each State to use not less than 25 percent of its share of Chapter 2 funds to promote, plan, implement, support, evaluate and revise effective schools programs; zo provide assistance to LEAs; and to conduct statewide effective schools activities. In addition, LEAs may use their allocated Chapter 2 funds to carry out innovative programs and projects, among which may be included eiTective schools pro- grams and activities as described and defined in tnese two sections. Effective scliools programs are defined as school-based programs that may begin at the preschool level and continue through second- ary school levels. The objectives of effective schools programs are to: (1) promote a school-le- -1 planning, instructional improvement, and staff development, (2) increase the academic achievement levels of all children and particularly educationally deprived chil- dren, and (3) achieve as ongoing conditions in the school the follow- ing factors identified through effective schools research as distin- guishing effective from ineffective schools: r. u . 56 (A) strong and effective administrative and instructional leadership that creates consensus on instructional goals and or- ganizational capacity for instructional program solving; (B) emphasis on the acquisition of basic and higher order skills; (C) a safe and orderly school environment that allows teach- ers and pupils to focus their energies on academic achieve- ment; (D) a climate of expectation that virtually all children can learn under appropriate conditions; and (E) continuous assessment of students and program to evalu- ate the effects of instruction. The bill allows funds to be used to plan, implement, support, evaluate and revise effective schools programs; and to provide pro- fessional development, offer technical assistance, improve parent and community involvement, support model and demonstration programs, and develop and disseminate materials, as long as all of these activities are related to an effective schools program or are part of such a program that meets the definition in the bill. The activities listed are the means to accomplish the :ends described in the definition. This means that the expenditure must be made as part of a co- ordinated program that addresses, at a minimum, the five effective schools factors included in the definition. Second, when considered together with other resources, the expenditure must be a compo- nent in a unified effective schools program, recognizable as such within an individual school building, except that in cases where a new program within a school building is being started up, a gradu- al phase-in of all five fectors is allowable as long as all five factors are built into the goals of the program from the start and as long as the plan calls for a total unified effective schools programs by its completion. This concept of changing Vie "climate" of an individual school so that it is conducive to teaching and learning lies at the heart of the effective schools research. Third, the effective schools program should be a primary focus of the expenditure, rather thp-i an incidental outcome of another State purpose, such as general State educational refori 1. It should be noted that effective schools programs need not be ex- pensive to implement. Often, it is a matter of putting to better 1-..se the resources that already exist within the school building. A modest amount of new money can ,upport the assessments, train- ing, and other activities needed to make key changes within the school building. Section 1551. The Committee intends to continue the fiscal provi- sions of the current Chapter 2 program in LIR. 5. Section 1552. One of the strengths of the Chapte 2 program has been the equitable participation of children enrolled in private schools. The provisions for this participation are continued in H.R. 5 without change. Section 1553. One of the shortcomings of Lhe current Chapter 2 program has been the lack of descriptive and evaluative informa- tion on how funds are being used. The GAO, in another report on block grant data collection, found Chapter 2 to have less data on fiscal mathrs, program impact, and use of funds than neatly any 57 other Federal block grant program. This section strengthens al- ready existing provisions, without creating excessive requirements, to provide for a comprehensive eval, ation of Chapter 2. At a mini- mum, the Committee expects to find in the report from the Secre- tary: how funds are being spent, and what are the edP,ational ef- fects of such programs and projects. The Secretary is e ouraged to develop model reporting standards, with the assistance of persons involved in the operation of the program at the State and local level, which could then be adopted by local and State education agencies to assist in the aggregation of such data. Seci:ons 1561 through 156" The Committee intends to continue those programs currently funded through the Secretary's Discre- tionary Fund in Chapt, 2. Part B, National Programs and Activi- ties, will receive the same 6 percent set aside of the total Chapter 2 funds as the discretionary fun(' does in current law. The order of funding is also maintained from current law. The only exception to this is the elimination of the authorization for programs in drug abuse education. This specific program is now redundant with pro- visions of the drug abuse prevention act passed in the 99th Con- gress. Section 1562, authorizing activities of the National Diffusion Net- work (NDN), was amended by the Committee in order to clarify which activities are authorized The Committee has found that the National Diffusion Network is an extremely important and success- ful dissemination program. One of its major strengths is the re- quirement that all programs approved for dissemination be validat- ed as effective. Since 1974 the National Diffusion Network has had unparalleled success in making the nation's educators aware of the availability of a wide variety of exemplary alternatives that im- prove school and cla. ,room practice, the effect of which has been to make the NDN one of the most effective Federally-supported edu- cation initiatives. It is appropriate that the National Diffusion Net- work's principal focus for the decade ahead be assuring and sus- taining high quality assistance to schools implementing exemplary and effective practices that constitute significant changes for schools and classrooms. The legislation to which this report is appended specifically uses the terms "implementation", "implementing," and "ongoing imple- mentation assistance" to describe processes that will assure that National Diffusion Network efforts have an impact on the improve- ment of the nation's schools. Further this legislation directs the Secretary to "ensure that a substantial percentage of the innovations disseminated represent significant changes in practices for schools and teachers." Such a programmatic priority will insure that the National Diffusion Net- work deepens its maturation beyond awareness of available innova- tive projects and first-level training of teachers toward a system that significantly and positively impacts the substantive improve- ment of the nation's schools. The Secretary shall evaluate (or review the evaluation of) the ef- fectiveness of proposed exemplary school improvement projects ac- cording to objective, evaluation criteria relating to student, class- room, and/or school-wide achievement. These criteria have been appropriately developed, modified, and utilized by the Secretary's -.1 1....:i . 58 Joint Dissemination Review (or Program Effectiveness) Panel throughout the past decade. Selection of projects based upon their content, or "program significance", shall remain the decision of local schools, not the Federal government. The Secretary shall not review, screen, select, or assess projects teased on their content (e.g., attempt to ascertain what is an appro- priate or an inappropriate reading instructional model or the proper biology text), but rather, shall allow local schools and their governing bodies to make all ch determinations about dissemi- nated projects after the projects successes have been validated (i.e., through an objective examination of evaluative assessment of achievement) by the Secretary's Joint Dissemination Review (or Program Effectiveness) Panel. The Secretary shall ske yearly or multiple-year funding awards to exemplary projects (Developer Demonstrators) based upon the projects ongoing effectivei-.ess and the continued demand for adoption/adaptation/implementation of the program by local schools throughout the nation. No arbitrary number of veras of Na- tional Diffusion Network funding for Developer Demonstrators shall be presc-ibed. The Secretary shall assure that National Diffusion Network faci- litators be State-based (State Facilitators), not regionally based. The Secretary may p ovide incentives to State Facilitators so as to assure additional, priority adoptions/adaptations/implementations of Developer Demonstrator programs in public, private, parochial, and/or other non-public schools. While the Secretary shall utiF'e 95% of monies allocated for the National Diffusion Network, uant to the above language, for the purposes of funding State -7acilitator and Developer Demon- strator projects and the technical assistance services that support them, additional National Diffusion Network supportup to five percent of allocated NDN moniesmay go for the funding of exper- imental "dissemination processes" efforts on a pilot basis. Funds authorized for the National Diffusion Network are not to be used for any purpose other than those clearly outlined in the legislation. The Secretary shall spend 95% of all monies so allocat- ed to the National Diffusion Network (NDN) solely for the purposes of funding traditionally defined NDN programs, specifically(1) ex- emplary school improvement projects (Developer Demonstrators), (2) state-level brokers acting as liaisons (State Facilitators) between local school with needs and national, exemplary projects, and (3) the necessary technical assistance services that inn:sport the Devel- ope- Demcnstrators and the State Facilitators. The Secretary shall not utilize monies, as directed unri...r this Section for the funding of National Diffusion Network programs, for the so-called Secretary's School Recognition Program or any other "excellence rec .,gnition effort" not specifically part of the traditionally defined NDN pro- gram, i.e., Developer Demonstrators, State Facilitators, and techni- cal assistance services to these projects. While 't is acknowledged that the Secretary's School Recognition Program has been of benefit, it is incumbent upon the Secretary to either utilise Discretionary Fund monies unallocated by Congress for any other specific purpose, such as for the National Diffusion Network, to support such Department-created efforts, or to seek 59 59 specific Congressional authorizatAon and appropriations for such ef- forts. The Education Department has, in recent years, made of funds directed for the finding of National Diffusion Network projects for its School Recognition Program and "other excellence recognition efforts." The Committee has adopted this amendment so that this practice shall cease, pursuant with the above direc- tives. Section 150 also reauthorizes the Secretary's Discretionary Fun The Secretary is authorized to carry out programs and projects which further the purposes of this Chapter at a national level. This could include a program recognizing exemplary schools. The Secretary is urged to use funds available under this section to address educational needs which are in need of urgent attention and in which a national focus is appropriate. Since the effective schools concept has engendered enormous aca- demic discussion, and since the so-called "first generation" re- search continues to be assessed for certain weaknesses, a "second generation" research effort is now underway. This legislation pays attention to the necessity for such additional research, particularly on how such programs affect studnets. Recognizing the need for creditable program evaluation, to ascer- tain the level of success and progress in effective schools programs, Section 1566 calls for a national study of effective schools pro- grams, to "consider relevant measures of the impact of the effec- tive schools programs, including student achievement, attitudes, and graduation rates". TITLE I, SUBTITLE B-MISCELLANEOUS PROVISIONS An amendment to the bill requires the Secretary to conduct a study of school reform efforts. This study will examine the impact of recent State and local reforms in elementary and secondary edu- cation: Student achievement as it corresponds to other nations; The number of high school dropouts and graduates; The amount of State funding for education in States with reform programs; Enrollment in academic, vocational, and general courses at the secondary level; and Achievement of students with special needs. The amendment authorizes $1 million for this study and requires a report by July 1,1989. The Committee has also included in this subtitle a provision urging the establishment of an Office of Comprehensive School Health Education within the Office of the Secretary. In the Health Education Act of 1978 (P.L. 95-561) Congress directed the then Commissioner of Education to coordinate school health education programs with the Public Health Service and the Surgeon General. In response, an Office of Comprehensive School Health Education was established. The office was abolished in 1981. The Committee is concerned that since that time, coordination of school health educa- tion programs carried on by a variety of Federai agencies has not been systematic. Therefore, the Committee feels it is essential to U0 60 encourage the re-establishment of the Office of Comprehensive School Health Education by statute. TITLE II-CRITICAL SKILLS IMPROVEMENT A. Background and Need Title II of H.R. 5 reauthorizes Title II of the Education for Eco- nomic Security Act (P.L. 98-377), commonly known as the "mathe- matics and science education program." Congress created this pro- gram in 1984 as a response to widespread concerns over the quality of mathematics and science education in this Nation, concerns best summarized in this excerpt from the report of the National Science Board's Commission on Pre-College Education in Mathematics, Sci- ence and Technology: The Nation that dramatically and boldly led the world into the age of technology is failing to provide its own chil- dren with the intellectual tools needed for the 21st centu- ry. The National Science Board's words are nearly as true today. The Title II program, now in its third year of being funded at a level much lower than originally envisioned, has made inroads: tens of thousands of teachers have upgraded their skills under this program. But the status of mathematics and science education is still critical: shortages of properly certified teachers still exist, teachers are still out of touch with new developments in the fields, students are still achieving below their international peers, student enrollment in advanced courses is still declining, and too many pro- grams still lack needed math and science equipment. Fcr example, testimony from the Subcommittee's hearin- on the Title II program indicated that as regards teacher shortages and teacher training, "Very serious problems remain. and many are be- coming worse," in the words of Mr. LeRoy Lee, President of the National Science Teachers Association (NSTA). A 1985-1986 NSTA survey found that some 7,000 high schools of- fered no physics last year, 4,000 offered no chemistry, and 2,000 did not even offer biology. About 17,000 high schools offered no earth or space science. These problems can be traced directly to the lack of qualified teachers. Almost one third of all high school students are being taught science or math by teachers who are not qualified; these are otherwise well qualified science or math teachers who are teaching in their second or third field. Another survey conducted by Ms. Iris Weiss for NSTA found that 75% of the grade 7-5 science teachers in the United States failed to meet NSTA's standards of certification in their subject matter preparation. Also, some 50,000 elementary school teachers had never had a college course in science. Teachers are also in need of up-to-date information on new scien- tific and mathematical developments and on pedagogical tech- niques. A survey of State Title II directors showed that over 200,000 math teachers and 319,000 science teachers need further inserv!te training. The aforementioned Weiss survey revealed that half the high school science teachers and three-fourths of elementa- 61 61 ry teachers have had less than six hours of inservice training in science within the last year. Another dimension of the need for this program is the decline in student achievement in these critical subjects and in the numbers .: students taking advanced courses, especially as these statistics compare with our international competitors. Data recently released from the Second International Mathematics Study (SIMS) and other international comparisons have once again questioned our Nation's ability to compete. The outcomes from these studies indi- cate that our average and below-average students have consider- ably less contact with topics in geometry, measurement and data analysis in their school mathematics programs than their interna- tional peers. The National Research Council has recently published statistics which disclose that: The mathematics achievement of the top 5% of th..! 12th grade studentsalmost all of whom are enrolled in similar college-bound curricula in all cour_triesis lower in the United States than in other industrialized nations. The av- eragE 12t1. grade mathematics student in Japan outper- forms 95% of comparable U.S. 12th graders. U.S. 8th graders are at about the international average in rote computation, but are well below international norms I-1 solving problems that require higher order think- ing skills. Indeed, as the "back-to-basics' movement has flourished in the last 15 years, U.S. students' ability to think (rather than just to memorize) has declined accord- ingly. In 5th grade, the highest average mathematics achieve- ment in typical U.S. schools is below the average scores fc similar schools in China and Japan Only one of the top 100 fifth grade students in these stua.as was an American. In science, there are similar problems. Only one-third of the stu- dents in grades 10 through 12 take any science course at all. The National Assessment of Educational Progress found consistent de- clines in the scientific knowledge of 9, 13, and 17 year olds between 1969 and 1982. The Department of Education's analysis of the Title II needs as- iessrnents also reveals a shortage of science and math instructional ejuipment. One-third of the States involved in the analysis report- ed inadequate math materials at the high school level and 57% re- ported inadequate math materials at the elementary level. For sci- ence materials, inadequacies ranged from 51% at the high school level to 69% in elementary schools. All of these pi oblems are combining to produce a generation of scientifically and technically illiterate citizens and threatening our economic competitiveness and national security. It is, therefore, most urgent that Title II be reauthorized at an adequate level of funding. B. Provisions of the Bill H.R. 5 continues the Title II program as a State grant program but makes some noteworthy changes to respond to criticisms of the 62 program's current focus and administrative structure. The legisla- tive format of H.R. 5 recreates the program as Title 11 of the School Improvement Act and repeals Title II of the Education for Econom- ic Security Act. All the eviden...e from State reports and Department of Educa- tion summaries indicates that the Title 11 funds have been used well and have produced good results. A State survey conducted by the Title II coordinators shows that 82,000 math teachers and 77,000 science teachers have received services; the program, through teacher training and other means, has affected the in- struction of 3.3 million students in math and 3.2 million students in science. These are impressive results, especially considering the very low level of funding for this program. Originally, the program was authorized at $350 million. Howev- er, actual appropriations have stayed far below t::- level and have actually declined during the program's three-year life, from $100 million in FY 1985, to $43 million in FY 1986, and up slightly to $80 million in FY 1987. In a 1986 reauthorization of the Act, the authorization was again set at $350 million, where it currently re- mains. These disappointing appropriation levels, when distributed under the formula in the bill, resulted in some school districts receiving very small grants. The problem was further complicated by the fact that under current law, the structure of the funding allocation is complex to the point of diminishing return. The allocation formula, is currently constructed in the following way: Nine percent is retained by the Secretary of Education for discre- tionary grants to national priority activities. The remaining 90 per- cent is allocated to the States through formula grants based on each State's share of the Nation's school-age population (5-17), with each State receiving a minimum grant. Of the funds received by the State, 70 percent is to be administered by the SEA, and 30 per - ce-it is to be administered by the State Agenc for Higher Educa- tio (SAHE) through discretionary grants to institutions of higher education. Of the 70 percent of the State's allocation administered by the SEA for elementary and secondary programs, 70 percent (of the 70 percent) is distributed to LEAs in the State. Cf these funds, 50 per- cent is distributed on the basis of each LEA's share of the State's public and private elementary and secondary school enrollment, and 50 percent on the basis of each LEA's share of the State's total number of children counted for the purposes of allocating funds under Chapter 1 of the Education Consolidation and Improvement Act of 1981. In addition, the funds can currently be used for math, science, foreign language and computer instructional purposes. This may have the effect of further diluting the focus on math and science. The current law also contains certain restrictions on an LEA's use of funds. These restrictions give teacher training first priority and put percentage caps on certain other uses. Another problem with the current program as noted in testimo- ny, is the requirement for State and local needs assessments; devel- oping these assessments has been complicated and time-consuming A3 63 and may be unnecessary when sufficient studies exist to document the problems and needs. H.R. 5 addresses these problems by making several significant changes in the program. First, H.R. 5 raises the authorization to $400 million for FY 1988 and such sums as necessary for the five succeeding fiscal years. This will reaffirm the Committee's belief that these programs are a high national priority. Second, the bill streamlines the allocation formula and directs a greater proportion of funds to the local level, where the direct serv- ices are provided. Under H.R. 5, as reported, nearly 75% of pro- gram funds will be given to the LEAs. Six percent of the funds are reserved or grants for the territories; for Indian programs in BIA schools, contract schools, and other schools; and for national activi- ties; the remainder will be distributed to States on the basis of a formula that is based 50% on enrollment and 50% on the Chapter 1 poverty formula. Twenty percent of State grant funds under the new Title will be reserved for use at the State level, as compared with approximately 50% under current law. Those funds are to be divided equally be- tween the State Education Agency (SEA) and the State Agency for Higher Education (SAHE) for the conouct of statewide activities. The remaining funds are to be distributed to LEAs on the basis of a 50% enrollment/50% Chapter 1 formula. The Committee recognizes the role played by the SEAs, SAHEs, and postsecondary institutions in the development and evaluation of new teaching techniques and for pre-service training. While the Committee recognizes the importance of this component, it is our intention that tire focus of Title II be on programs conducted at the elementary and secondary level, with a special emphasis on it -serv- ice training for teachers who are teaching out of their major field. The Committee believes this provid s the most efficient and ration- al approach because it will help to revitalize the skills of talented teachers that are already in the schools. The Committee also directs the SEAS and the SAHEs (or their equivalent) to coordinate their activities and to apply their exper- tise to the development of programs which will have an immediate impact on the improvement of science and mathematics instruction on the elementary and secondary level. Toward this end, the legis- lation requires the SEA to develop the State application in consul- tation with the SAHE and to describe how the SEA and SAHE pro- gram components will be coordinated. To further target the money on the delivery of services, the legis- lation restricts the amount for funds for State administration to 5% of the total State grant. The SEA, which must develop the ap- plication and administer the LEA formula grant program, is to re- ceive 4% for administration and the SAHE, one percent. TI-ird, the bill addresses the problem of LEAs receiving small al- lotments by requiring that in any case where the distribution of funds will result in an LEA receiving lf ss than $3,000, the LEA must apply as part of a consortium with other districts, institutions of higher education, or intermediate educational units. Otherwise, the SEA elaall arrange such a consortium to serve the teachers and students in that LEA. If the LEA rejects that option, its allotment 1 :4 64 will be reallocated to other LEAs. There is a waiver of this provi- sion for LEAs in rural and sparsely populated areas, where arrang- ing such consortia could present logistical difficulties. Fourth, the problem of diluted funds for math and science is fur- ther addressed by provisions deleting foreign languages and com- puter learning from the authorized activities. While the Committee continues to believe that these areas are of utmost importance, there are new programs in H.R. 3, the trade legislation, that focus specifically on foreign language improvement and technology edu- cation, and the Committee felt it was preferable not to duplicate those efforts in this program, especially when funds for math and science education have been so limited. Fifth, the bill eliminates the State and local needs assessments, which have proved to be a burdensome part of current law, and in- stead requires the State and local applications to project teacher supply and demand and assess curriculum and other needs. Sixth, H.R. 5 deletes the restrictions on local uses of funds NIA the priority system for teacher training. Many of these restrictions were aimed at ensuring excessive amounts were not spent on com- puter learning programs, equipment or foreign languages and are therefore not necessary under the current structure. Instead, the bill lists uses of State and local funds which are all tied to math and science, which emphasize teacher training, but which address more comprehensively than current law the full range of math and science instructional needs. Thus, the statewide activities include teacher training activities; evaluation and improving State licensing and certifkation of math and science teachers; curriculum evaluation, development and mod- ernization; and grants to teachers for innovative projects to im- prove instruction in their classrooms. The legislation encourages local districts to focus funds on tetyli- er training and retraining programs; recruiting women, minority, economically disadvantaged and other promising students to enter math and science careers; encourage partnerships involving public, private and non-profit agencies and other activities that have a high potential for improving student preparation in science and mathematics. At the State and local level, the Committee bill retains the cur- rent empha'is on using the resources of the community, including museums, libraries, educational television, professional associa- tions, and other appropriate public and private nonprofit agencies. The bill continues the requirements in current law for serving pri- vate school children and teachers. Seventh, the bill addresses the Congressional concern over the lack of good, national data on this program. This problem has ham- pered the Congress' ability to make ft iding decisions in particular. Consequently, the bill requires the Secretary to develop model re- porting standards so that data will be nationally comparable and requires the Secretary to present to Congress an annual summary of evalti..ions. Finally, H.R. 5 reauthorizes the Title III partnership program of the Education for Economic Security Act at a level of $10 mi!lion for FY 1988 and such sums for the five succeeding fiscal years. This is lower than the current authorization of $50 million for this pro- f5 65 gram that encourages partnerships between the business, higher education and elementary and secondary education communities; however, the program has not yet received any appropriations, so the lcwer author:zation is more realistic. TITLE III-MAGNET SCHOOLS A. Background The Magnet Schools Assistance program (Title VII of the Educa- tion for Economic Security Act, P.L. 98-377) supports specific ac- tivities in magnet schools operated in desegregating school dis- tricts. Magnet schools have distinctive curricular features that are intended to attract students of different races. The program has two statutory objectives: (1) To assist local educational agencies in the elimination, re- duction, or prevention of minority group isolation in schools with substantial portions of minority students; and (2) To support, through aid to local educational agencies, pro- grams that strengthen academic and vocational education skills of students attending magnet schools. A magnet school is defined as a school or education center pro- viding a special curriculum intended to be attractive to substantial numbers of students of different races. To be eligible for assistance, a local school district must meet one of three conditions: (1) It lost $1 million or more as a result of the repeal of the Emergency School Aid Act on October 1, 1982 (a predecessor program to encourage desegregation which was put in the Chapter 2 block grant in 1981); (2) It is implementing a desegregation plan under court order or order of a State agency or official; or (3) It has voluntarily implemented, or would if funded, a de- segregation plan approved under title VI of the Civil Rights Act of 1964 (P.L. 88-352). The Secretary of Education distributes magnet school assistance competitively to eligibie local districts as project grants. The Secre- tary gives "special consideration" to the recentness of the approved desegregation plan, the extent to which minority group children a: e involved in the plan, the need for assistance, and the prospects for attaining program objectives. Funds may be used for expenses related to the following facets of a magnet school: (1) Planning and promotional activities related to expansion and enhancement of academic programs; k.-:) Acquisition of books, materials, and inbtructional equip- ment, including computers; and (3) Compensation of certified and licensed teachers. For items (2) and (3) aboNe, expenses must be related to improv- ing math, science, history, English, foreign language, art, music or vocational skills. Certain limitations are placed on the grants. Funds may not be used for consultants, transportation, or any at.`!-rity not enhancing academic improvement. Additional grants to a district are depend- ent upon the district making satisfactory progress toward meeting n G C rl 72-850 87 - 3 66 the objectives of the program. Also, no more than ten percent of any giant can be spent on planning. States are prohibited from re- ducing State aid to a district because of its receipt of assistance under this program A district's allocation under chapter 2 (Educa- tion Consolidation and Improvement Act of 1981, P.L. 97-35) cannot be reduced as a consequence of the receipt of Magnet Schools Assistance. In addition, an eligible -,chool district must certify in its applica- tion for -assistance that it will not discriminate on the basis of race, religion, color or national origin in: (1) The hiring and treatment of employees; (2) The assignment of students to schools or courses, except under an approved desegregation plan; and (3) Extracurricular activities. The magnet schools program has been funded at levels of $75 million for fiscal y ear 1985, $72 million for FY 1986, and $75 mil- lion for FY 1987. The current authorization is $75 million. Approxi- mately 44 school districts have received funds each year. B. Provisions of H.R. 5 H.R. 5 makes several minor changes in the program and or e more significant change. The most important change is to raise the authorization ceiling to $115 million for FY 1988 and such sums fcr the five following years, to enable more projects to be funded. The Committee intends that grants made under this title may be used by eligible local educational agencies for the operation of their magnet programs, as well as for the expansion and enhancement of these programs. As originally enacted, the Education for Economic Security Act of 1984 included a statement of purpose which includ- ed assistance for the establishment and operation of magnet schools. Recognizing the enormous expense that is commensurate with establishing and maintaining a magnet school program, the Committee intends that grant funds may be used for program oper- ation. It is the intent of the Committee that the Secretary shall not award funds under this title strictly on the basis of whether an ap- plicant received an award in a prior funding cycle. This section should clarify that while multi-year awards under the Act are not prohibited, the Secretary may not automatically make awards to the same applicants for repeated funding cycles. The section en- sures that the Secretary" carefully review all grant applications at the end of each funding cycle. The Committee intends that only 15% of grant funds may remain available for expenditure for the following fiscal year, except in situations where grants had not been awarded in a timely manner. This section encourages local educational agencies to spend grant funds within the year, so that monies are made avail- able for services to students within a short period of time. Howev- er, the section clarifies that local educational agencies receiving late allocations are not subject to this 15% limitation. It is the intent of the Committee that the Secretary may not reduce the amount of a grant in the second year by the amount carried over by the local educational agency from the first year. This section prohibits situations that have arisen in the past where f7 67 the Secretary has arbitrarily reduced second-yea. grants by the amount of the first-year grant carryover. TITLE 1 -THE GIFTED AND TALENTED CHILYREN AND YOUTH ACT A. Summary Title IV, the Jacob K. Javits Gifted and Talented Children and Youth Educatic.4. Act, seeks to ensure that the best and brightest of our Nation's students are adequately, effectively, and more specifi- cally served by our educational system. This amendment to H.R. 5, the School Improvement Act, authorizes $25 million for fiscal year 1988 and such sums as necessary for the five succeeding fiscal years. Funds under this part may be used for grants to State and local educational agencies, institutions of higher education, and other public and private agencies and organizations to support pro- grams which identify and meet the special educational needs of gifted and talented students. With this very modest funding, the Committee envisions a Feder- al "capacity building" effort to strengthen our national ability to identify and educate our gifted ana talented children. This amend- ment provides the tools for this capacity building by stimulating re- search, training personnel tc serve gifted students, and providing a national focal point for information and technical assistance. Funds under this bill will establish model programs in gifted and talented education, provide preservice and inservice training to teaching preessionals, offer technical assistance and information dissemination, and support a National Center for Research and De- velopment in the Education of Gifted and Talented Children. The Secretary of Education, who is charged with administering the program and selecting the grantees through a competitive proc- ess, must give priority to those programs which will identify and serve gifted and talented children who may be overlooked by tradi- tional assessment methods, including the economically disadvan- taged, the 'imited English-proficient, and individuals with handi- caps, among others, and those programs which will aevelop the ca- pabilities of schools in an entire State or region, thus serving a larger population of gifted and talented students. The amendment also requires the Secretary to designate a unit within the Der irt- ment of Education to administer this program and service as a na- tional clearinghouse for information and provide national leader- ship to this program. B. Need for the Amendment Our nation is now grappling with ways to become, and remain, "competitive." America is searching for the means to compete internationally, expand our economy, and strengthen our scientific and technological edge. Yet it is ironic that in our current quest for excellence, we are neglecting a vital and precious resource that holds the key to our nation's future, and our ability to retain our pre-eminence in all areas. Bat that is precisely what we are doing with our gifted and talented youth. America's estimated 5 million gifted and talented students those who give evidence of high performance capability in intellec- tual, artistic, creative, leadership, or specific academic areashave 68 the potential to make outstanding contributions in every aspect of Ju r Nation's economic, social, cultural, and intellectual life. How- ever, these children often face special barriers to quality education, barriers that are often overlooked. Many gifted and talented children remain unidentified, and thus lack the specific instruction needed .0 develop and utilize their full potential. In fact, according to the Marland Report, one out of every five gifted children drops out of school. They re very often bored by school progr_ns that offer no challengi., or may even withdraw and be labeled as "trouble makers." As many as one mil- lion of this Nation's brightest and most promising students are high school drop outs. Those gifted students who stay in school may still face special problems. Many teachers simply assign gifted students more work, or in t Oh the completion of tasks and assignments at a faster rate. Other educators assume these students will make it without special assistance and concentrate their ,caching efforts on other students. Both approaches widely miss the mark and gifted stu- dents drift unattended through the education system and never re- alize their full potential. In fact, a National Commission on Ex- cellence in Education noted in A Nation at Risk, "Over half the population of gifted students do not match their tested ability with comparable achievement in achool." The Council for Exceptional Children reported to the SuL..ommittee that apprcximately 50 per- 'ent of gifted students are working at least four grades below their potential. Gifted and talented programs now in existence serve only one million children, approximately 20 percent of those eligible for this instruction. Yet more disturbing is the quality of these p grams. A study by the Richardson Foundation of Texas found at less than half of these programs were substantial, with the ave p pro- gram providing two to three hours enrichment per week 'ILA no modifications in the cHd's regular school program. A sur-ey by the Council of Stat..? D:-ectors of Programs for the Gifted found that 36 States req. ire no certification or special coursework for teachers of gifted and talented children. Another recent study determined that only 20 percent of cua.ent teachers of gifted and talented programming have tt skills necessary to de- velop a curricu'um for these students. Twitty-eight States have no mandated gifted programs. Of those that do, vei., little of the State money is used for research, training, or evaluation. Prior to the enactment in 1981 of Chapter 2 of the Education Consolidation and Improvement Act, the Federal government sup- ported gifted and talented Aucation through a categorical program authorized by Title IX of the Elementary and Secondary Relocation Act. Re-cstablishing gifted and talented education as a nalt,nal program through H.R. 5 is consistent with the original intern anc! purpose of this program. During the few years this program was funded as a categorical program, it provided several benefits. The most important result of a separate national program for gifted and talented children was the respott ie in kind from the States and localities. With guidance and leadership from the Federal government in this area, there was tremendous growth in gifted and talented education. There are P9 69 now 56 full-time gifted and talented consultants employed by State education agencies, and in many cases, these employees are a direct result of Federal encouragement through the Title IX ESEA program. Similarly, many of the 22 States that now have mandated gifted programs began them concurrently with their participation in the Federal program. However, the promise demonstrated by a national program for gifted education was not fulfilled because the program was discon- tinued with enactment of Chapter 2. The Chapter 2 "block grant" program provides funds for gifted and talented education, and 29 other progranis. Discretion is granted to local educational agencies, with respect to the use of these funes. Undi r this, zonsolidation, gifted and talented programming is suffering from neglect. A recent evaluation of Chapter 2 by SRI International found that only 20 percent of school ,istricts receiving Chaptrn. 2 used tiny funds for gifted and talented education. Another study concluded that those districts using Chapter 2 funds for gifted programs spent an average of only $1,000 on this special education. C. A Federal Role Strengthening the Federal role in gifted and talented eencation would accomplish several goals. First, it represents a renewed com- mitment to addressing the needs of these students, a commitment that has languished in recent years as States and localities have lacked leadership, guidance, and reso.,.ces in this area. This role was advocated by the National Commission on Excellence in Edu- cation which recommended: "The Federal government, in coopera- tion with States and localities, should help meet the needs of key groups of students sue is gifted and talented." Secondly, a Federal program would make existing efforts more effective through coordination, research, and evaluation. A modest Federal funding effort would have a muliplier effect, as State and local programs would 1.,enefit from technical assistance, research findirgs, and model programs. FinCly, a national effort would be a wise investment in the future of this nation. it could het- build a reservoir of intellectual and creative talent that would asbare the grow" 1 and fulfillment of individuals, and of our entire nation. Simply sted, now more than ever, our society needs the contributions of gifted and talented stu- dents. This amendment recognizes the importance of identifying and developing these abilities during a child's formative years, so tl_eir full potential for contributing to the national interest will not be lost. D. Purpose of the Amendment This amendment authorizes a limited but essential Federal role in identifying and meeting the special educational needs of gifted and talented children. This purpose is in concurence with the aim of H.R. 5, to improve the quality of education for all citizens by more effectively and more specifi_ally meeting their special needs. In this case, the role of the Federal government will be that of ca- pacity bailding: stimulating research, training personnel, funding and disseminating model programs, and providing technical assist- ance. These progrms are also intended to supplement and ::nprove 7 0 , 70 the effectiveness of existing State and local programs and of funds expended for gifteu children under the two other Federal pro- grams, the Chapter 2 education block grant and the Education for Economic Security Act math and science program. For this purpose, the amendment authorizes $25 million for fiscal year 1988, and such sums as may be necessary for the five succeed- ing fiscal years. V-DRUG-FREE SCHOOLS AND COMMUNITIES ACT OF 1986 A. Summary H.R. 5 extends thro1.6% fiscal year 1993 the Drug-Free Schools and Communities Act. H.R. 5 is authorized to be appropriated at $200,000,000 for fiscal year 1987, $250,000,000 for 1988, and "such sums as necessary" for 1989, 1990, 1991, 1992, and 1993. Section 4122H.R. 5 amends the "State Program" section to in- clude a youth suicide prevention program to be added to the other listed programs where the states pass funds through to local gov- ernments and other public and private nonprofit entities for drug abuse education and prevention activities. Section 4123(b)the "State Application" section is amended to include e description of how, where feasible, the alcohol and drug abuse programs will be coordinated with youth suicide pr ;ention programs funded by the federal government, state and local gov- ernments, and nongovernmental agencies and organizations. A de- scription of this coordination must be included in applications sub- mitted by States. Section 4132In the section on 'Pectoral Activities" a study of the relationship between drug zind alcohol abuse and youth suicide is also required in connection with the provisions of current law which already requires that the Secretary of Education in conjunc- tion with the Secretary of Health and Human Services conduct a study of existing programs of drug abuse education and prevention. B. Committee Intent The Committee believes that suicide among teenagers is one of the most serious social problems that eenagers experience. Suicide is a leading cause of death among persons between the ages of ff- .- -n and twenty-fcur, second only to traffic fatalities. The number youths taking their lives has increased greatly in the last few decades. There have recently been instances of highly publicized teenage suicides, publicity which has tended to set off a "wave" of further suicides among impressionable, troubled teenagers. Since a relationship betweca drug abuse and youth suicide has been well established, it is appropriate to incorporate suicide prevention pro- grams within drug prevention programs. The Committee further believes that troubled youth who toke their lives often showed warning s'gns of ...artier drug use. The Drug-Free School and Communities Act of 1986 is necessary in order to provide for a continuous progi ession of programs which arr essential components of a comprehensive strategy to reduce the demand for and use of drugs throughout the Nation. The use If drugs and the abuse of alcohol by students constitute a grave 71 71 threat to their physical and mental well-being and significantly impede the k arning process. TITLE VI, PART A-WOMEN'S EDUCATIONAL EQUITY ACT A. Background The Women's Educational Equity Act (WEEA), Title IX-C of the Elementary and Secondary Education Act, was first authorized by the Education Amendments of 1974, P.L. 93-380, and was first funded in FY 1976. The statuto_., purpose of the WEEA program is to promote educational equity for women and girls in the United States and to provide financial assistance to help educational agen- cies and institutions meet the nondiscrimination requirements of Title IX of the Education Amendments of 1972, P.L. 92-318. The WEEA program provides discretionary grants and contracts to public agencies, private nonprofit organizations, and individuals for women's educational equity projects that are of national, state- wide, or other general significance. Among other things, the Act authorizes curricular and textbook development related to women's educational equity, model personnel training programs, guidance and counseling activities, and educational equity research. The WEEA program supports work. not only in elementary, secondary, and higher education, but also in preschool, vocational, and adult education. The Women's Educational Equity Act authorizes two types of dis- cretionary grants and contracts. The first is a discretionary grant program to develop, demonstrate, and disseminate information on women's educational equity programs, materials, and activities of national, State, or general significance. The Department of Educa- tion must attempt to avoid supporting previously funded ideas. The second discretionary grant program assists projects of loc.-1 signifi- cance, including support for programs to achie7re compliance with the nondiscrimination provisions under Title IX. This latter pro- gram has never been implemented because the authorizing legisla- tion stipulates that the Department can provide financial assist- ance to projects of local significance only when annual appropria- tions for the WEEA program exceed $6 million, which has not hap- pened since the enactment of the 1984 amendments. If annual ap- propriations exceed $6 million, the WEEA program can also pay part of the costs of establishing and operating, for up to two years, projects that are of nati ,nal, statewide, or other general signifi- cance that provide equal opportunities for both sexes. The need r WEEA remains great. It is the only Federal funding source to su,,port equity projects at all levels of education and to help educational agencies implement the Federal anti-discrimina- tion mandate to Title IX. Confusion in the aftermath of the Grove City College v. Bell Supreme Court ruling on Title IX makes the WEEA program an even more important component of Federal equity legislation. The WEEA program is cost-effective. WEEA only funds projects of national or regional significance that can be used in schools, col- leges, and community-based programs thrGughout the country. The products are published and sold at cost; thus, even a school district 72 far removed frc.n a particular WEEA project benefits from the ma- terials developed with WEEA support. In the first nine months of 1986, the WEEA publishing center sold more than $123,000 in WEEA productsmore than in any pre- vious year. B. Provisions of H.R. 5 H.R. 5 continues the program in its current form, with just two changes. First, the authorization level is raised from its current level of $14 million for FY 1987 to a level of $20 million for FY 1988 and such sums as necessary for the five succeeding fiscal years. The Committee supports this authorization as a minimum level of Federal c-rnmitment to improve the quality of education for women and gi.ls at all levels of education. The original authoriza- tion for the program when it was enacted in 1974 was $30 million, so the Act has not yet fulfilled its original intent. Raising the cap would also ensure that the $6 million trigge in the law for local programs to implement equity activities in specific schools or col- leges could be attained. The second change r -1m current law requires that the program be administered through the Office of Educational Research and Improvement (OERI) within the Department of Education. In 1983, the WEEA program, which used to be a separate office, was place 1, as part of a departmental reorganization, several layers deep within the Office cf Elementary and Secondary Education. Because the WEEA program deals with all levels of education, from pre- school to higher education, and because it supports demonstration programs of national and regional significance, it more apprrri- ately belongs in OERI. The Committee notes that a high demand for WEEA products exists despite the fact that Department of Education restrictions have curtailed the publication of new materials. Only two new product- :rave been published in the last two years, although dozens have been develred. The Committee bill maintains the re- quirement in law that WEEA prcgrams and materials be dissemi- nated nationwide and urges the Department to abide by this re- quirement. It is a waste of Federal funds to develop products that are vithheld from their intended audience: school personnel, stu- dent and parents. TITLE VI, PART B- ELLENDER FELLOWSHIPS A Background The El lender Fellowship program was authorized as a memorial to the late Senator Allen J. El lender of Louisiana. The legislation authorizes grants only to the Close-Up Foundation, a Washington, D.C. -bred organization, the purpose of which is to increase under- standing of Federal governmental processes among secondary-level students and teachers. The Foundation's primary activities are: conducting week-long seminars on American government in Wash- ington, D.C., for high school students and teachers; providing tech- nical assistance to State and local programs of education about gov- ernment; anci producing instructional television programs. 73 3 The Close-Up Foundation receives funds from a variety of public and private sources. Federal appropriations for El lender Fellow- ships are used specifically to provide assistance to economically dis- advantaged high school students, and their teachers, in meeting the costs of attending the Washington, D.C. seminars. According to the Department of Education, approximately ene- quarter of the participants in these seminars i eceive Ellender Fellowships, and for those recipients, the Ellender Fellowships pay approximately one-third of transportation and other participation costs. The re- mainder of the serf inar costs for Ellender Fellowship recipients are paid from public and private matching funds, generated in the lo- unities wherein tLe students and teachers live. The legislation re- quires that Fellowships be provided to participants from rural, small town, and urban areas. Funding for the program first declined and then increasrd during the years since FY 1980. Currently, the program receives an appropriation of $1.7 million. The number of fellowships actually awarded was approximately 1,500 for each of fiscal years 1973-1976. The participation rose gradually, to a level of approximately 2,000 per ye,..-, in the period of FY 1977-83. However, beginning in FY 1983, participation has mort than doubled, rising to an estimated 5,800 for FY 1986. The reasons for this large increase are a higher appropriation level, a switch from a current to a forward funding schedule (which has ap- parently aided in planning), and greater success by the Foundation in raising local matching funds (requiring fewer Federal funds per participant). The average Federal cost per participant has fallen from approximately $400 in FY 197S to an estimated $281 in FY 1986. While total costs have substantially risen over this period, a higher proportion of them are paid from non-Federal sources. The Ellender program has therefore been successful in catalyzing the donation of non-Federal funds. A review of the Close-Up program's activities was conducted by the Social Science Education Consortium in 1981. The authors of this brief review, based primarily on interviews of participants, concluded that: . . . Close-Up 'ias developed a unique and exemplary ap- proach for providing enriched, intensive instruction about the Federal Government. As a result of their one-week ex- perience, students appear to acquire additional knowledge, to hold more positive attitudes about politics, and to feel more competent to participate in political activities. H.R. 5 reauthorizes the Ellender Fellowships with some small re- visions. B. Changes From Current Law One amendment would continue the authorizing level that is al- ready in current law for fiscal year 1988 for the Ellender Fellow- ship program, a level of $2.5 million, but would authorize such sums as may be necessa, y for the five following years. This will provide an opportunity for the funding to be increased in the ap- propriations process. 74 74 A second amendment would ensure that in granting the El lender Fellowships to economically disadvantaged students, consideration shall be given to students who are handicapped, from recent immi- grant families, and minority students. A final provision would expand the scope of the El lender pro- gram by pei .nitting 5% of the funds to be used for government education programs at the State and local levels and for senior citi- zens. This amendment will allow for pilot projects that broaden the outreach of the Ellender program. TITLE VI, PART C-EMERGENCY IMMIGRANT EDUCATION ACT A. Summary of Legislation H.R. 5 extends the Emergency Immigrant Education Act through Fiscal year 1993. The legislation includes an authorization for appropriations in the amount of $40 million for 1990, and is authorized at "such sums" for 1991, 1992, and 1993. In addition, H.R. 5 was amended to include two reports: (1) A report wherein each state educational agency receiving funds under this title will submit an annual report to the Sec- retary concerning the expenditure of funds. specifying services, number of students served, length of service, and any other such information sought by the Secretary. (2) The Secretary is required to submit an annual report to the House Committee on Education and Labor and the Senate Committee on Labor and Human Resources regarding pro- grams under this title including number and types of individ- uals served, length of service, type of services, and other such information as the appropriate Committees may require. Finally, an amendment was accepted whereby the Comptroller General of the United States will conduct a national assessment of programs under this title will submit a report of the periodic as- sessment to the House Committee on Education and Labor and the Senate Committee on Labor and Human Resources by March 15, 1989, and every third year thereafter for as long as the Act is zu- thorized. B. Background and Need for the Legislation The committee believes that the Federal government should vo- vide financial assistance to local school districts that provide educa- tion and related services for immigrant children. Data from the Immigration and Naturalization Service show that during fiscal years 1983 and 1984, approximately 143,000 and 136,000 immigrant children respectively were admitted to the United States. In addition, the U.S. Census Bureau estimates that on average, 46,000 undocumented, or illegal, immigrant children annual)), enter the United States. California, Illinois, Texas, and New York are States with large immigrant student populations. Subsequent to the reauthorization forum on the Emergency Im- migrant Education Act, several meetings were held by staff mem- bers in an attempt to acquire data and other evaluative informa- tion regarding the Emergency Immigrant Education Act. The Sub- committee found that in terms of attempting to obtain information 75 75 regarding the services and types of individuals served by this Act, the information was not very accurate and was virtually non-exist- ent. In addition, the Committee believes that there is a need for more readily available and accurate information in this area as well as a need for an improvement in the reporting requirements and eval- uation data in order that the Committee will be in a better position to assess the program's effectiveness. Under current law, the De- partment is not requ.red to keep records of expenditures in this program. Section 606(bX3XA) of the ERIE rgency Immigrant Education Act of 1984 reduces State grants provided under this Act by an amount equal to the funds made available under any other Federal law for expenditures within the State for the same purposes as the Emer- gency Immigrant Education Act. It is the intent of the Committee that funds made available for the education of school age children under the Immigration Reform and Control Act of 1986, P.L. 99- 603, shall be includ d in any such category of comparable programs under section 6306(bX3XA) of the Emergent) Immigrant Education Act. TITLE VI, PART 0-TERRITORIAL ASSISTANCE A. Background The "Territories"outlying areas of the United States othe,c than the 50 States, the District of Columbia, or the Commonwealth of Puerto Rico-- rticipate in many Federal education assistance programs, either by being treated as "States," or by having a speci- fied percentage of program appropriations set-aside for them. These areas include Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, ana the former "Trust Territory of the Pacific Islands." Separate legislative provisions authorize the consolidation of most Federal education programs in the outlying areas (P.L. 95- 134), or the waiver for these areas of specific requirements general- ly associated with Federal elementary and secondary education as- sistance programs (section 1n03 of the Elementary ana Secondary Education Act). However, there are two programs that authorize education aid solely for one or more of the outlying areasthe pro- grams of General Aid for the Virgin islands and Territorial Teach- er Training. As the titles imply, these programs authorize general financial assistance for elementary and secondary education in the Virgin Islands, and assistance to both pre - service and in-service ele- mentary ar4 secondary teache training in all of the outlying areas. B. General Aid to Virgin Islands The program of General Aid for the Virgin Isle cls has only one participating grantee. However, the funds have been used for a va- riety of purposes. Among these purposes have been school construc- tion and repair, operation of curriculum development centers, re- moval of asbestos from buildings, remedial education, acquisition of library and instructional materials, initiation of a program of agri- cultural education, educational research and dissemination, and 76 76 purchase of school security systems. Funding has increased from f',',3 million in FY 1980 to $5 million in FY 1987, although the program was frozen at $1.9 million for several of the years in between. This program compensates the Virgin Islands for problems cre- ated by Federal legislation and a U.S. District Court decision. These factors resulted in tremendous increates in the Virgin Is- lands non-resident student population, which the court said the ter- ritorial government must educate. Non-citizen students comprise 13% of the Islands' student enrollment, and the Islands Govern- ment is already committing 33% of its operating budget to support public education. This influx of students has resulted in both educational needs and a need for school facilities. Although the funds for the general assistance program have resulted in construction, renovation and repair of 220 classrooms, the Islands are still suffering from Is_tvere overcrowing in the schools. The major construction and renovation that will be required over the next five years is estimated to cost $38 million. Additional funds are needed for remedial education and for other activities which will bring the Islands' schools up to the level of mainland curriculum. The bill reauthorizes this program at a level of $5 million for FY 1988 (the same as its current authorization) and such sums for the five following years. C. Territorial Teacher Tr-',ning Under the Territorial Teacher Training program, one grant has been made each fiscal year since FY 1980 to each of the five eligi- ble areas (American Samoa, Guam, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and the Virgin Islands). Grants are allocated among the areas in proportion to their school- age population, but with a minimum of 5 percent of the funds to each area. In each year since FY 1980, awroximately 2,000 persons have received either pre-service or in-service teacher training under this program. Funding dropped between FY 1980 and FY 1983 from $2 million to $1 million; currently the level has been re- stored to $2 million. This program has been successful in training several hundred teachers per year, but the need is great. For example, 27% of the teachers in American Samoa and 19% of the teachers in the Virgin Islands remain uncertified. In the Virgin Islands, 496 teachers are lacking baccalaureate degrees or do not meet the most minimum certification standards. The American Samoa population continues to increase, thereby exacerbating teacher shortagcis. Out of Ameri- can Samoa's 768 public school teachers, only 319 were certified as of 1986. H.R. 5 reauthorizes this program at a level of $2 million for FY 1988 (the same as its current authorization) and such sums as nec- essary for the five following years. TITLE VI, PART EEXCELLENCE IN EDUCATION The Excellence in Education Act, enacted in 1984, supports im- provement activities at individual elementary and secondary schools across the country. The Act was proposed largely as a Fed- 7 7 77 eral response to the growing concern over the status of the Na- tion's public education, particularly at the high school level. The purpose of the Act is to provide Federal support for activi- ties in schools that demonstrate techniques for improving educa- tional quality that can be disseminated and replicated among other schools and that involve local parents, principals, teachers, and businesses in their implementation. School districts in each State nominate individual schools, to their chief State school officers. Each of these officers, in turn, nominates 25 schools to the Secretary of Education for his consider- ation. The Secretary can select no more than 500 schools from those nominations forwarded to him for project grants. School dis- tricts are to nominate schools that appear capable of experiment- ing with standards of quality, that represent a fair and equitable distribution :thin State, and that will further the purpose of the Act. The legislation requires the Secretary to give priority to schools proposing to undertake projects with the following purposes: (1) Reform secondary school curriculum to improve achieve- ment in academic and vocational subjects and in basic skills; (2) Limit "excessive" electives and impose stricter graduation requirements; (3) Improve attendance and discipline; (4) Increase learning time; (5) Provide teachers and teams of teachers with incentives, such as financial awards and reduced administrative burdens; (6) Improve achievement through innovative measures, such as independ-nt study; and (7) Create xlels of linkages between schools and their com munities ana -ther schools, to address educati9nal problems (e.g., use non-school personnel to alleviate teacher shortages). The Secretary is to disseminate research and evaluation findings on "exemplary" projects and practices suppord with these funds. In addition, the Secretary is to establish an independent monitor- ing panel to assess the success of the Act in improving instruction and student achievement. The Excellence in Education Act was funded in fiscal years 1985 and 1986, at levels of $5 million and $2.4 million respectively, well below the current authorization of $16 million. The program re- ceived no appropriation in fiscal year 1987. The first awards under the Excellence in Education Act, an- novnced July 11, 1986, went to 60 schools in the Special School award category (approximately $2 million in two-year, 100% Feder- al grants) and to 61 schools in the School Excellence category (ap- proximately $1 million in one-year matching grants). These awards were made with FY 1985 funds. The Committee bill reauthorizes this program, but reduces the authorization level k e more in line with past appropriations. The new authorization level is $5 million for FY 1988 and such sums for Lie five succeeding fiscal years. 78 78 TITLE VII-BILINGUAL EDUCATION IMPROVEMENT ACT A. Summary H.R. 5 extends through fiscal year 1993 the Bilingual Education Act. H.R. 5 also extends the Bilingual Education Act at $246 million for fiscal year 1988 and at "such sums as may be necessary" for fiscal years 1989 to 1993. This level of funding would make possible the enrollment of approximately 363,000 Limited English Proficient (LEP) students in Title VII programs which includes approximately 150,000 more than are currently served. Full funding at the new authorization level nearly doubles support for necessary parent and school personnel training programs. Included in the authorization for appropriations for 1989 is new funding in the amount of $103 million dollars. Of this $103 million, Part A programs would receive at least as much funding as they currently receive in addition to adjustments for inflation. In addition, Part C, Training and Technical Assistance would also receive its fiscal year 1987 funding level plus adjustments for inflation. However, Part C, Training and Technical Assistance, would no longer continue to receive 25% of funding of new appro- priations but would receive not less than 20 percent of newly ap- propriated funding. Part C shall receive the greater amount of these two options. Of any increases in future appropriations, H.R. 5 would also re- serve not less than 70 percent and not more than 75 percent of re- maining funds for special alternative instructional programs for LEP students. Twenty-five percent of the remaining sums from increases in ap- propriations are to be reserved fur programs of developmental and transitional bilingual education. For developmental bilingual edu- cation programs, $1,000,000 would be available for fiscal year 1988, and for each subsequent fiscal year an amount which exceeds by $150,000, the amount for the preceding fiscal year. H.R. 5 also increases the minimum State education agency grant from $50,000 to $75,000 to enable States to carry out more im- proved, required and permissible activities under this Act. B. Need for Legislation In school year 1980-81, there were 565 bilingual education pro- grams serving 350,000 students. This number decreased during the school year 1983-84 with a participation of about 180,000 limited English proficient children. During this same period, appropria- tions for the bilingual education program reached a high of $167 million in fiscal year 1980. The figure of $167 million in 1980 in- cluded $2 S million for Bilingual Vocational Education. However, the current level of funding % hich has been decreased to $143 mil- lion for fiscal year 1987 does not include funding for Bilingual Vo- cational Education because this program is now administered under the auspices of the Vocational Education Act. H.R. 5 in- creases the authorization level to $246 million which will serve in excess of 150,000 additional students. The administration's current estimation for 1988 is that there are '12,372 individuals served. The Coinmittee believes that this is 7 9 79 a small number served in comparison to the department's estimate that between 1.2 million and 1.7 million children are most likely to benefit from sei . ices under the Bilingual Education Act. It is note- worthy, however, that other studies disagree with these figures. In fact, based on Departmental studies, in 1978 T.H. Bell, former Sec- retary of the Department of Education estimated that there are 2.6 million children likely to benefit from services provided by the Bi- lingual Education Act. In addition, recent studies show that while the overall school- aged population will rise 16 percent by the year 2000, !anguage mi- nority, school-aged children will increase by 40 percent, which clearly says that there are large and growing numbers of children of limited English proficiency, and that the need for the bilingual education program is greater today than ever before. C. Explanation of the Bill 1. Section 7002Policy Appropriations In this legislation, developmental bilingual educat'..,n programs (DBE) have been included in a Part A funding set-aside along with transitional bilingual education (TBE). Local educational agencies requested this chp-ge to add flexibility to the current part A fund- ing reservation and to increase available support for bilingual edu- cation programs which optimize the benefits of dual language edu- cation. The National Advisory and Coordinating Council on Bilingual Education (NACCBE).H.R. 5 eliminates the NACCBE and instead requires that the Secretary consult with State directors of bilingual education. This includes consultation with evaluation assistance centers, other individuals, and organizations with expertise in test- ing and evaluation in developing Title VII program evaluation re- quirements. 2. Section 7003Definitions; Regulations Family English Literacy programs funded under Part A may under this legislation include instruction designed to enable .:Idi- viduals participating in legalization progr .ms (as per the Imr_iigra- tion Reform and Control Ar,t of 1986, P.L. 99-603) to study English and other courses approved by the Department of Justice. Parental Notification.H.R. 5 strengthens existing requirements regarding parental notification by specifying that any information provided to parents be in "a language and form the parents under- stand. The purpose of this additional language is to insure that regard- less of the parents' native language and literac, the information supplied by the school district must be interpreted and conveyA in a manner that insures that parents understand the communica- tion. ?. Section NVBilingual Education Programs Development of instructional materials.Separate grants for the development of instructional materials are elimiLited. This change will have little or no impact on school districts, particularly, in view of the fact that few instructional materials grants have been Or 0 80 made in recent years, (the Department estimates that there will only be two in fiscal year 1988), and the development of instruc- tional materials is a permissible activity under all other Part A grant programs. Technology-based instruction.This amendment allows programs authorized under Part A to provide technology-based instruction to students in these programs. It does not require grantees to use pro- gram funds for such instruction. The Office of Technology Assess- ment recently released a report which indicated that limited Eng- lish proficient students are aided in their acquisition of English if they are able to use computers. In addition, findings show that technology-based instruction allows the limited English proficient student to experience immediate and positive feedback, extensive practice, individualized pacing and a grecter degree of student con- trol over the learning process. Pre-se'v,:ce Activities.The purpose of this provision is to permit grantees to engage exclusively in pre-service activities during the first 12 months of a grant. It eliminates the existing requirement that grantees engage exclusively in pre-service activities during the first six months of a grant and also eliminates the existing provi- sions for waiver of this requirement by the Sec etary. This elimina- tion also provides additional flexibility to education officials receiv- ing grants for programs of transitional bilingual education, devel- opmental bilingual education, or special alternative instruction. Parental advisory councils.This legislation adds a new provi- sion which requires hail educational agencies to provide appropri- ate support to Title VII parental advisory councils. The purpose of this provision is to ensure that Title /II parent advisory councils receive support, as necessary, from local educational agencies. Training program grants.Current law provides that the appli- cant will provide or secure training for personnel participating, or preparing to participate in bilingual educational programs. The purpose of this provision is to insure that training under program grants assist educational personnel in meeting state and local certi- fication requirements. 4. Section 7032Grants for State Programs State Program Grants ircrease the minimum State education agency grant from $0,000 to $75,000 in order to enable States to carry out more improved, required and permissible activities under the Act. 5. Section 7035Research Longitudinal studies.H.R. 5 specifies that longitudinal studies measuring the effects of education of students who have language proficiencies other than English, pertain to students enrolled in Title VII programs. In addition, the amendment requires that the longitudinal study includes the impact of bilingual education programs on limited- English proficient students using a nationally representative sample of the programs funded under this act and provides infor- mation including, but not limited to, data on grade retention aca- demic performance, and dropout rates. 81 81 Further, there is an amendment in this legislation which re- quires the clearinghouse for data collection, evaluation, and re- search to coordinate its activities with the National Diffusion Net- work. The purpose of the clearinghouse is to collect, analyze, and disseminate information about Bilingual Education, while the pur- pose of the National Diffusion Network is to disseminate informa- tion about exemplary educational programs. The purpose of this amendment is intended to ensure that the twc systems work to- gether with the goal of more effective dissemination of exemplary Bilingual Education Programs. 6. Section 7036Coordination of Research This bill requires that the Secretary consult with the Senate Committee on Labor and Human Resources and the House Com- mittee on Education and Labor in terms of insuring that research activities undertaken complement and do not duplicate other ac- tivities taking place under this Act. 7. Section 7037Education Statistics This legislation requires that the annual report by the National Center for Educational Statistics on the education of limited Eng- lish proficient persons should also include data collected by other Federal agencies in addition to the data collected by the Depart- ment of Education. 8. Fellowships This legislation provides for at least 500 fellowships each year that this bill is authorized. The purpoe:;-. of the fellowships is for ad- vanced study J bilingual education or special alternative instruc- tional program for limited English proficiency students in such area as teacher training, program administration, research and evaluation, and curriculum development. This provision also re- quires that recipients of these fellowships he involved in a program of study leading to a master's or doctorate degree. 9. Section 7051Office of Bilingual Education and Minority Language Affairs This legislation requires that the Director of OBEMLA report an- nually to Congress and the President regarding the number of indi- viduals receivi.ig services and the number of grants and contracts awarded from Title VII programs. Further, this legislation requires that the Secretary submit to Congress and the President a biannual report on the condition of bilingual education in the Nation including information on major research findings in regard to Title VII research activities. The committee requests that the Secretary submit a report on the effectiveness of "special alternative instructional programs" within on year after enactment of this bill. The report for the Committee on Education and Labor will also include the status of 1,he effectiveness of the special alternative instructional ArOPTAMS sing evaluated in the "Longitudinal Study of Immersion, Early-Exit and Late-Exit Transitional Bilingual Programs for Language Minor- ity Children," as well as up-to-date effectiveness data on the special F,2 82 alternative instructional programs in addition to all other programs supported ender this Act. TITLE VIII-INDIAN EDUCATION ACT A. Bureau of Indian Afairs 1. Background The Committee has once again included a group of am mdments which give direction to the Bureau of Indian Affairs Indian Educa- tion programs, and maintain the forward momentum and progress of the Indian education programs, progress which has been reflect- ed by accreditation for Bureau financed programs, improved stu- dent achievement scores, and more community involvement. Unfortunately, this generally positive trend in T'dian Education programs and the ren'wed commitment of field eaucation ^erson- nel to e.:cellence does not seem to be reflected within the policy making levels of the Bureau. Actions which have included arbi- trary school closures (in contravention of the statutory r'quire- ments), eroposals to cut contract administrative support and ;ut- backs in needed programs have become standard fare over the past two years. This negative trend has culminated this year in a totally unfounded proposal to transfer the remaining Bureau op.i led schools to "third parties", including States, public schools, fol, Lida- tions, and cnurch groups. These transfers were to take place over the next two years, with or without th- conse,-` of the tribes, and regardless of the :. :pact of . transfers on Indian students or their education. This ill-conceived proposal is simply anothe exam- ple of a Bureau which, at its highest levels, refuses co recogniz and abide by the concepts of el,eational commitment, consultation with tribes, and the Federal Trust respon.. Pity to ro vide educa- tional services and opportunities. The proposal has met with bipar- tisan opposition. The Committee has held two days of hearings on this and other Bureau proposals, along with a number of briefings, trips, and ac- tivities involving consultation with Indian Tribes. The Committee has decided that strong action is needed at this time to halt this transfer proposal, to sr feguard the progress already made, and to ess upon the P ireau that it is time 't recognizes its responsi- bility and begins to carry it out in a responsible fashion. 2. Major Provisions The Committee has recognized the current Bureau funded schools and prohibited negative changes to their programs, includ- ing "third party transfers" without Congressional permission or tribal quest. This was done for several leasons: 11 ) the Bureau re- fuses to abide ',yr the current statute 'elating to Qtudy, consultation and notice (witness its current propisal and several recent closures, including the schools at Toyei and Pinon.); (2) this a" ndment for- malizes the practice set by during recent Congressional actiins where actual Congressional approval prior to action has been re- qu'-ed (e.g. Intermountain and Phoc aix Indian Schools); and (3) since the current statute already requires 12 months notice before any negative action, the Cmunittee does not view this requirement a an added hardship. 83 To further protect school programs, the Committee has incorpo- rated most of the current 2cliication regulations. with an accompa- nying roscription on change. These regulations wefe developed with classiP consultation with the Indian community and are the centerpiece of implementation of the reforms of 1978 and 1985. However, the Bureau is currently working on major revisions of policy and program regulations in-house, without any consultation with t'ile field and without any notice to Congress. The working papers for this in-house rewrite contain deletions of numerous pro- visions giving local control and parental input, and thus run con- trary to the Congressionally mandated policy and recent statutes. The Committee recognizes the need to maintain solae administra- tive flexibility, and has care ally worded the amendment to take this into account. However, with the exceptions noted in the amendment, there is no substantive need to amend the regulations. The Committee has also addressed the major problem with tribes taking self-determination contracts; the problem of administrative costs. The failure of the Bureau to establish a reasoned, stable method for setting the administrative/indirect cost payments which would go tc a tribe to support the education activity has di;.- couraged contracting and caused needless program disruption and expense. Additionally, it has mad; "contract gamesmanship" para- mount, as the amount of contract support funds has become contin- gent upon salesmanship and negotiation strategies. In the past, most of these amounts have been set by arb.trarily determined rates, as lump-sum payments or as mixtures of the tw 3. The Bureau has not developed a formula (though in the 1978 amendments it was requested) and will not even define what the term "administrative costs" covers. Repeated attempts by Congress to get the issue ha._ 'd have failed. To aggravate the situation, Bureau recently threw up its hands" and proposed a single, 15% across the board rate. This mLy be simple, but it is a_Jo simplistic and will render operation of small, isolated schools impossible. The Committee has recommer- A a formula which generates a sliding range of administrative ( Est rat-- which would then be ap- plied to the funds received adniinistrative cost rates, which would then be applied to the funds received under the Indian Student Equalization Formula. This use of the formula will simplify ac- counti.-.5 and administration, and will lend an element of stability to the program. It will also alloy, schools to predict, with a certain degree of accuracy, what they will receive. The formula was developed by: (1' charting as a graph the cur- rent payments for indirect costs to ontract schools, (2) adjusting these amounts for the shortfalls in negotiated payments which have been caused by the B.I.A., (3) defining the activities to be con- dcted and funded under the heading of administrative costs, (4) determining how many of the schools currently match this set of tasks, and adjusting the curve accordingly for those Going more or less; ar:1 (5) constructing a mathematical formula on the curved result. It is a mathematical method for alloting the costs F iociated with general, non-specific office and program support expenses to all of the d, erent programs which a grantor/contractor may have. There are provisions for an isolation adjustment. F4 34 This computation, which would be based on the precedint, fiscal years dap, would then be applied to the base weighted sLudent unit figure for each school, based upon the prog-am offered. This would generate an additional weighted unit figure, which would then be added to the total for division into the appropriation and for the individual school multiplication for the final allocation. The Committee has included an amendment to encourage coordi- nation at the local level between Tribes, Bureau funded programs, and local public schools. In at least one case, such cooperation has been sought by a large tribe witn a number of Bureau programs and several local public agencies. The Bureau refused to c ocperate. The amendment would involve programs between B.I.A. acid public schools, including cost-sharing, larger procurements and unified/co- ordinated policies and procedures. Other examples of possible areas of cooperation include combined curriculum planning and teacher training and joint procurement. Such programs offer a substantial opportunity for improved efficiency and programs, by cutting down on duplication. It is important to note that all determinations as to the areas to be covered by these agreemens are to be made locally. The Bureau would not be a party to the agreement. The Bureau would simply be in the position of putting the agreement into effect, within the limit, of the funds generated by the Indiana Student Equalization Formula. Perhaps the major policy initiative included in the Committee's amendments is the new Self-Determination Grant Program. The genesis for the proposal was a basic agreement with Assistant Sec- retary Swimmer that the current contract system is too complex and cumbersome. It just doesn't work. Some of the problen.s could be cleaned up administratively, but some are in the current stat- ute, which also applies to programs other than education, (e.g. law enforcement). Changes to this statute to meet education concerns could cause problems for other programs. Finally, part of the prob- lem is the very nature of contracts, which are too restrictive on local control. Under the amendment, one grant per year shall be made to each school or program, which will include all funds at* Icted by the school from the Bureau for the year. The grants oader this at shall go into a general fund and may be used to defray a wide range of expenses, except that no more may be spent on adminis- trative costs than was generated under the administ.ative formula provision, and that in instances where one grantee operates more than 1 school site, no less than 95% of the funds generz ted by a site must be spent at the site. After an initial determination of eli- gibility, receipt of annual monies would (subject to appropriations) be automatic, additional negotiations or applications. Grants would continue as long as tile education program remains accredited, by the entities stipulated in the amendment, and submits the required . eports in a timely fashion (also Stipulated in the amendment.) Ad- e'tionally, t',,e amendment is structured so that all determinations on performance will be made by outside parties. Tin amendment sets out vary specific timelines and guidelines for review of applications for each set of schools or expansions (pat- terned after current self-detlrminatio regulation-). The Commit- S5 85 tee has -pent particular effort on this issue of timeiines, because one of the major problems of the current system is the Bureau's refusal to abide by its own regulations. The Bureau has gone so far as to wait several years, without approving or denyin,,; an applica- tion, and tribes have been afraid to react, because of fear of repris- als in other, Bureau controlled programs. The timelines in the bill reflect the timelines in the self-determination regulations, and the Committee feels that they are reasonable and workable. The amendment also includes factor, for consideration of new, non-B.I.A. funded schools and program expansions. Finally, current contract authority would be maintained, increasing the self-deter- mination options open to Tribes. Currently contracted programs could elect to come under this authority or continue as contracted schools. If they elect to be covered, they are grandfathered in with- out another eligibility determination. Other Committee amendments clarify formula and residential standards issues, define the terms "consultation" and require per- sonnel studies and actions. As a group, they will make the statuto- ry adjustments necessary to see that recent improvements continue. B. Indian Education Ail The Corr ...tee is extending and lifting an authorization cap on the programs under the Indian Education Act (P.L. 92-318). In 1984, these programs were reauthorized with a program cap for FYs 1987-90. This was done pending a full-scale review of the pro- gram in 1985. A removal of the cap was anticipated after the review. No review was held, but the cap remained. This means that these programs have not even been able to grow to meet inflation. The Committee has also addressed the problem of proof of eligi- bility to participate in the program. The Administration proposed, in 1985, to severely limit the proofs an Indian parent could submit to prove eligibility. The effect would have been to halve the eligible population, being particularly harmful to urban populations. Con- gress has stopped the Administration's proposal twice. Several hearings were held, a number of meetings and briefings facilitated and consultation wit) the Indian community conducted, through Committee trips and at-endance at Indian organizatons' meetings. The Committee attempted to work out an accomodation with the Administration. ..".t one point, a compromise _tared within reach. The Department of Education had promised regula- tions on the issue by the beginning of last September. None have eve; been publisned. The Committee an wait no longer for a solution. The amend- ment deletes the Form 506 as a tool for establishing eligibility and returns it to its original function as an information collection docu- ment. A parent could present any evidence ha /she have, including evidence of community recognition as an Indian, to the parent com- mittee for consideration. The parent committee would then make a r commendation on sufficiency of the proof presented to the public school district. The district would make the final decision, provided that it could not accept as eligible any student whom the parent committee recommended as ineligible. These determinations would S 6 86 have to follow written guidelines which would be established by the rorent committee and the district. u. Native Hawaiian Amendments In 1980. the Hawaiian delegation placed a program for Native Hawaiians in the higher Education Amendmr, `,.s. The provision wa.: deleted, with the insertion of provision for a study to be con- ducted by the Department of Education to determine need and pro- grams to be offered. The study has been done, showing a great need and recommending this type of propccal. The Committee, after re- viewing this work, has included this amendment. TITLE IX, PART A-ADULT EDUCATION A. Background The Ack a Education Act is the primary l ederal prop am to alle- viate the problem of adult illiteracy. Since 1966, the Adult "Educa- tion Act has provided funds to assiFt State educational agencies (SEAs) to establish and expand programs to benefit educationally disadvantaged adults. These programs are intended to provide adults with the basic skills necessary to function in society, ena- bling them to complete secondary school and profit from employ- ment-related training. Adult education programs serve appi oxi- mately 2" million people annually. The Act was last amended in 1984. Although the authorization level in 1984 was set at $140 million and such sums as may be necessary for succeeding years, funding for this program has declined in recent years. The FY 1987 appro- priation of $106 million is lower than the actual FV 1980 apprc,- priation of $122 million. When these figures are adjusted for infla- tion, funding for this Act has actually deer used by approximately 40 percent. Under the Adult Education Act, grants are made to States with federally approved State plans, on the basis of a formula whi,:h takes into account the number of adults without high school diplo- mas. Programs are carried out by local educational agencies and by other public or private nonprofit or for-profit agencies. State pans must be submitted to the Secretary of Education and contain spe- cific administration, operation, and data reporting information about the adult education program at the State and local level. States may use Adult Education Act tin-is to support an advisory council in planning, implementing, or evaluating programs and ac- tivities. Activities under the Adult Educaiton Act are limited to "adult education"education programs below the college level for adults. Special emphasis is placed on "adult basic education"programs for adults whose inability to speak, read, or write the English lan- guage constitutes a substantial impairment of their ability to get or retain employment commensurate with their real ability. No more than 20% u. the funds may be used for high school equivalency, with the remainder devoted to basic skills and literacy programs. The Adult Education Act authorizes the Secretary tc support various discretionary applied research projects and rellted activi- ties. Discretionary funds r ailable to the Secretary are specifically R7 87 authorized at a level of 5% of the appropriations, but only when the appropriation is $112 million or more Funds have not been made available in recent years for these discretionary activities. B. Need for the Legislation Recently the Nation has become more aware of the distres iing number of Americansthe functionally illiterate adultswho cannot read and write well enough to participate in :le most basic economic and social activities. The Subcommittee was in the fore- front of calling attention to this problem, conducting five joint hearings on the problem of illiteracy in America with the Senate Education, Arts, and Humanities Subcommittee in the 99th Con- gress; two oversight hearings in the 99th Congress, aid one over- sight hearing in Los Angeles this year. 'I ere is no consensus on what constitutes illiteracy or how many -)eople are illiterate. Estimates of the number ranges from 20 mil- lion up to 70 million. But there is a growing realization that illiter- acy 3 a drain on our economy. The Nation spends approximately $7 billion annually to maintain 750,000 illiterate adults in prison. The annual cost of welfare programs and unemployment compensa- tion due to illiteracy is estimated at approximately $6 billion. The business community spends an estimated $10 billion annually to address the lack of basic skills among he work force. Tile complexity of the low literacy problem and the adult illiter- acy program in this country pose a serious threat to our national productivity, security and welfare: People with less than six years of schooling are four times more likely than others to be on welfare; 50 percent of those in prison are functioi ally illiterate and 75 percent have not completed high school; 85 percent of juveniles who go into court are illiterate; 75 percent of the unemploy c.d. have inadequate reading, writ- ing, and computation skills necessary for retraining for high- technology jobs. It is a danger -) our defense because many solders cannot even begin the training they need to handle sophisticated military equipment. ]rt is a blot on our democracy because illiterate persons are unable to participate in the political process and make in- formed choices. Illiteracy also exacts human costs, when a par nt cannot read to a child, a worker cannot fill out a job application, or a sown- citi- zen cannot read the Bible. While a range of public and private agencies, organizations, and basin saes are all interested in the problem and provide various services to address it, these sources together do not begin to reach the universe of those in need. The total number of educationally disadvantaged adults served by all programsFederal, State, local, privatedoes not exceed 5,000,000. Forty to fifty percent of the these people drop out in six months to a year's timetoo little to make any significant learning gains. In addition, th )se yho never participate are frequently the most disadvantaged who are over- looked by traditional outreach methods. Th . Adult Fducation Act is the most significant comp-ment of this array of literacy programs. It has provided Federal seed money fig 88 to encourage the growth of publicly supported State and local pro- grams. And it has been successful. According to the last national evaluation of the program, completed in 1980, the program appears to benefit a large number of adults at a remarkably low Federal cost. Although the program is making inroads, it has never received a level of funding at all commensurate with the need. The 1980 evau- lation found that increasing numbers of adults are being served, but there coiii,.........s to be a large, unmet need for service to adults not being served by existing programs; ti_,... study is particularly concerned about the lack of services to adults who are "most in need." A similar conclusion was reached from a 1984 Department of Education sui .rey of a sample of States; The Department of Educa- tion found that "by any definition only a small proportion of the target population is served by existing programs." H.R. 5, therefore, seeks to expand the program, sharpen the focus on the most educationally disadvantaged adults, improve co- ottilaation with other programs, stimulate increased State match- ing, and enhance public and community input into the program. C. Explanation of the Bill 1. Expansion and Direct Services H.R. 5 seeks to expand the Adult Education Act by raising the authorization level from $140 million to $200 million for FY 1988 and such as necessary for the five following years. With this in- creased authorization, Congress can put genuine funding behind the desire expressed by many Members to do something about the problem of illiteracy. The bill also attempts to heighten the impact of these dollars by ensuring that the maximum amount will be used for dire'"- serv- ices. Toward this end, State and local administrative costs are lim- ited to 5 percent of their grants. However, at the local level, in cases where the administrative costs sir? insufficient to adequately plan, administer, ev duate and coordinate programs supporte ' under this Act, the State agency shall negotiate with the local grant recipient in order to determine an adequate level of funds to be used for non-instructional purposes. States may coniinue to use funds under the Act tor personnel trainirg, research, and curriculum development, in addition to the direct provision of adult education programs, but they 'mist show in their evaluations how these activities support the regular adult education program. 2. Matching Another amendment in H.R. 5 will expand the total pool of re- sources for adult education by gradually increasing the State matching requirements under the Act. The current ....atch is 10% non - Federal. Data from State financial reports indicate that in FY 1984, expenditures from State and local sources represented $197 nolion (C7 percent) and expenditures from Federal funds were $95 nallim (33 percent) of the total Federal, State, anu local expendi- turrs for adult education programs. The Committee believes that S 9 now is an appropriate time to lower the 90% Federal share to 87% in Fi 1989, 83% in FY 1990, and 80% for the three s.-- eeding fiscal years. 3. Eligible Population H.R. 5 mandates that States develop a systematic approach for meeting the needs of the population eligible for adult education programs. This will encourage long-range, coordinated planning. An important set of amendments in full Committee mark-up re- quires States to give in_reased :-.tention to the needs of the least literate adults. The amendments help to target existing funds, while leaving States maximum flexibility in deciding he to use their grants to better serve educationally diszdvantaged adults. The amendments respond to the 1980 Department of Education as- sessment of the Act, which found that "the least literate and melt alienated tend to be excluded." The Department of Education as- sessment conauded that what the Adult Education Act most needed was greater "emphasis on more clearly targeting the Feder- al program and on helping lo-al projects serve the targeted popula- tion groups." These amendments are a first step toward achieving both of those objectives. The amendments specifically define eencationally disadvantaged adults as individuals who read at or below the fifth grade level, or who have been placed it the lowest or beginning level of a compe- tencies-based adult education program. States are required by these amendments to give preference to grant applications from local programs which demonstrate the capability to recruit and serve these least educated adults. SEAS are also required to evaluate the progress made in improving and expanding education service:- or educationaKy disadvantaged adults. Other changes to current law would sharpea the focus on adults with special needs by requiring States and local recipients to recog- nize the particular needs of persons with disabilities and those who 11.--,.ye limited English proficiency, as well as those who are home- less. The bill also restores a special focus on migrant farmworkers and immigrants. The bill also clarifies within the statement of purpose that the adults to be served are those who lack sufficient literacy skills. The defin ion of an adult is also clarified. The language states that an adult who receives services under this Act is not to he enrolled in school. 1. Advisory Council H.R. 5 requires States to establish an advisory group, appointed by the Governor, cr designate an existing body as such. This is nor - missive under current law but H.R. 5 makes it a requirement. f at least three reasons One a State-level council, appointed by the uovernor, will have the public visibility and s-pport needed to ele- vate the State's efforts to deal with illiteracy. Two, a State-level council will help to -.nsure the effective coordination of all intra- state literacy activities. Three, a State council ,nechanism will ensure effective participation by various groups ar i organizations The bill would specify that the duties of the Advisory Council in- in develcping the State's plan of adult education service delivery. 90 elude advising the State agency about policies governing State ac- tivities t.. '1 initiatives that the private sector might undertake, as well as particirsting in the mandated evaluations. 5. Coordination with Other Programs Under H.R. 5, State and local recipients are required to coordi- nate programs funded under this Act with programs funded from other Federal sources and from State and local funds. The bill also rc luires recipients to make efforts to form linkages with th' VISTA Literacy Corps established last year by P.L. 99-551. Au- other amendment encourages the Secretary to enter into interagen- cy agreements with Health and Human Services to fund permissa- ble immigrant education activities described in the bill. 6. Private Sector Involvement and Community-Based agani za tions States are permitted to use a portion of their funds to support a private sector adult education initiative designed to improve the productivity of current employees through literacy training pro- grams provided by partnerships among business, labor, job training programs and educational agencies and institutions. The bill would also clarify that for-profit agencies may partici- pate only as part of a consortium with non-profit public agencies. The CAmmittee strongly urges States to encourage the participa- tion of community-based organizations to provide adult education services. Community-based organizations are uniquely qualified to conduct outreach and recruitment efforts for disadvantaged popula- tions. Because of their ability to provide participants with a variety of motivf ;ional and educational services that meet individual needs, community-based organizations serve populations that other- wise would be left out of the system. As a result, individuals who would not have been attracted to educational instruction will gain the skills necessary to be competitive in the marketplace. 7. State A2m;iistration The new bill includes several amendments to imi.rt.ve State ad- ministration of the Act. These r-nondments spell out the contents of the State plan/application; pr. ride for public input and review by other relevant State agencies; specify certain assurances regard- ing prover administration, assignmAnt of personnel, and non .113-. planting; and require a regular schedule of evaluations. 8. National Activities The level of funding in H.R. 5 for national programs is limited to percent, and the funding trigger has been lowered from $112 mil- lion to $108 million. Approximately nine "national programs" have been identified it this legislation. The legislation requires the Secretary to complete a study of the literacy needs f our country, participate in a joint study with the Department of Health and Human Services of the availability of Federal funding and services for literacy training, and complete a study of the special needs of adults with learning disabilities ane their participation in adult education programs. 91 91 The sill would establish a national effort to help States evaluate their adult education efforts, including an analysis of State plans and State outcomes for such programs, and tl e establishment of an information network. Finally, the bill vould require the Secretary to establish a pro- gram of g :-ants to States to develop projects to train adult volun- teers to work as tutors. TITLE Di', PART BIMPACT AID A. Explanation of the Bill (P.L. 81-874) H.It. 5 extends through fiscal year 1993 P.L. 81-874, Financial Assistance for Local Education Agencies in Areas affected by Fed- eral Activity (Impact Aid). H.R. 5 also authorizes the program in the amount of $735 million for fiscal year 19,. S. In reporting H.R. 5, the Committee accepted an amendment which corrects a current provision in Section 3(d)(2XD) of current law where non-Indian parents who reside on nontaxable land are being forced to pay tuition to send their children to schools where they are employed or schools that exist within the community. Prior to the Department of Education regulations regarding cooper- ative schools, these students we.e counted by the local educational agen-nes and dollars we transferred to the Bureau funded schools. Currently, these adents are not eligible to be counted for the B'ireau of Indian Affairs (BIA) formula funds because they a. e not members of an Indian Tribe. It is the intent of the Committee that the local educational agency will count those students attend- ing BIA schools in order to receive funds from P.L. 81-874 and transfer such funds pre ptly to the BIA schools for the ourpose of the student's education. B. Explanation of the Bill (P.L. 81-815) H.R. 5 E xtends through fiscal year 1993 P.L. 81-815, Construction of School Facilities in areas affected by Federal activities (Impact AidSchool Construction). H.R. 5 also authorizes P.L 81-815 at current services level in the amount of 324 million for fiscal year 1988; H.R. 5 alto makes a change in the section on "Definitions" in regard to the "base year" by striking 1978-1979 and inserting 1988-1989. In section 15 of this law, the term "bese year" means the third or fourth regular school year preceding the fiscal year in which an application for school construction was filed as designat- ed in the application. The base year shall in no event be iater than the regular school year 1988-1989. This change is required in sec- tion 15 5) to identify the latest correct base year from which memb .ship increases will be measured for the purposes of deter- mining entitlements under Sections 5, 8, and 9. C. Committee Intent The overriding concept which supports reimbursement payments to local school districts by the impact aid law is that federal owner- ship or federal acti.rity has placed a financial baden on a local 5Q 92 school district's ability to generate sufficient revenue to educate its children. There are some situations where non-Indian parents who reside on nontaxable land are being forced to pay tuition to send their children to school where they are employed. In many cases, these schools are the only ones within a reasonable area for the students to attend. It is estimated that approximately 400-500 children are affected. P.L. 81-874 and P.L. 81-815 expire in fiscal year 1988. P.L. 81- 874 currently provides for funding which is used by local education- al agencies fcr their general maintenance and operating expenses. P.L. 81-874 also provides disaster assistance for damaged school fa- cilities. This law currently provides for reimbursement to approxi- mately 3,500 school districts, one out of every four in the nation. P.L. 81-815 makes possible school construction for federally-con- nected students. TITLE IX, PACT C-GENERAL EDUCATION PROVISIONS ACT A. Audit Reform The Co! mittee has adopted ..7veral amendments to Part E of the Preneral Education Provisions Act aimed primarily at refornfing the Department of Education's audit and appeal process. The Com- mittee held hearings op this issue in the 97th and 98th Congress. In the 98th Congress, amendments, aime,1 at reforming the audit- ing pro. ess, were adopted by the House of Representatives in H.R. 11. In tile 99th Congress, the Committee held a series of informal discussion sessions wit% interested parties. While the Committee recognizes the importance ci audits in ensuring that Federal pro- grams serve their intended purposes the Department's audit and appeal process has sometimes adversely affected intended prograi. beneficiaries. The Committee intends to create an effective, eco- nomical, and equitable process for 1ne imriew of audit findings by the Department and for appeals of those Pndings by auttitees. It is the Committee's view that the amendmei 13 strike the necessary balance between giving auditees the meant.; to defend themselves against adverse audit findings and retaining the Department's abil- ity to recover misspent fund-, and ensure overall program account- ability. The significant difference between these amendments and cur- rent law are as follows: 1. Section 451Office of Administrative Law Judges Administrative Law Judges.The amendments replace the Edu- cation Appeals Board with administrative law judges (ALJs) and provide for proceeding in accordance with the Administrative Pro- cedure Act (APA). The amendments require that regulations pro- mulgated by the Se etary afford the parties the hearing rights es- tablished in the APA. ALJs are professional, full time government judges. Department of Education ALJs will be chosen in accord- ance with a general government-wide selection process for ALJs. The number of judges needed to adequately carry out the functions required by tho Office will depend on the case load and will be de- termined acct rding t o gove-nment-wide standards. 93 93 Discovery.--The amendments provide for an orderly process of discovery for the parties to an audit. The amendments give the ALJs authority to order a party to produce re) -vent documents that are not privileged, to answer written interrogatories that in- quire into relevant matters not subject to a legal privilege, and to have deposi ions taken. The amendments also give ALJs authority to iss - frthoenas and, if necessary, to apply to the Federal Dis- trict Courts for their enforcement. The Committee intends that the ALJs implement these discovery provisions for the purpose of se- curing a fair, expeditious. and economical resolution of disputes, taking care to prevent abuses of formal discovery 1)7 litigants. Attorney's Fees.The provisions of the Equal Access to Justice Act, relating to the costs of litigation P.:Id attorneys' fees, would apply to the proceedings. Mediation.The amendments provide for the voluntary media- tion of disputes pending before the Office. The Committee encour- ages settlement and the use of mediation whenever possible to ac- complish this end. The Committee intends that all the parties agree to the mediator and that the mediator be independent of the parties. 2. Section 452Recovery of Funds Prima Facie Case.The Secretary is required to este . a prima facie case for the recovery of fi Is in the preliminary de- partmental determination (PDD). Th. provision is intended to ensure that the Npartment provide the auditee with fair notice of both the facts and the law upon which the decision to recover funds is based. This requirement imposes a clearer standard on the Department for the notice to the recipient in the preliminary de- partmental determination than currently exists. Once the Depart- ment establishes a prima facie case the burden of proof shifts limn the Department to the recipient. Subrecipients.State recipients may not recover funds from any affected subrecipient unless the State has transmitted a copy of the PDD to that s' .brecipient within ten days of the State's receipt of the PDD. Publication of Departmental Decisions.The amendments pro- vide for the publication of final Departmental decisions, and clarify the circumstances under which a decision of an ALJ becomes final agency action. With the publication of these decisions, recipients will have available a body of precedent to guide their compliance wig', Federal law. A body of common law from decisions should en- volve, making results of these proceedings more predirtabl.. Substan,:ial Evidence Test.The amendments re--ire that the factual determinations of the ALJ be reviewed by e Secretary under the substantial evidence test; that is, an ALJ's findings of fact, if supported Ly substantial evidence, shall be conclusive. The Committee recor izes that because the PIA controls the proceed- ings, including the development of the factual record, the ALJ is in the best position to weigh the evidence and make appropriate find- ings of fact. Compromise Settlements.The Secretary's authority to compro- mise the claim without resort to government-widt ,,rocedures under the Federal Claims Collection Act is expanded to I'DDs that Fi 4 i I 94 do not exceed the amount the recipient agrees to return by more than $200,006 The Committee intends that this authority be used to encourage settlements. 3. Section 453Measu: , 9f Recovery The new provisions in section 453 are necessary to ensure fair measurement of the amount of recovery. The calculation of harm provisions clarify Congressional intent on an important audit issue, the ambiguity of which has led to inconsistent audit results. The mitigating circumstances provisions immunize grantees in certain types of cases who would have previously been required, unjustly, to repay misspent funds. Calculation of Harm.As amended, section 453(a) of GEPA wou! 1 _equire a recipient that is determined to have made an unal- lowable expenditure, or to have otherwise failed to discharge its re- sponsibility to account properly for funds, to return funds in the amount that is proportionate to the extent of the harm its violation cause to an identifiable Federal interest associated with the pro- gram under which the recipient received the award. Subsection (a) also identifies a number of discrete Federal interests typically asso- ciated with Federal education programs, including serving only eli- gible beneficiaries; providing only authorized services cr benefits; complying with expenditure requirements and conditions (such as set-aside, excess cost, maintance-of-effort, comparability, supple- ment-not-supplant, and matching requirements); preserving the in- tegrity of planning, application, recordkeeping, and reporting re- quirements; and maintaining accountability for the use of funds. It is helpful to understand the overall context in which the deter- mination of recovery is made. Briefly, officials who make recovery recommendations or decisions usually include auditors and pro- gram officials and, in appeals the ALL the Secretary and possibily other judges. The process for determination of recovery involves a determination of the following: 1) whether a violation occurred; 2) to what degree an identifiable Federal interest was harmed; and 3) what the appropriate measure of recovery should be in light of the harm to an identifiable Federal interest and in light of any miti- gating circumstances. In general, a violation has occurred when Federal funds have been diverted from their intended purposes to support specific ben- efits or activities that are not authorized by the statutes, regula- tions, cost principles, binding interpretations, or other provisions governing the award. Similarly, the provision of specific benefits or activities which are of the type authorized, but to a beneficiary population which is not authorized, constitutes a diversion of Fed- eral funds necessitating a recovery. Other violations of applicable legal requirements may be so detrimental to a particular Federal interest or objective established under the statutes and regulations that a financial recov'ry is warranted, even though the Federal funds were ultimately used to provide authorized services to au- thorized beneficiaries (where an authorized service is taken to mean a service for which the statute intends money to be used.) Mitigating Circumstances. The amendments include certain mitigating circumstances which, if present, would bar the recovery of funds from State and local educational agencies. These mitigat- 55, 95 ing circumstances include actual and reasonable reliance upon er- roneous written Departmental guidance, the Department's failure to respond to written requests for guidance within 90 days, and actual and reasonable reliance upon a judicial decree issued to the recipient. The Committee has included several safeguards to insure that the second type of mitigating 6 -cumstance provision will work as intended: (1) a requirement that the request for guidance be accu- rate and include the facts necessary for a determination of ii.s 1 - gality; (2) a requirement that the chief legal officer of the State educational agency certify that he or she believes that the proposed expenditure or practice is lawful; (3) a requirement that the re- questing agency reasonably believes that its proposed practice or expenditure was lawful. Dissemination of Guidance.The amendments require the De- partment to disseminate answers to requests for guidance that meet the criteria for mitigating circumstances where the guidance reflects significant interpretations of law or policy. 4. Sections 454-457Remedies for Existing Violations Section 454. This section provid--, that whenever the Secretary has reason to believe that a recipient of a grant or cooperative agreement is failing to comph; substantially with any applicable re- quirement of law, the Secretary has the option to withhold further payments under the program, seek a cease and desist order, enter into a compliance agreement, or take any other action authorized b,7 law. Section 455. This section, in conjunction with section 454, author- izes the Secretary to withhold funds f-om a recipient that is failing to comply substantially with an applicable requirement of law, and also establishes the procedures, including an opportunity for a hearing before the Office of Administrative Law Judges, the Secre- tary must follow to withhold funds. Section 454 is suobtantially similar to the current section 453 of the General Education Provi- sions Act. Section 456. This section, in conjunction with section 454, author- izes the Secretary to issue a campinint against a recipient that is failing to comply substantially with an applicable requirement of law leading to a cease and desist order. Section 456 also establishes the procedure, including an opportunity for a hearing before the Office, the Secretary must follow to obtain a cease and desist order. Section 456 is substantially similar to the current section 454 of the Act. Section 457. This section, in conjunction with section 454, for the first time under Part E, authorizes the Secretary to enter into a compliance agreement with any recipient that is failing to comply substantially with an applicable requirement of law. The purpose of such a compliance agreement is to bring the recipient into full compliance with the law as soon as is feasible. Before entering into a compliar le agreement, the Secretary is required to hold a hear- ing at wh.ch students, parents, and other interested parties are in- vited to participate. The recipient has the burden of demonstrating that full compliance with the law is not genuinely feasible until a future date, and the Secretary is required to make written findings 96 to that effect and to publish those findings, along with the sub- stance of any compliance agreement, in the Federal Register. Each compliance agreement contains an expiration date not later than three years from the date of the findings, at which time the recipi- ent must be in full compliance with the law. as well as with the terms and conditions with which the recipient must comply, until it is in full compliance. A compliance agreement does relieve a re- cipient of the of:Ligation to repay funds misspent prior to the date of entering into the agreement. 5. Section 458Judicial Review This section provides for judicial review in the appropriate United States Court of Appeals of final agency action under section 452 (recoveries), section 455 (withholding), and section 456 (cease and desist orders), as well as disapprovals by the Secretary of cer- tain State applications. Section 458 is similar to the current section 455 of the Act. 6. Section 459Use of Recovered Funds This section authorizes the Secretary, whenever the Department recovers funds from any recipient of a grant or cooperati- agree- ment because of a misuse of funds, to return up to 75 percent of the recovered funds to the recipient. Under current law, the Secre- tary's discretionary authority to return recovered funds applies only to State and local educational agencies; these amendments expand it to any recipient. Section 459 is substantially similar to the current section 456 of the Act. B. National Center for Education Statistics Section 9311 of the bill strengthens the National Center for Edu- cation Statistics within the United States Department of Education in accordance with a September 1986 National Academy of Sci- ences report, Creating a Center for Education Statistics; A Time for Action, which advised that unless there were "wide-ranging actions to change both the image and reality of the Center, we are unani- mous in our conviction that serious consideration should be given to the more drastic alternatives of abolishing the Center and 11 n d- i ng other means to obtain and disseminate the education data." The Center is the entity within the Department responsible for collecting and reporting statistics on American education. The Committee notes that it is necessary to monitor the education in- dustry and its contribution to our economy by supporting a strong National Center for Education Statistics. In 1987, education was the second-largest industry in the Nation. It is supported over- whelmingly by public tax dollars thus making it crucial that ade- quate data be available to determine its efficiency and progress in providing educational services to the American people. The public needs the assurance that the Center's reports are nonpartisan, unbiased and consistent with the quality evident in the demographic, health, and labor statistics reported by the Bureau of Labor Statistics, the Bureau of the Census and the Na- tional Center for Health Statistics. Therefore, H.R. 5's provisions are largely based on current law and successful practice at these agencies. 9-7 97 The Committee addressed a number of the suggestions embodied in the December 1986 response from the Advisory Council for Edu- cation Statistics to the National Academy of Sciences' (NAS) report. The Advisory Council is appointed by the Secretary of Edu- cation to advise the Center. The NAS report was originally com- missioned by the Department of Education at the request of the Advisory Council. Consequently the Advisory Council's response to it was carefully considered. The Advisory Council endorses the NAS recommendation for a quasi-independent status for the Center within the Department of Education. To achieve this objective, the Council urges that he Center be provided with a line item budget for perso. ' and oper- ations. The Committee agrees with the Council and addressed their recommendation by specifically including "salaries and expenses" within the separate authorization of appropriations for this Center. The Advisory Council response joins with the NAS in warning that the current Department of Education organization of the Office of Education Research and Information "appears to assign dissemination of the statistics to a group other than the one re- sponsible for data collection." The Committee has heeded the Advi- sory Council's warnings that the current situation not only opens the Center to gaps and weaknesses between those who gather the data and its users but also gives appearance of political influ- ence over the data. The Committee has consequently included within the section a provision that gives the Commissioner of Edu- cation Statistics the publication authority for the Center's various reports. Other important strengthening provisions include: a regular se- quence of surveys and reports to Congress, a program to promote comparable and timely statistics from states, strengthening the pri- vacy protections to individuals who respond to the Center's ques- tionnaires, a requirement to report the Nation's school dropout and retention rate to Congress in the fall of each year, a mandate to use modern statistical techniques to reduce paperwork burden and a strengthened administraive structure. The bill provides for the Center to be headed by a commissioner who will be appointed from among persons who are specially quali- fied due to their substantial experience, including knowledge of the Center's work. The bill, therefore, allows the Commissioner to be selected from a wide pool of possible candidates including the cur- rent senior staff of the Center, senior staff of other Federal statisti- cal agencies, statisticians and administrators working for state and local governments as well as universities and the private sector. The Committee expects that the Commissioner will be selected for special expertise without regard to partisan considerations. The Committee believes that the senior staff of the National Center should be in the career reserved Senior Executive Service. It is important that the Center be advised by persons selected by virtue of their professional qualifications in research and statistics. Further, the Committee expects that the p 'blic individuals se- lected by the Secretary to serve on the Advise ry Council on Educa- tion Statistics possess the professional qualifications necessary to advise the Commissioner of Education Statistics on f range of general policy issues that must be ^3fronted by t. statistical 72-850 87 - 4 98 agency whose mission is to serve the Nation by producing useful, dependable and high quality educaticn statistics. The authorization of appropriations is limited to matters covered under Section 406 of the General Education Provisions Act. This section 'am not affect the authorizing provisions affecting the Na- tional Assessmelt of Educational Progress which is currently ad- ministered by the Center and is authorized in Section 405 of GEPA. The authorization of appropriations in this section does not include NAEP but nothing in the section precludes the Center from admin- istering the appropriations provided for this national assessment of educational achievement in addition to the authorized a ropria- tions provided under Section 406 of GEPA as amended by is sec- tion. It is essential that the statistics identified to be collected and published by the National Center for Education Statistics stem from generic issues fundamental to understanding the nature .)f the education industry and its impact on the economy and society at the local, state and federal levels. Although ne Committee ex- pects that the Department of Education might seek advice on its responsibilities to evaluate and monitor federal education pro- grams, the purpose of the National Center for Education Statistics is not to conduct evaluation of specific federal education programs. Fundamental to the trust the public has in the truthfulness of an agency's statistics is the belief that the data are not biased toward any particular ideology. C. National Assessment of Educational Progress Section 9350 of the bill amends the authorization for the Nation- al Assessment of Educational Progress, under the General Educa- tion Provisions Act, to require this program (the primary source of national information about student achievement) to collect infor- mation on the performance of students served by Chapter 1. The National Assessment of Educational Progress has provided the Congress with important indicators of what is happening with the achievement of certain groups of students targeted for Chapter 1, but to data no information is specifically available on those chil- dren who are actually involved in Chapter 1. OVERSIGHT No findings or recommendations concerning oversight of the pro- grams amended in this bill have been received by this Committee from the Committee on Government Operatons. Findings from the Subcommittee's and the full Committee's oversight hearings con- tributed to consideration of this legislation. COST ESTIM .22 The Congressional Budget Office has estimated the following costs to the Federal government in implementing this legislation. The Committee concurs in these estimates and adopts them in com- pliance with clause VII of Rule 13. No cost estimates have been re- ceived from any other Federal department or agency. The CBO letter follows: ,i9 99 U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, May 15, 1987. Hon. AUGUSTUS F. HAWKINS, Chairman, Committer, on Education and Labor, House of Representatives, Washington, DC. DEAR MR. CHAIRMAN: The Congressional Budget Office has pre- pared the attached cost estimate for H.R. 5, the School Improve- inent Act, as ordered reported by the House Education and Labor Committee on April 22, 1987. If you wish further details on this estimate, we will be pleased to provide them. With best wishes, Sincerely, EDWARD M. GRAMLICH, Acting Director. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE 1. Bill number: H.R. 5. 2. Bill title: The School Improvement Act. 3. Bill status: As ordered reported from the House Education and Labor Committee April 22, 1987. 4. Bill purpose: The primary purpose of this bill is to amend and extend through 1993 the authorization for appropriations for the major federal elementary and secondary education grant programs. Most of these programs are currently authorized under the Ele- mentary and Secondary Education Act of 1965, the Education Con- solidation and improvement Act of 1981, P.L. 81-815 and P.L. 81- 874 relating to federal impact aid payments, the Education For Economic Security Act, the Indian Education Act, and the Adult Education Act. H.R. 5 also establishes several new grant programs. This bill is subject to subsequent appropriations action. 5. Estimated cost to the Federal Government: BY fiscal year, in millions of dears) 1988 1989 1990 1991 1992 1993 TITLE I BASIC PROGRAMS Estimated authorization level Basic Grants to local education agencies 1 350 11,400 12,050 12,76 13; 50 14,150 Basic grants to State agencies for migratory children 635 665 105 150 806 855 Basic grants to State agencies for handicapped children 385 405 430 460 490 485 Basic grants to State agencies for neglected and dknquent children 63 65 10 14 19 84 Grants to the territiories 119 125 133 140 148 156 State administration 121 121 134 142 150 158 Partnership for education innovation (Chapter 2) 580 612 641 683 120 159 Capital expenses 30 32 33 35 31 39 Even start program 50 53 56 59 62 65 Secondary school programs 100 106 112 118 12A 131 Department of Educdtion studies 12 3 13 14 15 16 National Commission on Migrant Education 2 GAO studies ( 1) ( 1) ( I) (I) (I) ( 1) School reform study 1 Office of School Health Policy (1) (l) (I) (I) (9 ( 1) 1 0 100 [By fiscal year in mikes of dollars] 1988 1389 1990 1991 1992 1993 Subtotal estimated authorization level 12,948 13,602 14,383 15,200 16,075 16,897 Subtotal estimated outlays 681 11,213 13,553 14,319 15,134 15,99S TITLE II CRITICAL SKILLS IMPROVEMENT Estimated authorization lr.al Critical skills improvement 400 422 446 471 496 523 Partnershm in education 40 11 12 12 13 14 Subtotal estimated authorization Wel 360 433 458 483 509 537 Subtotal estimated outlays 29 265 415 453 478 504 TITLE III MAGNET SCHOOLS Estimated L onzatmn level 40 121 128 135 142 150 Estimated outlays 3 35 99 127 134 141 TITLE IV GIFTED AND TALENTED Estimated authorization level 25 26 28 29 31 33 Estimated outlays 2 18 26 28 29 31 TALE V DRUG-FREE SCHOOLS AND COMMUNITIES Estimated authorization level 14 279 295 311 321 Estimated outlays 2 48 175 291 307 TITLE VI SPECIAL POGRAMS Estimated authorization level Women's education equity 4 1 22 23 24 26 Ellender fellowship (') 3 3 3 3 Immigrant education 42 44 t7 49 Territorial assistance 1 1 6 6 6 6 Excellence in education 11 5 6 6 6 7 Subtotal estimated authorization level 8 5 78 82 87 91 Subtotal estimated outlays -1 5 6 61 82 86 TITLE VII BILINGUAL EDUCATION Estimated authorization level 64 260 275 290 306 322 Estimated outlays 2 57 218 272 287 303 TITLE VIII INDIAN EDUCATION Estimated tutiarization levei Fin,flexal assistance to local education agencies 22 26 78 82 87 92 Coostruction of Native American schools 50 Operation of Native American schools 7 7 7 8 Improving education opportunities 35 35 35 35 Special education teacher training ( ' ) (I) I 1 1 2 Fellowships ( ') (') 2 2 2 2 National Advisory Council (') (I) (,) (1) Native Hawaiian education programs 10 10 11 11 11 12 Subtotal estimated authorization level 82 36 134 138 143 151 Subtotal estimated outlays 26 59 86 128 141 146 TITLE ,)( AMENDMENTS TO OTHER LAWS Estimated authoniation level Adult educotion 89 211 223 236 248 262 Adult Indian educaton 8 8 9 9 10 10 Impact aid 65 800 845 893 941 992 Office of Admimstratwes Law Judges (1) (') (I) (') ( I) (I) Center for Education Statistics 26 33 37 39 42 44 Subtotal estimated authorization level 58 1,052 1,115 1,178 1,241 1,308 Subtotal estimated outlays 38 767 1,057 1,151 1,214 1,280 Bill total Estimated authorization level 13,570 15,551 15,878 17,832 18,846 19,817 101 101 By fiscal year, In names of (tears) 1988 1989 1990 1991 1992 1993 Estimated outlays 104 12,392 15.504 16,114 17 791 18,198 . Less than $500.000 The cost of this bill falls in Function 500. Basis of estimate: The cost estimate for h.R. 5, the School Im- provement Act, reflects both the new and extended authorization levels for most federal elementary and secondary education pro- grams. For those programs where specific authorizations have been stated in the bill, the estimate reflects the stated levels. For those programs authorized at such sums as may be necessary, CBO has estimated the authorization levels. It is assumed that the authori- zation levels are fully funded. Estimated total outlays for existing programs reflect current spending patterns. Most of the grant pro- grams authorized in this bill are appropriated on a forward fund- ing basis, the 1988 funds are to be used for the 1988-1989 school year, thus estimated outlays are low in the fir?t year. For new pro- grams, estimated total outlays reflect the spending patterns of similar grant programs. The specific assumptions are stated below. Title I Title I includes the basic formula grants to both the local educa- tion agencies (LEA s) and the state education agencies (SEAs) re- ferred to as Chapter 1 grants. This title also authorizes the part- nership for educational innovation grants referred to as Chapter 2 grants as well as the even start program, secondary school pro- grams and several new studies and commissions. The basic grants to LEAs are authorized at such sums as may he necessary. Based on the stated formula contained in the bill, CBO estimates that the 1988 cost would be $10.9 billion. Under full fund- ing, each LEA would be entitled to 40 percent of the state's per pupil expenditure, held to a specified range around the national av- erage, multiplied by the number of children i1 the school district who are from low income families as defined by the 1980 Census plus the number of certain AFDC, neglected, delinquent, or foster children not included in the Census counts. There is also a speci- fied state minimum payment level. There ore almost 8.1 million children age 5 to 17 years old who are eit'aer children in poo: families according to the 1980 Census criteria for poverty or who meet the other criteria. The total number of children is not expected to change until two or three years after the 1990 Census; thus numbers are held constant over the projection period. The national weighted average per pupil ex- penditure under the formula is estimated to be $1,341 for 1988. This figure has been adjusted for projected inflation over the re- maining five year period to determine the ontyear grant levels. The SEA grants for migratory, handicapped, delinquent, and ne- glected children are determined by multiplying the number of chil- dren by 40 percent of the state's per pupil expenditure similar to LEA grants. The total estimated authorization for the three SEA grants for 1988 is approximately $1.1 billion. Based on the latest 1!2 1 102 estimates of children from the Department of Education, the full- time equivalent number of migrant children in states, which under H.R. 5 is expanded to include children age 3 to 21 years old, is esti- mated to be aimed 470,000. The number of children residing in state operated facilities for the handicapped is estimated to be about 255,000 and the number of delinquent and neglected children in those facilities is estimated to be over 44,000. These populations are not expected to change significantly over the next six years. The estimated authorization levels for the grants for both the territories and state administrative expenses are based on the spec. ified percentages of LEA and SEA grant levels stated in the bill. The authorization levels for Chapter 2, capital expenses, even start program, secondary school programs, and Department of Edu- cation studies are the levels specifically stated in the bill for 1988. These programs are authorized at such sums through 1993. The es- timates of the outyear authorization levels reflect the 1988 stated levels adjusted for inflation. The authorization for the National Commission on Migrant Education and the school reform study are the one-time amounts stated in the bill. The cost of the GAO study would be minimal. The cost of establishing the Office of School Health Policy would also be minimal. The Office would have no operational or managerial responsibiries within the Department and thus require few staff positions. Title 11-Title IX The authorization levels for grants for critical skills improve- ment, the gifted and talented, adult Indian education, and Native Hawaiian education programs are the levels specifically stated in the bill for 1988. With the exception of three Native Hawaiian pro- grams authorized at stated levels, these grants are authorized at such sums through 1993. The estimates of the outyear such sums authorization levels reflect the 1988 stated level adjusted for infla- tion. The grants for partnership in education, magnet schools, excel- lence in education, bilingual education, adult eduction, and impact aid grants all currently are authorized through 1988. Grants for drug-free schools and communities, women's education equity, El- lender fellowships, immigrant education, territorial assistance, fi- nancial assistance to LEA's for the education of Indian children, improvement of ed .cation opportunities for Indian children, special education training programs for teachers of Indian children, fellow- ships for Indian students, and the National Advisory Council on Indian Education all are authorized through 1989. H.R. 5 either sets new 1988 authorization levels or extends the current levels foz the3e programs. The 1988 and 1989 authorization levels for those programs shown in the table reflect the difference between current and new authorizations. In those uses where the current authori- zation is such sums, that level is a timed to be the amount appro- priated for 1987 adjusted for projected inflation in 1988. With the exception of territorial assistance and grants for improvement of Indian education opportunities, which would be authorized at speci- fied amounts for all years, the programs are authorized at such sums through 1993. These outyear authorization levels reflect the latest stated aevel adjusted for projected inflation. 1 1, 3 103 The Center for Education Statistics authorization level is stated in the bill for 1988 through 1990. The estimated authorization for the Center through 1993 reflects the 1990 level adjusted for infla- tion. The new Office of Administrative Law Judges, which is to re- place the current Educational Appeals Board, would increase De- partment of Education salaries and expe ises less than $500,000. Funds for construction and operation of five Native American schools are authorized at such sums as may be necessary. CBO as- sumes construct;on would begin in 1988 and the schools would be operational by 1990. The cost estimates are based on construction and operations of ()the- elementary and secondary Indian schools. Actual costs could vary considerably. 6. Estimated cost to State and local government: H.R. 5 author- izes $13.4 billion for 1988 in grants to state and local governments. These newly authorized amounts combined with the current 1988 authorization levels for programs in Title II through Title IX total $15 billion. In 1987, actual funding for these programs was $5.7 bil- lion. Almost all of the grants, $13.2 billion, are formula grants. For- mula grants allocate funds based on the state's proportion of the national population of specific groups defined in the bill. In the case of Chapter 1 grants to LEAs the population is children age 5 to 17 in poverty; in the case of Chapter 2 grants, the population is the total number of children age 5 to 17; and in the case of adult education, the population is the number of adults. who do not have a certificate of graduation from a secondary school. With the exception of the adult education grants, which under the bill have a 10 percent matching requirement for 1988 increas- ing to 20 percent over the next four years, these formula grants have no requirement that state or local governments provide addi- tional funding to receive the grants. The bill states that these funds are to supplement state and local finances and not supplant them. The other $200 billion in state and local government grants are competitive grants for which state and local governments may apply. Some of these grants have matching fund requirements. 7. Estimate comparison: None. 8. Previous CBO estimate: None. 9. Estimate prepared by: Deborah Kalcevic and Ken Pott. 10. Estimate approved by: C.G. Nuckols (for James L. Blum, As- sistant Director for Budget Analysis). INFLATIONARY IMPACT The education programs in H.R. 5 will contribute to productivity and save costs of other social programs. Thus the bill will have an anti-inflationary impact. SECTION-BY-SECTION ANALYSIS Chapter 1 Title and format Title I, Subtitle A, amends and reauthorizes through fiscal year 1993 the Federal program for educationally deprived children cur- 4 104 rently authorized by Chapter 1 of the Education Consolidation and Improvement Act (ECIA). The bill repeals Chapter 1 of ECIA and Title I of the Elementary and Secondary Education Act and instead places all the applicable requirements from these predecessor Acts ..ito a new, free-standing program that retains the name of "Chapter 1." Declaration of policy and statement ofpurpose (sec. 1001) In recognition of the special educational needs of childr . from low-income families, as well as migrant, Indian, handicapped, ne- glected, and delinquent children, the Congress declare it to be the policy of the U S. to: Provide financial assistance to meet the special needs of edu- cationally depi'ved children at the preschool, elementary and secondary levels; Expand the Chapter 1 program over the next six years by in- creasing program funding by at least $500 million each fiscal year from 1989 thorugh 1993: and Provide this assistance in a way that eliminates unnecessary burden and rrovides flexibility to State and local educational agencies (LEAs). The purpose of the Chapter 1 program is to improve the educa- tional opportunities of educationally deprived children by helping them succeed in the regular school program, attain grade-level pro- ficiency, and improve their achievement in basic and more ad- vanced skills. Allocation (secs. 1005, 1006, 1405) Chapter 1 funds will be d'Aributed to States, Puerto Rico, and the territories, and to local school districts within those States and territories, according to the current poverty formula. This formula is based on the number of low-income children multiplied by an av- erage per pupil expenditure figure. The distribution differs from the current formula only in apt it: Eliminates the current provision requiring distribution or a small portion of Chapter 1 funds based on 1975 mid-census data and instead uses data from the most recent decenniel census for all Part A r..11ocations; Defines children from low-income families according to the most recent cc asus definition of poverty, instead of the 1970 definition; Requires the first $400 million of new appropriations for Chapter 1 basic grants to be distributed on the basis of a con- centration grant formula which channels extra funds to LEAs in counties where the number of poor children exceeds 6,500 or 15% of the enrollment. This concentration grant formula also guarantees each State a minimum of one-fourth of one percent of the amount reserved for concentration grants, and Small States are guaranteed 1/4 of 1% of the appropriation after a certain level of funding is achieved. 1 , E t) 105 Uses of funds (sec. 1011) An LEA may use Chapter 1 funds only for programs at the pre- school through secondary level which meet the special educational needs of educationally deprived children. Examples of the types of programs, activities, and expenditures which may be supported with Chapter 1 funds are: Acquisition of instructional equipment and materials; Employment and training of instructional and pupil services personnel and early childhood professionals; Bonuses to teachers; Construction (where necessary); Parental involvement activities; and Project planning and evaluation. LEAs are encouraged to develop programs to assist eligible chil- dren to achieve competency in basic skills and more advanced skills and to consider year-round services. A new provision permits LEAs, with the permission of the State educational agency (SEA), to use up to 5% of their Chapter 1 grants for 50% of the cost of innovative projects. These innovative activities are: Continuing services to children who have improved their achievement, to help them maintain their achievement gains; Providing services to children transferred to ineligible areas as part of a desegregation plan; Offering incentive payments to schools that have demon- strated success; Training regular classroom teachers to work with Chapter 1 children; Encouraging inns' iative approaches to parental involvement; and Fostering community and private sector involvement in Chapter 1. The total cost of such projects may be funded with the 5% if an LEA demonstrates that it lacks financial re- sources to match the Federal funds. Applications (sec. 1012) LEAs must submit to the SEA for approval a Chapter 1 applica- tion covering a period of up to three years. The application must assure that: The Chapter 1 programs will be of sufficient size, scope, and quality to give reasonable promise of success; Will provide for services to private school children; and Will allocate time and resources for frequent and regular co- ordination between Chapter 1 and the regular school instruc- tional program. Eligible schools (sec. 1013) LEAs are required to use Chapter 1 funds in school attendance areas with high concentrations of low-income children. When funds are insuffici'nt to serve all such areas, LEAs (except for those with less than 1,000 children) must rank their attendance areas accord- ing to their relFitive concentrations of low-income children and must select schools for Chapter 1 in this rank order. When identify- 1 6 106 ing and ranking the attendance areas, LEAs must use the same measure of low-income, based on the best available data, for all areas. Certain exceptions to this general ranking procedure are permit- ted (most of which derive from Chapter 1 of ECIA): (1) Any school attendance area may be deemed eligible for Chapter 1 if the percentage of children from low income fami- lies is within 5 percent of the district average percent of such children; (2) An attendance area with at least 25% low-income chil- dren may be considered eligible if the aggregate amount of Chapter 1 and State compensatory education funds spent in each Chapter 1 school in a fiscal year equals or exceeds the ag- gregate in the preceding fiscal year; (3) With the approval of the SEA, attendance areas with sub- stantially higher numbers or percentages of educationally-ee- prived children may be served ahead of areas with higher con- centrations of poor children, as long as this provision is rat used to serve more areas than would otherwise be served; (4) Schools which are not in eligible attendance areas, but which have proportions of poor children as high as those, in eli- gible attendance areas may be served; (5) Schools or areas that were eligible in the preceding fiscal year may continue their eligibility for a single additional year; and (6) With SEA approval, areas or schools with higher propor- tions of poor children may be skipped in the selection process if they are receiving from other non-Federal sources services of the same nature and scope as Chapter 1 services. LEAs must allc:ate funds among Chapter 1 schools according to the number and needs of children to be served. Children who become ineligible for Chapter 1 because of improved achievement may be counted as eligible for two additional years only for the purpue of determining the allocation of funds to their Chapter 1 school. Funds allocated to a school on the basis of this special pro- vision may be used to se:ve an eligible child in the school. Eligible children (sec. 1014) Within an eligible school, Chapter 1 funds must be used to pro- vide services 10 educationally deprived children with the greatest need for special assistance. Eligible children include children up to age 21 who are entitled to free public education through grade 12 and preschool children who are below the grade where the LEA provides a free public education but who could benefit from an or- ganized instructional program. To determine the children in greatest need, the LEA must (In- duct an annual needs assessment which identifies the educatioi....ily deprived children in all eligible attendance areas and identifies the instructional areas on which the Chapter 1 program will focus. The needs assessment must result in the selection of those educational- ly deprived children with the greatest need, as identified by educa- tionally related objective criteria which include written or oral testing instruments that are uniformly applied to grade levels throughout the LEA. Finally, the LEA must determine the special I 1 r 7 107 educational needs of participating children with sufficient specifici- ty to ensure concentration on those needs. There are certain exceptions to these general rules for identify- ing and selecting children: (1) Educationally deprived children who are transferred from an eligible area to an ineligible one in the middle of a school year may continue their eligibility for the remainder of that year; (2) Children in greatest need who are receiving from non- Federal source Services of the same nature and scope as Chap- ter 1 services may be skipped; (3) Children receiving services to overcome a handicapping condition or limited English proficiency shall be eligible for Chapter 1 services if they have needs that stem from educa- tional deprivation and are not related solely to the handicap- ping condition or limited English proficiency. These children shall be identified and selected for Chapter 1 on the same basis as other children, except that funds may not be used to provide services that are otherwise required by law to be made avail- able to the handicapped or limited-English-proficient children; (4) Children who were in the greatest need of assistance in the previous year and who, although educationally-deprived, are no longer in greatest need, may participate in Chapter 1 for two years; and (5) Children who in the previous two years were receiving Chapter 1 neglected and delinquent services shall be consid- ered eligible and selected under the general selection proce- dures. Schoolwide projects (sec. 1015) Any Chapter 1 school with 75% or more poor children may use its Chapter 1 funds for a project which upgrades the entire instruc- tional program in the school without having to demonstrate that services are focused only on eligible children, although the Federal funds must be supplementary to State and local funds otherwise available, if the conditions below are met. Schools with schoolwide projects may use Chapter 1 funds to plan and implement effective schools programs (as defined in the definitions section of the bill) and to conduct other activities that will improve the instructional program, such as reducing class size, training staff, and implement- ing extended school day programs. Before undertaking a schoolwide project, the LEA must submit to the SEA for approval a plan which: Assesses the needs of all the students in the school; Establishes the project goals; Describes the specific program; and Describes how the school will move to implement an effec- tive schools program. The plan must comply with certain other requirements concern- ing involvement of and. consultation with parents, teachers, and others; adequate staff training; evaluation; allocation of Chapter 1 funds to such schools; and maintaining local effort pe: pupil. The SEA may grant the authority to operate a schoolwide project for a period of three years. Schools will be allowed to continue the 108 project for additional three year periods if they can demonstrate that the achievement of Chapter 1 children in the school exceeds the averagc achievement of such children district-wide or exceeds the achievement of Chapter 1 children in that same school in the three fiscal years preceding implementation of the project. SE ond- ary schools can aL qualify for nontinuation by demonstrating lower dropout rates, increased re n rates or increased gradua- tion rates if achievement lev-' tot decline. To demonstrate these improvements, schools ?rojects must annually collect achievement data and make it available to the parents, the public and the SEA. Parental involvement (sec. 1016) LEAs must im element programs, activities, and procedures to in- volve parents in Chapter 1 programs. Parental involvement is de- fined to include parent input into program dc3ign, implementation and evaluation, volunteer and paid participation by parents in school activities, and parent efforts to improve their children's learning at home. The vials of a local parental involvement program are: To inform every Chapter 1 parent about his or her child's e, rticipation in the program; To train parents to work with their children at home consist- ent with the instructional objectives of the -ogram; To train teachers and other program staff to work effectively with parents; ILIA To consult with parents about how the parents .nd schools can work together. Toward these ends, each LEA must develop, in consultation with parents, written policies to ensure adequate parental participation and must provide reasonable support for the parent activities that parents may request. The LEA shall also convene an annual meet- ing of parents , pnrticipating children to explain the program and shall, to the ei. practical, hold a parent-teacher conference with parents of Chili. er 1 children. The bill lists a variety of allowable parental involvement activi- ties. Parent training, take-home materials, staff to work with par- ents, and parent advisory councils are just a few examples. Participation of private school children (sec 1017) LEAs shall make: provision, after timely and meaningful consul- tation with private school officials, for the participation in Chapter 1 of educationally deprived children enrolled in private schools, through such arrangements as dual enrollment, educational radio, television and technology, and mobile servict- and equipment. Ex- penditures for services to such children must equal, considering their number and needs, to those for public school children. The bill continues the current provision authorizing the Secre- tary of Education to enter into a bypass arrangement to serve pri- vate school children when n LEA is prohibited by law from doing so or has substantially faile, to do so. The Secretary is required to develop a complaint procedure for resolving complaints that in- cludes a 120-day time lin 1 for investigation and resolution of com- plaints. I CI 9 109 A new authorization of $30 miLion for fiscal year 1988 and such sums as necessary for the five succeeding fiscal years is luded in the legislation to facilitate compliance with the Supreme Court's Aguilar v. Felton decision regarding private school participation. This authorization is for capital expenses (such as purchase, lease, and renovation of property, mobile units, and equipment; insurance and maintenance; transportation; and other goods and services) that are necessary to provide Chapter 1 instructional services to private school children. This capital expenses fund will be distributed to States based on their number of private school children served in Chapter 1 in school year 1984 '5 An LEA must apply to the State for these funds, and the Stcte shall distribute them based on the degree of need. LEAs may be retroactively reimbursed for allowable expenses back to July 1, 1985. Fiscal requirements (sec. 1018) The bill continues the current "maintenance of effort" provision requiring LEAs to maintain a level of fiscal effort per student from State and local funds that is not less than 90% of such effort in the second preceding fiscal year. An LEA that fails to maintain effort shall receive a proportionately-reduced allocation. The State may grant a waiver of this provision to LEAs affected by exceptional or uncontrollable circumstances or precipitous and unforeseen de- clines in their financial resources. Federal Chapter 1 funds may be used only to supplemen. and not to supplant non-Federal funds. However, this requirement shall not be construed to require a particular instructional method or in- structional setting. State and local funds must be used to provide services in Chapter 1 schools which, taken as a whole are comparable to services pro- vided with State and local funds in other schools of the District. To comply with this "comparability" provision, an LEA must file with the SEA a written assurance that it has established and imple- mented a district-wide salary schedule, a policy to ensure equiva- lence among schools in teachers, administrators and auxiliary per- sonnel, and a policy to ensure equivalence in the provision of in- structional materials and supplies. The LEA must develop procedures to comply with the compara- bility provision and must annually maintain records documenting compliance. TJnpredictable changes in student enrollment after the school year begins shall not be factored into the comparability de- termination, and LEAs with not more than one building for each grade span shall be exempted from the comparabiMy requirement. The SEA shall monitor compliance with comparability. Those LEAs which are out of compliance shall have their Chapter 1 funds withheld only to the degree by which they have failed to comply. To determine compliance with the anti-supplanting and compara- bility requirements, an LEA may exclude State and local funds for certain special programs for educationally dor.rived children, as de- fined in more detail in the bill and as approv. ,. in advance by 0,-. Secretary or SEA. No State may take Chapter 1 funds into consideration in deter- mining an LEA's eligibility for or amount of State aid. I A 110 Evaluation (secs. 1019, 1435, 1436) Each LEA must evaluate the effectiveness of its Chapter 1 pro- grams in a manner that conforms with national standards and which incorporates objective achievement measures (including a measure of whether gains are sustained over more than one year). The results shall be submitted to the SEA every three years and taken into consideration for improving the programs. SEAS are re- quired to inform the LEAs in advance of the evaluation data that will be required. In addition to collecting certain demographic data about program participants, SEAS shall conduct an evaluation of the program every two years, based on local data. At the national level, the Secretary shall develop national stand- ards for local evaluation to ensure a common reporting system. In developing these standards, the Secretary must consult with SEAS, boards of education, parents, and LEAs and notify SEAS and LEAs in advance of the requirements associated with this evaluation effort. Based on this aggregated data, the Secretary must submit a comprehensive, biennial report to Congress. The Secretary, with his national evaluation funds, is required to conduct a national longitudinal study of the long-term effects of Chapter 1 participation on student achievement, dropout rates, de- linquency, employment and earnings, and other factors. Program improvement (sec. 1020) Schools which show a decline in the achievement of Chapter 1 ch;Hren in any year must submit a plan for improvement to the LEA, which in turn must review that plan and provide technical assistance. If the achievement at the school continues to decline for another year, the LEA must notify the SEA to provide technical assistance from the State level. For students who remain in Chapter 1 for more than two years, the LEA must conduct a thorough assessment of their programmat- ic needs. PART B-EVEN START PROGRAMS Purpose and uses of funds (secs. 1051, 1053) The purpose of the "Even Start" program is to improve the edu- cational opportunities of the Nation's children by integrating early childhood education and adult education for parents into a unified, family-centered program. The bill specifies certain components that must be included in each Even Start program: Identification and recruitment of eligible children; Screening and appropriate referrals for parents and chil- dren; Provision of support services when unavailable from other sources; Establishment of instructional programs to promote adult literacy, train parents to cupport their children's education, and prepal their children for success in school; Provision of training to enable staff to develop skills neces- sary to work with parents and young children; 1 I 1 111 Provision of integrated instructional services through home- based programs; and Coordination with programs under other relevant Acts. The Federal share for these programs is limited to not more than 80% of the program costs in the first year, 60% in the second year, 40% in the third year, and 20% in the fourth year. The remaining percentage may come from State, local, or other Federal fur ( in- cluding Chapter 1 Part A funds). Allocation (sec. 1052) Even Start funds will be allocated to States based on their rela- tive proportions of Chapter 1 basic grant funds, except that there is a State maximum of 5% of the total when appropriations are less then $50,000,000 and a minimum of three-fourths of one percent or $100,000. Three percent of the Even Start appropriation is reserved for Even Start programs for migrant children. Participants (sec. 1054) Eligible participants for the Even Start programs include a parent or parents eligible for adult basic education under the Adult Education Act, and their child or children aged 1 through 7 inclu- sive who reside in a Chapter 1 attendance area. Applications (sec. 1055) LEAs must submit applications to the State which documents that the LEA has personnel qualified to run the Even Start pro- gram and which contain a plan for the program. In this plan, the LEA must describe the program's goals, activities, services, and target population, and state how the programs will serve those eli- gible participants most in need, will serve special populations, and will encourage participants to remain ir_ the program long enough to meet their goals. The plan must also describe how the program will be coordinated with other relevant programs such as those under the Adult Education Act, the Job Training Partnership Act, and Head Start. Award of grants (sec. 1056) A seven-member review panel, appointed by the SEA with repre- sentation from various groups specified in the bill, will decide which proposals are funded. The proposals will be judged on the basis of: Their likelihood for success and their promise for developing transferable models; Whether they serve areas of the State with the greatest needs and whether they are representative of urban and rural regions in the State; The degree of cooperation with other relevant service provid- ers; The rea.Amableness of the budget; and Their ability to provide the non-Federal share. Evaluation (sec. 1057) The Secretary is responsible for arranging for independent annual evaluations of the effectiveness of these Even Start pro- 1 ; 2 112 grams, to be conducted by individuals not directly involved in the program. The evaluations shall be conducted on the basis of criteria speci- fied in the bill which are developed jointly by the independent eval- uators and the program administrators and which contain objective measures of the program's goals The Secretary must submit to Congress a report reviewing and summarizing the evaluation results. The individual evaluations shall be submitted to the Department of Education's National Dif- fusion Network for possible dissemination. Authorization (sec. 1058) For the Even Start program, the bill authorizes $50 million for fiscal year 1988 and such sums as may be necessary for the five succeding fiscal years. PART C-SECONDARY SCHOOL PROGRAMS FOR BASIC SKILLS IMPROVEMENT AND DROPOUT PREVENTION AND REENTRY SUBPART 1-PURPOSE AND AUTHORIZATION Purpose and Authorization (secs. 1101, 1102, and 1103) The bill authorizes $100 million for fiscal year 1988 and such sums as necessary for the five succeeding fiscal years for grants to LEAs to improve the achievement of educationally deprived sec- ondary school students, potential dropouts, and dropouts and to ref! .ce the number who drop out of school. These funds would be available for national demonstration grants for 1988, 1989, and 1990 and for State-administered imple- mentation grants for 1991, 1992, and 1993. SUBPART 2-NATIONAL DEMONSTRATION PROGRAM Allotment of Funds (secs. 1121, 1122, and 1123) Of the funds available for the national program, the Secretary shall first reserve 3% for migrant programs and then evenly divide the remainder for basic skills and for drop-out prevention. Grants for drop-out prevention shall be made by ranking school districts according to their pupil size, and these grants must be matched in increasing amounts by the districts. Grants for basic skills shall be equitably distributed. General Provisions (sec. 1124) No district may receive more than one grant a year, and the pro- gram shall be evaluated by the Secretary. SUBPART 3-STATE IMPLEMENTATION GRANTS Funds Allocation (secs. 1131 and 1132) The State-administered program takes effect in 1y91 and contin- ues through 1993. Funds are allocated to the States using the regu- lar Chapter 1 formula. States may reserve 5% for administration and must award grants to LEAs with the greatest number of poor children or dropouts and with the greatest fiscal need. 113 113 SUBPART 4-GENERAL REQUIREMENTS Applications (sec. 1141) Applications must describe the goals and uses of funds and pro- vide for the participation of private schoolchildren. In addition to other requirements, information on the numbers of drop-outs and students not receiving compensatory services must be provided. Uses of funds (sec. 1142, 1143, and 1144) Drop-out grants may be used for a wide range of activities in order to prevent drop-outs or to educate those who have already dropped out of school. Basic skills grants are targeted at improving the grade level proficiency of students. Not more than 10% of a grant may be used for local administration. PART D-PROGRAMS OPERATED BY STATE AGENCIES SUBPART 1-MIGRANT PROGRAMS Funds allocation (sec. 1201) The bill continues, with a few changes, the current formula for distributing funds to SEAS for programs for migratory children of migratory agricultural workers and migratory fishermen. This for- mula takes into account the number of migrant children residing in the State (on a full-time equivalent basis) multiplied by an aver- age per pupil expenditure factor. The bill makes the following changes in the migrant allocation provisions: The formula must be based on the number of migratory chil- dren aged 3 to 21 (instead of 5 to 17, as currently); The Secretary must allow a 5% error rate in States' determi- nations of student eligibility; and The Secretary must develop a standard certification form to assist States in determining eligibility. Program requirements (sec. 1202) The Secretary approves applications for migrant funds submitted by the States after determining that: The funds will be used to meet the special educational needs of migratory children; The programs will be coordinated with other Federal pro- grams relevant to migrants; The programs will be administered in a manner consistent with the Chapter 1 basic grant provisions related to uses of funds, applications, children's eligibility, and fiscal require- ments; The program will be planned and operated in consultation with parent advisory councils (in the case of programs lasting ti' rough a school year) and that all migrant programs will comply with the general Chapter 1 parental participation pro- visions; The preschool needs of migrant children will be provided for; The programs will be evaluated in terms of their effective- ness and, in the case of formerly migrant students who have J i 4 114 been served in full-year programs for at least two years, the evaluations will determine whether improved achieverr.2nt is sustained. Eligibility (sec. 1202) For up to five years after "settling out" of the migrant stream, a child shall be considered migrant for purposes of this program; however, currently migrant children shall be given priority for Chapter 1 Part D programs. The Secretary is required to use cer- tain regulatory definitions relating to migrant students' eligibility that were in effect on April 30, 1985. Bypass (sec. 1202) If the Secretary determines a State is unable or unwilling to con- duct educational programs for migrant children, the Secretary may arrange to bypass the State and carry out these programs through other public or private nonprofit agencies. A bypass may also be initiated if the Secretary determines it would result in more effi- cient and economic administration or would substantially improve the welfare or educatio 'al attainment of migrant children. State coordination activities (sec. 1208) In consultation with the States and with State approval, the Sec- retary may make grants to SEAs for activities to improve the inter- state and intrastate coordination of migrant programs. The Secretary is also authorized to enter into contracts with SEAs to operate a system for transferring migrant student records among SEAs and LEAs. The Secretary shall continue to award the records transfer contract to the SEA that operated it in the preced- ing year, unless a majority of States notify the Secretary in writing that the SEA with the contract has substantially failed to perform its duties. The Secretary may also make grants to or contracts with SEAs to develop and establish a national program of credit exchange and accrual to assist migrant students in meeting graduation require- nents. For the State coordination activities, the Secretary shall reserve up to $6 million or 5% of the appropriation. SUBPART 2-HANDICAPPED PROGRAMS State eligibility (sec. 1221) The State educational agency is eligible to receive a grant. Cur- rent law states i nly "the State agency". Application (sec. 1221) The bill requires that the State assure that grant recipients will comply with P.L. 94-142, EHA; monitor compliance; coordinate services with EHA services; and from 1991 on administer the pro- gram through the State office which administers EHA. Grant amount (sec. 1221) The bill continues the current formula for distributing funds. i5 115 Reporting (sec. 1221) Child count is based on children enrolled on December 1 in pro- grams supported with these funds. The date has been changed from October 1 to make it consistent with P.L. 94-142, and "average daily attendance" is changed to children enrolled to reflect current practice. Program requirements, LEA application (sec. 1222, 1224) The bill simplifies application requirements for small or single purpose projects in LEAs; describes general assurances on use of funds; and states that funds must supplement the piovision of spe- cial education, be used for activity not supported with state or local funds the previous year, and funds benefit the children counted. Uses of funds (sec. 1223) The bill delineates examples of acceptable supplementary uses of funds and delineates reporting requirements for within-state appli- cations. Eligible children (sec. 1225) The bill describes the eligible populations handicapped children from birth to 21 who are not counted for part B of EHA, are par- ticipating in State-operated or supported programs, have been transfered to LEA programs, or other handicapped children if all those above are fully served. GAO study (sec. 1226) The GAO must conduct a study of this program and its relation- ship to EHA and report to Congress by January 30, 1989. SUBPART 3-NEGLECTED AND DELINQUENT PROGRAMS Funds allocation (sec. 1241) SEAS shall receive grants for educating children in institutions for neglected and delinquent youngsters or in adult correctional in- stitutions. Funds are distributed to States based on a formula which considers the number of such children in the State multi- plied by an average per pupil expenditure factor. Program requirements (sec. 1242) Subpart 3 funds are to be used for programs that meet the spe- cial educational needs of children in neglected and delinquent insti- tutions, children attending community day programs for the ne- glected and delinquent, and children in adult correctional institu- tions. The State application for these funds may cover a period of up to three years. The neglected and delinquent programs must comply with the general Chapter 1 provisions regarding uses of funds and eligible students and with the regular Chapter 1 fiscal requirements (except for comparability). These programs are to supplement the basic educational services provided such children by the State; pro- grams which are supplementary in terms of the number of hours of instruction the students receive shall be considered to comply with J;6' 116 this provision, without regard to the subject areas in which those hours are provided. Evaluation (sec. 1242) The neglected and delinquent programs must be evaluated annu- ally to determine their impact on the ability of such children to maintain and improve educational achievement, to maintain school credit, and to make the transition to an LEA educational program. Transition services (sec. 1243) Up to 10% of the funds under Subpart 3 may be used by the Sec- retary for grants to SEAS and LEAs for projects that facilitate the transition of neglected and delinquent children into locally-operat- ed programs. SUBPART 4-GENERAL PROVISIONS FOR STATE AGENCY PROGRAMS Reservation of funds (sec. 1291) Up to one percent of the funds under subparts 1, 2, and 3 are to be reserved for payments to the outlying areas to carry out mi- grant, State handicapped, and neglected and delinquent programs. This percentage is to be allotted by the Secretary among the terri- tories according to their respective needs. Dual eligibility (sec. 1292) Neglected and delinquent children eligible for programs for handicapped children under subpart 2 may be counted for each subpart for purposes of grant allocation. PART E-PAYMENTS Payment methods, amounts, and adjustments (secs. 1401, 1402, 1403, 1406) The Secretary shall pay to SEAs and LEAs the amounts to which they are entitled. If the appropriations are insufficient to pay the full amounts under the formula, the amounts for the State agency programs under Part D shall first be paid in full. From the remain- der, the LEAs shall receive their basic grant allocations, which shall be ratably reduced if appropriations are insufficient. No LEA may receive less than 85% of its previous year's allocation. All of these payment provisions are subject to the availability of appro- priations. State administration payments (sec. 1404) States shall receive 1% of their Part A and Part D allotments, or $300,000, whichever is greater, for State administration of these programs. The territories shall receive $50,000 for this purpose. The amount of State administrative funds that can be used for State indirect costs is limted to 15% of the total administrative funds available. 117 117 PART F-GENERAL PROVISIONS SUBPART 1-FEDERAL ADMINISTRATION Federal regulations (sec. 1431) The Secretary is authorized to issue reasonable regulations. Pro- posed regulations must be reviewed by regional panels of Federal, State, and local administrators, teachers parents, and local and State school board members. In emergencies, regulations may be issued prior to review but must then be immediately reviewed prior to issuance in final form. Chapter 1 programs may not be required to follow any one in- structional model, such as the provision of services outside the reg. ular classroom or school program. Availability of appropriations and carryover (sec. 1432) Chapter 1 funds shall become available for obligation on July 1 of the fiscal year in which they are appropriated and shall remain available through the end of the subsequent fiscal year. The bill places the following ceilings on the amount of funds LEAs may carry over for one additional fiscal year: 25% for fiscal year 1988; and 15% for fiscal year 1989; and thereafter. An SEA may grant an LEA a one-time waiver of these carryover limits if the SEA determines the request is reasonable and neces- sary, or may grant a waiver fog any year if supplemental appro- riations under this chapter become available. The percentage limi- tation does not apply to LEAs with less than a $50,000 allocation. Withholding, judicial review (secs. 1433, 1434) The bill continues the current provisions for judicial review and for withholding funds from SEAS where there has been a failure to substantially comply with the Chapter 1 provisions. The basis of review is section 458(c) of the General Education Provisions Act. Coordination of administration (sec. 1437) The Secretary is required to develop a policy manual for Chapter 1 to assist SEAS and LEAs in implementing and administering pro- grams. The Secretary must respond in writing within 90 days to written requests from States and LEAs regarding Chapter 1 policies, ques- tions, and interpretations. The Secretary is required to operate a network of centers, acces- sible through electronic means, to provide technical assistance to States and LEAs in such areas as evaluation, program improve- ment, parental involvement, instruction, and curriculum. To the extent possible, the Secretary must provide information to States and LEAs about the opportunities for disseminating exem- plary programs through the National Diffusion Network and must coordinate Federal exemplary project identification activites with such network. The Secretary must provide for a review of State and local ad- ministration of Chapter 1 programs. li8 118 Federal research (sec. 1438) The Secretary is authorized to make small grants for applied re- search and innovative projecis on promising educational models to serve educationally deprived children and on promoting parent involv ament. Prioe'ty is given to research tutoring programs for eligible chil- dren a. cried out by students in institutions of higher education and to research on the problems of rural districts. Authorization (sec. 1439) For fiscal 1988 $12 million is authorized, and such sums as neces- sary are authorized for the five succeeding fiscal years, for Federal evaluation, technical assistance, and research activities. Application of General Education Provisions Act (sec. 1440) GEPA is made generally applicable to Chapter 1 with specific ex- ceptions for sections that are superseded or apply only partially. National Commission on Migrant Education (sec. 1441) Authorizes $2 million for a 12-member commission, including House and Senate representatives from both political parties to study issues related to the education of migrant children. Reports and recommendations are to be issued to the President and appro- priate congressional committees. The commission is authorized for three years. Study of participation of private school children (sec. 1442) The Comptroller General is directed to conduct a study of the ef- fects of the Aguilar v. Felton decision on Chapter 1 services to pri- vate school children and to report those findings to Congress. The study is to be updated periodically. SUBPART 2-STATE ADMINISTRATION State rulemaking (sec. 1451) Nothing in this chapter shall be interpreted to: preempt, prohib- it, or encourage State regulations which are not in conflict with Chapter 1 law and regulations, and other applicable laws and regu- lations. State rules and policies may not limit LEA decisions regarding grade levels to be served, course areas, instructional settings or kinds of instructional staff. Any State rule must be identified as a State-imposed requirement. Before they are proposed and finalized, State rules must be re- viewed by a committee of practitioners, including administrators, teachers, parents, and LEA school board members. Records and information (sec. 1452) Each SEA shall keep records and provide such information as may be required for fiscal audit and program evaluation. Assignment of personnel (sec. 1453) Chapter 1 LEA personnel may be assigned limited supervisory, non - instructional duties that are assigned to similarly-situated non- Chapter 1 personnel, as long as such duties do not exceed the same 1 i9 119 proportion of total time spent in such duties by similarly situated non-Chapter 1 personnel at the same school site or exceed one period per day, whichever is less. States with programs meeting the requirements of Sec. 1018(d) (State compensatory education programs) may use Chapter 1 funds to pay personnel working in both Chapter 1 and the State program as long as the amount is pro-rated to time spent in each program, and time distribution records reflecting the time allotment are maintained by the employee so assigned. SUBPART 3-DEFINITIONS The bill continues the current Chapter 1 definitions and adds new ones for "pupil services personnel," 'effective schools pro- grams," "parent advisory council," "more advanced skills," and "community-based organizations." SUBPART 4-MISCELLANEOUS PROVISIONS For the period extending from October 1, 1987 through June 30, 1988, recipients may expend funds in accordance with the provi- sions of this Act or Chapter 1 of ECIA. Effective October 1, 1987, ECIA Chapter 1 and ESEA Title I are repealed. Chapter 2 Section 1501 Largely restates the current purpose of Chapter 2, which is to provide SEAS and LEAs with Federal funds to be used to improve educational services. Section 1511 Authorization is for $580,000,000 for fiscal year 1988 and such sums for each of the five succeeding years. Section 1512 Funds are allocated to States on the same formula as current law. School age population is the major formula factor. Section 1513 The current split of 20% of State grant funds being retained at the State level and 80% being allocated to LEAs is maintained. LEA funds are distributed on an "adjusted" school enrollment basis. The exact nature of the "adjusted enrollment" is determined by each State but must weight the within-State formula so that LEAs with the greatest numbers or percentages of low income or rural children receive greater allocations. Adjusted allocations for these "high cost" children must flow to the school buildings with the children who generated these allocations. Section 1521 The State application remains much as it is in current law. J 20 120 Section 1522 States can use their 20% funds to: 1) administer the Chapter 2 program, 2) provide technical assistance to LEAs to help carry out purposes of the chapter, and 3) carry out effective schools pro- grams. No State can use less than 25% of the State money to carry out effective schools programs. Section 1531 The local application is largely unchanged from current law Section 1532 LEAs may use their grants for any of the following purposes: (1) at-risk and high cost children (2) effective schools (3) instructional and educational materials (4) personnel enhancement (5) special projects. These allowable uses of funds would continue the flexibility cur- rently available in Chapter 2. Section 1551 This section continues the maintenance of effort and supplement not supplant. Section 1552 Private school participation is guaranteed on an equitable basis as in current law. Sections 1553 and 1554 These sections describe the requirements for local and State eval- uation and reporting and Federal technical assistance and rule- making. Sections 1561-1567 National programs and activities are continued as in current law. The only exception to this is the deletion of the Drug Educa- tion program which was duplicative of the drug prevention legisla- tion passed in the 99th Congress. Sections 1591 and 1592 Chapters 2 and 3 of ECIA are repealed, and transition to the new Chapter 2 is clarified. Title IICritical Skills Improvement Short title (sec. 2010) The Critical Skills Act (Replaces the Title II, Education for Eco- nomic Security Act, mathematics and science program) Statement of purpose (sec. 2020) Strengthening economic competitiveness and national security . . . by improving the skills of teachers and the quality of instruc- tion in mathematics and science . . . 121 121 Program authorized (sec. 2030) $400,000,000 in grants to States for fiscal year 1988 and such sums for each of the five succeeding fiscal years. Allocation of funds (sec. 2040) (1) one-half of one percent to Guam, American Samoa, Virgin Is- lands and Trust Territories. (2) one-half of one percent to Indian students. (3) Five percent for National Programs. (4) Fifty percent of remainder distributed to States based on school enrollment. (5) Fifty percent of remainder distributed to States based on each State's Chapter 1 allocation. (6) No State shall receive less than one half of one percent or less than it received in FY 1987. Within State distribution (sec. 2050) Twenty percent to SEA and State agency for higher education for State programs, planning, and adminiat,ation. Remainder to LEAs on the basis of a 50 percent enrollment/50 percent poverty formula. In any case where distribution to LEA is less than $3,000, such LEA must apply for funds as part of a consortium with other groups. State application (sec. 2060) Submission of three year plan to include assurances: fiscal con- trol, supplement/supplant, evaluation of teacher preparation, li- censing, certification, participation of underrepresented groups, targeting of rural areas and areas with high concentrations of low- income students, annual evaluation. Projection of teacher supply and demand, assessment of current math and science curriculum. Description of teacher training and curriculum needs, and a de- scription of activities undertaken. Local application (sec. 2070) Application shall include: needs assessment of current teachers, projection of future teacher demand, assessment of student achieve- ment in math and science, curriculum requirements, coordination of state, local and other Federal resources (especially National Sci- ence Foundation programs); coordination with other community and private resources (museums, professional association, etc.); as- surance of participation by underrepresented groups, assurance that evaluation will be conducted and reported. Uses of State funds (sec. 2080) Describes allowable use of State funds: statewide programs, teacher training activities, evaluation, technical assistance, small grants. 5 percent cap on administrative expenses. 122 LEA uses of funds (sec. 2090) Describes allowable activities and use of funds at LEA level: tea .er training and recruitment, incentive bonuses for hiring qualified teachers in areas of high need, start-up funding for magnet schools, and coordination of elementary and secondary cur- riculum. 'i eacher training c tivities (sec. 2100) Describes activities to be conducted by the State and locals to im- prove teacher tr 'n'ng and skills including academic year and summer inservice programs, evening and weekend programs, work- shops, and exchange programs, grants. Participation of children and teachers from private schools (sec. 2110) Makes provision for including services and arrangements for the benefit of private school children and teachers. Federal administration (sec. 2120) Provides for technical assistance for State and local evaluations and for annual report to Congress. National programs (sec. 2130) Describes activities, such as model programs of national signifi- cance that the Secretary may undertake. Repeal and extension (secs. 2145 and 2146) Repeals Title H of the Education for Economic Security Act. Extends Title III of the Education for Economic Security Act through fiscal year 1993 with an authorization of $10 million for fiscal 1988 and such sums as necessary for the succeeding years. Title IIIMagnet Schools This title extends the Magnet Schools Program through 1993 ar-1 authorizes $115 million for Fiscal Year 1988 and such sums the' ?- after. The title also forbids the Secretary from making a determi- nation about grant awards solely on the basis of the prior receipt of funds and limits to 15% the amount of funds which may remain available for obligation and expenditure in a succeeding fiscal year. Title IVGifted and Talented Programs Sec. 4001 Short Title: "The Jacob K. Javits Gifted and Talented Children and Youth Education Act of 1987". Sec. 4020 Findings: gifted and talented studerts are a national resource whose abilitie; must be r(' anized and developed; State and local educational agencies often lack the resources to carry out gifted and talented programs; the Federal government can best carry out a role of research, development, and personnel training for gifted P nd talented education. Purposes: to aid educational agencies in 123 initiating coordinated progr .ms to meet the special educational needs of gifted and talented child' en and to supplement other pro- grams that reach this target population. Sec. 4 080 Defines terms used in the bill. Sec. 4040 Establishes a program of grants to State and local educational agenda', institutions of higher education, and other public and pri- vate organizations and agencies for gifted and talented programs. Lists the uses of funds including training personnel; establishing and operating model programs; strenguiening State leadership and capacity; providing technical assistance; and carrying out national research, evaluation, surveys, and data collection. Establishes a National Center for Research and Development in the Education of Gifted and Talented Children and Youth. Limits funds for this Center and for other national activities to 30% of the amount appropriated. Sec. 4 050 Places highest priority on (1) identifying gifted and talented chil- dren who may be overlooked through traditional identification methods (such as those who are economically disadvantaged, handi- capped, or of limited English proficiency) and (2) special projects to improve the programs for gifted and talented in an entire State. Sec. 4 060 Requires the Secretary to ensure that provision is made for the equitable participation of children and teachers in private nonprof- it elementary and secondary Rchools. Sec. 4 070 Establishes a national advisory committee on gifted and talented education. Sec. 4 080 Requires the Secretary to establish a unit within the Department of Education to administer this program and coordinate all gifted programs within the Department. Sec. 4 090 Authorizes $25 million for fiscal year 1988 and such sums as nec- essary for the five subsequent fiscal years for this Title. Title VDrug Education Authorization of appropriations (section 5111) This section extends the Drug-Free Schools and Communities Act of 1986 through fiscal year 1993 and sets an authorization level of $250 million for fiscal year 1988 and "such sums as necessary" for fiscal years 1989, 1990, 1991, 1992, and 1993. 1 '; 4 124 State programs (Section 5122) This section provides that grants and contracts will include a youth suicide prevention program in addition to all of the other provisions delineated in this section. State applications (Section 5123) This section requires that applications submitted by States will also include a description of how, where feasible, the alcohol and drug abuse programs will be coordinated with youth suicide pre- vention programs funded by the Federal Government, State an local governments, and nongovenmental agencies and organiza- tions, in addition to all of the other requirements of this part. Federal activities (Section 5132) This section requires that the Secretary of Education in conjunc- tion with the Secretary of Health and Human Services will also in- clude "a study of the relationship between drug and alcohol abuse and youth suicide," in the report to be submitted to the President and the appropriate committees of the Congress. Title VISpecial Programs PART A-WOMEN'S EDUCATIONAL EQUITY Sections 6001-6009 These sections extend the Women's Educational Equity Act pro- gram through 1993 and set the authorization at $20 million for 1988 and "such sums" thereafter. The sections also require that the program be administered in the Office of Educational Research and Improvement. PART B-ELLENDER FELLOWSHIP PROGRAM Sections 6201-6206 This program is extended through 1993 and encouraged to give fellowships to handicapped and poor immigrant children, and up to 5% of the funds may be used for additional program opportunities for educators and the elderly and to establish learning activities at the State and local government level. FART C-THE EMERGENCY IMMIGRANT EDUCATION ACT Authorizations and allocations of appropriations (section 6303) Extends the Emergency Immigrant Education Act at $40 million for fiscal year 1989 and at "such sums as may be necessary" for each of the fiscal years 1990, 1991, 1992, and 1993. Reports (section 6310) Requires that the Secretary receive an annual report from each state educational agency receiving funds under this Part. The report may include such information as services provided, number of students served, nationality of students set-red, and any other such information which may lead to more improved reporting as may be required by the Secretary. 125 i25 Requires that the Secretary submit an annual report to the House Committee on Education and Labor and the Senate Commit- tee on Labor and Human Resources including services provided to this population, number of students served, nationality of students served and any other such information which may lead to more im- proved reporting. Requires the Comptroller General of the United States to con- duct a national assessment of programs under this Part by March 15, 1989 aad every third year thereafter to be submitted to the House Committee on Education and Labor and the Senate Commit- tee on Labor and Human Resources. PART D-TERRITORIAL ASSISTANCE Sections 6404, 6405, and 6410 The programs of territorial assistance for teacher training and general assistance to the Virgin Islands are both extended through 1993. PART E-EXCELLENCE IN EDUCATION Sections 6501-6509 This program is extended through 1993. Title WIBilingual Education Short Title (Section 7001) Cites the title as the "Bilingual Education Act." Policy; Appropriations (section 7002) Adds language: "that the instructional use and development of a child's non-English native language promotes student self-esteem, subject matter achievement, and English-language acquisition." This finding reflects the multiple benefits of instructional pro- grams which use and develop a child's non-English native lan- guage. Adds new finding regarding the twin goals of programs for limit- ed English proficient studentdeveloping academic achievement and English proficiencyby including the following language: "That, regardless of the method of instruction, programs which serve limited English proficient students have the equally impor- tant goals of developing academic achievement and English profi- ciency." Language is added noting that programs under this Act help pro- mote the nation's international competitiveness. Language is included which indicates that there is a shortage of qualified educational personnel to serve children of limited English proficiency. Language is included which indicates that Title VII programs should enable students to meet grade-promotion and graduation re- quirements. Extends the Bilingual Education Act from FY 1988 to FY 1993. Under current law, 75 percent of Part A funding is exclusively reserved for transitional bilingual education (TBE) programs. This legislation alters this reservation by incli- ng developmental bilin- 126 126 gual education programs (DBE) in the existing Part A funding set- aside. LEAs have requested this change to add flexibility to the current Part A funding reservation and to increase available sup- port for bilingual education programs which optimize the benefits of dual language education. Eliminates one-percent funding set-aside for the National Adviso- ry and Coordinating Council on Bilingual Education (NACCBE) which is not reauthorized under the legislation. Extends the Bilingual Education Act at $246 million for FY 1988 and at "such sums as may be necessary" for FY 1989 to FY 1993. This level of funding would make possible the enrollment of ap- proximately 363,000 LEP students in Title VII programs which would result in 150,000 more than are currently being served. Full funding at the new authorization level would nearly double support for necessary parent and school personnel training programs. The new limit on appropriations is still $170 million less than the FY 1981 limit. Part A programs (i.e., Transitional Bilingual Education; Develop- mental Bilingual Education; Special Alternati,e Instructional Pro- grams; Programs of Academic Excellence; Family English Literacy Programs; Bilingual Preschool, Special Education, and Gifted and Talented Programs, would receive at least as much funding as they currently receive in FY 1987 in any future appropriations under this Act in addition to adjustments for inflation. Existing law specifies that Part C, Training and Technical Assist- ance, receive 25% of the appropriations under Title VII. Although Part C would receive its fiscal year 1987 funding l';.7,.! plus adjust- ments for inflation, it would no longer continue to receive 25% of total funding, but would receive not less than 20 percent of total funding. Eliminates the 4% cap and reserves not less than 70 percent and not more than 75 percent of remaining funds from any increases in appropriations for special alternative instructional programs. Provides for twenty-five percent of the remaining sums from in- creases in appropriations to be reserved for programs of develop- mental and transitional bilingual education. For developmental bi- lingual education programs, $1,000,000 would be available for fiscal year 1988, and for each subsequent fiscal year an amount which ex- ceeds by $150,000, the amount for the preceding fiscal year. Definitions; regulations (section 7003) Eliminates language providing the Secretary with the authority to further define "limited English proficiency". Also eliminates lan- guage which permits the Secretary to further define "limited Eng- lish proficiency" of American Indians and Alaskan Natives." Includes language which permits Family English Literacy Pro- grams to include instruction designed to enable aliens who are oth- erwise eligible for temporary resident status under the Immigra- tion and Nationality Act to achieve a minimal understanding ofor- dinary English and other approved courses. Amends definition of "programs of academic excellence" to em- phasize that programs gre to focus on effective school and teaching practices for limited English proficient students. 1 27 127 Eliminates definition of the National Advisory and Coordinating Council on Bilingual Education (NACCBE) which is not reauthor- ized under the legislation. Expands the prohibition in current law against the Secretary's redefining "some terms" in the Act to cover "all terms" defined in the Act. Strengthens existing requirement regarding parent notification by specifying that information provided to parents be in "a lan- guage and form the parents understand." Bilingual education programs (section 7021) Separate grants for the development of instructional materials are eliminated. This change will have little impact on school dis- tricts since few instructional materials grants have been made in recent years and the since development of instructional materials is a permissible activity under all other Part A grant programs. Programs under this subsection may also use available funds to provide technology-based instruction to students in order to en- hance the program. Changes "and private non-profit organizations" to "or private non-profit organizations" to clarify that separate applications, as well as joint applications, are perr'itted by this section for grants for academic excellence, family literacy, or special populations. Specifies that applications for the program grants will include a description of the training provided to educational personnel and parents. Eliminates the existing requirement that grantees engage exclu- sively in pre-service activities during the first six months of a grant and also eliminates the existing provisions for waiver of this re- quirement by the Secretary. This provision permits grantees to engage exclusively in pre-service activities during the first 12 months of a grant. This elimination provides additional flexibility to educational officials receiving grants for programs of transition- al bilingual education, developmental bilingual education, or spe- cial alternative instruction. Adds the requirement that the informat:m provided to parents be in a language and form the parents understand. This provision strengthens and clarifies existing requirements concerning the pro- vision of information to parents regarding Title VII programs. Changes the existing one-to-three year period for special popula- tion program grants to three years so as to standardize the basic grant period for all Part A programs. references to materi- als development grants. Requires that local education agencies provide appropriate sup- port to Title VII parent advisory councils. Provides that training under program grants assist educational personnel in meeting State and local certification requirements. The current legislation provides that the applicant will provide or secure training for personnel participating, or preparing to partici- pate in the program. Requires that the Secretary give priority in awarding alternative instructional grants to grant applications which contain the follow- ing: (1) the administrative impracticability of establishing a bilin- gual education program because of a small number of students re- 128 quiring these servic .; (2) the lack of qualified personnel to provide bilingual instructional services; and (3) the applicant's current or past efforts to establish a bilingual education program. Grants for State programs (section MD Increases the minimum State education agency grant fn. $50,000 to $75,000 to enable States to carry out more required anu permissible activities under the Act. Program evaluation requirements (sections 7033 and 7034) Eliminates the requirement that the Secretary consult with the National Advisory Coordinating Council for Bilingual Education (NACCBE) in developing Title VII program evaluation require- ments. Requires that the Secretary consult with State directors of bilin- gual education, Evaluation Assistance Centers, other individuals, and organizations with expertise in testing and evaluation in devel- oping Title VII program evaluation requirements. Research (section 7035) Specifies that longitudinal studies measuring the effects of educa- tion of students who have language proficiencies other than Eng- lish pertain to students enrolled in Title VII programs. Requires also that the longitudinal study includes the impact of bilingual education programs on limited-English proficient students using a nationally representative sample of the programs funded under this title and provides information including data on grade retention, academic performance, and dropout rates. Specifies that research activities also include the operation of a clearinghouse which shall collect, analyze, and disseminate infor- mation about bilingual education and related programs and coordi- nate its activities with the National Diffusion Network. Deletes requirement that the Secretary consult with the NACCBE on research and adds requirement for consultation with the Senate Committee on Labor and Human Resources and the House Committee on Education and Labor. Forbids federal activities that might, in any way, affect the con- tent of educational textbooks. Coordination of research (section 7036) Deletes requirement for consultations with the National Adviso- ry and Coordinating Council on Bilingual Education (NACCBE) to insure that research activities undertaken complement and do not duplicate other activities under this Act. Requires consultation with the Senate Committee on Labor and Human Resources and the House Committee on Education and Labor in terms of insuring that research activities undertaken com- plement and do not duplicate other activities under this Act. Education statistics (section 7037) Requires that the annual repot by the National Center for Edu- cational Statistics on the education of limited English proficient persons, required under current law, should include, to the extent 129 129 feasible, data collected by other Federal agencies as well as the De- partment of Education. Training and technical assistance (section 7041) Eliminates requirement for parent advisory committee consulta- tion in developing Title VII professional training programs; re- quires applicants to consult with SEAs and LEAs in developing professional training programs. Requires that Title VII professional training programs should help school personnel meet local and State certification require- ments. Fellowships (section 7043) Provides that at least 500 fellowships be provided each year FY 1988 through FY 1993 for advanced study of bilingual education or special alterantive instruction programs for limited English profi- ciency (LEP) students in such areas as teacher training, program administration, research and evaluation, and curriculum develop- ment. This provision requires that the recipient be involved in a program of study leading to a master's or doctorate degree. Office of bilingual edvcation and minority language affairs (section 7051) Requires the Director of OBEMLA to report annually to Con- gress and the President on the grants and contracts made and the number of individuals benefiting from Title VII programs during the preceding fiscal year. Requires that the Secretary submit to Congress and the Presi- dent a biennual report on the condition of bilingual education in the Nation, not later than February 1 of the following years: 1988, 1990, and 1992; deletes reference to consultation with NACCBE. Requires that information on Title VII research activities and major research findings be included in the Secretary's biennual report on the condition of bilingual education. Adds provision requiring the Secretary to use non-Federal em- ployees who are experienced and involved in programs similar to those assisted under the Act to read and score competitive applica- tions for grants under Parts A and C of the Act. Requires the Secretary to solicit nominations for readers from State bilingual education directors. Authorizes the expenditures of Parts A and C program funds to pay for application reading and scoring services. Limitation of authority (section 7052) Prohibits the Secretary from imposing restrictions on the avail- ability or use of Title VII funds other than those set out in the Act or other applicable Federal statutes and regulations. This provision is designed to protect the prerogatives of local school officials under Title VII. Transition and repeal (section 7063) Repeals Title VII of the Elementary and Secondary Education Act; provides that current Title VII grants and contracts shall not be affected by the amendments. 130 72-850 87 - 5 130 Title VIIIIndian Education PART A Section 8101Amends current provision requiring studies and consultat:on before B.I.A. takes negative action for any school pro- gram by recognizing all current B.I.A. education programs (includ- ing dorms and contract or grant schools) as authorized by Congress. No action terminating, transferring, consolidating or substantially curtailing them could be taken except upon the request of a tribe or permission of Congress. Retains the study provisions, but makes them into a report before request for authority to act. Section 8102Includes "transfer to any other authority" in the list of actions. Section 8103Creates an exception to the above section for emer- gency situations where there is an "immediate hazarci to health and safety", provided the Bureau gets an outside opinion from an applicable building authority that such a condition exists. also requires, in statv ce, that the Bureau publish standards for the funding of new schools and expands Zia and Tama schools to K-8. Section 8104The Bureau has proposed standards for privacy and space requirements for Bureau boarding situations. The Bureau schools will have a hard time meeting them. The Bureau states that it does not intend to implement them at this time, but there have been some actions recently which have called this posi- tion into questio.i This applies the tribal waiver provision current- ly in statute for academic standards to these standards, states that schools could not be closed for failure to meet them, and requires a report to Congress on the cost of full implementation. Section 8105Essentially frees as all B.I.A. education regulations which are in effect now (except for the Personnel provisions). States that no other changes can be made to those. Maintains the regulatory status quo, because the Bureau is currently revising a number of regulations to cut down responsibility, parental control, and tribal input, without getting field or Congressional input. Section 8106Amends the statutory formula to require a factor for residential programs to serve students for less than 9 months a year (to allow students who can live at home except during bad weather to be served on this basis), amends the weight for 7th and 8th graders and adjusts the small school factor. Section 8107Administrative cost formulathe :najor problem with tribes taking Self-Determination contracts (where the Bureau provides the funding but the tribe or tribal organization runs the program) has been a lack of a method for setting the administra- tive/indirect cost payments which would go to a tribe to support tl- activity. In the past, most of these amounts have been set by arbitrarily determined rates, on lump-sum payments or as mix- tures of the two, largely based upon the contractor's expertise in getting certain expenses covered. The Bureau has not developed a formula (though in the 1978 amendments it was requested) and will not even define what the term "administrative costs" covers. Re- peated attempts by Congress to get the issue handled have failed. 1 31 131 This amen? nent would create a formula for determining the ad- ministrative cost payments. The formula was developed by: (1) charting as a graph the current payments for indirect costs to con- tract schools, (2) adjusting these amounts for the shortfalls in nego- tiated payments which has been caused by the B.I.A., (3) defining the activities to be conducted and funded under the heading of ad- ministrative costs, (4) determining how many of the schools cur- rently match this set of tasks, and adjusting the curve accordingly for those doing more or less, and (5) constructing a mathematical formula on the curved result. The formula which approximates the curve is: [(12% x total B.I.A. program/all activities funds received by each contractor or grantee) times (Y2 the average B.I.A. contracted or grant program/all activities amount received), divided by the total program/all activities funds received by each contractor or grantee plus the average B.I.A. program/all activities amount,] times the total education program funds received by each entity, expressed as a percentage to the second decimal place. There are provisions for an isolation adjustment. This would then be put into the Indian Student Equalization For- mula. Also amends the Indian Studen;, Equalization Formula to set a factor for school board training and costs for school board ac- tivities. Also says that under the lead agency concept, the Bureau would support all programs coming through it. Also allows B.I.A. schools limited carry-over authority. Section 8108defines the allowable administrative costs. Section 8109In 1984, the Congress set up a system to allow local procurement of up to $25,000 of supplies/annum, due to prob- lems with the normal procurement system meeting emergency needs. In 1985, pursuant to B.I.A. request, the authority was amended to be subject to Assistant Secretary guidelines. The Assistant Secretary does not intend to publish guidelines. The amendment incorporates a system of guidelines (developed as part of a court settlement by the Navajos and the B.I.A.) and makes them immediately applicable to all Bureau schools. Sectic 8110amends the statute to state that if, subject to the availabi. ty of funds under the I.S.E.F., a tribe and a local public school enter into a cooperative arrangement to coordinate their services and programs, the Bureau shall implement it. The Bureau would not be a party to the agreement. Section 8111requires B.I.A. education decisions be made only after consultation with those affected and defines the term consul- tation. Section 8112corrects a problem with the 1978 statute by clarify- ing that the case-by-case waiver of Indian preference allowed tribes (or their designees) under the statute applies to all personnel ac- tions, not just initial hires. Section 8113requires the Assistant Secretary conduct a study and report to Congress on the disparity between the compensation paid by Bureau funded and neighboring public schools, and wheth- er this is having a negative impact on Bureau hiring and retention. 1 .3 2 132 States that where such negative impact is found, the Assistant Secretary will use the authority already in statute to authorize the local Bureau school to pay the statutory differential for hiring and retention purposes, providing that in all cases of greater than 10% vacancy or 5% disparity, the authority is automatically given to the local school officials. PART B Section 8201Names this Act the "Indian Self Determination Grants Act of 1987". Section 8202Congressional findingsthe Act builds on the Indian Self-Determination Act of 1975 and is patterned after same. Section 8203PolicyRenews government commitment to Indian Education. Section 8204the grants under this act shall go into a general fund and may be used to defray a wide range of expenses, except that no more may be spent on administrative costs than was gener- ated under the administrative formula provision, and that in in- stances where one grantee operates more than one school site, no less than 95% of the funds generated by site must be spent at the site. Section 8205recognizes three different groups of schools for purposes of determining eligibility for grants currently contracted operations, currently B.I.A. operated and new schools. All will re- quire tribal support on applications. Section 8206sets out very specific timelines and guidelines (pat- terned after current Self-Determination Act) for each set of schools or expansions (NOTEcurrently contracted programs could elect to participate in the grants without a separate determination of eli- gibility). Includes factors for consideration of new, non-B.I.A. funded schools and program expansions. Would require Tribal sup- port for the application and timely responses by the Bureau. Stipu- lates the Bureau officials to receive the applications. Section 8207Upon a determination of eligibility, the school shall receive a grant. The school could continue to receive a grant each year without additional findings or applications as long as it remained accredited, by the entities stipulated in the amendment, and submitted the required reports in a timely fashion (also stipu- lated in th3 amendment). The amendment is structured so that all determinations on performance will be made by non-B.I.A., outside parties. Section 8208one grant per year shall be made to each school or program under this program and shall include ill funds attracted by the school from the Bureau for the year. Also has language to handle over- and under-recovery audit issues. Section 8209mak.mi certain protections and provisions of the Self-Determination Act applicable to this programcurrent con- tractors may elect to participate in this program. Sectio.2 8210the Director of the Office of Indian Education Pro- grams shall process applications and actions under this Act. 1 -i3 133 Section 8211Modeled after Chapter II of E.C.I.A., the Secretary will not publish additional program regulations adding require- ments. Section 8212Definitionsmainly modeled after the definitions in the Self-Determination Act. PART C Section 8301Extends all of the authorities under the Indian Education Act through Sept. 30, 1993. Section 8302amends the eligibility determination criteria for th a program by: Clarifying that the term "member" in the definition means member as defined by the applicable tribe, band or other orga- nized group. Deleting the Form 506 as a tool for establishing eligibility and returning its original function as an information collection document. Stating that a parent could present any evidence he had, in- cluding evidence of community recognition as an Indian, to the Parent Committee for consideration; the Parent Committee then to make a recommendation on sufficiency to the LEA. The LEA would make the final decision, provided that it could not accept as eligible any student whom the Parent Committee recommended as ineligible. These determinations would have to follow written guidelines which would be established by the parent committee and the LEA. These decisions would not be subject to Department of Education review. PART D This Part authorizes the establishment of not more than five native American Indian schools on Indian lands to serve Indian students residing on Indian lands. Each school would be established as a separate corporation with a Board of Trustees. Certain rules would apply to the appointment of the Superintendent and to the appointment of the staff of such schools. Indian preference would apply in all actions at such schools. These schools would be tax-exempt and their Boards of Trustees are authorized to establish endowment funds for the benefit of such schools. No new funding would be authorized; rather, funding cur- rently available for the education of Indian children would be made available for their education at such schools. PART E This Part recognizes the unique problems faced by Native Hawai- ian children and establishes a series of new programs to meet these needs. These programs include model curriculum implementation projects, family-based education centers, higher education demon- stration programs, gifted and talented demonstration programs, and special education prograrq. These programs would be respec- tively authorized at the following amounts for Fiscal Year 1988: $3 million for curriculum, $2.4 million for family centers, $1.25 million for higher education programs 134 $1 million for gifted and talented programs, and $1.5 million for special education programs. All these programs would be authorized at such sums as may be necessary for Fiscal Years 1989 through 1993. Title IXOther Laws PART A-ADULT EDUCATION This title rewrites the Adult Education Act. The following de- scriptions are of the revised sections of the Act: (Part ABasic Program Provisions) Statement of Purpose (Sec. 311) This bill will clarify that the adults to be served are those who lack sufficient literacy skills requisite to effective citizenship and productive employment. Current law seeks to expand educational opportunities for adults and to encourage the establishment of pro- grams of adult education. Definitions (Sec. 312) This bill clarifies and expands the definition of an adult who is eligible to receive adult education services. It states that an adult who receives services must not be enrolled in school. Authorization of Appropriations; Allotments (Sec. 313) The authorization level will be $200 million for fiscal 1988 and "such sums" for each year through fiscal 1993. The funding trigger for national programs has been lowered from $112 million to $108 million, and the level of funding for national programs has been lowered from 5 percent to 3 percent. (Par;:, BState Programs) Use of Funds; Local Appropriations (Sec. 322) This bill pro-ides that States may also use grants under this sec- tion to carry out programs by a consortium which includes a for- profit agency, organization, or institution, if such agency, organiza- tion or institution can make a significant contribution to attaining the objectives of this Act. Current law states that grants provided under this section may not be used to carry out programs by a for-profit agency, organiza- tion, or institution unless such agency, organization, or institution (A) can make a significant contribution to attaining the objectives of this Act, and (B) can provide substantially equivalent education at a lesser cost or can provide services and equipment not available in public institutions. Private Sector Adult Education Training (Sec. 323) This bill allows States to use not more than 10 percent of the State allotment to provide for literacy and other basic. skills to cur- rend), employed individuals in programs operated by business, labor, and education partnerships. These progrms must be jcintly 1 15 135 operated by business or labor organizations or PICs and a local education agency or institution of higher education. Current law has no set aside amount for providing literacy and other basic skills training to currently employed individuals in pro- grams operated by business, labor, and education partnerships. Local Administrative Cost Limits (Sec. 324) This bill limits local administrative costs to 5 percent of funds provided. However, in cases where the administrative costs are in- sufficient to adequately plan, administer, evaluate, and coordinate programs supported under the act, the State agency shall negotiate with the local grant recipient in order to determine an adequate level of funds to be used for non-instructional purposes. Current law does not cap local administrative costs. State Administration (Sec. 331) This bill will limit State administrative costs to not more than 5 percent of the amount appropriated to each State (including the op- eration and administration of the State Advisory Council under Section 332). Current law does not cap State administrative costs. It does not require States to provide funds to State Advisory Councils. The law states that a State may use funds granted to support a State Advi- sory Council. State Advisory Council on Adult Education (Sec. 332) This bill specifies that the State must designate or establish an advisory council, appointed by the Governor. it specifies the compo- sition of the Advisory Council in general terms including proce- dures for selecting its chairperson, and length of terms and duties. It also specifies that the duties of the Advisory Council include ad- vising the State Agency about policies governing State activities and initiatives that the private F. for might undertake. Current law does not require that a State establish an advisory group, appointed by the Governor. It states that a State may use funds to support a State Advisory Council. Four-year State Plan (Sec. 342) This bill will: a) change the plan's cycle from three to four years; b) require public hearings to provide citizen access to State plans; c) require review of the plan by State agencies in the States to pre- vent duplication of services; d) require submission of the State plan to the Advisory Council for its review and comment, and e) require the State to assess the needs of adults it is serving or proposes to serve. State Application (Sec. 343) This bill will require State assurances of proper administration of this program and of non-supplanting. Evaluation (Sec. 352) This bill requires that the State agency, after appropriate lead time, evaluate 25 percent of the State's eligible recipients on an annual basis, and it specifies the content of those evaluations. Cur- 136 rent law requires that the Secretary of Education also eveluate eli- gible recipients. Special Experimental Demonstration Projects and Teacher Training (Sec. 353) This bill adds "homeless" as another focal group. Payments (Sec. 361) This bill will gradually raise the State share of funding for adult education. The State match will incrementally rise to 20 percent over a three year period. For fiscal year 1988 the Federal match will remain at 90 percent, 87 percent for FY 1989, 83 percent for FY 1990, and 80 percent for FY 1991, 1992, and 1993. Current State match is 10 percent, and has been 10 percent for the past 20 years. (Part CNational Programs) Sections 372 through 376 These sections establish national programs that the Secretary of Education rill initiate when the prog--.m's funding level reaches $108 million: 1) adult mi--rant farmwoiker and immigration educa- tion (current law repealed the adult immigration section in 1984); 2) State program analysis and policy studies; 3) adult literacy vol- unteer training; 4) joint strylv of services; and 5) national research activities. (Educationally Disadvantaged Adults) Throughout, the revised Act, amendments were adopted requiring a consideration by the State of the needs of educationally disadvan- taged adults, who are defined as those below the fifth grade level in skills or placi-rg in the lowest level of an adult education pro- gram. These amendments emphasize the increased concern which must be given to this group by requiring the States to give prefer- ence in funding to local applications which are meant to serve such adults. PART B-IMPAPT Air Authorizations of Appropriations for Impact 2 1 (Sections 9201 and 9202) H.R. 5 extends through fiscal year 1993 P.L. 81-874, Financial Assistance for Loc... Education Agencies in Areas Affected by Fed- eral Activity, at $735 million for fiscal year 1988. The bill also ex- tends the provisions in the section on "Federal Acquisition of Real Property" to October 1, 1993. H.R. ' extends the provisions in the section on "Children of Persons w... Reside or Work on Federal Property" to October 1, 1993. Further, this legislation extends the provisions in the section on "Sudden and Substantial Increases in Attendance Increases Hereafter Occurring" to October 1, 1993. Fi- nally, in P L. 81-874, the provision on "Assistance for Current School Expenditures in Cases of Certain Disasters" is also extended to October 1, 1993 in both places where 1988 appears. 137 H.R. 5 also extends the provisicas in the section on "Establish- ment of Priorities" for school construction projects to September 30, 1993. This provision is in P.L. 81-815, Construction of School Facilities in Areas Affected by Federal Activities. P.L. 81-615 is re- authorized in the amount of $24 million for fiscal year 1988. The bill also extends the provisions the section on "School Construc- tion Assistance in Cases of Certain Disasters" to October 1, 1993, of P.L. 81-815. H.R. 5 also extends the section on "Definitions" in regard to the "base year" by striking 1978-1979 and inserting 1988-1989. Children Residing On, or Whose Parents are Employed On, Federal Property (Section 9203) Corrects a provision in current law where non-Indian parents who reside on nontaxable land are being forced to pay tuition to send their children to schools where they are employed or schools that exist within the community. This legislation provides for the payment of tuition for non-Indian students who attend these schools and live on nontaxable land. PART C-GENERAL EDUCATION PROVISIONS ACT (GEPA) Audit reform Section 9301.This section revises the part of GEPA which deals with appeals from final audit determinations. Each revised section is Described below. Section 451. Office of Administrative Law Judges.This section would replace the current Education Appeals Board with an Office of Administrative Law Judges (ALJs) and would formalize along the lines of the Administrative Procedures Act the procedures to be used in the conduct of hearings. Rules for discovery would be clari- fied and include the right to acquire information leading to admis- sible evidence through the use of depositions, interrogatories, and documents. Judges v,ould be given explicit power to issue subpoe- nas. The provisions of the Equal Access to Justice Act, relating to costs of litigation and attorneys' fees, would apply to the prot.-ed- ings. Furthermore, the Secretary would be required to establish a process for voluntary mediation of disputes. Section 452.Recovery of funds.As under current law, this sec- tion would generally prescribe the procedures for resolving dis- putes regarding the recovery of funds before the ALJs. The Depart- ment's preliminary departmental decision (PDD) would be required to establish a prima facie case. State recipients in State-adminis- tered programs would be required to transmit a copy of the PDD to any affected subrecipientsuch as a local educational egency within 10 days ai.d to consult with these subrecipients regarding the application for AL I review. The burden of proof in proceedings before the ALTS would continue to be on the recipient. The Secre- tary would n aw the facts found by the Judges on the basis of the substantial evidence test. ThL Department would be barred from taking a collection action pending the completion of judicial review. The section would also clarify that a decision of the ALJs becomes final ag_ icy action, and ripe for judicial review under sec- tion 458 of the Act, sixty days after the recipient receives ---itten 1 8 138 notice of the ALJ's decision, unless the Secretary either modifies or sets aside the decision (in which case the decision becomes the final agency action when the recipient receives written notice of the Sec- retary's action), or remands it to the ALJs for further consider- ation. The Secretary would be required to publish final agency de- cisions in the Federal Register or another appropriate publication. The limit on the Secretary's authority to compromise would be raised from $50,000 to $200,000. Section 453.Measure of recovery.This new section would clari- fy how the Inspector General, program officials, and the AL I are to measure recovery. It would be made clear that the disallowance would be calculated proportionate to the extent of harm the recipi- ent's violation caused to an identifiable Federal interest. This sec- tion would identify a number of such Federal interests. In addition, this section would identify certain mitigating circumstances which, if present, would bar the recovery of funds. These mitigating cir- cumstances immunize a recipient 1) if the violation occurred as a result of reasonable reliance on incorrect Department guidance, 2) if the violation occurred as a result of the Department's failure to reply within 90 days to a written SEA or LEA guidance request certified as lawful by the chief legal officer of the SEA, or 3) actual- ly and reasonably relied on a jul'icial decree issued to the recipient. In addition, the Secretary would be required to disseminate re- sponses to SEA guidance request and periodically review writ n requests for guidance to determine the need for new or supplemen- tary regulations. Section 454.Remedies for existing violations.This section would provide that whenever the Secretary has reason to believe that a recipient of a grant or cooperative agreement is failing to comply substantially with any applicable requirement of law, the Secretary has the option to with' )1d further payments under that program, seek a cease and dearest order, enter into a compliance agreement, or take any other action authorized by law. Section 455.Remedies for existing violations.Section 455 of the Act, in conjunction with section 454, would authorize the Secre- tary to withhold funds from a recipient that is failing to comply substantially with an applicable requirement of law, and would also establish the procedures, including an opportunity for a hear- ing before the Office of Administrative Law Judges, the Secretary must follow to withhold funds. The proposed section 455 is substan- tially ,imilar to the current section 453 of the Act. Section 456.Cease and desist orders.Section 456 ofthe Act, in conjunction with section 454, would authorize the Secretary 1-A issue a complaint against a recipient that is failing to comply sub- stantially with an applicable requirement of law, and would also establish the procedures, including an opportunity for a hearing before the Administrative Law Judges, the Secretary must follow to withhold funds. The proposed section 455 is substantially similar to the current section 453 of the Act. Section 457..Compliance agreemer Section 457 of the Act would allow the Secretary to suspenu a withholding action pursu- ant to a compliance agreement entered into by the State or local educational agency with the Federal government. The compliance agreement would be in effect for a specified period unless the State 139 139 or local education agency fails to comply with the agreement. This section would also allow for State and local educational agencies to enter into compliance agreements. Section 458.Judwia, review. This section would be substan- tively unchanged from current law in providing for judicial review in the appropriate United States Court of Appeals of final agency action regarding recoveries under section 452, withholding under section 455, and cease and desist orders under section 456. The pro- posed section 458 is substantially similar to the current section 455 of the Act. Section 459.Use of recovered funds. Section 459 of the Act would authorize the Secretary, whenever the Department recovers funds from a recipient because of a misuse of funds, to return up to 75 percent of the recovered funds to the recipient. In order to facili- tate the early resolution of disputes and to ensure that funds re- turned t,, the recipient benefit those who were affected by the original mis-expencli4ure, this section would clarify that funds are available for three y Ars from the PDD. In order respects proposed section 459 is substantially similar to the current section 456 of the Act. National Center for Education Statistics Sec. 9811. This section amends the authority in the General Education Provisions Act for a National Center for Education Sta- tistics wi:,hin the U.S. Department of Education. The amendments are intended to enhance the independence of the Center, along the lines of the Bureau of Labor Statistics and other governmental sta- tistical agencies, and to improve the quality of its data. New provi- sions in the bill specify that the director of the National Center for Education Statistics will be =ea a Presidential appointee with a fixed, four-year term. Other amendments set up a system to pro- vide for more comparable data frcm all States, improve the privacy protections of those who provide data, and improve the data on dropout and retention rates. The section authorizes r5.8 million for the National Center ft.,. fiscal year 1988, $32.8 million for fiscal 1989, $37.3 million for 19,O, and such sums as necessary for the three succeeding figr' '1 years. School improveme- Sec. 9850. This . amends the, portion of the tiereral Edu- cation Provisions , at authorizes the I "?tional Assessment of Educational Prt,gi est:, require such assessment to include dui on the performance in basic skills of students served by Chapter 1. Title XGeneral Provisions Sec. 10001. This section makes the definitions in section 1471 of Chapter 1 of the Act ap,,licable to the entire Act, except where oth- erwise provided. Sec. 10002.This pruvisior. .rifies that any new spending au- thority in this Act is effective or any fiscal year only to the extent or in such amounts as are provided in apprcpriations acts. Sec. 10001This section provides that, except where otherwise noted, the effective date of the Act is October 1, 1987. 4 0 140 CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED In compliance with clause 3 of Rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omit- ted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman): EDUCATION CONSOLIDATION AND IMPROVEMENT ACT OF 1981 [CHAPTER 1FINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF DISADVANTAGED CHILDREN [DECLARATION OF POLICY [SEC. 552. The Congress declares it to be the policy of the United States to continue to provide financial assistance to State and local educational agencies to meet the special needs of educationally de- prived children, on the basis of entitlements calculated under title I of the Elementary and Secondary Education Act of 1965, but to do so in a manner which will eliminate burdensome, unnecessary, and unproductive paperwork and free the schools of unnecessary Federal supervision, direction, and control. Further, the Congress recognizes the special educational needs of children of low-income families, and that concentrations of such children in local educa- tional agencies adversely affect their ability to provide educational programs which will meet the needs of such children. The Congress also finds that Federal assistance for this purpose will be more ef- fective if education officials, principals, teachers, and supporting personnel are freed from overly prescriptive regulations and ad- ministrative burdens which are not necessary for fiscal account- ability and make no contribution to the instructional program. [IT- .4.ATION OF ASSISTANCE [SEC. 553. During the period beginning October 1, 1982, and end;ng September 30, 1987, the Secretary shall, in accordance with the provisions of this subtitle, make payments to State educational agencies for grants made on the basis of entitlements created under title I of the Elementary and Secondary Education Act of 1965 and calculated in accordance with provisions of that title in effect on September 30, 1982. [APPLICABILITY OF TITLE I PROVISIONS OF LAW [SEC. 554. 'a) PROGRAM ELIGIBILITY.Except as otherwise provid- ed in this subtitle the Secretary shall make payments based upon the amount of, and eligibility for, grants as determined under the following provisions of title I of the Elementary and Secondary Education Act in effect on September 30, L182: [(1) Part A"Programs Operated by Local Education Agen- cies": Subpart 1"Basic Grants"; and B) Subpart 2"Special Grants". [(2) art B"Programs Operated by State Agencies": 141 141 [(A) Subpart 1"Programs for Migratory Children"; [(B) Subpart 2"Programs for Handicapped Children"; [(C) Subpart 3"Programs for Neglected and Delin- quent Children''; and [(D) Subpart 4"General Provisions for State Operated Programs". [(b) ADMINISTRATIVE PROVISIONS.The Secretary, in making the payments and determinations specified in subsection (a), shall con- tinue to use the following provisions of title I of the Elementary and Secondary Education Act as in effect on September 30, 1982: [(1) Part E"Payments": [(A) Section 191"Payment Methods"; [(B) Section 192"Amount of Payments to Local Educa- tional Agencies"; [(C) Section 193"Adjustments Where Necessitated by Appropriations"; and [(D) Section 194"Payments for State Administration", subject to subsection (d) of this section. [(2) Part F"General Provisions": [(A) Section 197"Limitation on Grants to Puerto Rico"; and 1(B) Section 198"Definitions" and conforming amend- ments to other Acts, except that only Those definitions ap- plicable to this subtitle shall be used. [(c) APPLICABILITY RULE.The provisions of title I of the Ele- mentary and Secondary Education Act of 1965 which are not spe- cifically made applicable by this chapter shall not be applicable to programs authorized under this chapter. [(d) AMENDMENT.Section 194(aX1) of the Elementary and Sec- ondary Education Act of 1965 is amended by striking out "1.5 per centum" and inserting in lieu thereof "1 per centum". [AUTHORIZED PROGRAMS [SEc. 555. (a) GENERALEach State and local educational agency shall use the payments under this chapter for programs and projects (including the acquisition of equipment and, where necessary, the construction of schot., facilities) which are designed to meet the special educational needs of educationally deprived children. [(b) PROGRAM DESIGN.State agency programs shall be designed to serve migratory children of migratory agricultural workers or of migratory fishermen, handicapped children, and neglected and de- linquent children (as described in subparts 1, 2, and 3, rk..3pectively, of part B of title I of the Elementary and Secondary iducation Act of 1965) in accordance with section 554(aX2) and the other applica- ble requirements of this chapter. The Secretary shall continue to use the definitions of "agricultural activity", "currently migratory child", and "fishing activity" which were in effect on June 30, 1982, in regulations prescribed under subpart 1 of part B of title I of tht Elementary and Secondary Education Act of 1965. No addi- tional definition of "migratory agricultural worker" or "migratory fisherman" may be applied after the date of enactment of this sub- section to such subpart 1, except that such definition shall be moth- 1 4 2 142 fled to include children of migratory fishermen, if such children reside in a school district of more than 18,000 square miles and mi- grate a distance of 20 miles or more to temporary residences to engage in fishing activity. [(c) PROGII:J4 DESCRIPTION.A local education agency may use funds received under this chapter only for programs and projects which are designed to meet the special educational needs of educa- tionally deprived children identified in accordance with section 556(b)(2), and which are included in an application for assistance approved by the State educational agency. Such programs and projects may include the acquisition of equipment and instructional materials, employment of special instructional and counseling and guidance personnel, employment and training of teacher aides, payments to teachers of amounts in excess of regular salary sched- ules as a bonus for service in schools serving project areas, the training of teachers, the construction, where necessary, of school facilities, other expenditures authorized under title I of the Ele- mentary and Secondary Education Act as in effect September 30, 1982, and planning for such programs and projects. [(d) RECORDS AND INFORMATION.Each State educational agency shall keep such records and provide such information to the Secre- tary as may be required for fiscal audit and program evaluation (consistent with the responsibilities of the Sc -...retary under this chapter). [(e) EVALUATION.Each State educational agency shall- [(1) conduct an evaluation of the programs assisted under this chapter at least every two years and shall make public the results of that evaluation; and [(2) collect data on the race, age, and gender of children served by the programs assisted under this chapter and on the number of children served by grade-level under the programs assi? I under this chapter. APPROVAL OF APPLICATIONS DEC. 556. (a) APPLICATION BY LOCAL EDUCATIONAL AGENCY.A local educational agency may receive a grant under this chapter for any fiscal year if it has on file with the P-ate educational agency an application which describes the programs and projects to be conducted with such assistance for a period of not more than three years, and such application has been approved by the State educational agency. [(b) APPLICATION ASSURANCES.The application described in sub- section (a) shall be approved if it provides assurances satisfactory to the State educational agency that the local educational agency will keep such records and provide such information to flle State educational agency as may be required for fiscal audit ana progi am evaluation (consistent with the responsibilities of the State agency under this chapter), and that the programs and projects de- scribed [(1XA) are conducted in attendance areas of such agency having the highest concentrations of low-income children; or [(B) are located in all attendance areas of an agency which has a uniformly high concentration of such children; 143 143 [(2) are bascd upon an annual assessment of educational needs which , lentifies educationally deprived children in all el- igible atimdance areas, requires, among the educationally de- prived children selected, the inclusion of those children who have the greatest need for special assistance, and determines the needs of participating children with sufficient specificity to ensure concentration on those needs; [(3) are of sufficient size, scope, and quality to give reasona- ble pi omise of substantial progress toward meeting the special educational needs of the children being served and are de- signed and implemented in consultation with parents and teachers of such children; [(4) will be evaluated in terms of their effectiveness in achieving the goals set for them, and that such evaluations shall include objective measurements of educational achieve- ment in basic skills and a determination of whether improved performance is sustained over a period of more than one year, and that the results of such evaluation will be considered by such agency in the improvement of the programs and projects assisted under this chapter; and [(5) make provision for services to educationally deprived children attending p, Nate elementary and secondary schools in accordance with section 557. [(c) EXEMPTION FROM TARGETING.The requirements of subsec- tion (bXl) shall not apply in the case of a local educational agency with a total enrollment of less than one thousand children, but this subsection does not relieve such an agency from the responsibility to serve children under the assurances set forth in subsection (bX2). [(d) LOCAL EDUCATIONAL AGENCY DISCRETION.Notwithstanding subsection (bXl) of this section, a local educational agency shall have discretion to make educational decisions which are consistent with achieving the purposes of this chapter as set forth in this sub- section, as follows: [(1) A local educational agency may designate any school at- tendance area in which at least 25 per centum of the children are from low-income families as an eligible school attendance area. [(2) A local educational agency may, with the approval of the State educational agency, designate as eligible (and serve) school attendance areas with substantially higher numbers or percentages of educationally deprived children before school at- tendance areas with higher concentrations of children from low-income families, but this provision shall not permit the provision of services to more school attendance areas than could otherwise be served. A State educational agency shall ap- prove such a proposal only if the State educational agency finds that the proposal will not substantially impair the deliv- ery of compensatory education services to educationally de- prived children from low-income families in project areas served by the local educational agency. [(3) Funds received under this chapter may be used for edu- cationally deprived children who are in a school which is not located in an eligible school attendance area when the propor- tion of children from low-income families in average daily at- 144 tendance in such school is substantially equal to the proportion of such children in an eligible school attendance area of such agency. [(4) If an eligible school attendance area or eligible school was so designated in accordance with subsection (bXD(A) in either of two preceding fiscal years, it may continue to be so designated for a single additional fiscal year even though it does not qualify in accordance with subsection (b)(1XA). [(5) With approval of the State educational agency, eligible school attendance areas or eligible schools which have higher proportions of children from low-income families may be skipped if they are receiving, from non-Federal funds, services of the same nature and scope as would otherwise be provided under this chapter, but (A) the number of children attending private elementary and secondary schools who receive services under this chapter shall be determined without regard to non- Federal compensatory education funds which serve eligible children in public elementary and secondary schools, and (B) children attending private elementary and secondary schools who receive assistance under this chapter shall be identified in accordance with this section and without regard to skipping public school attendance areas or trhools under this para- graph. J(6) A child who, in any previous yeas, was identified as being in greatest need of assistance, and who continues to be educationally deprived, but who is no longer identified as being in greatest need of assistance, may participate in a program or .roject assisted under this title for the current year. [(7) Educationally deprived chilaren who begin participation in a program or project assisted under this chapter who, in the same school year, are transferred to a school attendance area or a school not receiving funds under this chapter, may contin- ue to participate in a program or project funded under this chapter for the remainder of such year. [(8) The local educational agency is not required to use funds under this chapter to serve educationally deprived chil- dren in greatest need of assistance if such children are receiv- ing, from non-Federal sources, services of the same nature and sco_pe as would otherwise be provided under this chapter. [(9) In the case of any school serving an attendance area that is eligible to receive services under this chapter and in which not less than 75 per centum of the children are from low-income families, funds received under this chapter may be used for a project designed to upgrade the entire educational program in that school in the same manner and only to the same extent as permitted under section 133(b) of the Elementa- ry and Secondary Education Act of 1965 (but without regard to paragraph (4) of such section). [(10) Public school personnr1 paid entirely by funds made available under this chapter may be assigned limited, rotating, supervisory duties which are assigned to similarly situated per- sonnel who are not paid with such funds, and such dut, .seed not be limited to classroom instruction or to the benefit of chil- dren participating in programs or projects funded under this 145 145 chapter. Such duties may not exceed the same proportion of total time as is the case with similarly situated personnel at the same school site, or 10 per centum of the total time, which- ever is less. [(e) PARENTAL INVOLVEMENT.For the purposes of complying with the assurances given pursuant to subsection (b)(2) with respect to consultation with parents of participating children, (1) a local educational agency shall convene annually a public meeting, to which all parents of eligible students shall be invited, to explain to parents the programs and activities provided with funds made available under this chapter, and (2) if parents desire further ac- tivities, the local educational agency may, upon request, provide reasonable support for such activities. [PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS [SEC. 557. (a) GENERAL REQUIREMENTS.To the extent consistent with the number of educationally deprived children in the school district of the local educational agency who are enrolled in private elementary and secondary schools, such agemy shall make provi- sions for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and which meet the requirements of sections 555(c), 556(b) (1), (2), and (4), and 558(b). Expenditures for ea acational serv- ices and arrangements pursuant to this section for educationally deprived children in private schools shall be equal (taking into ac- count the number of children to be served and the special educa- tional needs of such children) to expenditures for children enrolled in the public schools of the local educational agency. [(b) BYPASS PROVISION.(1) If a local educational agency is pro- hibited by law from providing for the participation in special pro- grams for educationally deprived children enrolled in private ele- mentary and secondary scl.aols as required by subsection (a), the Secretary shall waive such requirements, and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsection (a). [(2) If the Secretary determines that a local educational agency has substantially failed to provide for the participation on an equi- table basis of educationally deprived children enrolled in private el- ementary and secondary schools as required by subsection (a), he shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsec- tion (a), upon which determination the provisions of subsection (a) shall be waived. [(3XA) When the Secretary arranges for services pursuant to this subsection, he shall, after consultation with the appropriate public and private school officials, pay to the provider the cost of such services, including the administrative cost of arranging for such services, from the appropriate allocation or allocations under this chapter. [(B) Pehding final resolution of any investigation or complaint that could result in a determination under this subsection, the Sec- retary may withhold from the allocation of the affected State or 146 146 local educational agency the amount he estimates would be neces- sazy to pay the cost of such services. [(C) 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 local education- al agency to meet the requirements of subsection (a). [(4XA) The Secretary shall not take any final action under this subsection until the State educational agency and local educational agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why such action should not be taken. [(B) If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under subparagraph (A) of this paragraph, it may within sixty 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 forthwith 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 he based his action, as provided in section 2112 of title 28, United States Code. [(C) The findings of fact by the Secretary, if supported by sub- stantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evi- dence, and the Secretary may thereupon make new or modified findings of fact and may modify his 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. [(D) Upon the filing of a petition under subparagraph (B), the court shall have jurisdiction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the Uni.,ed States upon certiorari or certification as provided in section 1254 of title 28, United States Code. [(c) Any bypass determination by the Secretary under title I of the Elementary and Secondary Education Act of 1965 prior of the effective date of this chapter shall remain in effect to the extent consistent with th3 purposes of this chapter. [GENERAL PROVISIONS [SEC. 558. (a) MAINTENz NCE OF EFFORT.-(1) Except AS provided in paragraph tko, a local educational agency may receive funds under this chapter for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate lxpenditures of that agency and the State with re- spect to the provision of free public education by that agency for the preceding fiscal year was not less than 90 per cent= of such combined fiscal effort or aggregate expenditures for the second pre- ceding fiscal year. [(2) The State educational agency shall reduce the amo int of the allocation of funds under this chapter in any fiscal year in the exact proportion to which a F :al educational agency fails to meet 1 4 7 147 the requirement of paragraph (1) by falling below 90 per centum of both the 'ombined fiscal effort per student and aggregate expendi- tures (using the measure most favorable to such local agency), and no such lesser amount shall be used for computing the effort re- quired under paragraph (1) for subsequent years. [(3) The State educational agency may waive, for one fiscal year only, the requirements of this subsection if the State ucational agency determines that such a waiver would be equitable due to e:xeptional or uncontrollable circumstances such as a natural dis- aster or a precipitous and unforeseen decline in the financial re- sources of the local educational agency. [(b) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT REGULAR NON-FEDERAL FUNDS.-A State educational agency or other State agency in operating its State lwel programs or a local educational agency may use funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, he made avail- able from non-Federal sources for the education of pupils partici- pating in programs and projects assisted under this chapter, and in no case may such funds be so used as to supplant such funds from such non-Federal sources. In order to demonstrate compliance with this subsection no State educational agency, other State agency, or local educational agency shall be required to provide services under this chapter outside the regular classroom or school program. [(C) COMPARABILITY OF SERVICES.-(1) A local educational agency may receive funds under this chapter only if State and local funds will be used in the district of such agency to provide services in project areas which, taken as a whole, are at least comparable to services being provided in areas in such district which are not re- ceiving funds under this chapter. Where all school attendance areas in the district of the agency are designated as project areas, the agency may receive such funds only if State and local funds are used to provide services which, taken as a while, are substantially comparable in each project area. [(2) A local educational agency shall be deemed to have met the requirements of paragraph (1) if it has fied with the State educa- tional agency a written assurance that it has established ((A) a districtwide salary schedule; E(B) a policy to ensure equivalence among schools in teach- ers, administrators, and auxiliary personnel; and [(C) a policy to ensure equivalence among schools in the pro- vision of curriculum materials and instructional supplies. Unpredictable changes in student enrollment or personnel assign- ments which occur after the beginning of a school year shall not be included as a factor in determining comparability of services. [(d) EXCLUSION OF SPECIAL STATE AND LOCAL PROGRAM FUNDS. For the purposes of determining compliance with the requirements of subsections (b) and (c), a local educational agency may exclude State and local funds expended for carrying out special programs to meet the educational needs of educationally deprived children, including compensatory education for educationally deprived chil- dren (which meets the requirements of section 131(c) of the Ele- mentary and Secondary Education Act of 1965). For the purpose of determining compliance Will the requirements of subsection (c), a 148 148 local educational agency may exclude State and local funds expend- ed for [(1) bilingual education for children of limited English profi- ciency, [(2) special education for handicapped children or children with specific learning disabilities, and ((3) certain State phase-in programs as described in section 131(d) of the Elementary and Secondary Education Act of 1965. [(e) ALLOTATION OF FuND8 IN CERTAIN STATES.Notwithstanding section 111(aX3XC) of the Elementary and Secondary Education Act of 1965, in any State in which a large number of local educational agencies overlap county boundaries, the State educational agency is authorized to make allocations of basic grants and special incen- tive grants directly to local educational agencies without regard to counties, if such allocations were made during fiscal year 1982, except that (1) precisely the same factors are used to determine the amount of such grants to counties, and (2) a local educational agency dissatiened with such determination is afforded an opportu- nity for a hearing on the matter by the State educational agency. (NATIONAL ASSESSMENT OF COMPENSATORY EDUCATION ASSISTED UNDER THIS CHAPTER [SEc. 559. (a) The Secretary shall conduct a national assessment of compensatory education assisted under this chapter, through in- dependent studies and analysis by the National Institute of Educa- tion. The assessment shall include descriptions and assessments of the impact of (1) services delivered, (2) recipients of services, (3) background and training of teachers and staff, (4) allocation of funds (to school sites), (5) coordination with other programs, (6) ef- fectiveness of programs on student's basic and higher order aca- demic skills, school attendance, and future education, and (7) a na- tional profile of the way in waich local educational agencies imple- ment activities described under section 556(b). The National Insti- tute of Education shall consult with the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives in the design and imple- mentation of the assessment required by this section. The National Institute of Education shall report to Congress the preliminary re- sults of the assessment required by this section in January and July of 1986, and a final report shall be prepared and submitted to the Congress not later than January 1, 1987. ((b) Notwithstanding any other provision of law or regulation, such reports shall not be subject to any review outside of the De- partment of Education before their transmittal to the Congress, but the President and the Secretary may make such additional recom- mendations to the Congress with respect to the assessment as they deem appropriate. 1' 9 , 149 [CHAPTER 2CONSOLIDATION OF FEDERAL PROGRAMS FOR ELEMENTARY AND SECONDARY EDUCATION [STATEMENT OF PURPOSE [SEC. 561. (a) It is the purpose of this chapter to consolidate the program authorizations contained in [(1) titles II, III, IV, V, VI, VIII, and IX (except part C) of the Elementary and Secpndary Education Act of 1965; [(2) the Alcohol and Drug Abuse Education Act. [(3) part A and section 532 of title V of the Higher Educa- tion Act of 1965; [(4) the Follow Through Act (on a phased basis); [(5) section 3(aX1) of the National Science Foundation Act of 1950 relating to precollege science teaches training; and [(6) the Career Education Incentive Act; into a single authorization of grants to States for the same pur- poses set forth in the provisions of law specified in this sentence, but to be used in accordance with the educational needs and prior- ities of State and local educational agencies as determined by single authorization of grants to States for the same purposes set forth in the provisions of law specified in this sentence, but to be used in accordance with the educational needs and priorities of State and local educational agencies as determined by such agen- cies. It is the further purpose and intent of Congress to financially assist State and local educational agencies to improve elementary and secondary education (including preschool education) for chil- dren attending both public and private schools, and to do so in a manner designed to greatly reduce the enormous administrative and paperwork burden imposed on schools at the expense of their ability to educate children. [(b) The basic responsibility for the administration of funds made available under this chapter is in the State educational agen- cies, but it is the intent of Congress that this responsibility be car- ried out with a minimum of paperwork and that the responsibility for the design and '-nplementation of programs assisted under the chapter shall be mair'y that of local educational agencies, school superintendents and principals, and classroom teachers and sup- porting personnel, because they have the most direct contact with studen 's and arc most directly responsible to parents and because they are the most likely to be able to design programs to m. .t the educational needs of the students in their own districts. [AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE [SEC. 562. (a) There are authorized to be appointed such sums as may be necessary for fiscal year 1982 and each of the five succeed- ing fiscal years to carry out the provisions of this chapter. [(b) During the period beginning July 1, 1982, and ending Sep- tember 30, 1987, the Secretary shall, in accordance with the provi- sions of this subtitle, make payments to State educational agencies for the purposes of this chapter. [(c) Funds available under previously authorized programs shall be available for the purpose of such payments in accordance with section 514(bX2) of the Omn:bus Education Reconciliation Act of J50 1 1981. Until September 30, 1983, su 1 funds may also be used to assist in phasing out programs described in section 516(a) and in promoting an orderly transition to operations under this chapter. [ALLOTMENTS TO STATES [Sm. 563. (a) From the sums appropriated to carry out this chap- ter in any fiscal year, th' Secretary shall reserve 1 per centum for payments to Guam, American Samoa, the Virgin Isla,: is, the Trust Territory of the Pacific Islands, and the Northern Marializ, to be allotted in accordant with their respective needs. The Secre- tary shall reserve an additional amount, not to exceed 6 per centum of the sums appropriated, to carry out the purposes of sec- tion 583. From the remainder of such sums the Secretary shall allot to each State an amount which bears the same ratio to the amount of such remainder as the school-age population of the State bears to the scheol-age population of all States, except that no State shall receive less than an amount equal to 0.5 per centum of such remainder. [(b) For the purposes of this section: E(1) r. term "scho:1-age population" means the population aged five rlliough seventeen. [(2) The term "States" includes the fifty States, the District if Columbia, and Puerto Rico. LSTATE APPLICATIONS [SEC. 564. (a) Any State which desires to receive grants under this chapter shall file an applicatio" with the Secretary which [(1) designates the State educational agency as the State agency responsible for the administration and supervision of programs assisted under this chapter; [(2) provides for a process of active and cont: ,iing consulta- tion with the State educa ional agency of an advisory commit- tee, appointed by the Governor and determined by the Gover- nor to be broadly representative of the educational interests and the general public in the State, including persons repre- sentative of [(A) public and private elementary and secondary school& idren; E(B) classroom teachers; [(C) parents of elementary and secondary schoolchil- dren; [(D) local boards of education; E(E) local and regional school adminstrators (including principals and superintendents); [(F) institutions of higher education; and [(G) the State legislature; to advise the State educational agency on the allocation among authorized functions of funds (not to exceed 20 per centum of the amount of t' Stata's tillotraeht) reserved for State use under section 565(a), on the formula for the allocation of funds to iocal educational agencies, and on the planning, develop- ment, support, implementation, and evaluation of State pro- grams assisted under this chapter; 151 [(3) sets forth the planned allocation of funds reserved for State use under section 565(a) among subchapters A, B, and C of this chapter and among the authorized programs and projects whici, are to be implemented, and the allocation of such funds required to implement section 586, including ad- ministrative costs of carrying out the responsibilities of the State educational agency under this chapter; [(4) provides for timely public notice and public dessemina- 'ion of the information provided pursuant to paragraphs (2) and ;3); [(5) beginning with fiscal year 1984, provides for an annual evaluation of the effectiveness of programs assisted under this chapter, which shall include comments of the advisory commit- tee, and shall be made available to the public; [(6) provides that the State educational agency will keep such records and provide such information to the Secretary as may be mquired for fiscal audit and program evalunfion (conis- tent wit the responsibilities of the Secretary under this chap- ter); [(7) provides assurance that, apart from technical and advi- sory assistance and monitoring compliance with this chapter, the State educational agency has exercised and will exercise so influence in the decisionmaking processes of local educational agencies as to the expenditures made pursuant to it applica- tion under section 566; and [(8) containr assurances that there is compliance with the specific requirements of this chapter. [(b) An application filed by the State under subsection (a) shall be for a period not to exceed three fiscal years, ar,d muv be amend- ed annually as may be necessary to reflect changes without filing a new application. [(c) Notwithstanding section 1745 of this Act, local educe tioral agencies receiving less than an average $5,000 each year under this chapter need not be audited more frequently than once every five years. [ALLOCATION TO LOCAL EDUCATIONAL AGENCIES [SEC. 565. (a) From the sum made available each year under sec- tion 563, the State educational agency shall distribute not less than 80 per centum to local educational agencies within such State ac- cording to the relative enrollments in public and private, nonprofit schools within the school districts of such agencies, adjusted, in ac- cordance with criteria approved by the Secretary, to provide higher per pupil allocations to local educational agencies which have the g-eatest numbers or percentages of children whose education im- poses a higher than average cost per child, such as [(1) children from low-income families, [(2) ..dren living in economically depressed urban and rural areas, and [(3) children living in sparsely populated areas. [(b) The Secretary shall approve criteria suggested by the State educaaonal agency for adjusting allocations under subsection (a) if such criteria are reasonably calculrted to produce an equitable dis- ri 2 152 tribution of funds with reference to the factors set forth in subsec- ti;:n (a). [(c) From the funds paid to it pursuant to sections 563 and 564 during each fiscal year, the State educational agency shall distrib- ute to each local educational agency which has submitted an appli- cation as required in section 566 the amount of its allocation as de- termined under subsection (a). [LOCAL APPLICATIONS [SEC. 566. (a) A local educational agency may receive its alloca- tion of funds under this chapter for any year for which its applica- tion to the State educational agency has been certified to meet the requirements of this subsection. The State educational agency shall certify any such application if such application [(1) sets forth the plEnned allocation of funds among sub- chapters A, B, and C of this chapter and for the programs au- thorized by such subchapters which it intends to support, in- cluding the allocation of such funds required to implement sec- tion 586; [(2) provides assurances of compliance with provisions of this chapter relating to such programs, including the participa- tion of children enrolled in private, nonprofit schools in accord- ance with section 586; [(3) agrees to keep such records, and provide such informa- tion to the State educational agency as reasonably may be re- quired for fiscal audit and program evaluation, consistent with the responsibilities of the State agency under this chapter; and [(4) in the allocation of funds for programs authorized by this chapter, and in the design, planning, and implementation of such programs, provides for systematic consultation with parents of children attending elementary and secondary schools in the area served by the local agency, with teachers and administrative personnel in such schools, and vir'th other groups as may be deemed appropriate by the local educational agency. [tb) An application filed by a local educational agency under subsection (a) shall be for a period not to exceed three fi .,cal years, may provide for the allocation of funds among programs and pur- poses authorized by this chapter for a period of three years, and may be amended annually as may be necessary to reflect changes without filing a new application. [(c) Each local educational agency shall have complete discre- tion, subject only to the provisions of this chapter, in determining how funds the agenzy receives under this section shall be divided among the purposes of this chapter in accordance with the applica- tion submitted under this section. In exercising such discretion, it shell be the responsibility of each local educational agency to ensure that each expenditure of funds under this chapter is for the purpose of meeting the educational needs within the schools of that local educational agency. 153 153 [Subchapter ABasic Skills Development rJSE OF FUNDS [Sec. 571. Funds allocated for use under this subchapter shall be used by State and local educational agencies I develop and imple- ment a comprehensive and coordinated probiam designed to im- prove elementary and secondary school instruction in the basic skills of reading, mathematics, and written and oral communica- tion, as formerly authorized by title II of the Elementary and Sec- ondary Education Act of 1965, relating to basic skills improvemen-, including the speci.. , mathematics program as formerly authorized by section 232 f suca title. ESTATE LEADERSHIP AND SUPPORT SERVICES (SEC. 572. (a) In oraer to achieve the purposes of this subchapter, State educational agencies may use funds reserved for State pro- grams to make grants to and enter into contracts with local educa- tional agencies, institutions of higher education, and other public and private agencies, organizations, and institutions [(1) to carry out planning, research and development, dem- onstration projects, training of leadership personnel, short term and regular session teacher training institutes; and [(2) for the development of instructional materials, the dis- semination of information, and technical assistance to local educational agencies. Each State educational agency may also use such funds for techni- cal assistance and training for State boards of education. [(b) State educational agencies may support activities designed to enlist t:_e assistance of parents and volunteers working with schools to improve the performance of children in the basic skills. Such activities may include [(1) the development and dissemination of materials that parents may use in the home to improve their children's per- formance in those skills; and [(2) voluntary training activities for parents to encourage and assist them to help their children in developing basic skills; except that such activities conducted in local areas shall be con- ducted with the approval of and in conjunction with programs of local educational agencies. [scnoot LEVEL PROGRAMS [SEC. 573. (a) In planning for the utilization of funds it allocates for this subchapter (from its allotment under section 565) a local educational agency shall provide for the participation of children enrolled in private elementary and secondary schools (and of teach- ers in such schools) in accordance with section 586. Such plans shall be developed in conjunction with and involve continuing con- sultation with teachers and principals in such district. Such plan- ning shall include a systematic strategy for improving basic skills instruction for all children which provides for planning and imple- mentation at the school building level, involving teachers, adminis- trators, and (to the extent practicable) parents, and utilizing all 1: 154 available resources in a comprehensive program. The programs shall include [(1) diagnostic assessment to identify the needs of all chil- dren in the school; [(2) the establishment of learning goals and objectives for children and for the school; [(3) to the extent practicable, pre-service and in-service training and development programs for teachers, administra- tors, teacher al .43 and other support personnel, designed to improve instruction in the basic skills; [(4) activitiva designed to enlist the support and participa- tion of parents to aid in the instruction of their children; and U5) procedures for testing students and for evaluation of the effectiven,...6 of programs for maintaining a continuity of effort for individual children. [(b) The programs described in subsection (a) may include such areawide or clistrictwido activities as learning centers accessible to students and parents, demonstration and training programs for parents, and other activities designed to promote more effective in- struction m the basic skills. [Subchanter BEducational Improvement and Support Services [STATEMENT OF PURPOSE [SEC. 576. It is the purpose of this subchapter to pJrmit State and local educational agencies to use Federal funds (directly, and through grants to or Intracts with educational agencies, local edu- cational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions) to carry out selected activities from among the full range of programs and projects formerly authorized under title N, relating to educational improvement, resources, and support, title V, relating to State leadership, title VI, relating to emergency school aid, of the Ele- mentary and Secondary Education Act of 1965, section 3(a)(1) of the National Science Foundation Act of 1950, relating to precollege sci- ence teacher training, and part A and section 532 of title V of the Higher Education Act of 1965, relating to the Teacher Corps and teacher centers, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in con- formity with the other requirements of this chapter. [AUTHORIZED AC VITIES [SEC. 577. Program; and projects authorized under this subchap- ter include ("I) the acquisition and utilization [(A) of school library resources, textbooks, and other printed and published instructional materials for the use of children and teachers in public end private elementary and secondary schools which shall be used for instruction- al purposes only, and C(B) of instructional equipment and materials suitable for use in providing education in academic subjects for use by children and teachers in elementary and secondary 155 155 schools which shall be used for instructional purposes only. which takes into account the needs of children in both public and private schools based upon periodic consultation with teachers, librarians, media specialists, and private school offi- cials; [(2) the development of programs designed to improve local educational practices in elementary and secondary schools and particularly activities designed to address educational prob- lems such as the education of children with special needs (edu- cationally deprived children, gifted and talented children, in- cluding children in private schools); ((3) programs designed to assist local educational agencies, upon their request, to more effectively address educational problems caused by the isolation or concentration of minority group children in certain schools if such assistance is not con- ditioned upon any requirement that a local educational agency which assigns students to schools on the basis of geographic at- tendance areas adopt any other method of student assignment, and that such assistance is not made available for the trans- portation of students or teachers or for the acquisition of equipment for such transportation; [(4) comprehensive guidance, counseling, and testing pro- gfams in elementary and secondary schools and State and local support services necessary for the effective implementa- tion and evaluatioi of such programs (including those designea to help prepare students for employment); ((5) programs and projects to improve the planning, man- agement and implementation of educational programs, includ- ing fiscal management, by both State and local educational agencies, and the cooperation of such agencies with other public agencies; [(6) programs and projects to assist in teacher training and in-service staff development, particularly to better prepare both new and in-service personnel to deal with contemporary teaching and learning requirements and to provide assistance in the teach:lig and learning of educationally deprived stu- dents; and [(7) programs and projects to assist local educational agen- cies to meet the needs of children in schools undergoing deseg- regation and to assist such agencies to develop and implement plans for desegregation in the schools of such agencies. [Subchapter CSpecial Projects [STATEMENT OF PURPOSE [SEC. 581. It is the purpose of this subchapter to permit State and local educational agencies to use Federal funds (directly and through grants to or contracts with educational agencies, local edu- cational agencies, institutions of higher education, and other public and private agencies, organizations, and institutions) to carry out selected activities from among the foll range of programs and projects formerly authorized under title III, relating to special projects, title VIII, relating to community schools, and title IX 156 156 (except part C), relating to gifted and talented children, educational proficiency standards, safe schools program, and ethnic heritage program, of the Elementary and Secondary Education Act of 1965, the Career Education Incentive Act, Pnd part B of title V of the Economic Opportunity Act of 1964, ra__ ing to Follow Through pro- grams, in accordance with the planned allocation of funds set forth in the applications under sections 564 and 566, in conformity with the other requirements of this chapter. [AUTHORIZED ACTIVITIES [SEC. 582. Programs and projects authorized under this subchap- ter include [(1) special projects (as may be determined to be desirable by the State or local educational agencies) in such areas is [(A) preparation of students to use metric weights and measurements when such use is needed; [(B) emphasis on the arts as an integral part of the cur- riculum; [(CXi) in-school partnership programs in which the par- eats of school-age children participate to enhance the edu- catiin and personnal development of the children, previ- ously authorized by part B of the Headstart-Follow Through Act; [(ii) preschool partnership programs in which the schools work with parents of preschool children in coopera- tion with programs funded the Headstart-Follow Through Act; [(D) consumer education; [(E) preparation for employment, the relationship be- tween basic academic skill development i.nd work experi- ence, and coordination with youth employment programs carried out under the Comprehensive Employment and Training Act; [(F) career education previously authorized by the Career Education Incentive Act; [(G) environmental education, health education, educa- tion about legal institutions and the American system of law and its underlying principles, and studies on popula- tion and the effects of population changes; [(H) academic and vocational education of juvenile de- linquents, youth offenders, and adult criminal offenders; [(I) programs to introduce disadvantaged secondary school students to the possibilities of careers in the biomedical and medical sciences, anc! to encourage, moti- vate, and assist them in the pursuit of such careers; and [(J) programs to teach the principles of citizenship; [(2) the use of public education facilities as community cen- ters operated by a local education agency in conjunction with other local governmental agencies and community organiza- tions and groups to provide educational, recreational, health care, cultural, and other related community and human serv- ices for '..he community served in accordance with the needs, interests, and concerns of the community and the agreement 1 :i 7 l r7 and conditions of the governing board of the local educational agency; and [(3) additional programs, including [(A) special programs to identify, encourage, and meet the special educational needs of children who give evi- dence of high performance capability in areas such as in- tellectual, creative, artistic, leadership capacity, or specific academic fields, and who require services or activities not ordinarily provided by the school in order to fully develop such capabilities; [(B) establishme -t of educational proficiency standards for reading, writing, mathematics, or other subjects, the administration of examinations to measure the proficiency of students, aad implementation of programs (coordinated with those under subchapter A of this chapter) designed to assist students in achieving levels of pioficiency compati- ble with established standards; [(C) programs designed to promote safety in the schools and to reduce the incidence of crime and vandalism in the school environment; [(D) planning, developing, and implementing ethnic her- itage studies programs to provide all persons with an op- portunity to learn about and appreciate the unique contri- butions to the American national heritage made by the various ethnic groups, and to enable students better to un- derstand their own cultural heritage as well as the cultur- al heritage of others; and [(E) programs involving training and advisory services under title IV of the Civil Right Act of 1964. [Subchapter DSecret y's Discretionary Funds [DISCRETIONARY PROGRAM AUTHORIZED [SEC. 583. (a) From the sums reserved by the Secretary pursuant to the second sentence of section 563(a) the Secretary is authorizes; to carry out directly or through grants to or contracts with State and local educational agencies, institutions of higher education, and other public and private agencies, organizations, and institu- tions, programs and projects which [(1) provide a national source for gathering and disseminat- ing information on the effectiveness of programs designed to meet the special educational needs of educationally deprived children, and others served by this subtitle, and for assessing the seeds of such individuals; [(2) carry out research and demonstrations related to the purposes of this subtitle; [(3) are designed to improve the training of teachers and other instructional personnel needed to carry out the purposes of this subtitki; or [(4) are deuigned to assist State and local educational agen- cies in the implementation of programs under this subtitle. [(b) From the funds reserved for the purposes of this section, the Secretary shall first fund 158 [(1) the Inexpensive Book Distribution Program (as carried out through "Reading is Fundamental") as formerly authorized by part C of title H of the Elementary and Secondary Educa- tion ' A of 1965, [(2) the programs of national significance in the "Arts in Education" Program as formerly authorized by part C of title III of such Act, [(3) programs in alcohol and drug abuse education as for- merly authorized by the Alcohol and Drug Abuse Education Act, [(4) the law-related education program as formerly author- ized by part G of title III of the Elementary and Secondary Education Act of 1965, and [(5) a National Diffusion Network nrogram as described in subsection (c), at least in amounts necessary to sustain the activities described in this sentence at the level of operations during fiscal year 1981 (or $1,000,000 in the case of the program referred to in paragraph (4) and not less than 34 percent of funds reserved for the purposes of this section in the case of the program referred to in paragraph (5)), and then utilize the remainder of such funds for the other au- thorized activities described in subsection (a). [(cX1) The National Diil'usion Network program under subsec- tion (bX5) shall be a national program that recognizes and furthers excellence in education by: (A) promoting the awareness and imple- mentation of exemplary education programs, products, and prac- tices to interested elementary, secondary, and postsecondary insti- tutions throughout the Nation; and (B) promoting the utilization of the knowledge, talents, and services of local staff associated with various educational excellence recognition efforts. [(2) The program shall be directed toward improving the quality of education through the implementatirr of promising and validat- ed innovations and improve/Dents in educational programs, prod- ucts, and practices, and through the provision of training, consulta- tion, and related assistance services. [(3) In carrying out the program the Secretary shall [(A) acquaint persons responsible for the operation of ele- mentary, secondary, and postsecondary schools with informa- tion about exemplary educational programs, products, prac- tices, and services; [(B) assist them in implementing programs, products, and practices, which those persons determine to hold promise for improving the quality of education in the schools for whicb they are responsible by providing materials, initial training and ongoing implementation assistance; [(C) ensure that all such programs, products, and practices are subjected to rigorous evaluation with respect to their effec- tiveness and their capacity for implementation; [(D) provide program development assistance toward the recognition, dissemination, and implementation of promising practices that hold the potential for answering critical needs and that have achieved credibility because of their effective use in schools; and 1 S 9 159 [(E) ensure tl, t a substantial percentage of the innovations disseminated represent significant changes in practice for schools and teachers; [(4) For the purpose of carrying out the program the Secretary is authorized to make grants to, and contracts with, local educa- tional agencies, State educational agencies, instAutions of higher education, and other public and nonprofit private educational insti- tutions and organizations. [Subchapter EGeneral Provisions [MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY [SEC. 585. (aX1) Except as provided in paragraph (2), a State is entitled to receive its full allocation of funds under this chapter for any fiscal year if the Secretary finds that either the combined fiscal effort per student or the aggregate expenditures within the State with respect to the provision of free public education for the preceding fiscal year was not less than 90 per centum of such com- bined fiscal effort or aggregate expenditures for the second preced- ing fiscal year. [(2) The Secretary shall reciace the amount of the allocation of funds under this chapter in any fiscal year in the exact proportion to which the State fails to meet the requirements of paragraph (1) by falling below 90 per centum of both the fiscal effort per student and aggregate expenditures (using the measure most favorable to the State), and no such lesser amount shall he used for computing the effort required under paragraph (1) for subsequent years. [(3) The Secretary may wave, for one fiscal year only, the re- quirements of this subsection if he determines that ,uch a waiver would be equitable due to exceptional or uncontrollable circum- stances such as a natural disaster or a precipitious and unforeseen decline in the financial resources of the State. [(b) A State or local educational agency may use and allocate funds received under this chapter only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of Federal funds made available under this chapter, be made available from non-Federal sources, and in no case may such funds be used so as to supplant funds from non-Federal sources. [(c) The Secretary is specifically authorized to issue regulations to enforce the provisions of this section. [PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS [SEC. 586. (aX1) To the extent consistent with the number of chil- dren in the school district of a local educational agency which is eligible to receive funds under this chapter or which serves the area in which a program or project assisted under this chapter is located who are enrolled in private nonprofit elementary and sec- ondary schools, or with respect to instructional or personnel train- ing programs funded by the SteuR educational agency from funds reserved for State use under section 565, such agency after consul- tation with appropriate private school officials, shall provide for tne benefit of such children in such schools secular, neutral, and nonideological services, materials, and equipment including the l GO 160 participation of the .teachers of such children (and other education- al personnel serving such children) in training programs, and the repair, minor remodeling, or construction of public facilities as may be necessary for their provision (consistent with subsection (c) of this section), or, if such service, materials, and equipment are not feasible or necessary in one or more such private schools as deter- mined by the local educational agency after consultation with the appropriate school officials, shall provide such other arrangements as will assure equitable participation of such children in the pur- poses and benefits of this chapter. E(2) If no program or project is carried out under subsection (aX1) of this section 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 that district are provid- ed with services and materials to the extent that would have oc- curred if the local educational agency iiad received fun under this chapter. [(3) The requirements of this section relating to the participa- tion of children, teachers, and other personnel serving such chil- dren shall apply to programs and projects carried out under this chapter by a State or local agency, whether directly or through grants to or contracts with other public or private agencies, institu- tions, or organizations. [(3) Expenditures for programs pursuant to subsection (a) shall be equal (consistent with the number of childr' n to be served) to expenditures for programs under this chapter or children enrolled in the public schools of the local educational agency taking into ac- count the needs of the individ al children and other factors which relate to such expenditures, id when funds available to a local educational agency under t chapter are used to concentrate pro- grams or projects on a particular group, attendance area, or grade or age level, children enrolled in private schools who are included within the group attendance area, or grade or age level selected for such concentration shall, after consultation with the appropriate private school officials, be assured equitable participation in the purposes and benefits of such programs or projects. ((cX1) The control of funds provided under this chapter and title to materials, equipment, and property repaired, remodeled, or con- structed therewith shall be in a public agency for the uses and pur- poses provided in this chapter, and a public agency shall adminis- ter such funds and property. [(2) The provision of services pursuant to this section shall be provided by employees of a public agency or through contract by such public agency with a person, an association, agency, or corpo- ration who or which, in the proN,ision of such services, is independ- ent of such private school and of any religioL3 organizations, and such employment or contract shall be unuer the control and super- vi m of such public agency, and the fonds provided under this chapter shall not be commingled with State or local funds. ((d) If by reason of any provision of law a State or local educa- tional agency is prohibited from providing for the participation in prograos of children enrolled in private elementary and secondary schools, as required by this section, the Secretary shall waive such 161 161 requirements and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of this section. [(eX1' If the Secretary determines that a State or a local educa- tional at, ncy has substantially failed or is unwilling to provide for the participation on an equitable basis of children enrolled in pri- vate elementary and secondary schools as required by this section, he may waive such requirements and shall arrange for the provi- sion of services to such children through arrangements which shall be subject to the requirements of this section. [(2) Pending final resolution of any investigation or complaint that could result in a determination under this subsection or sub- section (d), the Secretary may withhold from the allocation of the affected State or local educational agency the amount he estimated would be necessary to pay the cost of those services. [(f) Any determination by the Secretary under this section shall continue in effect until the Secretary determines that there will no longer be any failure or inability on the part of the State or local educational agency to meet the requirements of subsections (a) and (b).[(g) When the Secretary arranges for services pursuant to this section he shall, after consultation with the appropriate public and private school officials, pay the cost of such services, including the administrative costs of arranging for those services, from the ap- propriate allotment of the State under this chapter. [(hX1) The Secretary shall not take any final action under this section until the State educational agency and the local education- al agency affected by such action have had an opportunity, for at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Secretary or his designee to show cause why that action should not be taken. [(2) If a State or local educational agency is dissatisfied with the Secretary's final action after a proceeding under paragraph (1) of this subsection, it may within sixty 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 forthwith 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 he based this action, as pro- vided in section 2112 of title 28, United States Code. [(3) The findings of fact by the Secretary, if supported by sub- stantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Secretary to take further evi- dence and the Secretary may thereupon make new or modified findings of fact and may modify his prev;ous 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; Upon the filing of such petition, the court shall have juris- diction to affirm the action of the Secretary or to sat it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the l'ited States upon certiorari or certification as provided in section 1.254 of title 28, United States Code. 72-850 87 - 6 lig2 162 [(i) Any bypass determination by the Secretary under titles II through W and VIII and IX of the Elementary and Secondary Edu- cation Act of 1965 prior to the effective date of this chapter shall remain in affect to the extent consistent with the purposes of this chapter. (REPEALS [SEC. 587. (a) Effective October 1, 1982, the p' )visions of [(1) titles II, III, IV, V, VI, VIII, and IX (except part C) of the Elementary and Secondary Education Act of 1965; [(2) part A and section 532 of title V of the Higher Educa- tion Act of 1965; [(3) the Alcohol and Drug Abuse Education Act; and [(4) the Career Education Incentive Act; are repealed. [(b) Effective October 1, 1984, subchapter C of chapter 8 of sub- title A of title VI of this Act, relating to Follow-Through progra' 1 is repealed.] [CHAPTER 3GENERAL PROVISIONS [FEDERAL REGULATIONS [SEc. 591. (a) The Secretary is authorized to issue regulations [(1) relating to the discharge of duties specifically assigned to the Secretary under this subtitle; [(2) relating to proper fiscal accounting for funds appropri- ated under this subtitle and the method of making payments authorized under this subtitle; and [(3) which are deemed necessary to reasonably insure that there is compliance with the specific requirements and assur- ances required by this subtitle. [(b) In all other matters relating to the details of planning, de- veloping, implementing, and evaluating programs and projects by State and local educational agencies the Secretary shall not issue regulations, but may consult with appropriate State, local, and pri- vate educational agencies and, upon request, provide technical as- sistance, information, and suggested guidelines designedto promote the development and implementation of effective instructional pro- grams and to otherwise assist in carrying out the purposes of this subtitle. [(c) Regulations issued pursuant to this subtitle shall not have the standing of a Federal statute for the purposes of judicial review. [(d) Nothing in this subtitle shall be interpreted (1) to authorize State regulations, issued pursuant to procedures as established by State law, applicable to local educational agency programs or projects funded under this subtitle, except as related to State audit and financial responsibilities, or (2) to encourage, preempt, or pro- hibit regulations issued pursuant to State law which are not in con- flict with the provisions of this subtitle. The imposition of any State rule or policy relating to the administration and operation of programs funded by this subtitle (including those based on State in- 1R 3 , .1 i 163 terpretation of any Federal law, regulation, or guideline) shall be identified as a State imposed requirement. [WITHHOLDINC, OF PAYMENTS [SEC. 592. (a) Whenever the Secretary after reasonable notice to any State educational agency and an opportunity for a hearing, finds that there has been a failure to comply substantially with any assurances requi-ed to be given or conditions required to be met under this subtitle the Secretary shall notify such agency of these findings and that beginning sixty days after the date of such notification, further payments will not be made to the State under this subtitle, or affected chapter thereof (or, in his discretion, that the State educational agency shall reduce or terminate further payments under the subtitle or affected chapter thereof, to speci- fied local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satisfied, (1) no further payments shall be Trade to the State under the subtitle or affected chapter thereof, or (2) payments by the State educational agency under the subtitle or affected chapter thereof shall be limited to local educational agen- cies and State agencies not affected by the failure, or (3) payments to particular local educational agencies shall be reduced, as the case may be. A transcript or recording shall be made ..,:' any hear- ing conducted under this subsection and shall be available for in- spection by any person. U.) Upon submission to a State of a notice under subsection (a) that the Secretary is withholding payments, the Secretary shall take such action as may be necessary to bring his action to the at- tention of the public within the State. [JUDICIAL REVIEW [SEC. 593. (a) If any state is dissatisfied with the Secretary's action under section 592(a), such State may, within sixty days after notice of such action, file with the United S'ates 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 forthwith transmitted by the clerk of the court to the Secretary. The filing of such peti- tion shall act to suspend any withholding of funds by the Secretary pending the judgment of the court and prior to a final action on any review of such judgment. The Secretary thereupon shall file in the court the record of the proceedings on which he based his action, as provided in section 2112 of title 28, United States Code. [(b) A State educational agency and a local educational agency shall be presumed to have complied with this subtitle, but the find- ings of fact by the Secretary, if supported by the weight of evi- dence, may overcome such presumption. The court may remand the case to the Secretary to take further evidence, and the Secre- tary may thereupon make new or modified findings of fact and may modify his pre-,ious action, and shall file in the court the record of the further proceedings. [(c) Upon the filing of such petition, the court shall have juris- diction to affirm the action of the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to 1i 4 164 review by the Supreme Court of the United States apon certiorari or certification as provided in section 1254 of title 28, United States Code. (AVAILABILITY OF APPROPRIATIOA5 [SEC. 594. Notwithst.c.idi:_g any other provision of law, unless expressly in limitation of this section, funds appropriated in any fiscal year to carry out activities under this subtitle shall become available f. obligation on July 1 of ,h fiscal year and shall remain available for obligation until the end of the succeeding fiscal year. [DEFINITIONS [SEC. 595. (a) Except as otherwise provided herein as used in this subtitle [(1) the term "State" means a State, Puerto Rico, Guam, the District of Columbia, Amman Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory ofthe Pacif- ic Islands; ((2) the term "E .retary" means the Secretary of Education; ((3) the term "State educational agency" means the officer or agency primarily responsible for tly, State sune is.,on of pablic eleme' `ary and secondary schools; ((4) the term "local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or sec- ondary schools in P city, county, township, school district, or other political subdivie:on of a State, or ,ch combination of school districts or counties as are recogni 1 in a State as an administrative agency for its public t,lem =i 'ry or secondary schools. such term incledes any other p, 'Alt institution or agency having administrative control and direction of a public elementary or secc idaty school; [(5) the term "parent" includes a legal guardian or other person standing in loco parentis; E(6) the term "free rfalic eaucation" means education which is provided at pub, expense, under public supervision and direction, and without teil-'n charge, and which is provid- ai as elementary or secondary school education in the applica ble State, except that such term does not incIade any educa- tion provided beyolid grade twelve; [(7) the term "elementary scLiool" mean a day or residen- tial school which provides elementary education, as deter- mined under State law, and the tern "secondary school" means a day or residential school which provides secondary education, as determined under State law, e7.cept that it does not include any education provided beyond grade twelve; C(8) the term "construction" includes V- e preparation of drawings and specifications for school facilities; erecting, build- ing, acquiring, altering, remodeling, improving, oi extending school facilities; and the inspection and supervision of the con- struction of school facilities; [(9) the torm "equipment" *ncludes machinery, utilities, and building equipment and any necessary enclosure or structures to house them, and includes all other items necessary for the functioning of a particular facility as a facility for the p:;r::- sion of educational services, including items such as instruc- tional equipment and necessary furniture, printed, published, and audio-visual instructional materials, and books, periodicals documents, and other related materials; and [(10) the term "school facilities" means classrooms and re- lated facilities (including initial equipment) for fret pubic edu- cation and interests in land (iricludirq site, grading, and im- provements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intrnded primarily for exhibitions for which admis- sion is to be charged to the gL,neral public. [(b) Any term used in provisions referenced by setion 554 and not defined in this section shall have the same meaning as that term was given in title I of the Elementary and Secondary Educa- tion Act of 1965 in effect prior to October 1, 1981. [APPLICATION OF OTHER LAWS [SEC. 596. (a) Except as otherwise specifically provided by this section, the General Education Provisions Act shall apply to the programs authorized by this subtitle. [(b) The following provisions of the General Educatk,.. Previ- sions Act shall be superseded by the specified provisions of this subtitle with repect to the programs authorized by this subtitle: [(1) ction 408(aXl) of the General Education Provisions Act is superseded by section 591(a) of this subtitle. [(2) Section 426(a) of such Act is superseded by section 591(b) of this subtitle. [(3) Section 427 of such Act is superseded by section 556(bX3) of this subtitle. [(4) Section 430 of such Act is superseded by sections 556(a) and 564(b) of this atitle. [(5) Section 431A of such , et is superseded by section 558(a) of this subtitle. [(6) Section 453 of such Act is superseded by section 3 of this subtitle. [(7) Section 455 of such Act is superseded by section 593 of this subtitle with respect to judicial review of withholding of payments. [(c) Sections 434, 435, and 4J6 of the General Education Provi- sions Act, except to the extent that such sections relate to fiscal control and fund accounting procedures, shall not apply to the pro- grams authorized by this subtitle and shall not be construed to au- thorize the Secretary to require any reports or take any actions not specifically authorized by this subtitle.] 166 ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965 [TITLE IFINANCIAL ASSISTANCE TO MEET SPECIAL EDUCATIONAL NEEDS OF CHILDREN [DECLARATION OF POLICY [SEC. 101. In recognition of the special educations' needs of children of low-income families and the impact that concentrations of low-income families have on the ability of local educsti al agencies to support adequate educational programs, the Congress hereby decls <5 it to be the policy of the United States to provide financial assistance (as set forth in the following parts of this title) to local educational agencies serving areas with concentrations of children from low-income families to expand and improve their educational programs by various means (including preschool pro- grems) which contribute particularly to meeting the special educa- tional needs of educationally deprived children. Further, in recognition of the special educational needs of children of certain migrant parents, of Indian children and of handicapped, neglected, and delinquent children, the Congress hereby declares it to be the policy of the United States to provide financial assistance (as set forth in the following parts of this title) to heir) meet the special educational needs of euch children. [DURATION OF ASSISTANCE [SEC. 102. Durink. the per xi beginning October 1, 1978, and ending September 30, 1983, tre Commissioner shall, in accordance wiLli the provisions o this title, make payments to State education al agencies for grants made on the basis of entitlements created under this title. [PART APROGRAMS OPERATED BY LOCAL ED JCATIONAL AGENCIES [Subpart 1Basic Grants [GRANTSAMOUNT AND ELIGIBILITY [SEC. 111. (a) AMOUNT Ot GsAwrs.(1) There is authorized to be appropriated for each fiscal year for the purpose of this paragraph 1 per centum et the amount appropriated for such year for pay- ments to States under part E (other than payments under such part to jurisdictions excluded from the term "State" by this subsec- tion, and payments pursuant to section 156), and there is author- ized to be appropriated such additional sums as will assure at least the same level of funding under this title as in fiscal year 1976 for Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and to the Secre- tary of the Interior for payments pursuant to paragraphs a) and (2) of subsection (d). The amount appropriated pursuant to this para graph shall be alloted by the Commissioner (A) among Guam, American Samoa, thc. Virgin Islands, the Northern Mariana is lands, and the Trust Territory of the Pacific Islands according to their respective need for grants under this pa-t, and (1) to the Se' retary of the Interior in the amount necessary (i) to make pay- 167 ments pursuant to paragraph (1) of subsection (d), and (ii) to make payments pursuant to paragraph (2) of subsection (1.). The grant which a local educational agency in Guam, American Samoa, the Virgin Islands the Northern Mariana Islands, and the Trust Terri- tory , i the Pacific Islands is eligible to receive shall be determined pursuant to such criteria as the Commissioner determines will best carry out the purpose of this title. ((2XA) In any case in which the Commissioner determines that satisfactory data for V.:It purpose are available, the grant which a local educational agency in a State is eligible to receive under this subpart for a fiscal year shall (except as provided in paragraph (3) be determined by multiplying the number of children countea under subsection (c) by 40 per centum of the amount determined under the next sentence. The amount determined under this sen- tence shall be the average per pupil expenditure in the State except that (i) if the average per pupil expenditure in the State is less than 8C per centum of the average per pupil expenditure in the United States, such amount shall be 80 per centum of the aver- age per pupil expenditure in the United States, or (ii) if the aver- age per pupil expenditure in the State is more than 120 per centum of Lhe average -},er pupil expenditure in the United States, such amount shall be 120 per centum of the average per pupil ex- penditure if. the United States. E(B) In any case in which such data are not available, subject to paragraph (3), the grant for any local educational agency in a State shall be determined on the basis of the aggregate amount of such grants for all such agencies in the county or counties in which the school district of the particular agency is located, which aggregate amount shall be equal to the aggregate amount determined under subparagraph (A) for such county or counties, and shall be allocat- ed among those agencies upon such equitable basis as may be de- termined by the State educational agency in accordance with the basic criteria prescribed by the Commissioner. E(C) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year (exclusive of any amount re- ceived under paragraph (3XD) shall be the amount arrived at by multiplying the number of children counted under subsection (c) for Puerto Rico' y the product of E(i) the percentage determined under the preceding sentence rind ((ii) 32 per centum of the average per pupil expenditure in the United States. ((3)(A) Upon determination by the State educational agency that a local educational agency in the State is unable or unwilling to provide for the special educational needs of children described in clause (C) of paragraph (1) of subsection (c), who are living in insti- tutions for neglected or delinquent children, the State educational agency shall, if it assumes responsibility for the special educational needs of such children, be eligible to receive the portion of the allo- cation to such local educational agency which is attributable to such neglected or delinquent children, but if the State educational 1i 8 168 agency does not assume such responsibility, any other State or local public agent), as determined by regulations established by the Commissioner, which does assume such responsibility shall be eligible to receive such portion of the allocation. [(B) In the case of local educational agencies which serve in whole or in part the same geographical area, and in the case of a local educational agency which pros ides free public education a substantial number of children who reside in the school district of another local educational agency, the State educational agency may allocate the amount of the grants for those agencies among them in such manner as it determines will best carry out the pur- poses of th;.- title. [(C) In any State it. which a large number of local educational age ties overlap county boundaries, the State educational agency may apply to the Commissioner for authority during any particular fiscal year to make the allocations uncic- this part (other than sec- tion 117) directly to local educatior 1 agencies without regard to the ck.unties. If the Commissioner approves an app!ication of a State educational agent.), for a particular year under this subpara- graph, the State educational agency shall provide assurances that such allocati ...s will be made using precisely the same factors fi,r determining a grant as are used under this part and that a proce- dure will be established through which local educational agencies dissatisfied with the determinations made by the State .;clucational agency may appeal directly to the Commission for a final determi- nation. [(DXi) From one-half of any amount made available for this sub- part for any fiscal year in excess of the amount made available for this subpart for fiscal year 1979. there shall be all ted to each State an amount which bears the same ratio to slid :xcess as the product of [(I) the number of children in such State aged five to seven- teen, inclusive, from families below 50 per centum of the median national income for four-person families from the 1975 survey of income and education conducted by the Bureau of the Census, multiplied by [(ID 40 per centum of the amount determined under the second sentence of paragraph (2XA) and, in the case of Puerto Rico, the product determined under subparagraph (C) (i) and (ii) of this paragraph. bears to the sum of such irodt cts for all the States. [(ii) In any case in which the Commissioner finds that a State's percentage decrease in children from low-income families exceeds 25 oer centum between the 1970 decennial census, as adjusted, and the 1975 survey of income and education, the Commissioner shall allocate funds based on the most current valid data available or the an aunt which each local educational agency in that State shall based on a resurvey of the affected State by the Bureau of the Census. [(iii) From the amount allotted to each State under division (i), be eligible to receive under this subparagraph shall be an amount which bears the same ratio to the total amount allotted to such State under this subparagraph as the amount such local education- .1 n9' 169 al ag mcy receives under paragraph (2) bears to the total amount of funds made available to local educational agencies in such State under such paragraph. [(E) From the remaining one-half of any amount made available for this subpart for any fiscal year in excess of the amount made available for this subpart for fiscal year 1979 after the application of subparagraph (D), there shall be allotted to each State an amount determined in accordance with paragraph (2) of this sub- section. [(4) For purposes of this subsection, the term "State" does not include Juam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. [(b) MINIMUM NUMBER OF CHILDREN TO QUALIFY.-A local edu- cational agency shall be eligible for a basic grant for a fiscal year under this subpart only if it meets the following requirements with respect to the number of children counted under subsection (c): [(I) In any case (except as provided in paragraph (3)) in which the Commissioner determines that satisfactory data for the purpose of this subsection as to the number of such children are available on a school district basis, the number of such children in the school district of such local educational agency shall be at least ten. [(2) In any other case, except as provided in paragraph (3), the number of such child! en in the county which includes such local educational agency's school district shall be at least ten. [(3) In any case in which a county includes a part of the school district of the local educational agency concerned and the Commis- sioner has not determined that satisfactory data for the purpose of this subsection are available on a school district oasis for all the local educational agencies or all the counties into which the school district of the local educational agency concerned extends, the eligi- bility requirement with respect to the number of such children for such local educational agency shall be determined in accordance with regulations prescribed by the Commissioner for the purposes of this subsection. [(c) CHILDREN To BE COUNTED.-(1XA) The number of children to be counted for purposes of this section, other than for subsection (aX3)(D), is the aggregate of the number of children aged five to seventeen, inclusive, in the school district of the local educational agency from fami- lies below the poverty level as determined under paragraph (2XA), [(ii) the number of children aged five to seventeen, inclu- sive, in the school district of such agency from families above the poverty level as determined under paragraph (2XB), subject to subparagraph (B) of this paragraph, and [(iii) the number of children aged five to seventeen, inclu- sive, in the school district of such agency living in institutions for neglected or delinquent children (other than such institu- tions operated by the United States) but not counted pursuant to subpart 3 of part B for the purposes of a grant to a State agency, or being supported in foster homes with public funds. [(B) For the purpose of division (ii) of subparagraph (A) of this paragraph the number of children aged five through seventeen, in- 1 0 170 clusi "e, in the school district of such agency from families above the poverty level as determined under paragraph (2XB) shall be re- duced by one-third for fiscal year 1979; except that such reduction shall not be applicable with respect to determinations made under section 117(b) of the number of children to be counted under this subs( Jtion. [(2XA) For the purposes of this section, the Commissioner shall determine the number of children aged five to seventeen, inclusive, from families below the poverty level on the basis of the most recent satisfactory data available from the Depart:Went of Com- merce for local educational agencies (or, if such data are not avail- able for such agencies, for counties); and in determining the fami- lies which are below the poverty level, the Commissioner shall uti- lize the criteria of poverty used by the Bureau of the Census in compiling the 1970 decennial census. [(B) For purposes of this section, the Secretary shall determine the numEar of children aged five to seventeen, inclusive, from fami- lies above the poverty level on the basis of the number of such chil- dren from families receiving an annual income, ii. excess of the current criteria of poverty, from payments under the program of aid to families with dependent children under a State plan ap- proved under title N of the Social S^curity Act; and in making such determinations the Secretary shall utilize the criteria of pov- erty used by the Bureau of the Census in compiling the 1970 decen- nial census for . nonfarm familf of four in such form as those cri- teria have been updated by increases in the Consumer Price Index. The Secretary shall determine the number of such children and the number of children of such ages living in institutions for ne- glected or delinquent children, or being supported in foster homes with public funds, on the basis of the caseload data for the month of October a the preceding fiscal year (using, in the case of chil- dren described in the preceding sentence, the criteria of poverty and the form of such criteria required by such sentence which were determined ft- the calendar year preceding such month of October) or, to the extent that such data are not available /..o him before January of the calendar year in which the Secretary's determina- tion is made, then on the basis of the most recent reliable data available to him at the time of such determination. The Secretary of Health and Human Services shall collect and transmit the infor- mation required by this subparagraph to the Secretary not later than January 1, of each year. [(C) When requested by the Commissioner, the Secretary of Commerce shall make a special estimate of the number of children of such ages who are from families below the poverty level (as de- termined under subparagraph (A) of this paragraph) in each county or school district, and the Commissioner is authorized to pay (either in advance or by way of reimbursement) the Secretary of Commerce the cost of making this special estimate. The Secretary of Commerce shall give consideration to any request of the chief ex- ecutive of a State for the collection of additional census informa- tion. For purposes of this section, the Secretary shall consider all children who are in correctional institutions to be living in institu- tions for delinquent children. -171 171 [(d) PROGRAM FOR INDIAN CHILDREN.-(1) From the amount allot- ted for payments to the Secretary of the Interior under clause (BXi) in the second sentence of subsection (a)(1), the Secretary of the In- terior shall make payments to local educational agencies, upon such terms as the Commissioner determines will best carry out the purposes of this title with respect to out-of-State Indian children in the elementary and secondary schools of such agencies under spe- cial contracts with the Department of the Interior. TL amount of such payment may not exceed, for each such child, 40 per centum of (A) the average per pupil expenditure in the State in which the agency is located or (B) ..2.0 per centum of such e: penditure in the United States, whichever is the greater. [(2) The amount allotted for payments to the Secretary of the In- terior under clause (BXii) n the second sentence of subsection (aX1) for any fiscal year shall be, as determined pursuant to criteria es- tablished by the Commissioner the amount necessary to meet the special educational needs of educationally deprived Indian children on reservations serviced by elementary and secondary schools oper- ated for Inuian cl-Ildren by the Department of the Interior. Such payment shall be made pursuant to an agreement betwec i the Commissioner and the Secretary containing such assurances and terms as the Commissioner determines will best achieve the pur- poses of this title. Such agreement shall contain (A) an assurance that payments made pursuant to this subparagraph will be used solely for programs and projects approved by the Secretary of the Interior which meet the applicable requirements of subpart 3 of this par a..d that the Department of the Interior will comply in all other respects with the requirements of this title, and (B) provision for carrying out the applicable provisions of subpart 3 of this part and sections 171 and 172. [TREATMENT OF EARNINGS FOR PURPOSES OF AID TO FAMILIES WITH DEPENDENT CHILDREN [SEC. 112. Notwithstanding the provisions of title IV of the Social Security Act, a State plan approved under section 402 of such Act shall provide that for a period of nest less than twelve months, and may provide that for a period of not more than twenty-four months, the first $85 earned by any person in any month for services rendered to any program assisted under this title of this Act shall not be regarded (1) in determining the need of such person under such approved State plan or (2) in determining the need for any other individual under such approved State plan. [Sul part 2Special Grants [SPECIAL INCENTIVE GRANTS [SEC. 116. (a) ELIGIBILIIT.-(1) Each local educational agency that is eligible to receive a payment ut.der section 111 for any fiscal year shall be entitled to an additional grant under this sec- tion for that fiscal year if it is located in a State which has in effect for that fiscal year a State program meeting the requirements of paragraph (2) under which financial assistance is provided to meet the special education needs of educationally deprived children. 11'2 172 [(2) A State program meets the requirements of this subsection if, under State law t(A) the program meets the requirements of section 131(c); and [(B) not less than 50 per centum of the funds expended under the program in any school district of any local educa- tional agency in the State in the fiscal year preceding any fiscal year in which the State receives a payment under this subpart is expended in school attendance areas of such agen- cies having high concentrations of children from low-income families. [(b) AMOUNT OF GaArrrs.(1) Except as provided in paragraph (3), the aggregate amount to which the local educational agencies in a State are entitled under this section for any fiscal year shall be 50 per centum of the amount of State funds expended, in the most recent fiscal year for which data are available, under a State program meeting the requirements of paragraph (2) of subsection (a) of this section. [(2) The amount of the additional grant for each local educatinal agency in a State under this section for any fiscal year shall bear the same ratio to the amount allocated to such State under subsec- tion (c) of this section as the amount allocated to such local educa- tional agency under section 111 of this title for such fiscal year bears to the aggregate amount allocated to all local educational agencies in the State under section 111 for such fiscal year. [(3) The aggregate amount which the local educational agencies in a State shall be eligible to receive under this section for any fiscal year shall not exceed 10 per centum of the aggregate amount which all local educational agencies in such State are eligible to re- ceive under section 111 of this title for such fiscal year. [(4) Each State which desires to receive payments under this sec- tion shall develop a system for determining the data required by subparagraph (2XB) of subsection 1.1) of this section relating to the percentage of State funds expended in school attendance areas having high concentrations of children from low-income families and required by paragraph (1) of this subsection relating to the amount of State funds expended under the State program referred to in that paragraph. The State shall submit to the Commissioner such information as the Commissioner may request concerning that system. [(c) PAYMENTS; USE OF FUNDS.-(1) h,..;:tept as provided in para- graph (3), the Commissioner shall pay to each State for each fiscal year the aggregate amount to which the local educational agencies in such State are entitled under subsection (b) after any ratable re- ductions under subsection (d). [(2) The total amount to which the local educational agencies in a State are entitled under this section for any fiscal year shall be added to the amount paid to such State under section 191 for such year. From the amount paid to it under this subsection, the State shall distribute to each local educational agency of the State the amount of its additional grant as determined under subsection (bX2). [(3) Whenever the expenditures made by a State ia accordance with subsection (a) in a fiscal year equal or exceed expenditures in 1 7 3 173 the preceding fiscal year, the amount paid to such State under this section shall, subject to subsection (d), not be less than the amount paid to such State under this section in the preceding fiscal year, and the total of any increases required under this paragraph shall be derived by proportionately reducing the amount paid to States which were not entitled to a payment under this section in the pre- ceding fiscal year, except that the amount paid to a State under this section for any fiscal year shall not exceed the maximum amount to which such State is entitled for such fiscal year under paragraph (1) of subsection (b). [(4) The amount paid to a local educational agency under this part shall be used by such agency for activities undertaken pursu- ant to its application submitted under section 121 and shall be sub- ject to all other requirements in subpart 3 of this part. [(d' RATABLE REDUCTIONS.If the sums appropriated pursuant to subsection (e) for a fiscal year are not sufficient to pay in full the total amounts which all local educational agencies are entitled to receive under this section, the amount to be paid such agencies shall be ratably to the extent necessary to bring such payments within the limits of the amounts so appropriated. In case additional funds become available for making payments under this section for that year, such reduced amounts shall be increased on the same basis that they were reduced. [(e) APPROPRIATIONS. There are authorized to be appropriated for the purposes of this section such sums as may be necessary for fiscal year 1980 and for the three succeeding fiscal years. [GRANTS FOR LOCAL EDUCATIONAL AGENCIES IN COUNTIES WITH ESPE- CIALLY 1GH CONCENTRATIONS OF CHILDREN FROM LOW-INCOME FAMILIE [SEC. 117. (a) PURPOSE.It is the purpose of this section to pro- vide additional assistance to local educational agencies in counties with especially high concentrations o. children from low-income families to enable local educational agencies in such counties to provide more effective programs of instruction, especially in the basic skills of reading, writing, and mathematics, to meet the spe- cial educational needs of educationally deprived children. [(b) ELIGIBILITY FOR AN AMOUNT OF SPECIAL GRANTS.(1) Each county, in a State other than Guam, American Samoa, the Virgin Islands, the Northern Mariana Is lan is, and the Trust Territory of the Pacific Islands, which is eligible for a grant under this title for any fiscal year shall be entitled to an additional grant under this section for that fiscal year if [(A) the number of children counted under section 111(c) of this title for local educational agencies in such county for the preceding fiscal year exceeds five thousand, or [(B) the number of children counted under section 111(c) ex- ceeds 20 asr centum of the total number of children aged five to seventeen, inclusive, in the school districts of local educa- tional agencies in such county in that fiscal year, except that no such State shall receive less than one-quarter of 1 per centum of the sums appropriated under subsection (d) for such section for such fiscal year. 1 74 174 [(2) For each county in which there are local educational agen- cies eligible to receive an additional grant under E is section for an fiscal year the Cc _nmissioner shall determine the product of (A) the number of children in excess of five thousand counted un er section 111(c) for the preceding fiscal year or the number of children counted under that section in excess of 20 per centum of the total number of children aged five to seventeen, inclusive, in the school district of local educational agencies in such county for that preceding fiscal year, whichever is greater, and [(B) the quotient resulting from the division of the amount de- termined for those agencies under section 111(aX2) of this title for the fiscal year for which the determination is being made divided by the total number of children counted under section 111(c) for that agency for the preceding fiscal year. [(3) The amounts of the additional grant to which an eligible county is entitled under this section for any fiscal year shall be an amount which bears the same ratio to the amount appropriated under subsection (d) for that fiscal year as the product determined under paragraph (2) for such county for that fiscal year bears to the sum of such products for all counties in the United States for that fiscal year. [(4) For the purposes of this section, the Commissioner shall de- termine the number of children counted under section 11(c) for any county, and the total number of children aged five to seventeen, ,- elusive, in school districts of local educational agencies in such county, on the basis of the most recent satisfactory data available at the time the entitlement for such county is determined under section 111. [(5) Funds allocated to counties under this part shall be allocat- ed by the State educational agency, pursuant to regulations estab- lished by the Commissioner, among the several local educational agencies whose school districts lie (in whole or in part) within the county on the basis of the current distribution in the county of children aged five to seventeen, inclusive, from low-income families (using a poverty level selected by the State educational agency cci- sistent with the purposes of this title) as determined on the basis of the available data which such State educational agency determines best to reflect the current distribution in the county of children aged five to seventeen, inclusive, from low-income families, except that in determining the number of such children in any local edu- cational agency in which less than 20 per centum of the children are from low-income families, each such child shall be counted as a fraction in which the numerator is the percentage of low-income children in the school district of that agency and the denominator is 20. ir(C) PAYMENTS; USE OF FUNDS.-(1) The total amount to which the counties in a State are entitled under this section for any fiscal year shall be added to the amount paid to that State under section 191 for such year. From the amount paid to it under this section, the State shall distribute to local educational agencies in each county of the State the amount (if any) to which it is entitled under this section. [(2) The amount paid to a local educational agency under this section shall be used by that agency for activities undertaken pur- 1 7 5 175 suant to its application submitted under section 121 and shall be subject 1 the other requirements in subpart 3 of this part. [(d) APPROPRIATIONS.There are authorized to be appropriated for the purposes of this section $400,000,000 for fiscal year 1979, and such sums as may be necessary for each of the four succeeding fiscal years. [Subpart 3Program Requirements and Applications [LOCAL PROGRAM APPLICATIGN [SEC. 121. A local educational agency may receive a grant unde- this title for any fiscal year if it has on file with the State educa- tional agency a current application, approved by the State educa- tional agency, describing the programs and projects to be conducted with assistance provided under this title for a per4- d of not to exceed three fiscal years, including the fiscal year for which the grant is to be made. Such an application may be amended at any time to describe changes in or additions to t1.d activities originally set forth in the application. An application or amendment thereto shall be approved by the State educational agency upon its deter- mination rat the application provides for the use of such funds in a manner which meets the requirements of this subpart and As con- sistent with the assurances contained in the general application re- quired by section 436 of the General Education Provisions Act, sub- ject to such basic criteria as the Commissioner may prescribe. [DESIGNATING SCHOOL ATTENDANCE AREAS [SEC. 122. (a) GENERAL PROVISIONS.(1) Except as provided in paragraph (2) and subsections (b), (c), (d), and (e) of this section, a local educational agency shall use funds received under this title in school attendance areas having high concentrations of children from low-income families (hereinafter referred to as "eligible school attendance areas"), and where funds under this title are insuffi- cient to provide programs and projects for all educationally de- prived children in eligible school attendance areas, lcal educa- tional agency shall annually rank its eligible school attendance areas from highest to lowest, according to relative degree of con- centration of children from low-income families. A local education- al agency may carry on a program or project assisted under this title in an eligible school attendance area only if it also carries on such program or project in all other eligible school attendance areas which are ranked higher under the first sentence. A local educational agency may designate any hool attendance area in which at least 25 per centum of the children are from low-income families as an eligible school attendance area if the aggregate amount expended under this title and under a State program meet- ing the requirements of section 131(c) in that fiscal year in each school attendance area of that agency in which projects assisted under this title were carried out in the preceding fiscal year equals or exceeds the amount expended from th-se sources in that area in such preceding fiscal year. The same measure of low income, which shall be chosen by the local educational agency and which may be a composite of several indicators, shall be used with respect to all 176 such areas, both to identify the areas having high concentrations of children from low-income families and to determine the ranking of each area. [(2XA) Notwithstanding the rrovisions of paragraph (1), in the selection of eligible school attendance areas, a local educational agency may, subject to the requirements of subparagraph (B), choose to rank all its school attendance areas as provided in para- graph (1) and also rank all its school attendance areas according to educational deprivation, and then serve all its school attendance areas ranked according to paragraph (1) in the order of their rank- ing under such paragraph unless another school attendance area ranked according to education deprivation has a substantially greater number or a substantially greater percentage of education- ally deprived children, in which case such school attendance area may be served before service is provided to other school attendance areas ranked pursuant to paragraph (1) which have a substantially smaller number or substantially smaller percentage of educational- ly deprived children. In the event that a local educational agency chooses to exercise the option provided under this paragraph, it shall not serve any more school attendance areas than the number identified pursuant to paragraph (1). [(B) Any local educational agency desiring to use the alternative ranking system described in subparagraph (A) shall, with the con- sent of the district-wide parent advisory council of that agency, apply for permission to use such system to the State educational agency of the State wherein such local educational agency is locat- ed. Such application shall he approved by such State educational agency only if such State edwational agency finds that the use of such alternative ranking system will not substantially impair the delivery of compensatory education services to educationally de- prived children from low-income families in project areas served by such local educational agency. Whenevai a school district exercises the option under this paragraph and actually serves one or more school attendance areas ranked under this paragraph, none of the areas so ranked but not served shall be considered to be eligible school attendance areas under this title. [(b) 173E OF ENROLLMENT DATA IN CERTAIN SCHOOLS.A local educational agency may use funds received under this title for edu- cationally deprived children who are in a school of such agency which is not located in an eligible school attendance area, but at which the proportion of children in actual average daily attend- ance who are from low-income families is substantially the same as the proportion of such children in such an area of that agency (hereinafter referred to as an "eligible school"). [(C) CONTINUATION OF ELIGIBILITY FOR CERTAIN SCHOOL ATTEND- ANCE AREAS OR SCHOOLS.An eligible school attendance area or an eligible school may be designated a project area under subsection (a) or a project school under subsection (b) for a fiscal year, even though it does not qualify under such subsections for that fiscal year, if such area or school was so designated in either of the two preceding fiscal years. I(d) LOWER RANKED SCHOOL ATTENDANCE AREAS OR SCHOOLS HAVING SUBSTANTIALLY GREATER INCIDENCES OF EDUCATIONALLY DEPRIVED CHILDREN THAN HIGHER RANKED AREAS OR SCHOOLS. 77 177 The Commissioner shall issue regulations providing for an excep- tion to subsection (a) permitting childern in lower ranked eligible school attendance areas or eligible schools having substantially greater incidences of educational deprivation than areas or schools ranked higher under subsections (a) or (b) to receive assistance before such children in higher ranked areas or schools receive such assistance. [(e) SKIPPING HIGHER RANKED SCHIX,L ATTENDANCE AREAS OR SCHOOLS RECEIVING SERVICES OF THE SAME NATURE AND SCOPE FROM NON-FEDERAL SOURCES.The Commissioner bhali issue regu- lations providing for an exception to subsection (a) or (b) permitting local educational agencies to skip higher ranked eligible school at- tendance areas or eligible schools receiving, from non-Federal funds, services of the same nature and scope as would otherwise be provided under this title. Whenever children residing in eligible areas and attending private elementary and secondary schools are ineligible for services of the same nature and scope from non-Fed eral sources, such children shall be selected for programs and projects under this title without regard to the provisions of this subsection. The number of children receiving services under this title who attend private elementary and secondary schools shall be deter:nined in each local educational agency receiving assistance under this title without regard to non-Federal compensatory educa- tion funds which serve children in public elementary and second- ary schools who are also eligible for assistance under this title. Children attending private elementary and secondary schools who receive assistance under this title shall be identified in accordance with this section and without regard to skipping higher ranked school attendance areas or schools receiving services of the same nature and scope from non-Federal sources. [CHILDREN TO BE SERVED [SEC. 123. (a) GENERAL PROVIS7)Ns.Except as provided in sub- sections (b), (c), and (d) of this section and section 133, a local edu- cational agency must use funds received under this title fur educa- tionally deprived children, identified in accordance with section 124(b) as having the greatest need for special assistance, in school attendance areas or schools satisfying the requirements of section 122. [(b) CONTINUATION OF ELIGIBLITY FOR EDUCATIONALLY DEPRIVED CHILDREN WHO ARE No LONGER IN GREATEST NEED OF ASSIST- ANCE.Whenever for a fiscal year, an educationally deprived child in a school attendance area or school satisfying the requirements of section 122, does not meet the requirement of subsection (a) requir- ing that he be in greatest need of special assistance, but did meet such requirement in any previous year, and is still educationally deprived, that child may participate in a program or project assist- ed under this title for the current fiscal year. [(C) CONTINUATION OF ELIGIBILITY FOR EDUCATIONALLY DEPRIVED CHILDREN TRANSFERRED TO INELIGIBLE AREAS OR SCHOOLS IN THE SAME YEAR.Educationally deprived children who begin participa- tion in a program or project assisted under this title, in accordance with subsections (a) and (b) but who, in the same school year, are 1 8 178 transferred to a school attendance area or school not receiving funds under this title, me. , if the local agency so determines, con- tinue to participate in a program or project funded under this title for the duretion c` that same school year. [(d) SKI:YING CHILDREN DETERMINED TO BE IN GREATEST NEED OF ASSISTANCE WHO ARE RECEIVINO SERVICES OF THE SAME NATURE AND SCOPE FROM NON-FEDERAL SOURCES.The Commissioner shall issue regu'ations providing for an exemption tc subsection (a) per- mitting local educational agencies, in providing services under this title, to skip educationally deprived children in greatest need of as- sistance who are receiving, from non-Federal sources, services of the same nature and scope as would otherwise be provided under this title. (REQUIREMENTS FOP. DESIGN AND IMPLE1.-ENTATION OF PROGRAMS [SEC. 124. (a) PURPOSE OF PROGRAM.A local educational agency may use funds received under this title only fnr programs and projects which are designed to meet the special lucational needy of the children referred to in section 123. Such kmograms projects may include the acquisnion of equipment, payments teachers of amounts in excess of regular salary schedules as bonus for service in schools serving project areas, the trai.k. ,g of teachers, and, where necessary, the construction of school facilities. and planning for such programs and projects. [(b) ASSESSMENT nF EDUCATIONA NEED.A local educational agency ii.ay receiv- i,.nds under thia title only if it makes an as- sessment of educational needs each year to '1) id. Aify educ. tional- lv deprived children in all eligible attendance areas a' d to Gelect Loose educationally 4-.nrived children who have the greateet need for special assistance; (2) identify v." gene: I instructional areas on which the program will focus; and (3) determine the special educa- tional needs of participating children with specificity sufficient to facilitate development of high-quality programs and projects. [(c) PLANNING.A local educational agency may use funds re- ceived under this title for planning only if (1) the planning relates directl7 to programs or projects to be assisted under this title and has resulted, of is reasonably ,Ikely to result, in a program or project tr be assisted under thin title, and (2) such funds are needed because of the innovative nett of the programs or project or be- cause such agency lacks the resources necessary to plan adequately for programs and projects to be assisted under this title. The amount a local educational agency may use for plans for any fiscal year may not exceed 1 Far centum of the amount determined for that agency for that year pursuant to section 111 or $2,000, which- ever is greater. Il7/.11 SUFFICIENT SIZE, SCOPE, AND QUALITY.A local educational agency may use fun,!s received under this title only for programs and projects which are sufficient size, scope, and quality to give reasonable promise of substantial progress sward meeting lie spe- cial educational needs of the children being served, and to this end such programs and projects must involve an expenditure of not less than $2,500, except that a State educational agency may reduce such $2,500 reauiroment for a local educational agency if it deter- 1'9 mines that it would be impossible, for reasons such as distance or difficulty of travel, for such local educational agency to join effec- tively with other local educational __gencies for the purpose of meeting the requirement. ((e) EXPENDITURES RELATED TO RANKING OR PR ',MGT AREAS AND SCHOOLS. A local educational agency may receive funds under this title only if such funds are allocated among project areas of schools for programs and projects assisted under this title on the basis of the number and needs of children to be served as determined in accordance with section 123. E(f) COORDINATION WITH OTHER PROGRAMS.(1) A local educa- tional agency may receive funds under this title only if it demon- st:ates that, in th-. development of its ar plication, it has taken into consideration benefits and service which are or may be available through ether public and private agencies, organizations, or indi- viduals. The local educational agency shall also demonstrate that in order to avoid duplication of effort Elie to ensure that all pro- grams and projects complement each other, it has considering sug- gestions and offers of assistance made by other agencies which may aid in carrying out or making more effective the program or project for which the application is made. .(2) A local educatinnal agency may use funds received under this title for health, so al, or nutrition services for participati g children under this title only if such agency has requested from tile State educational agency assistance in locating Pnd utilizing other Federal and State programs to provide such services. ((g) EVALUATIONS.A local educational agency may receive funds under this title only if [(1) effective procedures are adopted for evaluating, in ac- cordr 'e with the evaluation schedule promulgated by the Commissioner under section 183(b), the effectiveness of the pro- grams assisted under this title in met tit* the special educa- tional needs of educationally deprived children; [(2) such evalii -*ions will include, during each three-year period, the toll' .tion and analysis of data relating to the degree to whirl' programs assisted under this title have achieved their goals, including the requirements of section 130, and will also include objective measurements of educational achievement in basic skills over at least a twelve-month period in order to determine whether regular school year programs have sustained effects over the summer; and [(3) the evaluation will address the purposes of the pro- grams, including the -equirements of section 130, and the re- sults of the evaluatious will be utilized in planning for and in- proving projects and activities carried out under this title in subsequent years. [(h) INF1RMATION DISSEMINATION.A local educational agency may, receive funds under this title only if effective procedures are in existence for acquiring and dissc,..inating to teachers and ad- ministrators significant information derived fr'mi educational re- search, demonstration, and similar projects, and for adopting, where appropriate, promising educational practices developed liough such pi ujects. 180 [(1) TEACHER AND SCHOOL BOARD PARTICIPATING. A local educa- tional agency may receive funds under this title only if teachers in schools participating in programs assi:ted under this title, and school boards or comparable authority responsible to the public with jurisdiction over the schools, have been involved in planning for those programs and will be involved in the evaluation thereof. r(j) PARENT PARTICIPATION.A local educational agency may re- ceive funds under this title only if parents of children parti^ipating in programs assisted under this title are permitted to participate in the establishment of such programs and are informed of, and per- mitted to make recommendations with respect to .he instructional goals of the program and the progress of their children in such pro- gram, and such parents are afforded opportunities to assist their children in achieving such goals. [(k) SUSTAINING GAINS.A local educationf 1 agency may receive funds under this title only if, in developing programs to be assisted under this title, the local educational agency will give due consider- ation to the inclusion of components designed to sustain the achievements of chil4ren beyond the school year in which the pro gram is conducted, through such means as summer programs and intermediate and secondary level programs. [(1) TRAINING OF EDUCATION AIDES. -A local educational agency may receive funds under this title for programs c nd projects in- volving education aides, including volunteers, only if it has in effect well-developed plans providing for coordinated programs of training in which education aides, including volunteers, and the professional staff whom they are assisting will participate together. [(m) CONTROL OF FUNDS.A 'ocal educational agency may re- ceive funds under this title only if control of such funds, and title to property derived therefrom, is in a public agency for the uses and purposes provided in this title, and only if a public agency will administer such funds and property. [(n) CONSTRUCTION.A local educational agency may use funds received under this title for projects for construction of school fa- cilities only if [(1) the project is not inconsistent with overall State plans for th.! construction of school facilities 11 .d the requirements of section 433 of the kieneral Education Provision Act are com- plied with on all such projects. [(2) in developing plans for such facliiies due consideration has been given to compliance with such standards as the Secre- tary may prescribe or approve in order to ensure that facilities constructed with the use of Federal funds under this title are, to the extent appropriate in view of the uses to be made of the facilities, accessible to and unable by, handicapped persons, and [(3) it developing plans for such facilities, due consideration has been given to excellence of architecture and design, and in- clusion of works of art mot representing more than 1 per centum of the cost of the project). 1:(0) JOINTLY OPERATED PROGRAMS. TWO or more local education- al agencies may, at their option, enter into an agreement for carry- ing out jointly operated programs and projects assisted under this, title. 181 [PARENTAL INVOLVEMENT [SEC. 125. (a) ESTABLISHMENT OF ADVISORY COUNCILS.-(1) A local educational agency may receive funds under this title only if it es- tablishes an advisory council for its entire st,hool district which [(A) has a majority of members who are parents of children to be served by projects assisted under this title, who shall either be (i) elected by the project area it school advisory coun- cils required to be established by paragraph (2XA) of this sub- section, or (ii) elected by t.: parents in such areas; [(B) includes such additional members as may be (i) elected by the project area or school advisory councils required to be established by paragrc ph (2XA) of this subsection, or (ii) elected by the parents in such areas; [(C) includes representatives of children and schools eligible to be served by, but not currently participatin6 in, programs assisted with funds provided under this title, who shall be elected by the parents in such areas; and [(D) is established in accordance with regulations to be issued by the Commissioner which provide alternative models to carry out subparagraphs (A) through (C) of this paragraph. [(2XA) A local educational agency may receive funds under this title only if it establishes an advisory council for each project area Jject school, except as nrovided in snbparagraph (B), which [(i) has a majority o. members who are parents of children to be served by programs assisted under this title; and [(ii) is composed of members elected by the parents in each project area or project school. [(B) In the case of any project area or project school in which not more than one full-time equivalent staff member is paid with funds provided under this title, and in which not more than forty studc..-As participate in such programs, the requirements of sub- paragr-ph (A) shall be waived. [(C) In the case of any project area or project school in which 75 or more students are served by programs assisted by funds provid- ed under this title, each such project area or project school adviso- ry council, in addition to meeting the requirements of subpara- graph (A), shall [(i) be composed of not less than 8 members, who shall serve for terms of two yews, after which time they may be re-elect- ed; [(ii) elect officers of the council after it has been fully consti- tuted; and t(iii) meet a sufficient number of times per year, according to a Schedule and at locations to be determined by such ct,un- cil. [(3) Any individual who is a teacher at a school serving a project area or is a parent of a child in an eligible school attendance area or attending an eligible school shall be eligible to be elected w. a member f.,1 the district-wide advisory coup ciis established pursuant to paragraph (1), but nothing in this sentence shall preclude the eligibility of other individuals who are residents in that district. No individual who is a teacher at a project school or a school serving a project area shall be ineligible to be Plected as a member of a dis- 1 ("3- 2 182 trict-wide or project area or school advisory council on the basis of residency outside such area or district. [(b) RESPONSIBILITIES OF ADVISORY COUNCILS.ESCR local educa- tional agency shall give each Advisory council which it establishes under subsection (a) responsibility for advising it in nianning for, and implementation and evaluation of its programs and projects assisted under this title. [(c) ACCESS TO INFORMATION.(1) Each local educational agency shall provide without charge to each advisory council established by such an agency under subsection (a) of this section, and, upon request, to each member of such advisory council [(A) a copy of the text of this title. [(B) a copy of any Federal regulations and guidelines issued under such title; and [(C) t copy of appropriate State regulations and guidelines associated with this Title. [(2) Each State educationel agency shall providr a copy of any report resulting from State or Federal auditing, monitoring, or evaluation activities in any listrict to the parent advisory council established pursuant to subsection (aXl) in such district. [(d) TRAINING PROGRAMS.Each local educational application for funding under this title shall describe a program for training the members of advisory councils established pursuant to subsec- t on (a) to carry out their responsibilities as described in subsection (b). Such training program- [(1) shall be planned in full consultation with the members of such advisory councils; [(2) shall provide each member of each such council with al propriate training materials; and [(3) may permit the use of funds milder this title for ex- penses associated with such tr iining, including expenses asso- ciated with ',.he attendance or such members at training ses- StOr 3. [(e) WORKSHOPS ON PARI.NTAL INVOLVEMENT.For each fiscal year for which payments are made to State educational agencies under this title, the Commissioner shall sponsor workshops in the several regions of the United States which shall be designed to assist local educational agencies to work with and provide training to parent advisory councils established under subsection (a) of this section and to facilitate parental involvement in the programs con- ducted under this title. The workshops shall be planned aid con- ducted in consultation with members of parent advisory councils in the region served by the worttshop. [(I) ASSESSMENT OF PARENTAL INVOLVEMENT AND TRAINING. The National Institute of Education shall assess the effectiveness of (1) various forms of parental involvement, including parent adviso- ry councils, on school governance, stucient achievement, and other purposes of this title, and (2) various methods of training the mem- bers or parent advisory councils, and shall report the reqults of mica assessments to the Congress and the public. 61) AUTHORIZATION OF APPROPPIATION There are authorized to appropriated for fiscal year 1979 and for each succeeding fiscal year ending prior to October 1, 1983, st.-.311 sums as may be 1 R3 183 necessary to carry out the provisions of subsections (e) and (f) of this section. [FUNDS ALLOCATION [SEC. 126. (a) MAINTENANCE OF EFFORT.(1) Except as provided in paragraph (2), a local educational agency may reJeive funds under this title for any fiscal year only if the State educational agency finds that the combined fiscal effort per student or the ag- gregate expenditures (as determined in accordance with regulations of the Commissioner) of that agency and the State with respect to the provision of free public education by that agency for the pre- ceding fiscal year was not less than such combili A fiscal effort pe student or the aggregate expenditures for tnat purpose for the second preceding fiscal year. [(2) The Commissioner may waive, for one fiscal year only, the requirements of this subsection if he determines that such a waiver would be equitable due to exceptional and unforeseen circum- stances such as a natural disaster or a precipitous and unforeseen decline in the financial resources of the local educational agency. In any case in which a waiver under this paragraph is granted, 'Le Commissioner shall reduce the amount of Federal payment for tne program affected for the current fiscal year in the exact proportion to which the amount expended (either on an average per pupil or aggregate basis) was less than the amount required by paragraph (1). No level of funding permitted under such a waiver may be used as the basis for computing the fiscal effort required, under para- grapAl (1), for years subsequent to the year covered by such waiver. Such fiscal effort shall be con. -,uted or, the basis of the level of funding which would, but for such waiver, have been required. [(3) The Commissioner shall establish objective criteria of gene al applicability to carry out the waiver authority contained in this subsection. [(b) USE Or FUNDS LIMITED TO EXCESS COSTS.Subject to the pro- visii.ais of section 131, a local educational a,;ency may use funds re- ceived under this title only for the excess costs of programs and projects referred to in section 124(a). As used in this subsection, the term "excess costs" means costs directly attributable to programs and projects which exceed the average per pupil expenditure of a local educational agency in the most recent year for which satisfac- tory dlta are available for pupils in the g_ ade or rades included in such programs or projects. [(C) FEDERAL FUNDS TO SUPPLEMENT, NOT SUPPLANT KEGULAR NON - FEDERAL FUNDS.A local educational agency may use funds received under this title only so as to supplement and, to the extent practical, increase the level of funds that would, the ab- sence of such Federal funds, be made available from regular non- Federal sources and from non-Federal sources for State phase-in programs described in section 131(b) for the education of pupils participating in programs and projects assisted under this title, and in na case may such funds be so used as to supplant such funds from such non-Federal sources. [(d) FEDERAL FUNDS REQUIRED TO SUPPLEMENT, NOT SUPPLANT NON-FDERAL FUNDS FOR CERTAIN SPECIAL STATE AND LOCAL PRO- FA 4 GRAMS.(1) Subject to section 132, a local educational agency may use funds received under this title only so as to supplement and, to the extent practical, increase the level of funds that would, in the absence of such Federal funds, be made available from non-Federal sources for each of the special programs described in subsection (b) of section 131 for the education of educationally deprived children, in the aggregate, in eligible school attendance areas or attending eligible schools and in no case, as to supplant such funds from non- Fee':_ sources. [(2) It shall ;tot be considered a violation of this subsection for a local educational agency, in carrying out a special program de- scribed in subsection (b) of section 131, to take into consideration funds made available under this title, and to coordinate such spe- cial 2rograms with programs using such Federal funds, provided that educationally deprived children, in the aggregate, in eligible school attendance areas or attending eligible schools, receive at least the same level of such special State and local funds that would have been made available to such children in the absence of funds under this title. [(3) For purposes of this subsection, the level of funds that, in the absence of funds under this title would have been made avail- able to such children shall be determi-ed by reference to a plan for distributing such special funds. Such plan shall be based on objec- tive criteria of need that do not discriminate against educationally deprived children, in the aggregate in eligible school attendance areas or attending eligible schools. The obje'tive criteria chosen by the local educational agency shall prescribe, vith particularity, the children as well as the schools, grade-spans, or school attendance areas eligible for assistance and the method for selecting the par- ticular children who will receive assistance under such special State or local program and the st,hools or grade-spans which such children attend or the school attendance areas in which such chil- dren reside. The criteria for selecting children, schools, grade- spans, and school attendance areas for participation shall be either educational need, a reasonable proxy or educational need level of poverty, or a combination of such factors. Educationally deprived children ref iding in eligible school attendance areas or attending eligible schools, satisfying such object criteria, must receive assist- ance uader either this title or under such sr-^ial State or local pro- gram before any child who does not satisfy such criteria receives such assistance. [(e) COMPARABILITY OF SERVICES.Subject to the provisions of section 131, a local educational agency may receive funds under this title only if State and local funds will be used in the district of such agency to provide services in project areas which, taken as a whole, are at least compara,..e 0 services being provided in areas in such district which are not receiving funds under this title. Where, under regulations of the Commissioner, all school attend- ance areas in the district of the agency a. lesignated as project areas, the agency may receive such funds only if State and local lands are used to provide services which, taken as a whole, are sub- stantially comparable, in accordance with regulations of the Com- missioner, in each project area. Each ioca educational agercy shall report on or before July 1 of each year with respect to its compli- J R E 185 ante with this subsection, except for local eduestional agencies which were not required to report upon the dal of enactment of the Education Amendments of 1978, unless the Commissioner oth- erwise provides by regulation. [ACCOUNTABILITY [SEC. 127. (a) RECORDKEEPING.Each local educational agency which receives funds under this title shall keep such records and afford such ace-ss the! -to as the State educational agency shah prescribe, including records which fully disclose the amount and disposition of such funds, the total csst of programs and projects in connection with which such funds ore tied, the a nount of the por- tion of the cost of the program or project supplied by other sources, and such other records as will facilitate an effective audit. When- ever a local educational agency, carries on a single compensatory ecluca:,:im program paid for out of funds under this title as well as State or local funds which meets all of the requirements of this title and whenever, under section i31, the local educational agency excludes expenditures from State and local sources in determining compliance with section 1?6 (b) and (e), the State educational agency need not require the Federal funds to be accounted for sep- arately. In any proceeding, State or Federal, for the recoupment of any such funds hich were misspent or misapplied, the percentage of the funds so misspent or misapplied which shall be deemed to Le Federal funds shall be equal to the percentage of the funds used, or intended for use, for the program or project which were Federal funds. [(b) REPORTING.Each local educational agency wt-' h receives fun is under this title shall make an annual report ana such other reports to the State educational agency, in such form and contain- ing such information (which in the case of reports relating to per- formance is in accordance with specific performance criteria relat- ed to program objectives), as may be reasonably necessary to enable the State educational agency to perform its duties ander this title, including information relating to the educational achieve- ment of students participating in programs and projects assisted under this title. [(c) ACCESS TO INFORMATION.Each local educational agency which applies for or receives funds under this title shall make the ap, lication and all pertinent documents !elated thereto available to parents, teachers, and other members of the general public. [COMPLAINT RESOLUTION [Sze. 128. Each lo, al educational agency which rec;.'ves larnis under this title shall develop and implement, in acco.de with criteria preset ibed the Commissioner, written procedures fin the resolution of complaints made to tha agency by parent advisory councils, parents, teacher, or other concerned organizations or indi- viduals conct:ning violations of this title or of applicable provi- sions of the General Education Provisions Act in connection with programs under this title. Such procedures ,hall [(1) provide specific time limits for investigation and resolu- tion of complaints, which shall not exceed thirty days unless a r;' 6 186 longer period of time is provided by the state educational agency due to exceptional circumstanc, in accordance with regulations established by the Commissioner; [(2) provide an opportunity for the complainant or the com- plainant's representative, or both, to present evidence, includ- ing an opportunity to question parties involved; [(3) provide the right to appeal the final resolution of the local educational agency to the State educational agency within thirty days after receipt of the w -itten decision; and [(4) provide for the dissemination of information concerning these procedures to interested parties, including all district and school parent advisory councils. [INDIVIDUALIZED PLANS [SEC. 129. It is the intent of the Congress to encourage, when- ever feasible, the development for each educationally deprived child participating in a program under this title of an individual- ized educational plan (maintained .and periodically evaluated), agreed upon jointly by the local educational age;:cy, the teacher, a pa-ent or guardian of the child, and, when appropriate, the child. [PARTICIPATION OF CHILDR;334 ENROLLED IN PRIVATE SCHOOLS [SEC. 130. (a) GENERAL REQUIREMENTS.To the extent consistent with the number of educationally deprived children in the school district of the local educational agency who are enrolled in private elementary and secondary schools, such agency shall make provi- sion for including special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and meeting the requirements of sections 122 and 123, and subsections (a). (b), (d), Ef...1 (m) of section 124, and subsec- tion (c) of section 11:,6. Expenditu -es for educational services and ar- rangw.neiits nursuant to this section for educationally deprived children in private schools shall be equal (taking into account the number of children to be served and the special educational needs of such children) to expe,i "tures for children enrolled in the publif; schools of the local educational ag lncy. [(b) By PASS PROVISION.(1) If a local educational agency is pro- hibited by law from providing for the participation in special pro- grams for educationally deprived children enrolled in private ele- mentary and secondary schools as required by subsection (a), the Commissioner shall waive such requirement, and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements of subsection (a). [(2) If the Commissioner determines that a local educational ag mcy has substantially failed to provide for the participation on an equitable basis of educationally deprived children enrolled in private Jemei itary and secondary schools as required by subsection (a), he shall arrange for the provision of services to such children through arrangements which shall be subject to the requiremlnts of subsection (a), upon which determination the provisions of sub- section (a) shall be waived. 1 R 7 187 [(3XA) When the Commissioner arranges for services pursuant to this subsection, he shall, after consultation with the appropriate public and private school officials, pc.), to the provider the cost of such services, including the administrative cost of arranging for such servic s, from the appropriate allocation or allocations under this title. [(B) Pending final resolution of any investigatioi' or complaint that could result in a determinatior under this subsection, the Commissioner may withhold from the allocation of the affected State or local educaaanal agency the amount he estimates would be necessary to pay the cost of such services. [(C) Any determinPtion by the Commissioner under this section shall continue in effect until the Commissioner determines that there will no longer be any failure or inability or, the part of the local edw-tional 9 iency to meet the requirements of subsection (a). [(4XA) !'he Co anissioner shall not take any final action under this subsection until the State educational agency and local educa- tional agency affected by such action have had an opportunity, ior at least forty-five days after receiving written notice thereof, to submit written objections and to appear before the Commissioner or his designee to show cause why such action should not be taken. [(R) If a State or local educational agency is dissatisfied with the Commissioner's final action after a proceeding under subparagraph (A) of this paragraph, it may within sixty days after notice of such action, file with t United States court of appeals for the circuit in which such State is located a petition for review of ti it action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commissioner. The Commissioner thereupon shall file in the court the record of the proceedings on which he based hi, actio- as provided in section 2112 of title 28, United States Code. [(CI The findings of fact by the C Trinussioner, if supported by substantial evidence, shall be conclu, ye; 'out the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may the eupo:i make new or modified findings of fact and may modify his previous action, and shall fife 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. E(I)) Upon the filing of a petition under subparagraph (B), the court shall have jurisdiction to affirm the action of the Cominis- sioner or to set it aside, in whole or in part. The judgment of the court shell be subjlet to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. [Subpart 3Program Requirements and Applications [EXCLUSIONS FROM EXCESS Cr1STS AND COMPARABIL TY PROVISIONS FOR CERTAIN SPECIAL STATE AND LOCAL PROGRAMS [SEC. 131. (a) IN GENERAL.For the purpose of determining com- pliance with the requirement of section 126(b) (relating to use of funds only for excess costs of pro:trams and projects) and of section 126(e) (relating to comparability of services), a local educational 188 agency may, at its option, exclude State and local funds expended for carrying out a special program or a State phase-in program. [(b) SPECIAL PROGRAM AND STATE PHASE-IN PROGRAM DEFINED. For purposes of this section [(1) a special program is limited to [(A) a State compensatory education program which the Commissioner has determined in advance under subsection (e) meets the requirements of subsection (c) and which the State educational agency determines is being implementec by the local educational agency in accordance with subsec- tion (c); [(B) a State compensatory education program which tte Commissioner has determined in advance under subsection (e) does not satisfy the requirements of subsection (c), but which he has determined permits the local educational agency, at its option, to use such special State funds in ac- cordance with subsection (c), provided that the local educa- tional agency designs a program which the State educa- tional agency determines in advance under subsection (0 meets the requirements of subsection (c) and which the State educational agency determines will be implemented by the local educational agencies in accords ice with sub- r,ection (c); or [(C) a local compensatory education program which the State educational agency hi determined in advance under subsectior (f) meets the requirements of subsection (c) and which the State educational agency determines is beinr implemented in accordance with subsection (c); and [(D) a bilingual program for children of umited lish proficiency or special educational rogram for handi- capped children or children with specific learning t.rsabil- ities; and [(2) a State phase-in program is a program which the Com- missioner has determined in advance under subsection (e) meets the requirements of subset ion (d) and which the State educational agency determines writ be implemented by local educational agencies in accordance with subsection (d). [(c) STATE AND Id .7AL COMPENSATORY EDUCAT;ON PROGRAMS SIMILAR To TITLE I PROGRAMS.A State or local program meets the requirements of this subsection if it is similar to programs assisted under this part. The Commissioner shall consider a State or local program to be similar to programs assisted under this part if [(1) all children participating in the program are educatifm- ally deprived. [(2) the program is based on performance objectives related to educational achievement and is evaluated in a manner con- sistent with those performance objectives. [(3) the program provides supplementary services designed to meet the special educational needs of the children who are participating. [(4) the local educational agency keeps such records and af- fords such access thereto as are necessary to assure the cor- rectness and verificaticl of the requirements of clauses (1), (2), am (3) of his subsectio.., and 1 9 189 [(5) the State educational agency monitors performance under the program to assure that the requirements of clauses (1), (2), (3), and (4) of this subsection are met. [(d) CERTAIN STATE PHASE-IN PROGRAMb. A State education p! o- gram which is being phased into full operation meets the require- ments of this subsection if the Commissioner is satisfied that [(1) the program is authorized and goveined specifically by the provisions of State law; [(2) the purpose of the program is to provide for the compre- hensive and systematic restructuring of the total educational environment at the level of the individal school; [(3) the program is based on objectives, including but not limited to, performance objectives related to educational achievement and is evaluated in a manner consistent with those objectives; L(4) parents and school staff are involved in comprehensive planning, implementation, and evaluataon of the program; [(5) the program will benefit all children in a particular school or grade-span within a school; [(6) schools participating in a program describe, in a school level plan, program strategie- for meeting the special educa- tional needs of educationally deprived .1ildren; [(7) the phase-in period of the program is nr _t than six school years, except that t' a phase-in period a program commenced prior to the d of enactment of the Education Amendments of 1978 shall be deemed to begin on the date of enaczment of such Amendments; [(8) at all times during such phase-in period at least 50 per centum of the schools participating in the program are the schools serving project areas which have the greatest number or concentrations of educationally deprived children or chil- dren from low-income families; [(9) State funds made available for the phase-in program will supplement, and not supplai t, State and local funds which would, in the absence of the phase-in program, have been pro- vit.ed for sc:ools participating in such program; [(10) the local educational agency is separately accountable, for purposes of compliance with paragraphs (1) through (6), (8), and (9) of ti is subsection, to the State educational agency for arr, funds expended for such program; and L(11) the local educational agencies carrying out the pro- gram are complying with paragraphs (1) through (6), (8) and (9) and the State educational agency is complying with paragraph (10). [(e) ADVANCE DETERMINATIONS BY TM "OMMISSIONER.The Commissioner shall make an advance determination of whether or not a State Program, described in subsection (bX1) (A) or (B) or (b)(2) meets the requirements of subsection (c) or meets the requirements of subsection (d). The Commissioner shall require each State educa- tional agency to submit to him the provisions of State law together with implementing rules, regulations, orders, guidelines, and inter- pretations which are necessary for him to make such an advance determination. The Commissioner's determinatier shall be in writ- ing and shall include the reasons for his deter= cation. Whenever I (2) 'J 190 there is any material change in pertinent State law affecting the progrE m, the State educational agency shall submit such changes to the Commissioner. IUD ADVANCE DETERMINATION BY THE STATE EDUCATIONAL AGENCY.The State :.2.icational agency shall make an advance de- termination of whether or not a program described in subsection (bX1XC) meets the requirements of subsection (c). The State educa- tional agency shall require each local educational agency to submit the provisions of local law, together with implementing rules, regu- lations, guidelines, and interpretations which are necessary to make such an advance determination. The State educational agen- cy's determination shall be in writing and shall include the reasons for the determination. Whenever there is any material change in pertinent local 1P.w affecting the program, the local educational agency shall submit such changes to the State educational agency. [LIMITED EXEMPTION TO SUPPLEMENT, NOT SUPPLANT, REQUIREMENT WHERE CERTAIN SPECIAL PROGRAMS FOR EDUCATIONALLY DEPRIVED CHILDREN ARE FULLY FUNDED [SEC. 132. Whenever for a fiscal year [(1) a local educational agency provides special State and local funds for programs for educationally leprived children which qualify under clause (h), (B), or (C) of section 131(bX1) for an exception from the comparability and excess costs provi- sions under such section 131, and [(2) the amount of such special State and local funds provid- ed in eligible school attendance areas and for eligible schools when added to the Federal funds provided for program. under this snbpart equals the amount such agency is eligible to re- ceive for such fiscal year under section 111(aX2) (without regard to adjustments under section 193), then the local educational agency may, without being considered in violation of section 126(d), utilize additional State and local funds for special programs and projects which are solely for educationally deprived children residing in nonproject areas or attending non- project schools, including areas and schools ineligible for assist- ance under this title. The exemption in the preceding sentence does not apply to the extent the level of such special State and local funds, per child participating in such programs residing in ineligi- ble school attendance areas or attendirg ineligible schools, exceeds the amount of funds, per child participating in programs in project areas, provided to the agency under this part plus the amount of such special State or local funds provided for use in such areas. [SCHOOLWIDE PROJECTS [SEC. 133. (a) USE OF FUNDS FOR SCHOOLWIDE PROJECTS.In the case of any school serving an attendance area that is eligible to re- ceive services under this title and in which not less than 75 per centum of the children are from low-income families (in accordanre with criteria established by the Commissioner), the local education- al agency may carry out a project under this title to upgrade the entire educational program in that school if the requirements of subsection (b) are met. I 191 [(b) DESIGNATION OF SCHOOLS.A school may be designated for a schoolwide project under subsection (a) if [(1) a plan has been developed for that school by the local educational agency and has been approved by the State educa- tional agency providing for [(A) a comprehensive assessment of the educational needs of all stuff lilts in the school, in particular the special needs of educationally deprived child/ en, and E(B) an instructional program designed to inee_ the spe- cial needs of all students in the school; [(2) the plan has been developed with the involvement of those individuals who will be engaged in carrying out the plan, including parents, teachers, teacher aides, administrators, and secondary students if the plan relates to a secondary school; [(3) the plan provides for consultation among those individ- uals as to the educational pre7-ress of all students; [(4) the plan has been approved by the advisory council for that school established under section 125; [(5) appropriate training is provided to teachers and teacher aides to enable them effeeLively to carry out the plan; [(6) the plan inchr'_es procedures for evaluation involving the participaticn of he :ndividuals listed in paragraph (2), and opportunities for periodic improvements in the plan based on the results of those evaluations; [(7XA) in the case of a school district in which there are one or more schools described in subsection (a) and there are also one or more other schools serving project areas, the local edu- cational agency makes the Federal funds provided under this part available for children in such schools described in subsec- tion (a) in amounts which per educationally deprived child served, equal or exceed the amount of such funds made avail- able per educationally deprived child sere in such other schools; [(B) the local educational agency wakes special supplemen- tary State and local funds available for the children in schools described in subsection (a) in amounts which, pe,. child served who is not educationally deprived, equal or exceed the amount of Federal funds provided under this part which, per educa- tionally deprived child served, are made available for children iri such schools; and [(C) the average per pupil expenditure in schools described in subsection (a) (excluding amounts expended under a State compensatory education program) for the fiscal year in which the plan is to be carried out will not be less than such expendi- ture in such schools in the previous fiscal yea/. [(c) APF OVAL OF SCHOOL; OPERATION OF PROJECT.(1) The State educational agenc, shall approve the plan of any local educational agency for a schoolwide project if that plan mEets the requirements of subsection (b). L(2,) Fnr any school which has such a plan approved, the local educational agency [(A) shall, in order to carry out the plan, be relieved of any requirements under this title with respect to the commingling 192 of funds provith . under this title with funds available for regu- lar programs; UB) shall not be required to identify particular children as being eligible ti, participate in programs assisted under this title; and [(C) shall not be required to demonstrate that services pro- vided with funds under this title are supplementary to the services regularly provided in the school. [NONINSTRUCTIONAL DUTIES [SEC. 134. Notwithstanding any provision of subpart 3 of this part, personnel paid entirely by funds made available under this title may be assigned to certain limited, rotating, supervisory duties not related to classroom instruction, the benefits of which are not lim- ited to participating chilaren under this title. Such duties may in- clude only those to which similarly situated personnel not hired with funds made available under the title are assigned at the same school site, and for which such similarly situated personnel are paid, and may not exceed the same proportion of total time as simi- larly situated personnel at the same school site, or 10 per centum of the total time, whichever is less. [PART BPROGRAMS OPERATED BY STATE AGENCIES [Subpart 1Programs for Migratory Children [GRANTS-ENTITLEMENT AND AMOUNT [SEC. 141. (a) ENTITLEMENT.-A State educational agency or a combination of such agencies shall, upon application, be entitled to receive a grant for any fiscal year under this part to establish or improve, either directly or through local educational agencies, pro- grams of education for migratory children of migratory agricultur- al workers or of migratory fishermen which meet the requirements of section 142. [(b) AMOUNT OF GRANT.-(1) Except as provided in sections 156 and 157, the total grants which shall be made available for use in any State (other than Puerto Rico) for this subpart shall be an amount equal to 40 per centum of the average per pupil expendi- ture in ,,he State (or (A) in the case where the average per pupil expereature in the State is less than 80 percent centum of the aver- age per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States of 120 per centum of the average per pupil ex- penditure in the United States) multiplied by (i) the estimated number of such migratory children aged five to seventeen, inclu- sive, who reside in the State full time, and (ii) the full-time equiva- lent of the estimated number of such migratory children aged five to seventeen, inclusive, who reside in the State part time, as deter- mined by the Commissioner in accordance with regulations, except that if, in the case of any State, such amount exceeds the amount required under section 142, the Commissioner shall allocate such excess, to the extent necessary, to other States, whose total of 1c3 1 193 grants under this sentence would otherwise be insufficient for all such children to be served in such other States. In determining the full-time equivalent number of migratory children who are in a State during the summer months, the Commissioner shall adjust the number so determined to take into account the special needs of those children for summer programs and the additional costs of op- erating such programs during the summer. In determining the number of migrant children for the purposes of this section the Commissioner shall use statistics made available by the migr nt student record transfer system or such other system as he may de- termine, most accurately and fully reflects the actual number of mi- grant students. [(2) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this section for a fiscal year shall be the amount arrived at by multiplying the number of such migrant children in Puerto Rico by the product of [(A) the percentage determined under the preceding sen- tence, and [(B) 32 per centum of the average per pupil expenditure in the United States. [PROGRAM REQUIREMENTS [SEC. 142. (a) REQUIREMENTS FOR APPROVAL OF APPLICATIONS. The Commissioner may approve an application submitted under section 141(a) only upon his determination- [(1) that payments will be used for programs and projects (including the acquisition of equipment and where necessary the construction of school facilities) which are designed to meet the special educational needs of migratory children of migrato- ry agricultural workers or of migratory fishermen, and to co- ordinate such programs and projects with similar programs and projects in other States, including the transmittal of perti- nent information with respect to school records of such chil- dren; [(2) that in planning and carrying out programs and projects there has been and will be appropriate coordination with programs administered under part B of title III of the Economic Opportunity Act of 1964 and under section 303 of the Comprehensive Employment and Training Act; [(3) that such programs and projects will be administered and carried out in a manner consistent with the basic objec- tives A section 556 (other than subsection (bX1)) and section 558 of the Education Consolidation and Improvement Act of 1981; [(4' that, in planning and carrying out programs and projects at both the State and local educational agency level, there has been and will be appropriate consultat nn with parent advisory councils established in accordance w;,h regula- tions of the Commissioner (consistent with the equirements of section 125(a)); and 72-850 87 - 7 194 [(5) that, in planning and carrying out programs and projects, there has been adequate assurance that provision will be made for the preschool education needs of migratory chil- dren of migratory agricultural workers or of migratory fisher- men, whenever iuch agency determines that compliance with this paragraph will not detract from the operation of programs and projects described in paragraph (1) of this subsection after considering funds available for this purpose. [(b) CONTINUATION OF MIGRANT STATUS.For purposes of this subpart, with the concurrence of his parents, a migratory child of a migratory agricultural worker or of a migratory fisherman shall be deemed to continue to be such a child for a period, not in excess of five years, during which he resides in the area served by the agency carrying on a program or project under this section. Such children who are presently migrant, as determined pursuant to regulations of the Commissioner, shall be given priority in this con - sid9ration of programs and activities contained in applications sub- mitted under this section. [(c) BY-PASS PROVISION.If the Commissioner determines that a State ;13 unable or unwilling to conduct educational programs for migratory children of migratory agricultural workers or of migra- tory fishermen, or that it would remit in more efficient and eco- nomic administration, or that it would add substantially to the wel- fare or educational attainment of such children, he may make spe- cial arrangements with other public or nonprofit private agencies to carry out the purposes of this section in one or more States, and for this purpose he clay use all or part of the total of grants avail- able for any such State under this section. [COORDINATION OF MIGRANT EDUCATION ACTIVITIES [SEC. 143. (a) ACTIVITIES AUTHORIZED.The Commissioner is au- thorized to enter into contracts with State educational agencies to operate a system for the transfer among State and local education- al agencies of migrant student records and to carry out other ac- 5vities, in consultation with the States, to improve the interstate and intrastate coordination among State and local educational agencies of the educational programs available for migratory stu- dents. For the purpose of ensuring continuity in the operation of such system, the Secretary shall, not later than July 1 of each year, continue to award such contract to the State educational agency receiving the award in the preceding year, unless a majori- ty of the States notify the Secretary in writing that such agency has substantially failed to perform its reponsibilities under the con- tract during that preceding year. No activity under this section shall, for purposes of any Federal law, be treated an information collection that is conducted or sponsored by a Federal agency. [(b) AVAILABILITY OF FUNDS.The Commissioner shall, from the funds appropriated for carrying out this subpart, reserve for pur- poses of this section for any fiscal year an amount which shall not be less than $6,000,000 nor more than 5 per centum of the amount so appror riated. 1 95 195 [Subpart 2Programs for Handicapped Children [AMOUNT AND ELIGIBILITY [SEC. 146. (a) ELIGIBILITY FOR GRANT. A state agency which is directly responsible for providing free public education for handi- capped children (as that term is defined in section 602(1) of the Education of the Handicapped Act), shall be eligible to receive a grant under this subpart for any fiscal year. [(b) Amourrr OF GRANT.(1) Except as provided in section 156 and 157, the grant which a State agency referred to in susection (a) (other than the agency for Puerto Rico) shall be eligible to receive under this section shall be an amount equal to 40 per centum of the average per public expenditure in the State (or (A) in the case where the average per pupil expenditure : 1 the State is less than 80 per centum of the average per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the Er:erage per pupil expenditure in the State is more than 120 per centum of the aver- age per pupil expenditure in the United States, of 120 per centum of the average per pupil expenditure in the United States) multi- plied by the number of such handicapped children in average daily attendance, as determined by the Commissioner, al, schools for handicapped children operated or supported by the State agency, including schools providing special education for handicapped chil- dren under contract or other arrangement with such State agency, in the most recent fiscal year for which satisfactory data are avail- able. [(2) For each fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year shall be the amount arrived at by multiplying the number of such handicapped children in Puerto Rico by the product of [(A) the percentage determined under the preceding sen- tence, and [(B) 32 per centum of the average per pupil expenditure in the United States. [(C) COUNTING OR CHILDREN TRANSFERRING FROM STATE TO LOCAL PROGRAMS.In the case where a child described in subsection (a) leaves an educational program for handicapped children operated or supported by the State agency in order to participate in such a program operated or supported by a local educational agency, such child shall be counted under subsection (b) if (1) he continues to re- ceive an appropriately designed educational program and (2) the State agency transfers to the local educational agency in whose program such child participates an amount equal to the sums re- ceived by such State agency under this section which are attributa- ble to such child, to be used for the purposes set forth in section 147. 196 [PROGRAM REQUIREMENTS [SEC. 147. A State shall use the payments made under this sub- part only for programs and projects (including the acquisition of equipment and, where necessary, the construction of school facili- ties) which are designed to meet the special educational needs of handicapped children. Such programs and projects shall be admin- istered and carried out in a manner consistent with section 556 (other than subsection (bX1)) and section 558 (other than subsection (c)) of the Education Consolidation and Improvement Act of 1981. The State agency shall provide assurances to the Commissioner that each such child in average daily attendance counted under subsection (b) of section 146 will be provided with such a program, commensurate wi,,,i his special needs, during any fiscal year for which such payments are made. [Subpart 3Programs for Neglected and DelinquentChildren [AMOUNT AND ENTITLEMENT [SEC. 151. (a) ENTITLEMENT TO GRANTS.-A State agency which is directly responsibh.: for providing free public education for children in institutions for neglected or 6elinquent children or in adult cor- rectional institutions shall be entitled to receive a grant under this subpart for any fiscal year (but only if grants received under this subpart are used only for children in such institutions). [(b) AMOUNT OF GRANT.-(1) Except as provided in sections 156 and 157, the grant which such an agency (other than the agency for Puerto Rico) shall be eligible to receive shall be an amount equal to 40 per centum of the average per pupil expenditure in the State (or (A) in the case where the average per pupil expenditure in the State is less than 80 per centum of the average per pupil expenditure in the United States, of 80 per centum of the average per pupil expenditure in the United States, or (B) in the case where the average per pupil expenditure in the State is more than 120 per centum of the average per pupil expenditure in the United States, ci 120 per centum of the average per pupil expenditure in the United States) multiplied by the number of such neglect-A or delinquent children in average daily attendance, as determined by the Commissioner, at schools for such children operated or support- ed by that agency, including schools providing education for such children under contract or other arrangement with such agency, in the most recent fiscal year for which satisfactory data are avail- able. [(2) For ?Etch fiscal year, the Commissioner shall determine the percentage which the average per pupil expenditure in Puerto Rico is of the lowest average per pupil expenditure of any of the fifty States. The grant which Puerto Rico shall be eligible to receive under this subpart for a fiscal year shall be the amount arrived at by multiplying the number of such neglected or delinquent chil- dren in Puerto Rico by the product of [(A) the percentage determined under the preceding sen- tence, and [(B) 32 per centum of the average per pupil expenditure in the United States. 197 [PROGRAM REQUIREMENT [SEC. 152. (a) USE OF PAYMENTS.A State agenc shall use pay- ments under this subpart only for program; and projects (including the acquisition of equipment and where necessary the construction of school facilities) which are designed to meet the special educa- tional needs of children in institutions for neglected or delinquent children or in adult correctional institutions. Such programs and projects shall be designed to support educational services supple- mental to the basic education of such children which must be pro- vided by the State, and such progrs -ns and projects shall be admin- istered and carried out in a manner consistent with section 556 (cther than subsection (bXl)) and section 558 (other than subsection (c)) of the Education Consolidation and Improvement Act of 1981. [(b) THREE-YEAR PROJECTS.Where a State agency operates pro- grams under this title in which children are likely to participate for more than one year, the State educational agency may approve the application for a grant under this subpart for a period of more than one year, but not to exceed three years. [TRANSITION SERVICES [SEc. 153. (a) GRANTS AUTHORIZED.The Commissioner is au- thorized to make grants to State and !xal educational agencies to support projects to facilitate the transition of children from State operated institutions for neglected and delinquent children into lo- cally operated programs. Grants under this section shall be used to provide special educational services for such children in schools other than State operated institutions. [(b) APPROPRIATIONS AUTHORIZED.There are authorized to be appropriated for the purposes of this section for any fiscal year, not to exceed 5 per centum of the amount State agencies are entitled to receive under section 151 for that year. [Subpart 4General Provisions for State Op Prated Programs [RESERVATION OF FUNDS FOR TERRITORIES [SEc. 156. There is authorized to be appropriated for each fiscal year for purposes of each of subparts 1, 2, and 3 of this part, an amount equal to not more than 1 per centum of the amount appro- priated for such year for such subparts, for payments to Guam, American Samoa, the Virgin Islands, the Northern Mariana IF lands, and the Tr...zt Territory of the Pacific Islands under each such subpart. The amounts appropriated for each such subpart shall be alloteti among- Guam, American Samoa, the Virgin Islands, the Northern Marian Islanda, and the Trust Territory of the Pa- cific Islands according to their respective need for such grants, based on such criteria as the Commissioner determines will best carry out the purposes of this tit's. [MINIMUM PAYMENTS FOR STATE OPERATEr PROGRAMS [SEc. 157. No State shall receive in any fiscal year prior to Octo- ber 1, 19S3, pursuant to subpart 1, 2, or 3 of this part an amount which is less than 85 per centum of the amount which that State received in the prior fiscal year pursuant to the comparable sec- 198 tions of this title as in effect immediately preceding the enactment of the Education Amendments of 197F or the comparable subpart of this part, whichever was in effect for such prior fiscal year, and, for any fiscal year ending prior to October 1, 1982, no State shall receive, pursuant to subpart 1 of thi-. part, an amount which is less than 100 per centum of the amount that State received in the prior fiscal year pursuant to the comparable section of this title as in effect immediately prior to the enactment of the Education Amend- ments of 1978 or under subpart 1 of this part, whichever was in effect for such prior fiscal year. [PART CSTATE ADMINISTRATION OF PROGRAMS AND PROJECTS [Subpart 1Applicability; State Applications (APPLICABILITY [SEc. 161. The provisions of this part (other than section 162 and subpart shall apply in any fiscal year in which the provisions of section 510(b)(2) of this Act are not met. [STATE APPLICATIONS [SEC. 162. (a) SUBMISSION OF STATE APPLICATIONS.Any State de- siring to participate under this title (except with respect to the pro- gram provided for in subpart 1 of part B relating to migratory chil- dren) shall have on file with the Commissioner an application sub- mitted by its State educational agency. r(b) CONTENTS GP STATE APPLICATIONS.Each application re- quired by subsection (a) shall contain (1) satisfactory assurances that the State educational agency will comply with the require- ments of this part, and (2) such information as the Commissioner may consider necessary for him to make the findings required by section 182. [Subpart 2Duties Imposed on State Educational Agencies [APPLICATION APPROVAL (SEC. 164. (a) REQUIREMENTS FOR APPROVAL.(1) A State educa- tional agency shall approve an application of a local educational agency or a State agency under this title if (A) such State educa- tional agency is satisfied, after considering Lhe factors specified in paragraph (2), that such applicant agency will use the funds re- ceived under the application in a manner which meets the require- ments of this title, the General Education Provisions Act, and the rules, regulations, proceiures, guidelines, criteria, or other require- ments adopted by such agency which pertain to programs and projects assisted under this title, and (B) such applicant agency is not out of compliance with a determination of the State educatian- al agency or the Commissioner that it repay -nds paid it under this title which were misused, and is not out oi compliance with a compliance agreement under section 169(c). [(2) A State educational agency may approve an application unaer paragraph (1), only after it 1. as considered, where pertinent, (A) the results of Federal and State audits, (B) the results of Feder- al and State monitoring reports, (C) administrative complaints 199 made by parents or other indiv:duals concerning the applicant agency's compliance with this title, and (D) evaluations conducted under section 124(g). [(b) PAYMENTS.Except as provided in section 194, a State edu- cational agency may make payments from funds received under this title only for programs and projects which it has approved under subsection (a). [(c) OPPORTUNITY FOR HEARING.A State educational agency shall not finally disapprove in whole or in part any application for funds under part A or under subpart 2 or subpart 3 of part B with- out first affording the local educational agency or other applicant submitting the application reasr _able notice and opportunity for a hearing. [STATE RULEMAKING [SEC. 165 Nothing in this title shall be deemed to prohibit a State educational agency from adopting rules, regulations, proce- dures, guidelines, criteria, or other requirements applicable to pro- grams and projects assisted under this title if they do not conflict with the provisions of this title, with regulations promulgated by the Commissioner implementing this title, r with other applicable Federal law. The Commissioner shall encourage a State education- al agency, in adopting such rules, regulations, procedures, guide- lines, criteria, or other requirements to recognize the special and unique needs and circumstances of the State and of each local edu- cational agency in the State. [TECHNICAL ASSISTANCE AND DISSEMINATION OF INFORMATION [SEC. 166. Each State educational agency shall carry on a com- prehensive program to provide technical assistance to local educa- tional agencies and State agencies with respect to the use of funds received under this title. Such a program shall include technical assistance for management procedures, for planning, development, implementation, and evaluation of programs, and for preparation of applications, as well as other forms of technical assistance needed by local educational agencies and State agencies. Each State educational agency shall also adopt effective procedures for disseminating to local educational agencies and State agencies (1) significant and relevant information derived from educational re- search, (2) information about successful compensatory edr.cation projects, (3) information about other Federal and State funcied pro- grams which may provide needed health, social, and nutrition serv- ices to eligible participating children under this title, and (4) such other information as will assist local educational agencies and State agencies in planning, developing, implementing, and evaluat- ing programs assisted under this title. [MONITORING [SEC. 167. Each State educational agency shall adopt standards, consistent with minimum standards established by the Commis- sioner and with the State monitoring and enforcement plan sub- mitted under section 171, for monitoring the effectiveness of pro- grams and projects assisted under this title. Such standards shall 2A 1 200 (1) describe the purpose and scope of monitoring; (2) specify the fre- quency of onsite visits; (3) describe the procedures for issuing and responding to monitoring reports, including but not limited to, the period of time in which the State educational agency must issue its report, the period of time in which the applicant age. .-3, must re- spond, and the appropriate follow-up by the State educational agency; (4) specify the methods for making monitoring reports available to parents, State and local auditors, and other persons, and (5) specify the methods for insuring that non-compliant prac- tices are corrected. [COMPLAINT RESOULUTION [SEC. 168. Each State educational agency shall adopt written procedures for receiving complaints, or reviewing appeals from de- cisions of local educational agencies with respect to complaints, concerning violations of this title or applicable provisions of the General Education Provisions Act in connection with programs as- sisted under this title, and for conducting onsite investigations of such complaints which the State educational agency deems neces- sary. Such procedures shall include [(1) specific time limits for resolving the complaint or com- pleting the review and, if necessary, the independent onsite in- vestigation, which shall not exceed sixty days unless exception- al circumstances exist; ((2) an opportunity for the complainant or the complain- ant's representative, or both, and the local educational agency involved to present evidence, including the opportunity to question parties to the dispute and any of their witnesses; [(3) the right to appeal the final resolution of the State edu- cational agency to the Commissioner within thirty days after receipt of the written decision. and [(4) dissemination, free of charge, of information concerning these procedures to interested parties, including all district and school advisory councils. [WITHHOLDING OF PAYMENTS [SEC 169. (a) WITHHOLDING.Whenevet a State educational agency, after reasonable notice and opportunity for a hearing (con- sistent with the requirements of section 434(b) of the General Edu- cation Provisions Act) to any local educational agency or State agency, before an impartial d_lcisionmaker, finds that there has been a failure to comply substantially with any provision of sub- part 3 of part A or subpart 2 or 3 of part B, the State educational agency shall notify such agency that further payments, in whole or in part, will not be made to it under this title until it is satisfied that there is no longer any such failure to comply. Until it is so satisfied, no further payments shall be made to such agency under this title, except as may be provided in a compliance agreement en- tered into under subsection (c). Pending the outcome of any pro- ceeding under this subsection, the State educational agency may suspend, in whole or in part, payments to such agency, after such agency has been given reasonable notice and opportunity to show cause why such action should not be taken. 2A 201 [(b) NOTICE TO PUBLIC OF STATE WITHHOLDING. Upon submis- sion to a local educatit _All agency or a State agency of a notice that the State educatioal agency pursuant to subsection (a) is withhold- ing payment, the State educational agency shall inform the district advisory council (if any) and shall take such additional action as may be necessary to bring the State action to the attention of the nublic. [(c) COMPLIANCE AGREEMENTS.A State educational agency may suspend the initiation or continuation of its withholding action under subsection (a) while there is in effect a compliance agree- ment with the local educational agency or State agency under this subsection. Such an agreement shall be deemed to be in effect for the period specified therein, except that if the local educational agency or State agency fails to comply with the terms agreed to, such agreement shall no longer be in effect and subsection (a) shall be fully operative. In implementing such subsection, the State edu- cational agency shall take into account any partial compliance by such agency under such agreement. For purposes of this subsection, the term "compliance agreement" means an agreement which [(1) sets forth the terms and conditions to which the local educational agency or State agency has agreed in order to comply with the requirements of this title or the General Edu- cation Provisions Act and regulations promulgated thereunder, and with the applicable rules, regulations, procedures, guide- lines, criteria or other requirements adopted by the State edu- cational agency: [(2) addresses all the matters that formed the basis for the initiation of the withholding action by the State educational agency; and [(3) may consist of a series agreements that in the aggre- gate dispose of all such matters. Within fifteen days after the execution of any compliance agree- ment, the State educational agency 0hall send a copy thereof to the district advisory council affected, and to each organization or person who filed a complaint with respect to any failure to comply which is covered by that agreement. [(d) REVIEW BY THE COMMISSIONER.A local educational agency or State agency may, in accordance with section 425(a) of the Gen- eral Education Provisions Act, appeal a final determination of the State educational agency under subsection (a) to the Commissioner. [AUDITS AND AUDIT RESOLUTION [SEC. 170. (a) AUDITING.Each State shall make provision for audits of the expenditure of funds received under this title to deter- mine, at a minimum, the fiscal integrity of grant or subgrant fi- nancial transactions and reports, and the compliance with applica- ble statutes, regulations, and terms and conditions of the grant or subgrant. Such audits shall be made with reasonable frequency considering the nature, size, and complexity of the activity. [(b) AUDIT RESOLUTION.Each State educational agency shall have in effect written procedures meeting minimum standards es- tablished by the Commissioner, to assure timely and appropriate resolutions of audit findings and recommendations arising out of 2, 2 202 audits provided for in subsection (a). Such procedures shall include a description of the audit resolution process, timetables for each step of the process, and an audit appeals process. Whenever under such procedures, the audit resolution process requires the repay- ment of Federal funds which were misspent or misapplied, such re- payment may be made in either a single payment or in install- ments over a period not to exceed three years. c) REQUIREMENT FOR REPAYMENT.A local educational agency or tate agency shall repay from non-Federal sources or from Fed- eral funds, no accountability for which is required to the Federal Gc vernment, the amount of funds under this title which have been finally determined through the audit resolution process to have been misspent or misapplied. [(d) REVIEW BY THE COMMISSIONER.A local educational agency or State agency may, in accordance with section 425(a) of the Gen- eral Education Provisions Act, appeal a final determination of the State educational agency under subsection (b) to the Commissioner. [(e) FAILURE To REPAY.If, following an affirmation by the Commissioner of a final determination of a State educational agency under subsection (b) or failure by a local educational agency or State agency to seek timely review by the Commissioner, such local educational agency or State agency refuses to repay from non- Federal sources, or from Federal funds no accountability for which is required to the Federal Government, funds which have been mis- spent or misapplied under this title, the State educational agency shall promptly notify the Commissioner and the Commissioner shall promptly initiate collection action. [Subpart 3Responsibilities of State Educational Agencies to Cci amissioner [STATE MONITORING AND ENFORCEMENT PLANS [SEC. 171. (a) STATE PLAN.Each State educational agency par- ticipating in programs under this title shall submit, at such times (at least once every three years) and in such detail as the Commis- sioner shall prescribe, a State monitoring and enforcement plan. Such plan shall set forth [(1) a program of regular visits by State educational ag ncy personnel to projects assisted under this title; [(2) the matters to be reN iewed during such visits; [(3) procedures for verifying information provided by local educational agencies and State agencies, including the use of other information available to the State to cross-check that in- formation; [(4) procedures for regular audits of local educational ,agency and State agency expenditures under this title, and procedures for the recovery of any expenditure determined not to be allowable under this title; [(5) procedures for resolving each complaint received by the State relating to programs assisted under this title, including complaints referred to the State by the Commissioner and com- plaints by representatives of children enrolled in private schools that those children are not receivinp the services to which they are entitled under this title; and 203 ((6) a description of the means by which the State educa- tional agency has determined, and will contirue to determine, the compliance by local educational agencies with the require- ments of section 130 relating to the equitable provision of serv- ices to children enrolled in private schools. ((b) REPORT.Each plan submitted by a State educational agency under this section shall include a report, In such form as the Commissioner shall prescribe, of the activities undertaken by the State in the years since the previous plan was filed to carry out its monitoring and enforcement efforts under this title. (REPORTING (SEC. 172. Each State educational agency shall make to the Com- missioner (1) periodic reports (including the results of objective measurements required by section 124(g) and of research and repli- cation studies) evaluating the effectiveness of payments under this title and of particular programs assisted under it in improving the educational attainment of educationally deprived children, and (2) such other reports as may be reasonably necessary to enable the Commissioner to perform his duties under this title (including such reports as he may require to determine the amounts which the local educational agencies of that State are eligible to receive for any fiscal year). (RECORDKEEPING, FISCAL CONTROL, AND FUND ACCOUNTING (SEC. 173. Each State educational agency which receives funds under this title shall use fiscal control and fund accounting proce- dures that will ensure proper disbursement of, and accounting for, funds made available under this title, and keep such records. and afford access thereto, as the Commissioner shall prescribe, includ- ing records which fully disclose the amount and disposition by such agency of such funds, the total cost of programs and projects in connection with which such funds are used, the amount of that portion of the cost of the program and project supplied by other sources, and such other records as will facilitate an effective audit. (PROHIBITION OF CONSIDERATION OF FEDERAL AID IN DETERMINING STATE AID (SEC. 174. No State shall take into consideration payments under this title in determining the eligibility of any local educa- tional agency in that State for S'.ate aid, or the amount of State aid, with respect to free public education of children. (PART DFEDERAL ADMINISTRATION OF PROGRAMS AND PROJECTS (APPLICABILITY (SEC. 181. In addition to other requirements contained in this part, the requirements of the General Education Provisions Act which relate to Federal administration of elementary and second- ary education programs shall apply to programs carried out under this title. 2 . , 4 204 [APPROVAL OF APPLICATIONS [SEC. 182. (a) REQUIREMENT FOR APPROVAL.The Commissioner shall not approve an application under section 162 until he has made specific findings, in writing, that (1) the application and the State monitoring and enforcement plan require,' --ier section 171 comply with this title, and (2) that he is sati tat the assur- ances in such application and the assurance ..ned in its gen- eral application under section 435 of the Gene Eduction Provi- sions Act (\ here applicable) will be carried cut. [(b) HEARINGS.The Commissioner shall, in se: ndance with the procedur' ,,et forth in section 453 of the General Education Provi- sions Act, not finally disapprove an application under section 142 or section 162 except after notice and opportunity for a hearing to the State educational agency. [PROGRAM EVALUATION [SEC. 183. (a) INDE._ ENDENT EVALUATIONS.The Commissioner shall provide for inderendent evaluations which describe and meas- ure the impact of programs and projects assisted under this title. Such evaluations ty be provided by contract or other arrange- Inents, and all such evaluations shall be made by competent and independent persons, and shall include, whenever possible, pin- ions obtained from program nr project participants about the strengths and weaknesses of such orograms anti projects. EN EVALUATION STANDARDS ANL SCHEDULE.The Commissioner shall (1) develop and publish standards for evaluation of program or project effectiveness in achieving the objectives of this title, and (2) develop, in consultation with State educational agencies and representatives of local educational agencies, a schedule for con- ducting evaluations under section 124(g) designed to ensure that evaluations are conducted i )).Pgentative samples of the local educational agencies in any r.." cach year. Such standards will be developed only after widespi _tad consultation and hearings with practicing State and local agency evaluators, and the Commission- er's standards will reflect the input of these groups. ((c) JOINTLY SPONSORED STUMES.The Commissioner shall con- sult with State and local educational agencies in order to provide for jointly sponsored objective eve.luation studies of programs and projects assisted under this title within a State. [(d) EVALUATION MODELS.The Commissioner shall provide to State educational agencies, models for evaluations of all programs conducted under this title, for their use in carrying out their func- tions under section 172, which shall include uniform pro Mures and creteria to be utilized by local educational agencies ana State agencies as well as by the State educational agency in the evalua- tion of such programs. In developing evaluation design models the Commissioner shall consult with State and local evaluators experi- enced in conducting such evaluations. [(°) TECHNICAL ASSISTANCE. The Commissioner shall provide such technical and other assistance as may be necessary to State educational agencies to enable them assist local educational agencies and State agencies in the developme.lt and application of 2 5 205 a systematic evaluation of programs in accord.nce with the models developed by the Commissioner. [(f) SPECIFICATION OF OBJECTIVE CRITERIA.The models Devel- oped by the Commissionfr shall specify objective criteria which shall be utilized in the evaluation of all programs and shall outline tecliniquLs (such as longitudinal studies of children involved in such programs) and methodology (such as the use of tests which yield comparable results) for producing data which are comparable on a statewide and nationwide basis. [(g) REPORT TO CONGRESS.The Commissioner shall make a I ..port to the respective committees of the Congress having legisla- tive jurisdiction over programs authorized by this title and the re- spective Committees on Appis.priations concerning the results of evaluations of programs and projects required under this section, which shall be comprehensive and detailed, as up-to-date as possi- ble, and based to the maximum extent possible on objective meas- urements, together with other related findings and evaluations and his recommendations with respect to legislation. [(h) INFORMATION DISSEMINATION.The Commissioner shall also develop a system for the gathering and dissemination of the results of evaluations and for the identification of exemplary programs and projects, or of particularly effective elements of programs and projects, and for the dissemination cf information concerning such programs and projects or such elements thereof to State agencies and local educational agencies responsible for the desigl and con- duct of programs and projects under this title, and to the education profession and the general public. [(i) MAXIMUM EXPENDITURES.The Commissioner is authorized, out of funds appropriated to carry out this title in any fiscal year, to expend such sums as may be necessary to carry out the provi- sions of this section, but not to exceed one-half of 1 per centum of the amount appropriated for such programs. In carrying out the provisions of this section, the Commissioner shall place priority on assisting States, local educational agencies, and State agencies to conduct evaluations and shall, only as funds are available after ful- filling that purpose, seek to conduct any national evaluations of the program. [COMPLAINT RESOLUTION [SEC. 184. The Commissioner shall develop and implement writ- ten procedures for receiving and resolving appeals from final reso- lutions of State educational agencies with respect to complaints concerning violations of this title or of applicable provisions of tlie General Education Provisions Act in connection with programs under this title, for receiving such complaints directly from parent advisory councils, parents, teachers, or other concerned organiza- tions or individuals, and for conducting independent onsite investi- gations of complaints if the Commissioner deems necessary. Such procedures shall include [(1) specific time limits for resolving the oomph.. ar for completing the review and any necessary independent investi- gation, which shall not exceed sixty days unless exceptional circumstances exist; 2 ,, 6 206 [(2) an opportunity for the complainant, the complainant's representative, the local educational agency and the States educational agency to present evidence; [(3) a requirement that the complainant, the complainant's representative, the local educational agency, the State educa- tional agency, State agency, the district parent advisory coun- cil, and appropriate school-parent advisory councils shall be no- tifi' in writing, within ten days after the resolution of the appeal of the nature of the resolution, the reasons therefor, and the right to an administrative appeal; and [(4) dissemination of information concerning the procedures. [AUDITS AND AUDIT RESOLUTION [SEC. 185. (a) AUDITING.The Inspector General of the Depart- ment of Health, Education, and Welfare shall make provision for audits of grants made under this title to determine, at a minimum, the fiscal integrity of grants or subgrant financial transactions and reports, and the compliance with applicable statutes, regulations, and terms and conditions of the grant or subgrant. ((b) AUDIT RESOLUTION AND REPAYMENT.The Commissioner shall adopt procedures to assure timely and appropriate resolution of audit findings and recommendations arising out of audits provid- ed for in subsection (a). Such procedures shall include timetables for each step of the audit resolution process and an audit appeals process. Where, under such procedures, the audit resolution process requires the repayment of Federal funds which were misspent or misapplied, the Commissioner shall require the repayment of the amount of funds under this title which have been finally deter- mined through the audit resolution process to have been misspent or misapplied. Such repayment may be made from funds derived from non-Federal sc:urces or from leederal funds no accountability for which is required to the Federal Government. Such repayments may be made in either a single payment or in installment pay- ments over a period not to exceed three years. [WITHHOLDING OF PAYMENTS [SEC. 186. (a) WITHHOLDING.Whenever the Commissioner, after reasonable notice to any State educational agency and an opportu- nity for a hearing on the record, finds that there has been a failure to comply substantially with any assurance set forth in the applica- tion of that State approved under section 142 or 162, the Commis- sioner shall notify the agency that further payments will not be made to the State under this title (or, in his discretion, that the State educational agency shall reduce or terminate further pay- ments under this title to specified local educational agencies or State agencies affected by the failure) until he is satisfied that there is no longer any such failure to comply. Until he is so satis- fied, (1) no further payments shall be made to the State under this title, or (2) payments by the State educational agency under this title shall be limited to local educational agencies and State agen- cies not affected by the failure, or (3) payments to particular local educational agencies or State agencies shall be reduced, as the case may be. Where partial payments to a local educational agency are 2 7 207 continued under this subsection, the expenditure of the payments shall be subject to such conditions as the Commissioner deems ap- propriate in light of the failure which led to the part-al withhold- ing. In the case of a substantial and continuing violation, the Com- missioner may suspend payments to such agency, after such agency has been given reasonable notice and opportunity to show cause why such action should not be taken. [(b) NOTICE TO PUBLIC OF COMMISSIONER WITHHOLDING.Upon submission to a State of a notice under subsection (a) that the Com- missioner is withholding payments, the Commissioner shall take such action as may be necessary to bring his action to the attention of the public within the State. E(C) COMPLIANCE AGREEMENT.a) The Commissioner may sus- pend the initiation or continuation of his withholding action under subsection (a) during any period there is in effect a compliance agreement with the State educational agency under this subsec- tion. Such an agreement shall be deemed to be in effect for the period specified therein, except that if the State educational agency fails to comply with the terms agreed to, such an agreement shall no longer be in effect and subsection (a) shall be fully opei ative. In implementing such subsection, the Commissioner shall take into account any partial compliance by such agency under srch agree- ment. [(2) For the purpose of this subsection, the term "compliance agreement", means an agreement which [(A) sets forth the terms and conditions to which the State or local educational agency or State agency has agreed in order to comply with the requirements of this title of the General Education Provisions Act and regulations promulgated there- under; [(B) addresses all the matters that formed the basis for the initiation of the withholding action by the Commissioner; and [(C) may coi,sist of a series of agreements that in the aggre- gate dispose of all such matters. [(3) In any case in which a State educational agency desires to enter into a compliance agreement, but alleges that full compliance wit.). the requirements of this title is genuinely rot feasible until a further date, the Commissioner shall hold a hearing at which that agency shall have the burden of demonstrating that immediate compliance is not feasible. The Commissioner shall provide an op- portunity for parents, their representatives, and other interested parties to participate in that hearing. If the Commissioner deter- mines, on the basis of all the evidence presented to him, that im- mediate compliance is genuinely not feasible, he shall make writ- ten findings to that effect entering into such a compliance agree- ment with that State educational agency. A compliance agreement under this subsection shall not be exempt from disclosure under any provision of section 552 of title 5, United States Code. Within fifteen days after the execution of any compliance agreement under this subsection, the Commissioner shall send a copy thereof to each organization or person who filed a complaint with respect to any failure to comply which is covered by that agreement. 208 [POLICY MANUAL [SEC. 187. (a) SCOPE AND PURPOSE.The Commissioner shall, not later than six months after the publication of final regulations with respect to the amendments to this title made by the Educa- tion Amendments of 1978 prepare and distribute to State educa- tional agencies, State agencies operating programs for neglected and delinquent and handicapped children, local educational agen- cies, and district-wide advisory councils, and shall make available to other interested individuals, organizations, and agencies, a policy manual for this titleto ((1) assist such agencies in (A) preparing applications for program funds under this title, (B) meeting the applicable pro- gram requirements under this title, and (C) enhancing the %,i .ality, increasing the depth, or broadening the scope of activi- ties for programs under this title; [(2) assist State educational agencies in achieving proper and efficient administration of programs funded under this title; [(3) assist advisory councils established under section 125(a) in advising the local educational agencies in the planning for, and implementation and evaluation of, programs and projects under this title; and [(4) insure that officers and employees of the Department of Health, Education, and Welfare, including, but not limited to officers and employees of the Commissioner and officers and employees of such Department charged with auditing pro- grams car ed on under this title, uniformly interpret, apply, and enforce requirements under this title throughout the United States. [(b) CONTENTS OF POLICY MANUALThe policy manual shall, with respect to programs carried on under this title, contain de- scriptions, statements, procedural and substantive rules, opinions, policy statements and interpretations and indices to and amend- ments of the foregoing, and in particular, whether or not such items are required under section 552 of title 5, United States Code to be published or made available, the manual shall include (but not be limited to) ((1) a statement of the requirements applicable to the pro- grams carried on under this title including such requirements contained in this title, the General Education Provisions Act, other applicable statutes, and regulations issued under the au- thority of such statutes; [(2) an explanation of the purpose of each requirement, in- cluding appropriate references to legislative history; [(3) an explanation of the interrelationships between the ap- plicable requirements; [(41 a statement of the procedures to be followed by the Commissioner and the Secretary with respect to proper and ef- ficient performance of the their administrative responsibiUtius, including but not limited to (A) approving State applications or State plans, (B) distributing grants to appropriate agencies, (C) resolving problems discovered during monitoring visits, (D) re- solving financial exceptions disclosed during audits, (E) collect- 2)9 209 ing outstanding claims arising out of activities under this title, (F) resolving complaints, (G) responding to requests for adviso- ry opinions interpreting and applying standards contained in applicable statutes and regulations to the public, (H) identify- ing and publicizing exemplary programs, and (I) making public audit determinations of the Commissioner or of any officer or panel authorized by the Commissioner to make such determi- nations; [(5) summaries of (A) advisory opinions referred to in para- graph (4XB) of this section and (B) final audit determinations referred to in paragraph (4XI), including examples of actual ap- plications of the legal requirements of applicable statues and regulations; [(6) model forms and instructions developed by the Commis- sioner for use by State and local educatinal agencies, at their discretion, including, but not limited to, application forms, ap- plication review checklists, and instruments for monitoring programs operated by applicant agencies; [(7) summaries of appropriate court decisions concerning programs under this title; [(8) examples of methods of distributing State and local funds which do and do not satisfy the applicable requirements under this title; and [(9) model forms, policies, and procedures developed by State educational agencies. [ENFORCEMENT REPORT [SEC. 188. The Commissioner shall, in conjunction with the report required by section 183(g), submit to the Congress a report concerning the enforcement of this title. The report submitted in 1980, 1982, and 1984 shall contain [(1) an analysis, for each State which has an application ap- proved for that year under section 182, of the extent to which the assurances, policies, and procedures of that State submit- ted as part of that application satisfy the requirements of this title, [(2) a description for each such State of the manner in which monitoring reports of the Commissioner were taken into consideration in the approval of such applications, [(3) a description, with respect to appropriate States, of the manner in which unresolved audit and program monitoring findings were taken into consideration in the approval of such applications, [(4) a description for each such State of the manner in which the annual evaluation report of that State was taken into consideration in the approval of such applications, (t5) a summary of the findings of the Commissioner's on-site monitoring vi' its, of the actions taken by State educational agencies to co. rect problems identified in each report based on such visits, and of the number, type, and locatioin of problems which have been so identified but which have not been correct- ed as of the date of the submission of the annual enforcement report under this section, 2 0 210 [(6) with respect to audits conducted under this title, (A) the number and type of audits conducted in the year preceding the date of submission of the report, (B) the identity of each State or local educational agency audited during that year, (C) the resolution status of each outstanding audit, including the dates on which each step of the resolution process with respect to such outstanding audit was completed, the schedule for com- peltion of such process, the amount of the financial exceptions noted in final audit reports and inletters of final determina- tion, and an explanation of any differences in such amounts as noted in draft audit reports, final audit reports, and letters of final determination, (D) the number and identity of any States which did not appeal to the audit hearing board for this title with respect to audits conducted during that year and the status of recoupment activities for each such State, (E) the number and identity of States which appealed to such board during that year and the status of each active appeal, (F) the number and identity of States which have completed such ap- peals during that year and the status of recoupment activities with respect thereto, (G) the number and type of any cases re- ferred to the Attorney General during that year for collection of misspent funds, (H) the amount of any funds recovered during that year as a result of such audit resolution process, (I) an analysis of the type of violations identified in final audit re- ports, letters of final determination, and final decisions of the audit hearing board for this title and of the Commissioner on appeal from the decisions of such board, (J) a summary of audit follow-up actions conducted during that year for the pur- pose of determining that deficiencies which led to financial audit exceptions or audit findings of procedural noncompliance have been correctred, (K) a description of audits planned for the year succeeding the date of the submission of the report, and (L) recommendations for improvement of the audit resolu- tion process, and [(7) with respect to complaints made to the Commissioner concerning programs under this title during the year preceding the date of submission of the report under this section, the number and type of complaints, the identity of the State and local educational agencies, the action taken by the Commis- sioner to resolve the complaints, and the number and type of complaints which remain unresolved as of the date of such sub- mission. [PART EPAYMENTS [PAYMENT METHODS [SEC. 191. The Commissioner shall, from time to time pay to each State, in advance or otherwise, the amount which it and the local educational agencies of that State are eligible to receive under this title. Such payments shall take into account the extent (if any) to which any previous payment to such State educational agency under this title (whether or not in the same fiscal year) was greater or less than the amount which should have been paid to it. 2;1 211 [AMOUNT OF PAYMENTS TO LOCAL EDUCATIONAL AGENCIES [SEC. 192. From the funds paid to it pursuant to section 191 each State educational agency shall distribute to each local educational agency of the State which is eligible to receive a grant under this title and which has submitted an application approved pursuant to section 121 the amount for which such application has been ap- proved, except that the amount shall riot exceed the amount deter- mined for that agency under this title. [ADJUSTMENTS WHERE NECESSITATED BY APPROPRIATIONS [SEC. 193. (a) ADJUSTMENT ALLOCATION.If the S ims appropri- ated for any fiscal year for making the payments provided in this title other than amounts appropriated for subpart 2 of part A are not sufficient to pay in full the total amounts which all local and State educational agencies are entitled to receive under this title for such year, the amount available for each grant to a State agency eligible for a grant under subpart 1, 2, or 3 of part B shall be equal to the total amount of the grant as computed under each such subpart. If the remainder of such sum available after the ap- bring the aggregate of such allocations within the limits of the amount so appropriated. The allocation of a local educational agency which would be reduced under the preceding sentence to less than 85 per- centum of its allocation under subpart 1 of part A for the preceding fiscal year, shall be increased to such amount, the total of the in- crease thereby required being derived by proportionately reducing the allocations of the remaining local educational agencies, under the preceding sentence, but with such adjustment as may be neces- sary to prevent the allocation to any remaining local educational agency from being thereby reduced to less than 85 percentum of its allocation for such year. [(b) ADDITIONAL FUNDS ALLOCATION.In Case additional funds become available for making payments under this title for that year, allocations that were reduced pursuant to subsection (a) shall be increased on the same basis that they were reduced. In order to permit the most effective use of all appropriations made to carry out this title, the Commissioner may set dates by which (1) State educational agencies must certify to him the amounts for which the applications of educational agencies have been or will be ap- proved by the State and (2) State educational agencies referred to in subpart 1 of part B must file applications. If the maximum grant a local educational agency would receive (after any ratable reduc- tion which may have been required under the first sentence of sub- section (a) of this section) is more than an amount which the State educational agency determines, in accordance with regulations pre- scribed by the Commissioner, such agency will use, the excess amount, shall be made available first to educational agencies in that State. Determinations of the educational agencies to which such excess amounts shall be made available shall be made by the 2 i 2 212 State educational agency in furtherance of tiie purposes of this title in accordance with criteria prescribed by the Commissioner which are designed to assure that such excess amounts will be made available to other eligible educational agencies with the greatest need, for the purpose of, where appropriate, redressing inequities inherent in, or mitigating hardships caused by, the application of the provisons of section 111(a) as a result of such factors as popula- tion shifts and changing economic circumstances. In the event excess amounts remain after carrying out the preceding two sen tences of this section, such excess amounts shall be distributed among the other States as the Commissioner shall prescribe for use by local educational agencies in such States for the purposes of this title in such manner as the respective State educational agencies shall prescribe. [PAYMENTS FOR STATE ADMINISTRATION [SEC. 194. (a) Except as provided in subsection (b), the Commis- sioner is authorized to pay to each State amounts equal to the amounts expended by it for the proper and efficient performance of its duties under this title, except that the total of such payments in any fiscal year shall not exceed [(1) 1 per centum of the amount allocated to the State and its local educational agencies and to other State agencies as de- termined for that year under this title; or [(2) $225,000 or $50,000 in the case of Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands. whichever is the greater, except that any amount paid by reason of clause (1) or (2) in excess of the limitation on such payments in effect prior to the effective date of tne Education Amendments of 1978 shall be used exclusively for monitoring, audit resolution, en- forcement, or similar compliance activities and shall supplement and not supplant funds otherwise available from non-Federal sources for such purposes. [(b) The provisions of this section shall apply in any fiscal year in which the provisions of section 510(bX2) are not met. [PART FGENERAL PROVISIONS [JUDICIAL REVIEW [SEC. 195. (al PILING APPEALS.If any State is dissatisfied with the Commissioner's final action with respect to the approval of its application submitted under subpart 1 or part B or section 162 or with his final action under section 185 or 186, such State may, within sixty 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 forthwith transmitted by the clerk of the court to the Commission- er. The Commissioner thereupon shall file in the court the record of the proceedings on which he based his action, as provided in sec- tion 2112 of title 28, United States Code. [(b) BASIS OF REVIEW.The findings of fact by the Commission- er, if supported by substantial evidence, shall be conclusive; but the 2 i 3 213 court, for good cause shown, may remand the case to the Commis- sioner to take further evidence, and the Commissioner may there- upon make new or modified findings of fact and may modify his previous actic-, 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. [(c) JUDICIAL APPEALS.Upon the filing of such petition, the court shall have jurisdiction to affirm the action of the Commis- sioner or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. [NATIONAL ADVISORY COUNCIL [SEC. 196. (a) COUNCIL ESTABLISHED. There shall be a National Advisory Council on the Education of Disadvantaged Children (hereinafter in this section referred to as the "National Council") consisting of fifteen members appointed by the President, without regard to the provisions of title 5, United States Code, governing appointment in the competitive service, for terms of three years, except that (1) in the case of initial members, five shall be appoint- ed for terms of one year each and five shall be appointed for terms of two years each, and (2) appointments to fill vacancies shall be only for such terms as remain unexpired. The National Council shall meet at the call of the Chairman. [(b) FUNCTIONS.The National Council shall review and evalu- ate the administration and operation of this title, including its ef- fectiveness in improving the educational attainment of educational- ly deprived children, including the effectiveness of programs to meet their occupational and career needs, and make recommenda- tions for the improvement of this title and its administration and operations. These recommendations shall take into consideration experience gained under this and other Federal educational pro- grams for disadvantaged children and, to the extent appropriate, experience gained under other public and private educational pro- grams for disadvantaged children. [(c) REPORTS. The National Council shall make such reports of its activities, findings, and recommendations (including recommen- dations for changes in the provisions of this title) as it may deem appropriate and shall make an annual report to the President and the Congress not later than March 31 of each calendar year. Such annual report shall include a report specifically on which of the various compensatory education programs funded in whole or in part under the provisions of this title, and of other public and pri- vate educational programs for educationally deprived children, hold the highest promise for raising the educational attainment of these educationally deprived children. The President is requested to transmit to the Congress such comments and -ecommendations as he may have with respect to such report. Subject to section 448(b) of the General Education Provisions Act, the National Coun- cil shall continue to exist until October 1, 1984. 2 i 4 214 [LIMITATION ON GRANT TO PUERTO RICO (Sm. 197. Notwithstanding the provisions of part A or of sub- part 1, 2, or 3 of part B of this title, the amount paid to the Com- monwealth of Puerto Rico under this title for any fiscal year shall not exceed 150 per centum of the amount received by Puerto Rico under this title in the preceding fiscal year. Any excess over such amount shall be used to ratably increase the allocations under sub- part 1 of part A of the other local educational agencies whose allo- cations do not exceed the maximum amount for which they are eli- gible under section 111. [DEFINITIONS [S2c. 198. (a) Except as otherwise provided, for purposes of this title: [(1) The term "average daily attendance" means attendance determined in accordance with State law, except that notwith- standing any other provision of this title, where the local edu- cational agency of the school district in which any child resides makes or contracts to make a tuition payment for the free public education of such child in a school situated in another school district, for purposes of this title the attendance of such child at such school shall be held and considered (A) to be in attendance at a school of the local educational agency so making or contracting to make such tuition payment, and (B) not to be in attendance at a school of the local educational agency receiving such tuition payment or entitled to receive such payment under the contract. [(2) The term "average per pupil expenditure" means in the case of a State or the United States, the aggregate curt ent ex- penditures, during the third fiscal year preceding the fiscal year for which the computation is made (or if satisfactory data for that year are not available at the time of computation, then during the most recent preceding fiscal year for which satisfactory data are available), of all local educational agen- cies in the State, or in the United States (which for the pur- poses of this subsection means the fifty States, and the District of Columbia), as the case may be, plus any direct current ex- penditures by the State for operation of such agencies (without regard to the source of funds from which either of such ex- penditures are made), divided by the aggregate number of chil- dren in average daily attendance to whom such agencies pro- vided free public education during such preceding year. [(3) The term "Commissioner" means the United States Commissioner of Education. [(4) The term "construction" includes the preparation of drawings and specifications for school facilities; erecting, build- ing acquiring, altering, remodeling, improving, or extending school facilities; and the inspection and supervision of the con- struction of school facilities. [(5) The term "country" means those divisions of a State utilized by the Secretary of Commerce in compiling and report- ing data regarding counties. 2 ; 5 215 [(6) The term "current expenditures" means expenditures for free public education, including expenditures for adminis- tration, instruction, attendance, and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits for food services and student body activities, but not including expendi- tures for community services, capital outlay, and debt service, or any expenditures made from funds granted under this title or parts B and C of title IV of this Act. ((7) The term "elementary school" means a day or residen- tial school which provides elementary education, as deter- mined under State law, and the term "secondary school" means a day or residential school which provides secondary education, as determined under State law, except that it does not include any education provided beyond grade 12. [(8) The term "equipment" includes machinery, utilities, and building equipment and any necessary enclosure or struc- tures to house them, and includes all other items necessary for the functioning of a particular facility as a facility for the pro- vision of educational services, including items such as instruc- tional equipment and necessary furniture, printed, published, and audio-visual instructional materials, and books, periodi- cals, documents, and other related materials. [(9) The term "free public education" means education which is provided at public expense, under public supervision and direction, and without tuition charge, and which is provid- ed as elementary or secondary school education in the applica- ble State, except that such term does not include any educa- tion provided beyond grade 12. [(10) The term "local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of, or to perform a service function for, public elementary or sec- ondary schools in a city, county, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools. Such terms includes any other public institution or agency having administrative control and direction of a public elementary or secondary school. [(11) The term "parent" includes a legal guardian or other person standing in loco parentis. [(12) The term "project area" means a school attendance area having a high concentration of children from low-income families which, without regard to the locality of the project itself, is designated as an area from which children are to be selected to participate in a program or project assisted under this title. [(13) The term "school attendance area" means in relation to a particular school, the geographical area in which the chil- dren who are normally served by that school reside. [(14) The term "school facilities" means classrooms and re- lated facilities (including initial equipment) for free public edu- cational and interests in land (including site, grading, and im- 216 216 provements) on which such facilities are constructed, except that such term does not include those gymnasiums and similar facilities intended primarily for exhibitions for which admis- sion is to be charged to the general public. [(15) The term "Secretary" means the Secretary of Health Education, and Welfare. [(16) The term "State" means a State, Puerto Rico, Guam, the District of Columbia, American Sri.noa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands. [(17) The term "State educational agency" means the officer or agency primarily responsible for the State supervision of public elementary and secondary schools.] s 4. 4. 4. 4. '' 4. TITLE IXADDITIONAL PROGRAMS [PART CWOMEN'S EDUCATIONAL EQUITY [SHORT TITLE; PURPOSE [SEC. 931. (a) This part may be cited as the "Women's Educa- tional Equity Act of 1978". [(bX1) The Congress finds and declares that educational pro- grams in the United States, as presently conducted, are frequently inequitable as such programs relate to women and frequently limit the full participation of all individuals in American society. The Congress finds and declares that excellence in education cannot be achieved without equity for women and girls. [(2) It is the purpose of this part to provide educational equity for women in the United States and to provide financial assistance to enable educational agencies and institutions to meet the require- ments of title IX of the Education Amendments of 1972. It is also the purpose of this part to provide educational equity for women and girls who suffer multiple discrimination, bias, or stereotyping based on sex and on race, ethnic origin, disability, or age. [(c) As used in this part, the term "Council" means the National Advisory Council on Women's Educational Programs. [GRANT AND CONTRACT AUTHORITY [SEC. 932. (a) The Secretary of Education is authorized to make grants to, and enter into contracts with, public agencies, private nonprofit agencies, organizations, and institutions, including stu- dent and community groups, and individuals, for activities designed to achieve the purpose of this part at all levels of education, includ- ing preschool, elementary and secondary education, higher educa- tion, and adult education. The activities may include [(1) demonstration, developmental, and dissemination activi- ties of national, statewide, or general significance, including [(A) the development and evaluation of curricula, text- books, and other educational materials related to educa- tional equity; [(B) model preservice and inservice training programs for educational personnel with special emphasis on pro- 2 i 7 217 grams and activities designed to provide educational equity; [(C) resear -11 and development activities designed to ad- vance educational equity; [(D) guidance and counseling activities, including the development of nondiscriminatory tests, designed to insure educational equity; [(E) educational activities to increase opportunities for adult women, including continuing educational activities and programs for underemployed and unemployed women; and [(F) the expansion and improvement of educational pro- grams and activities for women in vocational education, career education, physical education, and educational ad- ministration; and [(2) assistance to eligible entities to pay a portion of the costs of the establishment and operation, for a period of not to exceed two years, of special programs and projects of local sig- nificance to provide equal opportunities for both sexes, includ- ing activities listed in paragraph (1), activities incident to achieving compliance with title IX of the Education knend- ments of 1972 and other special activities designed to achieve the purposes of this part. Not less than 75 per centum of funds used to support activities cov- ered by paragraph (2) shall be used for awards to local educational agencies. The Secretary shall ensure that at least 1 grant or con- tract is available during each fiscal year for the performance of each of the activities described in paragraph (1) of this subsection. C(b) For each fiscal year, the Secretary of Education shall use $6,000,000 from the funds available under this part to support ac- tivities described in paragraph (1) of subsection (a). Any funds in excess of $6,000,000 available under this part may be used to sup- port new activities described in paragraph (1) or to support activi- ties described in paragraph (2), or both. [APPLICATION; PARTICIPATION [SEC. 933. (a) A grant may be made, and a contract may be en- tered into, under this part only upon application to the Secretary of Education, at such time, in such form, and containing or accom- panied by such information as the Secretary of Education may pre- scribe. Each such application shall [(1) provide that the program or activity for which assist- ance is sought will be administered by or under the supervi- sion of the applicant; [(2) describe a program for carrying out one or more of the purposes set forth in section 932(a) which holds promise of making a substantial contribution toward attaining such pur- poses; and [(3) set forth policies and procedures which insure adequate evaluation of the activities intended to be carried out under the application; 2 i 8 218 [(1)) Nothing in this part shall be construed as prohibi"--ig men and boys from participating in any programs or activities assisted under this part. [CHALLENGE GRANTS [SEC. 934. (a) In addition to the authority of the Secretary under section 932, the Secretary shall carry out a program of challenge grants (as part of the ant pr ;ram administered under aection gr 932(aXl)), not to exceed $40,000 each, in order to support projects to develop [(1) comprehensive plans Ji implementation of equity pro- grams at every educational level; (l2) innovative approachP^ to r._ tool-community partner- shins; [(31 new dissemination and replication strategies; and [(4) other innovative approaches to achieving the purposes of this part. ((b) For the purposes described in clauses (1) ti..yugh (4) of sub- section (a), the Secretary is authorized to make grants to public and private nonprofit agencies and to individuals. [CRITERIA AND PRIORITIES [SEC. 935. The Secretary of Education shall establish separate criteria and priorities for awards under sections 932(aXl) and 932(a)(2) under this part to insure that available funds are used for programs that most effectively will achieve the purposes of this part. Those criteria and priorities shall be promulgated in accord- ance with section 431 of the General Education Provisions Act. [NATIONAL ADVISORY COUNCIL ON WOMEN'S EDUCATIONAL PROGRAMS [SEC. 936. (a) There is established in the Department of Educa- tion a National Advisory Council on Women's Educational Pro- grams. The Council shall be composed of [(1) seventeen individuals, some of whom shall be students, and who shall be appointed by the President, by and with the a ivice and cor sent of the Senate, from among individuals, broadly representative of the general public and including (A) individuals who are experts in a wide range of issues of educa- tional equity for women at all levels of education, including preschool, elementary and secondary education, higher educa- tion, and vocational and adult education; (B) individuals who are representative of and expert in the educational needs of racial and ethnic minority women, older women, and disabled women. 'C) both women and men who have demonstrated com- mitmei., to and expertise in the purposes of this part; and (D) individuals who are representative of and expert in student fi- nancial assistance programs authorized under title IV of the Hi her Education Act of 1965; (2) the staff Director of the Civil F.' zhts Cor...tn'tAion; (3) the Director of the Women'E areau of the Department of bor; and [(4) the Director of the Women's Action Program of the De- partment of Health, Education, and Welfare. 2i9 219 The Council shall elect its own Chairpersoi. from among the mem- bers described in paragraph (1). [(b) The term of office of each memLer of the Council appointed under paragraph (1) of subsection (a) shall be three years, except that [(1) the members first appointed under such clause shall serve as designated by the President, six for a term of one year, five for a term of two years, and six for a term of three years; and [(2) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his or her predecessor was ap, ointed shall be appointed for the rema'nder of such term. [(c) The Council shall [(1) advise the Secretary and the Congress on matters relat- ing to equal educational opportunities for women and policy matters relating to the administration of this part; [(2) make recommendations to the Secretary of Education with respect to the selection of funding priorities and alloca- tion of any funds pursuant to this part, including criteria de- veloped to insure an appropriate geographical distribution of approved programs and projects throughout the Nation; [(3) advise all Federal agencies which have education pro- grams concerning those aspects of the programs which relate to the educational needs and opportunities of women; [(4) make such reports as the Council determines appropri- ate to the President and the Congress on the activities of the Council; and [(5) disseminate information concerning the activities of the Council under this part. [(d) The provisions of part D of the General Education Provi- sions Act shall apply with respect to the Council established under this subsection. [REPORTS, EVALUATION, AND DISSEMINATION [SEC. 937. (a) The Secretary of Education is directed, not later than September 30 of each of the years 1985 through 1989, to submit to the President and the Congress and to the Council a report setting forth the programs and activities assisted under this part, and to provide for the distribution of this report to all inter- ested groups and individuals, including the Congress, from funds authorized under this part. After receiving the report from the Sec- retary of Education, the Council shall oversee the evaluation of the program and projects assisted under this part and report on such evaluation in its annual report. [(b) The Office of Women's Educational Equity shall evaluate and disseminate (at low cost) all materials and programs developed under this part. [AUTHORIZATION OF APPROPRIATIONS [SEC. 938. For the purpose of carrying out this part there are au- thorized to be appropriated $10,000,000 for fiscal year 1985, $12,000,000 for fiscal year 1986, $14,000,000 for fiscal year 1987, 2 0 220 $16,000,000 for fiscal year 1988, and $20,000,000 for fiscal year 1989.] TITLE XGENERAL PROVISIONS s * IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR INDIAN STUDENTS SEC. 1005. (a) (gX1) For the purpose of making grants under this section there are hereby authorized to be appropriated $25,J00,000 for the fiscal year ending June 30, 1973, and $35,000,000 for each of the succeed- ing fiscal years ending prior to October 1, [1989.] 1993. (2) For the purpose of making grants under subsection (e) of this section there are hereby authorized to be appropriated $8,000,000 for each of the fiscal years ending prior to October 1, 1989. The sum of the grants made to State educational agencies under subsec- tion (e) of this section shall not exceed 15 per centum in any fiscal year of the sums appropriated for that year. ((3) Notwithstanding paragraphs (1) and (2), the amount that is authorized to be appropriated to under this subsection for each of the fiscal years 1987, 1988, and 1989, is the amount appropriated for such purpose for fiscal year 1986.] s EDUCATION FOR ECONOMIC SECURITY ACT * * [TITLE IIEDUCATION FOR ECONOMIC SECURITY [STATEMENT OF PURPOSE [SEC. 201. It is the purpose of this title to make financial assist- ance available to State and local educational agencies, and to insti- tutions of higher education, to improve the skills of teachers and instruction in mathematics, science, computer learning, and for- eign languages, and ',0 increase the access of all students to such instruction, and thereby contribute to strengthening the economic security of the United States. [DEFINITION [SEC. 202. As used in this title, the term "junior or community college" means an institution of higher education [(1) that admits as regular students individuals who are beyond the age of compulsory school attendance in the State in which the institution is located and who have the ability to benefit from the training offered by the institution; [(2) that does not provide an educational program foi which it awards a bachelor's degree (or an equivalent degree); and [(3) that 221 221 [(A) provides an educational program of not less than two years that is acceptable for full credit toward such a degree, or [(B) offers a two-year program designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engi- neering, scientific, or mathematical principles of knowl- edge. (PROGRAM AUTHORIZED [SEC. 203. (a) The Secretary is authorized to make grants to States and to make discretionary grants, in accordance with the provisions of this title, for strengthening the skills of teachers and instruction in mathematics, science, computer learning, and for- eign languages. [(b) There are authorized to be appropriated $350,000,000 for the fiscal year 1984, $400,000,000 for the fiscal year 1985, and $350,000,000 for each of the fiscal years 1986, 1987, and 1988 to carry out the provisions of this title. [ALLOTMENT TO STATES [SEc. 204. (aX1) From 90 per centum of the amount appropriated to carry out this title for each fiscal year, the Secretary shall allot to each State an amount which bears the same ratio to such 90 per centum as the number of children aged five to seventeen, inclusive, in the State bears to the number of such children in all States, except that no State shall receive less than one-half of 1 per centum of the amount available under this subsection in any fiscal year. [(2XA) The Secretary shall reserve 9 per centuni of such amount to carry out section 212, relating to discretionary grants of national significance. [(B) The Secretary shall reserve the remaining 1 per centum to carry out the provisions of subsection (c). [(3) For the purpose of this subsection, the term "State" does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Ii' knds, or the Trust Territory of the Pacific Islands. [(4, The .umber of children aged five to seventeen, inclusive, in the State and in all States shall be determined by the Secretary on the basis of the most recent satisfactory data available to him. [(b) The amount of any State's allotment under subsectior (a) for any fiscal year to carry out this title which the Secretary deter- mines will not be required for that fiscal year to carry out this title shall be available for reallotment from time to time, on such dates during that year as the Secretary may fix, to other States in pro- portion to the original allotments to those States under subsection (a) or that year but with such proportionate amount for any of those other States being reduced to the extent it exceeds the sum the Secretary estimates that State needs and will be able to use for that year; and the total of those reductions shall be similarly real- lotted among the States whose proportionate amounts, -ere not so reduced. Any amounts reallotted to a State under this subsection 2 2 2 222 during a year shall be deemed a part of its allotment under subsec- tion (a) for that year. [(cX1) From the amount reserved for each fiscal year under sub- section (aX2XB), the Secretary shall allot [(A) not less than one-half of that amount to whatever agency the Secretary determines appropriate for programs au- thorized by this title for children in elementary and secondary schools operated fv.. :-_fiNar r.!-.:idren by the Department of the Interior; and [(B) the remainder of that amount among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands according to their re- spective needs for assistance under this title. [(2) The Secretary shall make payments under paragraph (1XA) on whatever terms the Secretary determines will best carry out the purpose of this title. (IN-STATE APPORTIONMENT [SEC. 205. (a) For each of the fiscal years 1984, 1985, 1S86, 1987, and 1988; 70 per centum of each State's allotment under section 204 of this title shall be used for elementary and secondary educa- tion programs in accordance with section 206. [(b) For each of the fiscal years 1984, 1985, 1986, 1987, and 1988; 30 per centum of ^ach States allotment under section 204 of this title shall be used for higher education programs in accordance with section 207. [ELEMENTARY AND SECONDARY EDUCATION PROGRAMS [SEC. 206. (a) The amount apportioned under section 205(a) from each State's allotment under this title shall be used by the State educational agency to strengthen elementary and secondary educa- tion programs in accordance with the provisions of this section. [(bX1) Not less than 70 per centum of the amount available under this secticn shall be distributed to local educational agencies within the State. Each local educational agency shall use funds dis- tributed under this paragraph for [(A) the expansion and improvement of training, inservice training, and retraining of teachers and other appropriate school personnel in the fields of mathematics and science, in- cluding vocational education teachers who use mathematics and science in the courses of study the teachers teach; or [(B) if the local educational agency determines that the agency has met its need for training, inservice training, and re- training under subparagraph (A), subject to the provisions of section 210(c), such training, inservice training, and retraining in the fields of computer learning and foreign languages, and the acquisition of instructional materials and equipment relat- ed to mathematics and science instruction. Such training and instruction may be carried out through agree- ments with public agencies, private industry, institutions of higher education, and nonprofit organizations, including museums, librar- ies, educational television stations, professional science, mathemat- ics and engineering associations, and other appropriate institu- 223 223 tions. A local educational agency may carry out the activities au- thorized by this paragraph with one or more other local education- al agencies within the State, or with the State educational agency, or both. Each local educational agency shall assure that programs of training, inservice training and retraining will take into account the need for greater access to and participation in mathematics, science, and computer learning programs and careers of students from historically underrepresented groups, including females, mi- norities, individuals with limited- English proficiency, the handi- capped, and migrants. [(2XA) The State educational agency shall distribute 50 per centum of the funds available under this subsection to local educa- tional agencies according to the relative enrollments in public and private nonprofit schools within the school district of such agen- cies. Such relative enrollments may be calculated, at the option of the State educational agency, on the basis of the total number of children enrolled in public schools and (i) private nonprofit schools, or (ii) private nonprofit schools desiring that their children and teachers participate in programs or projects assisted under this title. Nothing in the preceding sentence shall diminish the respon- sibility of local educational Agencies to contact, NI an annual basis, appropriate officials from private nonprofit schools within their school districts in order to determine whether such schools desire that their children and teachers participate in programs or projects assisted under this title. [(B) The State educational agency shall distribute 50 per centum of the funds available under this subsection based on the relative number of children aged five to seventeen who [(i) are from families below the poverty level as determined under section 111(cX2XA) of the Elementary and Secondary Education Act of 1965; and [(ii) are from families above the poverty level as determined under section 111(cX2XB) of the Elementary end Secondary Education Act of 1965; in the public schools of the local educational agencies within the State. [(3) The State educational agency shall renew payments to local educational agencies under this subsection based upon the criteria set forth in paragraph (2) of this subsection and a determination by the State educational agency that the local educational agency is implementing the program assisted glider this title so that a sub- stantial number of teachers in the public and private schools in the school district of such agency are served and several grade levels of instruction in such schools are involved in the program. [(cX1) If a local educational agency is spending funds under sub- section (bX1XB), not to exceed 30 per centum of the funds available to the local educational agency under subsection (b) may be used for the purchase of computer and computer-related instructional equipment. [(2) If a local educational agency is spending funds under subsec- tion (bX1XB), not to exceed 15 per centum of the funds available to the local educational agency under subsection (b) may be used to strengthen instruction in foreign languages. 224 224 [(d) Not less than 20 per centum of the amount available under this section shall be used by the State educational agency [(1) demonstration and exemplary programs for teacher training and retraining and inservice upgrading of teacher skills in the fields of mathematics and science, foreign lan- guage instruction, and computer learning, [(2) demonstration and exemplary programs for instruction- al equipment and materials in such fields and necessary tech- nical assistance, [(3) demonstration and exemplary programs for special projects for historically underrepresented and underserved populations and for gifted and talented students, and [(4) the dissemination of information to all local educational agencies within the State relating to the exemplary programs in the fields of mathematics, science, foreign languages, and computer learning. In providing financial assistance for such demonstration and exem- plary programs, the State educational agency shall reserve not less than 20 per centum of the amount available under this subsection for special projects in mathematics and science, foreign languages, and computer education to historically underrepresented and un- derserved populations of students, including females, minorities, handicapped individuals, individuals with limited-English pro- fiency, and migrant students, and to programs for gifted and tal- ented students. The programs for gifted and talented students may include assistance to magnet schools for such students. [(e) Not less than 5 per centum of the amount available under this section may be used by the State educational agency to provide technical assistance to local educational agencies; institutions of higher education, and nonprofit organizations, including museums, libraries, and educational television stations, in the conduct of pro- grams specified under subsection (b). [(f) Not to exceed 5 per centum of the amount available under this section may be used by the State educational agency for [(1) the State assessment required by section 208 of this title; and [(2) the costs of administration and evaluation of the pro- gram assisted under this title. [HIGHER EDUCATIONAL PROGRAMS LSEc. 207. (a) The amount apportioned under sectior 205(b) from each State's allotment under this title shall be used by the State agency for higher education for higher education programs in ac- cordance with the provisions of this section. [(bX1XA) Not less than 75 per centum of the amount available for this section shali be used by the State agency for higher educa- tion for grants to institutions of higher education in accordance with the provisions of this subsection. [(B) The State agency for higher education shall make funds available on a competitive basis to institutions of higher education in the State which apply for payments under this section. The State agency for higher education shall make every effort to ensure 225 225 equitable participation of private and public institutions of higher education. [(2) The amount available under this subsection shall be used for [(A) establishing traineeship programs for new teachers who will specialize in teaching mathematics and science at the sec- ondary school level; [(B) retraining of secondary school teachers who specialize in disciplines other than the teaching of mathematics, science, foreign languages, or computer learning to specialize in the teaching of mathematics, science, foreign languages, or com- puter learning, including the provision of stipends for partici- pation in institutes authorized under title I; and [(C) inservice training for elementary, secondary, and voca- tional school teachers and training for cther appropriate school personnel to improve their teaching skills in the fields of math- ematics, science, foreign languages, and computer learning, in- cluding stipends for participation in institutes authorized under title I. Each institution of higher education receiving a grant under this subsection shall assure that programs of training, retraining, and inservice training will take into account the need for greater access to and participation in mathematics, science, foreign languages, and computer learning and careers of students from historically underrepresented and underserved groups, including females, mi- norities, individuals with limited-English proficiency, the handi- capped, migrants, and the gifted and talented. [(3) No institution of higher education may receive assistance under paragraphs (2) (B) and (C) of this subsection unless the insti- tution enters into an agreement with a local educational agency, or consortium of such agencies, to provide inservice training and re- training for the elementary and secondary school teachers in the public and private schools of the school district of each such agency. [(c)(1) Not less than 20 per centum of the amount available under this section shall be used by the State agency for higher edu- cation for cooperative programs among institutions of higher edu- cation, local educational agencies, State educational agencies, pri- vate industry, and nonprofit organizations, including museums, li- braries, educational television stations, and professional mathemat- ics, science, and engineering societies and associations for tl,c, de- velopment and dissemination of projects designed to improve stu- dent understanding and performance in science, mathematics, ct. m- puter learning and critical foreign languages. In carrying out this subsection, the State agency for higher education shall give special consideration to programs involving consortial arrangements which include local educational agencies. [(2) For the purpose of paragraph (1) of this subsection, critica! foreign languages include foreign languages designated by the Sec- retary pursuant to section 211(d). [(d) Not to exceed 5 per centum of the amount available under this section may be used by the State agency for higher education for- 226 72-850 87 - 8 226 [(1) the State assessment required by section 208 of this title; and [(2) the cost of administration and evaluation of the pro- gram assisted under this title incurred by the State higher education agency. [STATE ASSESSMENT OF MATHEMATICS, SCIENCE, FOREIGN LANGUAGES, AND COMPUTER LEARNING [SEc. 208. (a) Each State which desires to receive grants under this title shall prepare not later than nine months following the date for which funds under this title become available, a prelimi- nary assessment of the status of mathematics, science, foreign lan- guage, and computer learning within the State. Such preliminary assessment shall be made available to all local educational agencies within the State to assist the local educational agencies to carry out the requirements of section 210(b). A final version of such as- sessment shall be submitted to the Secretary not later than the end of the first year for which funds uglier this title are made avail- able. Each preliminary assessment shall be prepared after an ex- amination of the local assessments submitted under section 210. Each such assessment shall include a description and a five-year projection of [(1) the availatility of qualified mathematics, science, for- eign language, and computer learning teachers at the second- ary and postsecondary education levels within the State; [(2) the qualifications if teachers in mathematics, science, foreign languages, and computer learning at the secondary and postsecondary education levels, and the qualifications of teach- ers at the elementary level to teach mathematics, science, for- eign languages, and computer learning; [(3) the State standards for teacher certification, including any special exceptions currently made, for teachers of mathe- matics, science, foreign languages, and computer learning; [(4) the availability of adequate curricula, instructional ma- terials and equipment, in mathematics, science, foreign lan- guages, and computer learning; and [(5) the degree of access to instruction in mathematics, sci- ence, foreign languages, and computer learning of historically underrepresented and underserved individuals and of the gifted and talented. [(b) Each such assessment shall also describe the programs, ini- tiatives, and resources committed or projected to be undertaken within the State to [(1) improve teacher recruitment and retention; [(2) improve teacher qualifications and skills in the fields of mathematics, science, foreign languages, and computer learn- ing; E(3) improve curricula in mathematics, science, foreign lan- guages, and computer learning including instructional materi- als and equipment; and [(4) improve access for historically underrepresented and underserved populations, and for the gifted and talented, to in- 2 2 7 227 struction in mathematics, science, foreign languages, and com- puter learning. [(cX1) Each State assessment sh,.11 be developed in consultation with the Governor, the State legislature, State Board of Education, local educational agencies within the State, and representatives of- [(A) vocational secondary schools and area vocational educa- tion schools, [(B) public and private institutions of higher education, [(C) teacher organizations, [(D) private industry, [(E) other nonprofit organizations, including libraries, muse- ums, and educational television stations, and professional sci- entific and mathematics associatio is, and [(F) private elementary and secondary schools, within the State. E(2) Each State assessment shall be submitted jointly by the State educational agency and the State agency for higher educa- tion.[(d) The Secretary shall prepare and submit to the Congress a summary report of the final version of the assessments submitted by States under subsection (a) as soon as practicable after the re- ceipt of such assessments. ESTATE APPLICATION [SEC. 209. (a) Each State which desires to receive grants under this title shall file an application with the Secretary at such time, in such manner, aid containing or accompanied by such informa- tion as the Secretary may reasonably require. [(b) Each such application shall [(1) designate the State educational agency for the pui pose of programs described in section 206, and the State agency for higher education for programs described in section 207 as the agency or agencies responsible for the administration and su- pervision of the programs described in sections 206 and 207, as the case may be; [(2) describe the programs for which assistance is sought under the applf ttion; [(3) provide c ssurances that payments will be distributed by the State in accordance with the provisions of section 206 and 207, as the case may be; [(4) provide procedures- 1[(A) for submitting applications for programs described in sections 206 and 207 for distribution of payments under this title within the State, and [(B) for approval of applications by the appropriate State agency, including appropriate procedures to assure that the appropriate State agency will not disapprove an application without notice and opportunity for a hearing; ((5) provide assurances that [(A) the State will prepare and submit the assessment required under section 208; 228 228 [(B) in the second year for which funds are available under this title, the State will use funds for purposes con- sistent with the findings of the State assessment under section 208; [(C) for programs described in section 206, the provi- sions of sections 210 and 211 will be carried out; and [(D) to the extent feasible, evaluations of the program assisted under this title will be performed; [(6) provide assurances that Federal funds made available under this title for any fiscal year will be so used as to supple- ment, and to the extent practicable, to increase the level of funds that would, in the absence of such Federal funds, be available from non-Federal sources for the purposes described in sections 206 and 207, and in no case supplant such funds from non-Federal sources; and [(7) provide such fiscal control and accounting procedures as may be necessary (A) to ensure proper accounting of Federal funds paid to the applicant under this title, and (B) to ensure the verification of the programs assisted under the application. [(c) The Secretary shall expeditiously approve any State plan that meets the requirements of this section. [LOCAL ECUCATIONAL AGENCY ASSESSMENT [SEC. 210. (a) Each local educational agency which desires to re- ceive a payment front the State educational agency pursuant to section 206 shall provide to the State educational agency an assess- ment of the local educational agency's need for assistance in [(1) teacher training, retraining, and inservice training and the training of appropriate school personnel in the areas of mathematics, science, foreign languages, and computer learn- ing, including a description of the availability and qualifica- tions of teachers in the areas of mathematics, science, foreign language, and computer learning, including the qualifications of teachers at the elementary level to teach in such areas; [(2) improving instructional materials and equipment relat- ed to mathematics and science education; and [(3) improving the access to instruction in mathematics, science, foreign languages, and computer learning of historical- ly underserved and underrepresented individuals and of the gifted and talented, and an assessment of the current degree of access to such instruction of such individuals. [(3) Such assessment shall also describe the types of services to be provided pursuant to the program assisted under section 206, a description of how the services assisted will meet the program needs of the local educational agency, and in the second ye_ r for which funds under this title are made available, a description of how the services assisted will address unmet needs described under section 208. [(c) If a local educational agency determines, pursuant to section 206(bXl), that the agency has met its tea-her training, retraining, and inservice training needs in mathematics and science and de- sires to expend all or a portion of its funds on other activities pre- scribed in section 206(bXl)(B), the local educational agency may re- 2 2 9 229 quest the State educational agency to waive such training require- ments. If the State educational agency determines that the local educational agency has met such teacher training needs, the State educational agency shall grant the waiver. [PARTICIPATION OF CHILDREN AND TEACHERS FROM PRIVATE SCHOOLS [SEC. 211, (a) To the extent consistent with the number of chil- dren in the State or in the school district of each local educational agency who are enrolled in private nonprofit elementary and sec- or &try schools, such State or agency shall, after consultation with appropriate private school representatives, make provision for in- cluding services and arrangements for the benefit of such children as will assure the equitable participation of such children in the purposes and benefits of this title. ((b) To the extent consistent with the number of children in the State or in the school district of a local educational agency who are enrolled in private nonprofit elementary and secondary schools, such State, State educational agency, or State agency for higher education shall, after consultation with appropriate private school representatives, make provision, for the benefit of such teachers in such schools, for such inservice and teacher training and retraining as will assure equitable participation of such teachers in the pur- poses and benefits of this title. [(c) If by reason of any provision of law a State or local educa- tional agency is prohlited from providing for the participation of children or teachers from private nonprofit schools as required by subsections (a) and (b), or if the Secretary determines that a State or local educational agency has substantially failed or is unwilling to provide for such participation on an equitable basis, the Secre- tary shall waive such requirements and shall arrange for the provi- sion of services to such children or teachers which shall be subject to the requirements of this section. Such waivers shall be subject to consultation, withholding, notice, and judicial review requirements in accordance with sections 557(b) (3) and (4) of the Education Con- solidation and Improvement Act of 1981. (SECRETARY'S DISCRETIONARY FUND FOR PROGRAMS OF NATIONAL SIGNIFICANCE [SEC. 212. (a) From the amount reserved by the Secretary under section 204(aX2XA), the Secretary is authorized to carry out direct- ly, or through grants, cooperative agreements, or contracts, projects which are authorized by this section. [(bX1) From 75 per centum of the amount available under this section in each fiscal year, the Secretary shall make grants to and enter into cooperative agreements with State and local educational agencies, institutions of higher education, and private nonprofit or- ganizations, including museums, libraries, educational television stations, and professional science, mathematics, and engineering societies and associations for programs of national significance in mathematics and science instruction, computer learning, and for- eign language instruction in critical languages. The Secretary shall give special consideration to provide assistance to local educational agencies, or consortia thereof, to establish or improve magnet 230 230 schools for gifted and talented students. In awarding of grants and cooperative agreements the Secretary shall give special consider- ation to local educational agencies, institutions of higher education, and private nonprofit organizations, including museums, libraries, educational television stations, a.id professional science, mathemat- ics, and engineering societies and associations providing special services to historically underserved and underrepresented popula- tions in the fields of mathematics and science. [(2) The Secretary, from the amount available under paragraph (1) for each fiscal year, shall reserve not to exceed $3,000,000 in each such year for the Director of the National Institute of Educa- tion for the purpose of conducting evaluation and research activi- ties. Such evaluation and research activities shall include [(A) a policy analysis of alternative methods to improve in- struction in mathematics and science; I(B) an annual evaluation of the programs assisted under this title; and [(C) research on improving teacher training, retraining, in- service training, and retention, as well as the development of curriculum and materials in the fields of mathematics and sci- ence. One-half of the funds reserved under this paragraph shall be used for the research activities described in clause (C). [(c) From 25 per centum of the amount available in each fiscal year, the Secretary shall make grants to institutions of higher edu- cation for the improvement and expansion of instruction in critical foreign ianguages. Ed) In determining which languages are critical to national se- curity, economic, and scientific needs, the Secretary shall consult with the Secretary of State, the Secretary of Defense, the Secretary of Health and Human Services, and the Director of the National Science Foundation. The Secretary shall publish in the Federal Register a list of critical foreign languages. [PAYMENTS [SEC. 213. (a) From the amounts appropriated under section 203(b), the Secretary shall pay, in accordance with the provisions of this title, the costs of the programs and activities described in the application approved under section 209, and the costs of programs of national significance under section 212. [(b) Payments under this title shall be made as soon after ap- proval of the application as practicable.] TITLE IIINATIONAL SCIENCE FOUNDATION PROGRAM FOR PARTNERSHIPS IN EDUCATION FOR MATHEMATICS, SCIENCE, AND ENGINEERING * * * * PROGRAM AUTHORIZED SEC. 304. (a) ` " (b) There are authorized to be appropriated $50,000,000 for each of the 4iscal years [1986,] 1986 and 1987[, and 1988], to carry out the provisions of this title. There are authorized to be appropriated 231 231 to carry out the provisions of this title $10,000,000 for fiscal year 1988 and such sums as may be necessary for each of the fiscal years 1989, 1990, 1991 1992, and 1993. s [TITLE VIEXCELLENCE IN EDUCATION PROGRAM [SHORT TITLE [SEC. 601. This title may be cited as the "Excellence in Educa- tion Act". [STATEMENT OF PURPOSE [SEC. 602. It is the purpose of this title to make awards to local educational agencies, after a competitive selection process, in order to carry out programs of excellence in individual schools of such agencies designed to achieve excellence in education, which [(1) demonstrate successful techniques for improving the quality of education, [(2) can be disseminated and replicated, and [(3) are conducted with the participation of school princi- pals, schoolteachers, parents, and business concerns in the lo- cality. [DEFINITIONS [SEC. 603. For the purpose of this title [(1) The term "elementary school" has the same meaning given that term under section 198(aX7) of the Elementary and Secondary Education Act of 1965. [(2) The term "local educational agency" has the same meaning given that term under section 198(aX10) of the Ele- mentary and Secondary Education Act of 1965. [(3) The term "secondary school" has the same meaning given that term under section 198(aX7) of the Elementary and Secondary Education Act of 1965. [(4) The term "Secretary" means the Secretary of Educa- tion.[(5) The term "State" means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. [(6) The term "State educational agency" has the same meaning given that term under section 198(0(17) of the Ele- mentary and Secondary Education Act of 1965. [SCHOOL EXCELLENCE AWARDS AUTHORIZED [SEC. 604. (a) The Secretary is authorized, in accordance with the provisions of this title, to make awards to local educational agencies for school excellence programs which are consistent with the purpose of this title. [(bX1) There are authorized to be appropriated $16,000,000 for each of the fiscal year 1984 and each of the succeeding fiscal years 232 232 ending prior to October 1, 1988, to carry out tile provisions of this title. [(2) From the amount appropriated each fiscal year, the Secre- tary shall reserve $3,000,000 in each fiscal year "in which the ap- propriations for that year exceed $15,000,000" to carry out the pro- visions of section 607. [(3) From tne amount appropriated in each fiscal year, the Sec- retary shall reserve $1,000,000 in each fiscal year "in which the apropriations for that year exceed $15,000,000" to carry out the provisions of section 608. [SELECTION OF SCHOOLS FOR AWARDS [SEC. 605. (aX1) The Secretary is authorized to establish, in ac- cordance with the provisions of this section, criteria for the selec- tion of schools to receive awards under this title. Each local educa- tional agency desiring to participate in the awards program author- ized by this title shall submit a proposal nominating each specific school of that agency for school improvement activities designed to carry out the purpose of this title. Each such submission shall be made to the chief State school officer of the State in which the local educational agency :3 located. E(2) The criteria required by para_rapn (1) of this subsection shall include standards for each local educational agency to nomi- nate schools of that agency E(A) which have the potential to e ieriment with standards of quality; and [(B) which show promise of demonstrating that the school will carry out well- planned, creative, or innovative activities designed to carry out the purposes of this title in a successful manner. ((3) Each proposal submitted under this subsection shall con- tain ((A) a description of the activities which will be conducted in the school nominated, E(B) assurances that the school to be nominate 4 will carry out the activities so des,ribed, and [(C such other information as may be necessary to carry out paragraph (2) of this subsection. [,(bX;XA) The chief State school officer of each State s' n11 in each fiscal year from the proposed nominations made puss .ant to subsection (a) select twenty-five schools for submission to the Secre- tary. [(B) In the case of the Comri.wealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Northern Mariana is- lands, and the Trust Territory of the Pacific Islands, the chief esiu- gational officer of such jurisdiction shall nominat five schools in accordance with this subsection. ((2) In selecting schools from proposed nominations submitted under subsection (a), the chief State school officer shall assure a fair and equitable distribution of schools wfthii1 the State, after considering [(A) all categories of elementary and secondary schools within the State, including elementary schools junior high 243 233 schools, secondary schools, vocational-techn'';a1 schools, or any combination of two or more of the schools; geographic distribution within the State; (B) socioeconomic conditions in the State; (C) (D) school size; (E) the size and location of the community in which the school is located; [(F) the local governmental arrangements betwec n the gov- ernment and the local educational agency making the nomina- tion; [(G) the potential for the proposed project to successfully demonstrate techniques for improving the quality of education which can be disseminated and replacement; and [(1-1) such other relevent as the Secretary may prescribe. [(3) Each State shall submit to the Secretary the school monina- tions made in accordance with this subsection. Each such submis- sion may include such additional information as the chief State school officer (the chief educational officer as prescribed in para- graph (1XB)), and the local educational agency concerned deem ap- propriate. [(cX1) The Secretary shall select not more thar five hundred schools from among the nominations submitted pursuant to subsec tion (b) of this section. The selection uilder this subsection shall be made by the Secretary after an impartial review panel has consid- ered each submission. The review and selection shall be based upon the factors described in subsection (bX2) and in accordance with uniform criteria developed by the Secretary. [(2) In making the selections under paragraph (1), the Secretary shall give priority to proposals which have the highest potential for successfully demonstrating techniques to improve the quality of education and which can be disseminated and replicated. In addi- tion the Secretary shall give priority to proposals which have as their purposes [(A) modernization and improvement of secondary school curricula to improve student achievement in academic or voca- tional subjects, or both, and competency in basic functional skills; [(B) the elimination of excessive and the electives and the establishment of increased graduation requirements in basic sukjects; ((C) improvement in student attendance and discipline through the demonstrations of innovative student motivation techniques and attendance policies with clear sanctions to reduce student absenteeism and tardiness; [(D) demonstrations designed to increase learning time for students; [(E) experimentation providing incentives to teachers, and teams of teachers for outstanding performance, including fi- nancial awards, admr trative relief such as the removal of paperwork and extra d,Lies, and profesp;onal development; [(F) demonstrations to increase student motivation and achievemen' through creative combinations of independent study, team ,eaching, lab() tory experience, technology utiliza- tion and improved cafeer guidance and counseling; or 2;1 4 234 [(G) new and promising models of school-community and school-to-school relationships including the use of nonschool personel to alleviate shortages in areas such as math, science, and foreign language instruction, as well as other partnerships between business and education, including the use of equip- ment. (AMOUNT AND CONDITIONS OF AWARDSS (SEC. 606. (aX1) A school award made to local educational agency pursuant to this title may not exceed $25,000 in any fiscal year or a total of $40,000. [(2) The amount of each individual school award made pursuant to this title shall be determined by the Secretary based upon the size of the school, the number of students enrolled in the school, and the number of teachers teaching in the school. [(b) Awards made under this title may not be made for more than two school years. No individual school may be eligible for any additional award under this title. (SPECIAL SCHOOL AWARDS (SEC. 607. (a) From the amount reserved under section 604(bX2) in any fiscal year, the Secretary is authorized to make awards to schools nominated in accordance with the provisions of section 605 to pay the Federal share of the activities described in the proposal if the local educational agency provides further assurances that funds from the private sector will be contributed for carrying out the activities for which assistance is sought. [(b) For purposes of this section, the Federal share for each fiscal year shall be not less than 67% per centum nor more then 90 per centum. The Secretary shall set the Feder:. share for catego- rLs of school awards based upon uniform cri..ia established by the -ecretary. (RESEARCH, EVALUATION, DISSEMINATION, AND MONITORING ACTIVITIES (SEC. 608. (a) From the amount set aside under section 604(bX3), the Secretary shall conduct research, evaluation, and dissemination activities to assure that exemplary projects and practices which are developed with assistance provided under this title are made avail- able to local educational agencies throughout the United States. [(b) The Secretary shall use such amount of the funds reserved pursuant to section 604(bX3) as is necessary to carry out the provi- sions of this subsection. The Secretary shall establish an independ- ent panel to monitor the success of the programs asssited by this ti le in achieving the national objections in improving instruction and the achievement of the students.] [TITLE VIIMAGNET SCHOOLS ASSISTANCE (AUTHORIZATION OF APPROPRIATIONS (SEC. 701. Tnere are authorized to be appropriated $75,000,000 for each of the fiscal years 1984, 1985, 1986, 1987, and 1988 to carry out the provisions of this title. 235 (ELIGIBILITY [SEC. 702. A local educational agency is eligible to receive assist- ance under this title if the local educational agency [(1) has received $1,000,000 less it the first fiscal year after the repeal of the Emergency School Assistance Act by section 5 of the Omnibus Budget Reconciliation Act of 1981 as a result of the repeal of that Act or [(2) is implementir g a plan undertaken pursuant to a final order issued by court of the United States, or a court of any State, or any other State agency or official of competent juris- diction, and which requires the desegregation of minority group segregated children of faculty in the elementary and sec- ondary schools of such agency; or [(3) without having been required to do so, has adopted and is implementing, ,r will, if assistance is made available to it under this title, adopt and implement, a plan which has been approved by the Secretary adequate under title VI of the Civil Rights Act of 1964 for the desegregation of minority group segregated children or faculty in such schools. [STATEMENT OF PURPOSE [SEC. 703. It is the purpose of this title to support, through fi- nancial assistance to eligible local educational agencies [(1) the elimination, reduction, or prevention of minority group isolation in elementary and secrndary schools with sub- stantial portions of minority students; and [(2) courses of instruction within magnet schools that will substantially strengthen the knowledge of academic subjects and the grasp of tangible and marketable vocational skills of students attending such schools. [PROGRAM AUTHORIZED [SEC. 704. The Secretary is authorized, in accordance with the provisions of this title, to make grants 3 eligible local edocritional agencies for use in magnet schools which are part of an approved desegregation plan and which ai esignc.: to bring students from different social, economic, ethr ,.;al backgrounds together [DE [SEC. 705. For the purpose of ill,. ,.tle the term "magnet school" means a school or education center that offers a special curriculum capable of attracting substantial numbers of students of different racial backgrounds. [USES OF FUNDS [SEC. 706. Grants made uncle,- this title may be used by eligible local educational agencies for [(1) planning and promotional acti\ les directly related to expansion and enhancement of academic programs and serv- ices offered at magnet schools; 236 [(2) the acquisition of books, materials, and equipment in- cluding computers and the maintenance and operation thereof, necessary for the conduct of programs in magnet schools; and [(3) the payment of our subsidization of the compensation of elementary and secondary school teachers who are certified or licensed by the State and who are necessary for the conduct of programs in magnet schools; where with respect to clauses (2) and (3), such assistance is directly related to improving the knowledge of mathematics, science, histo- ry, English, foreign languages, art, or music, or to improving voca- tional skills. [APPLICATIONS AND REQUIREMENTS DEC 707. (a) Each eligible local educational agency which de- sires to receive assistance under this title shall submit an applica- tion to the Secretary. Each such application shall be in such form as the Secretary may reasonably require. Each such application shall contain assurance that the local educational agency will meet the conditions enumerated in subsection (b). [(b) As part of the annual application required by situation (a), each eligible local educational agency shall certify that the agency agrees [(1) to use funds made available under this title for the pur- poses specified in section 703; [(2) to employ teachers in the courses of instruction assisted under this title who are certified or licensed by the State to teach the subject matter of the courses of instruction; [(3) to provide assurances that the local educational agency will not engage in discrimination based upon race, religion, color, or national origin in the hiring, promotion, or assign- ment of employees of the agency or other personnel for whom the agency has any administrative responsibility; [(4) to provide assurances that, the local educational agency will not engage in discrimination based upon race, religion, color, or national origin in the mandatory assignment of stu- dents to schools or to courses of instruction within schools of such agency except to carry ou the approved plan; [(5) to provide assurances that the local educational agency will not engaged in discrimination based upon race, religion, color, or national origin in designing or operating extracurric- ular activities for students; ana [(6) to provide such other assurances as the Secretary deter- mines necessary to carry out the provisions of this title. [(c) No application may be approved under this section unless the Assistant Secretary of Education for Civil Rights determines that the assurances contained in clauses (3X4), and (5) 1 will be met. ESPECIAL CONSIDERATION Pm 708. In approving applications under this title the Secre- tary shall give special consideration to [(1) the recentness of the implementation of the approved plan or modification thereof; 2 (.-4 7 237 [(2) the proportion of minority group children involved in the approved plan; [(3) the need for assistance based on the expense or difficul- ty of effectively carrying out an approved plan and the prc gram or projects for which assistance is sought, and [(4) the degree to which the program or project for which as- sistance is sought affords promise of achieving the purposes of this title. [PROHIBITIONS [SEC. 709. Grants under this title may not be used for consult- ants, for transportation, or for any activity which does not aug- ment academic improvement. [LIMITATION ON PAYMENTS [SEC. 710. (a) No local educational agency may receive a grant under this title for more than one fiscal year unless the Secretary determines that the program for which assistance was provided in the first year is making satisfactory progress in achieving tha pur- poses of this title. [(b) No local educational agency may expand more than 10 per- cent of the amount that the agency receives in any fiscal year for planning. [(c) No State shall reduce the amount of State aid with respect to the provision of free public education or the amount of assist- ance received under chapter 2 of the Education Consolidation and Improvement Act of 1981 in any school district of any local educa- tional agency within such State because of assistance made or to be made available to such agency under this title, except that a State may reduce the amount of assistance received under such chapter 2 if the amount is attributable to clause (3) of section 577 (as in effect prior to the date of enactment of action 502 1 of the Education for Economic Security Act) but only to the extent the amount is so at- tributable. The St cretary may waive the prohibition against the re- duction of assistance received under chapter 2 and permit such a reduction if the State demonstrates that the assistance under such chapter 2 is not necessary to the local education agincy concerned. [PAYMENTS [SEC. 711. The Secretary shall pay to each local educational age:icy having an application under this title the amount set forth in the application. Payments under this title for a fiscal year shall remain available for obligation and expenditure by the recipie it until the end of the succeeding fiscal year. [WITHHOLDING [SEC. 712. The provisions of sections 453 and 454 of the General Education Provisions Act, relating to withholding and cease and desist orders, shall apply to the program authorized by this title.] 2 .r4 8 s 238 ANTI-DRUG ABUSE ACT OF 1986 TITLE IVDEMAND REDUCTION * * s s 4. [Subtitle BDrug-Free Schools and Communities Act of 1986 [SEC. 4101. SHORT TITLE. [This subtitle may be cited as the "Drug-Free Schools and Com- munities Act of 1986". DEC. 4102. FINDINGS. [The Congress finds that: [(1) Drug abuse education and prevention programs are es- sential components of a comprehensive strategy to reduce the demand for and use of drugs throughout the Nation. [(2) Drug use and alcohol abuse are widespread among the Nation's students, not only in secondary schools, but increas- ingly in elementary schools as well. [(3) The use of drugs and the abuse of alcohol by students constitute a grave threat to their physical and mental well- being and significantly impede the learning process. [(4) The tragic consequences of drug use and alcohol abuse by students are felt not only by students and their families, but also by their communities and the Nation, which can ill afford to lose their skills, talents, and vitality. [(5) Schools and local organizations in communities through- out the Nation have special responsibilities to work together to combat the scot of drug use and alcohol abuse. [(6) Prompt action by our Nation's schools, families, and communities can bring significantly closer the goal of a drug- free generation and a drug-free society. [SEC. 4103. PU -POSE. [It is the purpose of this subtitle to establish programs of drug abuse education and prevention (coordinated with related commu- nity efforts and resources) through the provision of Federal finan- cial assistance [(1) to States for grants to local and intermediate education- ai agencies and consortia to establish, operate, and improve local programs of drug abuse prevention, early intervention, rehabilitation referral, and education in elementary and sec- ondary schools (including intermediate and junior high schools); [(2) to States for grants to and contracts with community- based organizations for program of drug abuse prevention, early, intervention, rehabilitation referral, and education for school dropouts and other high-risk youth; [(3) to State for development, training, technical assistance, and coordination activities; 239 [(4) to institutions of higher education to establish, imple- ment, and expand programs of drug abuse education and pre- vention (including rehabilitation referral) for students enrolled in colleges and universities; and [(5) to institutions of higher education in cooperation with State and local educational agencies for teacher training pro- grams in drug abuse education and prevention. [PART 1FINANCIAL ASSISTANCE FOR DRUG ABUSE EDUCATI(01 AND PREVENTION PROGRAMS [SEC. 4111. AUTHORIZATION OF APPROPRIATIONS. [(a) For the purpose of carrying out this subtitle, there a..e au- thor& htl to be appropriated $200,000,000 fiscal year 1987 and $250,000,000 for each of the fiscal years 1988 and 1989. [(b) Appropriations for any fiscal year for payments made under this subtitle in accordance with regulations of the Secretary may be made available for obligation or expenditure by the agency or institution concerned on the basis of an academic or school year differing from such fiscal year. [(c) Funds appropriated for any fiscal year under this subtitle shall remain available for obligation r id expenditure until the end of the fiscal year succeeding the fiscal year for which such funds were appropriated. [(d) Notwithstanding any other provisions of this subtitle, no au- thority to enter into contracts or financial assistance agreements under this subtitle shall be effective except to such extent or in such amounts as are provided in advance in appropriation Acts. [SEC. 4112. RESERVATIONS AND STATE ALLOTMENTS. [(a) From the sums appropriated or otherwise made available to carry out this subtitle for any fiscal year, the Secretary shall re- serve [(1) 1 percent for payments to Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands, to be allotted in accordance with their respective needs; [(2) 1 percent for programs for Indian youth under section 4133; [(3) 0.2 percent for programs for Hawaiian natives under section 4134; [(4) 8 percent for programs with institutions of higher edu- cation under section 4131; [(5) 3.5 percent for Federal activities under section 4132; and [(6) 4.5 percent for regional centers under section 4135. [(b)(1) From the remainder of the sums not reserved under sub- section (a), the Secretary shall allot to each State an amount which bears the same ratio to the amount of such remainder as the school-age population of the State sears to the school-age popula- tion of all States, except that no State shall be allotted less than an amount equal to 0.5 percent of such remainder. [(2) The Secretary may reallot any amount of any allotment to a State to the extent that the Secretary determines that the State will not be able to obligate such amount within two years of allot- 0 240 ment. Any such reallotment shall be made on the same basis as an allotment under paragraph (1). [(3) For purposes of this subsection, the term "State" means any of the fifty States, the District of Columbia, and Puerto Rico. [(4) For each fiscal year, the Secretary shall maks payments, as provided by section 6503(a) of title 31, United States Code, to each State from its allotment under this subsection from amounts appro- priated for that fiscal year. (PART 2-STATE AND LOCAL PROGRAMS [SEC. 41:.1. USE OF ALLOTMENTS BY STATES. [(a) An amount equal to 30 percent of the total amount paid to a State from its allotment under section 4112 for any fiscal year shall be used by the chief executive officer of such State for State pro- gram in accordance with section 4122. [(b) An amount equal to 70 percent of the total amount paid to a State from its allotment under section 4112 for any fiscal year shall be used by the State educational agency to carry out its responsibil- ities in accordance with section 4124 and for grants to local and in- termediate educational egenc:es and consortia for programs and ac- tivities in accordance with section 4125. [SEC 4122. STATE PROGRAMS. [(a) Not more than 50 percent of the funds available for each fiscal year under section 4121(a) to the chief executive officer of a State shall be used for grants to and contracts with local govern- ments and oti r public or private nonprofit entities (including parent groups, community action agencies, and other community- based organizations) for the development and implementation of programs and activities such as [(1) local broadly-based programs for drug and alcohol abuse prevention, early intervention, rehabilitation referral, and edu- caion for all age groups; [(2) training programs concerning drug abuse education and prevention for teachers, counselors, other educational person- nel, parents, local law enforcement officials, judicial officials, other public service personnel, and community leaders; [(3) the development and distribution of educational and in- formational materials to provide public information (through the media and otherwise) for the purpose of achieving a drug free society; [(4) technical assistance to help community-based organiza- tions and local and intermediate educational agencies and con- sortia in the planning and implementation of drug abuse pre- vention, early intervention, rehabilitation referral, and educa- tion programs; [(5) activities to encourage the coordination of drug abuse education and prevention programs with related community of forts and resources, which may involve the use of a broadly representative State advisory council including members of the State board of education, members of local boards of education, parents, teachers, counselors, health and social service profes- sionals, and others having special interest or expertise; and 241 241 [(6) other drug abuse education and prevention activities, c' nsistent with the purposes of this subtitle. [(bX1) Not less than 50 percent of the funds available for each fiscal year under section 4121(a) to the chief executive officer of a State shall be used for innovative community-based programs of co- ordinated services for high-risk youth. The chief executive officer of such State shall make grants to or contracts with local govern- ments and other public and private nonprofit entities (including parent groups community action agencies, and other community- based organizations) to carry out such services. [(2) For purposes of this subsection, the term "high risk youth" means an individual who has not attained the age of 21 years, who is at high risk of becoming or who has been a drug or alcohol abuser, and who [(A) is a school dropout; [(B) has become pregnant; (C) is economically disadvantaged; (D) is the child of a drug or alcohol abuser; (E) is a victim of physical, sexual, or psychological abuse; (F) has committed a violent or delinquent act; (G) has experienced mental health problems; [(H) has attempted suicide; or [(I) has experienced long-term physical pain due to injury. [SEC. 4123. STATE APPLICATIONS. [(a) In order to receive an allotment under section 4112(b), a State shall submit an application to the Secretary. As part of such application, the chief executive officer of the State shall agree to use the funds made available under section 4121(a) in accordance with the requiiements of this part. As part of such application, the State educational agency of the State shall agree to use the funds made available under section 4121(b) in accordance with the re- quirements of this part. [(b) The application submitted by each State under subsection (a) shP.IJ [(1) cover a period of three fiscal years; [(2) be submitted at such time and in such manner, and con- tain such information, as the Secretary may require; E(3) contain assurances that the Federal funds made avail- able under this part for any period will be so used as to supple- ment and increase the level of State, local, and non-Federal funds that would in the absence of such Federal funds be made available for the programs and activities for which funds are provided under this part and will in non event supplant such State, local, and other non-Federal funds; E(4) provide that the State will keep such records and pro- vide such information as may be required by the Secretary for fiscal audit and program evaluation; E(5) contain assurances that there is compliance with the specific requirements of this part; [(6) describe the =later in which the State educational agency will coordinate its efforts with appropriate State health, law enforcement, and drug souse prevention agencies, including the State agency which administers the Alcohol, ? 4 2 242 Drug Abuse, and Mental Health block grant under part B of title XIX of the Public Health Service Act; [(7) provide assurarces that the State educational agency will provide financial assistance under this part only to local and intermediate educational agencies and consortia which es- tablish and implement drug abuse education and prevention programs in elementary and secondary schools; and [",-;) provide for an anrual evaluation of the effectiveness of programs assisted under this part. [SEC. 4124. RESPONSIBILITIES OF STATE EDUCATIONAL AGENCIES. [(a) Each State educational agency shall use a sum which shall be not less than 90 percent of the amounts available under section 412(b) for each fiscal year for grants to local and intermediate edu- cational agencies and consortia in the State, in accordance with ap- plications approved under section 4126. From such sum, the State educational agency shall distribute funds for use among areas served by local or intermediate educational agencies or consortia on the basis of the relative numbers of children in the school-age population within such areas. Any amount of the funds made avail- able for use in any area remaining unobligated for more than one year after the funds were made available may be provided by the State educational agency to local or intermediate educational agen- cies or consortia having plans for programs or activities capable of using such amount on a timely basis. [(b) Each State educational agency shall use not more than 10 percent of the amounts available under section 4121(b) for each fiscal year for such activities as [(1) training and technical assistance programs concerning drug abuse education and prevention for local and intermedi- ate educational agencies, including teachers, administrators, athletic directors, other educational personnel, parents, local law enforcement officials, and judicial officials: [(2) the development, dissemination, implementation, and evaluation of drug abuse education curricular and teaching materials for elementary and secondary schools throughout the State; ((3) demonstration projects in drug abuse education and pre- vention; [(4) special financial assistance to enhance resources avail- able for drug abuse education and prevention in areas serving large numbers of economically disadvantaged children or sparsely populated areas. or to me t special needs; and ((5) administrative costs of the State educational agency in carrying out its responsibilities under this part, not in excess of 2.5 percent of the amount available under section 4121(b). [SEC. 4125. LOCAL DRUG ABUSE EDUCATION AND PREVENTION PRO- GRAMS. ((a) Any amounts made available to local or intermediate educa- tional agencies or consortia under section 4124(a) shall be used for drug and alcohol abuse prevention and education programs and ac- tivities, including [(1) the development, acquisition, and implementation of ele- mentary and secondary school drug .buse education and pre- 243 243 vention curricula which clearly and consistently teach that il- licit drug use is wrong and harmful; [(2) school-based programs of drug abuse prevention and early intervention (other than treatment); [(3) family drug abuse prevention programs, including edu- cation for parents to increase awareness about the symptoms and effects of drug use through the development and dissemi- nation of appropriate educational materials; [(4) orug abuse prevention counseling programs (which counsel that illicit drug use is wrong and harmful) for students and parents, including professional and peer counselors and in- volving the participation (where appropriate) of parent or other adult counselors and reformed abusers; [(5) programs of drug abuse treatrr ant and rehabilitation re- ferral; [(6) programs of inservice and preservice training in drug and alcohol abuse prevention for teachers, counselors, other educational personnel, athletic directors, public service person- nel, law enforcement officials, judicial officials, and community leaders; [(7) programs in primary prevention and early intervention, such as the interdisciplinary school-team approach; [(8) community education programs and other activities to involve parents and communities in the fight against drug and alcohol abuse; [(9) public education programs on drug and alcohol abuse, including programs utilizing professionals and former drug and alcohol abusers; [(10) on-site efforts in schools to enhance identification and discipline of drug and alcohol abusers, and to enable law en- forcement officials to take necessary action in cases of drug possession and supplying of drugs and alcohol to the student population; [(11) special programs and activities to prevent drug and al- cohol abuse among student athletes, involving their parents and family in such drug and alcohol abuse prevention efforts and using athletic programs and personnel in preventing drug and alcohol abuse among all students; and [(12) other programs of drug and alcohol abuse education and prevention, consistent with the purposes of this part. [(b) A local or intermediate educational agency or consortium may receive funds under this part for any fiscal year covered by an application under section 4126 approved by the State educational agency. [SEC. 4126. LOCAL APPLICATIONS. [(aX1) In order to be eligible to receive a grant under this part for any fiscal year, a local or intermediate educational agency or consortium shall submit an application to the State educational agency for approval. [(2) An application under this section shall be for a period not to exceed 3 fiscal years and may be amended annually as may be nec- essary to reflect changes without filing a new application. Such ap- plication shall- 2 4 4r, 244 [(A) set forth a comprehensive plan for programs to be car- ried out by the applicant under this part; [(B) contain an estimate of the cost for the establishment and operation of such programs; [(C) establish or designate a local or substate regional advi- sory council on drug abuse education and prevention composed of individuals who are parents, teachers, officers of State and local government, medical professionals, representatives of the law enforcement community, community-based organizations, and other groups with interest and expertise in the field of drug abuse education and prevention; [(D) describe the manner in which the applicant will estab- lish, implement, or augment mandatory age-appropriate, devel- opmentally-based, drug abuse education and prevention pro- grams for students throughout all grades of the schools operat- ed or served by the applicant (from the early childhood level through grade 12) and provide assurances that the applicant enforces related rules and regulations of student conduct; [(E) describe the rnannel in which the applicant will coordi- nate its efforts under this part with other programs in the community related to drug abuse education, prevention, treat- ment, and rehabilitation; [(F) provides assurances that the applicant will coordinate its efforts with appropriate State and local drug and alcohol abuse, health, and law enforcement agencies, in order to effec- tively conduct drug and alcohol abuse education, intervention, and referral for treatment and rehabilitation for the student population; [(G) provide assurances that the Federal funds made avail- able under this part shall be used to supplement and, to the extent practical, to increase the level of funds that would, in the absence of such Federal funds, he made available by the applicant for the purposes described in this part, and in no case supplant such funds; [(H) provide assurances of compliance with the provisions of this part; (SD agree to keep such records and provide such information to the State educational agency as reasonably may be required for fiscal audit and program evaluation, consistent with the re- sponsibilities of the State agency under this part; and [(J) include such other information and assurances as the State educational agency reasonably determines to be neces- sary. [PART 3-NATIONAL PROGRAMS [SEC. 4131. GRANTS TO INSTITUTIONS OF HIGHER EDUCATION. [(aX1) From sums reserved by the Secretary under section 4112(aX4) for the purposes of this section, the Secretary shall make grants to or enter into contracts with institutions of higher educa- tion or consortia of such institutions for drug abuse education and prevention programs under this section. [(2) The Secretary shall make financial assistance available on a competitive basis under this section. An institution of higher edu- 2 4 5 245 cation or consortium of such institutions which desires to receive a grant to enter into a contract under this section shall submit an application to the Secretary at such time, in such manner, and con- taining or accompanied by such information as the Secretary may reasonably require in accordance with regulations. C(3) The Secretary shall make every effort to ensure the equita- ble participation of private and public institutions of higher educa- tion (including community and junior colleges) and to ensure the equitable geographic participation of such institutions. In the award of grants and contracts under this section, the Secretary shall give appropriate consideration to colleges and universities of limited enrollment. ((4) Not less than 50 percent of sums available for the purposes of this section shall be used to make grants under subsection (d). ((b) Training grants shall be available for ((1) preserviee and inservice training and instruction of teachers and other personnel in the field of drug abuse educa- tion and prevention in elementary and secondary schools; ((2) summer institutes and workshops in instruction in the filed of drug abuse education and prevention; ((3) research and demonstration programs for teacher train- ing and retraining in drug abuse education and prevention; ((4) training programs for law enforcement officials, judicial officials, community leaders, parents, and government officials. L(c) Grants shall be available for model demonstration programs to be coordinated with local elementary and secondary schools for the development and implementation of quality" drug abuse educa- tion curricula. In the award of grants under this subsection, the Secretary shall give priority consideration to joint projects involv- ing faculty of institutions of higher education and teachers in ele- mentary and secondary schools in the practical application of the findings of educational research and evaluation and the integration of such research drug abuse education and prevention programs. ((d) Grants shall be available under this subsection to develop, implement, operate, aril improve programs of drugs abuse educa- tion and prevention (including ehabilitation referral) for students enrolled in institutions of higher education. ((e) In making grants under paragraph (1) and (2) of subsection (b), the Secretary shall encourage projects which provide for coordi- nated and collaboi ative efforts between State educational agencies, local educational agencies, and regional centers established under section 4135. [SEC. 4132. FEDERAL ACTIVITIES. ((a) From sums reserved by the Secretary under section 4112(a)(5), the Secretary shall carry out the purposes of this section. ((b) The Secretary of Education in conjunction with the Secre- tary of Health and Human Services shall carry out Federal educa- tion and prevention activities on drug abuse. The Secretary shall coordinate such drug abuse education and prevention activities with other appropriate Federal activities related to drug abuse. The Secretary shall ((1) provide information on drug abuse education and preven- tion to the Secretary of Health and Human Services for dissemi- 246 nation by the clearinghouse for alcohol a, drug abuse information established under section 509 of the Public Health Service Act (as amended by this Act); [(2) facilitate the utilization of appropriate means of commu- nicating to students at all educational levels about :he dangers of drug use and alcohol abuse, especially involving the partici- pating of entertainment p-Tsonalit s and athletes who are recognizable role models for many young people; [(3) develop, publicize the availability of, and widely dissemi- nate audio-visual end other curriculanathrials for drug abuse education and prevention programs in elementary and second- ary schools throughout the Nation; [(4) provide technical assistance to State, local, and inter- mediate education agencies and consortia in the selection and implementation of drug abuse education and prevention curric- ula, approaches, and programs to address most effectively the needs of the elementary and secondary schools served by such agencies; and [(5) identify research and development priorities with regard tc school - bases: '-ug abuse education and prevention, particularly age - appropriate programs focusing on kindergar- ten through grade 4. I(c) From the fu .ds available to carry out this sect;on, the Secre- tary shall make available $500,000 to tae Secretary of Health and Human Services for the clearinghouse established under section 509 of the Public Health Service Act (as amended by this Act). I(d) The Secretary of Education in conjunction with the Secre- tary of Health and Human Services shall conuuct, directly or by contract, a study of the nature and effectiveness of existing Feder- al, State, and local programs of drug abuse education and preven- tion and shall submit a report of the findings of such study to thc President and to the appropriate committe 3 of the Congress not later than one year after the date of the enactment of this Act. (SEC. 4133. PROGRAMS FOR INDIAN YOUTH. UaX1) From the funds reserved pursuant to section 4112(a)(2), the Secretary shall make payments and grants and enter into other financial arrangements far Indian programs in accordance with this subsection. ((2) The Secretary of Education shall enter into such financial arrangements as the Secretary determines will best carry out the purposes of this title to meet f_le needs of Indian children on reser- vations serviced by elementary and secondary schools operated for Indian children V v the Department of the Interior. Such arrange- ments shall be r. Ade pursuant to an agreement between the Secre- tary of Education and the Secretary of the Interior containing such assurances and terms as they determine will best achieve the pur- poses of this title. I(3) The Secretary of Education may, upon request of any Indian tribe whi"h is eligible to contract wi... the 3ecretary of the Interior for the administration of programs under the Indian Self-Determi- nation Act or under the Act of April 16, 1934, enter into grants or contracts with any tribal organization of any such Indian tribe to 102n conduct, and administer programs which are authorized and rousiocent with the purposes of this title (particularly programs for 247 247 Indian children who are school dropouts), except that such grants or contracts shall be subject to the terms and conditions of section 102 of the Indian Self-Determination Act and shall be conducted in accordance with sections 4, 5, ani 6 of the Act of April 16, 1934, which are relevant to the programs administered under this para- graph. [(4) Programs funded under this subsection shall be in addition to stuc other programs. services, and activities as are made avail- - able to eligible Indians under other provisions of this subtitle. [(bX1) Section 3.14 of the Indian Elementary and Secondary School Assistance Act (20 U.S.C. 241cc) is amended by (A) striking out "and" at the end of paragraph (1); (B) striking out the period at the end of paragraph (2) an inserting in lieu thereof "; and"; and [(C) adding at the end the following new paragraph: ["(3) the training of counselors at schools eligible for fund- ing under this title in c'innseling techniques relevant to the treatment of alcohol and substance abuse.". [(2) Section 423 of the Inc ian ,ducation Act (20 U.S.C. 3385b) is amended [(A) in subsection (a), by inserting "clinical psychology," after "medicine,"; and [(B) by adding at the end of the section the following new subsection: ["(e) Not more than 16 percent of the fellowships awarded under subsection (a) shall be awarded, on a priority basis, to persons re- ceiving training in guidance counseling with a specialty in the area of alcohol and substance abuse counseling and education.". [(3) Section 1121 of the Education Amendments of 1978 is amended by adding at the end the following i.ew subsection: [(iX1) All schools funded by the Bureau of Indian Affairs shall include within their curriculum a program of instruction relating to alcohol Ind substance abuse prevention and treatment. The As- sistant Secretary shall provide the technical assistance necessary to develop and implement such a program for students in kindergar- ten and grades 1 through 12, at the request of ["(A) any Bureau of Indian Affairs school (subject to the ap- proval of the school board of such school); or ["(B) any school board of a school operating under a con- tract entered into under the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450 et seq.). ["(2) In schools operated directly by the Bureau of Indian Af- fairs, the Secretary shall, not later than 120 days after the date of the enactment of this subsection, provide for ["(A) at,zurate reporting of all incidents relating to alcohol and substance) abuse; and ["(B) individual student crisis intervention. ["(3) The programs requested under paragraph (1) shall be devel- oped in consultation with th Indian tribe that is to be served by such program and health personnel in the local community of such tribe. E-(4) Schools requesting program assistance under this subsec- tion are encouraged t^ involve family units and, where appropriate, tribal elders and Native healers in such instruction." 24 8 248 [(4) Section 1129 of the Educational Amendments of 1978 is amended by adding at the end the following new subsection: ["(eX1) A financial plan under subsection (b) for a school may include, at the discretion of the local administrator and the school board of such school, a provision for a summer program of academ- ic and support services for students of the school. Any such pro- gram may include activities related to the prevention of alcohol 'and substance abuse. The Assistant Secretary of Indian Affairs shall provide for the utilization of any such school facility during any summer in which such utilization is requested. F"(2) Notwithstanding any other provision of law, funds author- ized under the Act of April 16, 1934 (25 U.S.C. 452 et seq.) and the Indian Education Act may be used to augment the services provid- ed in each summer program at the option, and under the control, of the tribe or Indian controlled school receiving sucn funds. ["(3) The Assistant Secretary of Indian Affairs, acting through the Director of the Office of Indian Education Programs, shall pro- vide technical assistance and coordination for any program de- scribed in paragraph (1) and shall, to the extent possible, encourage the coordination of such programs with any other summer pro- grams that might benefit Indian youth, regardless of the funding source or administrative entity of any such program.". [SEC. 4134. PROGRAMS FOR HAWAIIAN NATIVES. [(a) From the funds reserved pursuant to section 4112(aX3), the Secretary shall enter into contracts with organizations primarily serving and representing Hawaiiar, natives which are recognized by the Governor of the State of Hawaii to plan, conduct, and ad- minister programs, or portions thereof, which are authorized by and consistent with the provisions of this subtitle for the benefit of Hawaiian natives. [(b) For the purposes of this section, the term "Hawaiian native" means any individual any of whose ancestors were natives, prior to 1778, of the area which now comprises the State of Hawaii. [SEC. 4135. REGIONAL CENTERS. [The Secretary shall use the amounts made available to carry out this section for each fiscal year to maintain 5 regional centers to [(1) trail-. school teams to assess the scope and nature of their drug abuse and alcohol abuse problems, mobilize the com- munity to address such problems, design appropriate curricula, identify students at highest risk and refer them to appropriate treatment, and institutionalize long term effective drug and al- cohol abuse, programs, including long range technical assist- ance, evaluation, and followup on such training; [(2) assist State educational agencies in coordinating and strengthening drug abuse and alcohol abuse education and pre- vention programs; [(3) assist local educational agencies and institutions of higher education in developing appropriate pre-service and in- iervice training progran s to educational personnel; and [(4) evaluate and d;sseminate information on effective drug abuse and alcohol abuse education and prevention programs and strategies. 249 [PART 4GENERAL PROVISIONS [SEC. 4141. DEFINITIONS. [(a) Except as otherwise provided, the terms used in this subtitle shall have the meaning provided under section 595 of t' Educa- tion Consolidation and Improvement Act of 1981. [(b) For the purposes of this subtitle, the following terms have the following meanings. [(1) The term "drug abuse education and prevention" means prevention, early intervention, rehabilitation referral and edu- cation related to the abuse .1 alcohol and the use and abuse of controlled, illegal, add'' Live, or harmful substances. [(2) The terra "illicit drug use" means the use of illegal drugs and the abuse of other drugs and alcohol. [(3) The term "Secretary' means the Secretary of Educa- tion. [(4) The term "school-age population" means the population aged five through seventeen (ir.clusive), as determined by the Secretary on the basis of the most recent satisfactory data available from the Department of Commerce. [(5) The term "school dropout" means an individual aged five through eighteen who is -tot attending any school and who has not received a secondary school diploma or a certificate from a program of equivalency for such a diploma. [(6) The term "State" means a State, the District of Colum- bia, Puerto Rico, Guam, American Samoa, the Northern Marina Islands, the Trust Territory of the Pacific Islands, or the Virgin Islands. [(7) The terms "institution of higher education", "secondary school", and "nonprofit" have the meanings provided in sec- tion 1001 of the Elementary and Secondary Education Act of 1965 in effect prior to October 1, 1981. [(8) The term "consortium" (except in section 4131) means a consortium of local educational agencies or of one or more in- termediate educational agencies and one or more local educa- tional agencies. [SEC. 4142. FUNCTIONS OF THE SECRETARY OF EDUCATION. [(a) The Secretary shall be responsible for the administration of the programs authorized by this subtitle. [(b) Except as otherwise provided, the General Education Provi- sions Act shall apply to programs authorized by this subtitle. [SEC. 4143. PARTICIPATION OF CHILDREN AND TEACHERS FROM PRI- VATE NONPROFIT SCHOOLS [(a) To the extent consistent with the number of school-age chil- dren in the State or in the school attendance area of a local or in- termediate educational agency or consortium receiving financial as- sistance under part 2 who are enrolled in private nonprofit elemen- tary and secondary schools, such State, agency, or consortium shall, after consultation with appropriate private school represent- atives, make provision for including services and arrangements for the benefit of such children as will assure the equitable participa- tion of such children in the purposes and benefits of this subtitle. 250 250 [(b) To the extent consistent with the number of school-age chil- dren in the State or in the school attendance area of a local or in- termediate educational agency or consortium receiving financial as- sistance under part 2 who are enrolled in private nonprofit elemen- tary and secondary schools, such State, State educational agency, or State agency for higher education shall, after consultation with appropriate private school representatives, make provision, for the benefit of such teachers in such schools, for such teacher training as will assure equitable part. cipatit._, of such teachers in the pur- poses and benefits of this subtitle. [(c) If by reason of any provision of law a State, local, or inter- mediate educational agency or consortium is prohibited from pro- vidiy-g for the participation of children or teachers from private nonprofit schools as required .4 subsections (a) and (b) or, if the Secretary determines that a State, local, or intermediate education- al agency or consortium has substantially failed or is unwilling to provide for such participation on an ecuitable basis, the Secretary shall waive such requirements and shall arrange for the provision of services to such children or teachers which shall be subject to the requirements of this section. Such waivers shall be subject tc consultation, withholding, notice, and judicial review requirements in accordance with paragraphs (3) and (4) of section 557(b) of the Education Consolidation und Improvement Act of 1981. (SEC. 4144. MATERIALS. [Any materials produced or distributed with funds made avail- able under this subtitle shall reflect the message that illicit drug use is wrong and harmful. The Seer( 'ry shall not review curricula and shall not promulgate regulatio- ,s to carry out this subsection or subparagraph (1) or (4) of section 4125(a).] , * * * * , * EDUCATION AMENDMENTS OF 1984 * 4. * [TITLE VIEMERGENCY IMMIGRANT EDUCATION ASSISTANCE [SHORT TITLE [DEFINITIONS [SEC. 602. A. used in this title [(1) The term "immigrant cli,:dren" means children who were not born ir. any State and who have been atter 'ing schools in any oi..3 or more States for less than three complete academic years. [(2) The terms "elementary school", "local educational agency". "secondary school", "State", and "State educational agency" have the meanings given such terms under section 198(a) of the Elementary and Secondary Education Act of 1965. [(3) The term "elementary or secondary nonpublic schools" means schools which comply with the applicable compulsory attendance laws of the State and which are exempt from tax- 251 251 ation under section 501(c)(3) of the Internal Revenue Code of 1954. E(4) The term "Secretary" means the Secretary of Educa- tion. [AUTHORIZATIONS AND ALLOCATION OF APPROPRIATIONS [SEC. 603. (a) There are authorized to be appropriated to make payments to which State educational agencies are entitled under this t.-__e and payments for administration under section 604 $30,000,000 for fiscal year 1985, and $40,000,000 for fiscal year 1986 and for each of the three succeeding fiscal years. [(bX1) If the sums appropriated for any fiscal year to make pay- ments to States under this title are not sufficient to pay in full the sum of the amounts which State educational agencies are entitled to receive under this title for each year, the allocations to State educational agencies shall be ratably reduced to the extent neces- sary to bring the aggregate of such allocations within the limits of the amounts so appropriated. [(2) In the event that funds become available for making pay- ments under this title for any period after allocations have been made under paragraph (1) of this subsection hr such period, the amounts reduced under such paragraph shall be increased on the same basis as they were reduced. ESTATE ADMINISTRATIVE COSTS [SEC. 604. The Secretary is authorized to pay to each State educa- tional agency amounts equal to the amounts expended by it for t1.9 proper and efficient administration of its functions under this title, except that the total of such payments for any period shall not exceed 1.5 per centum of the amounts which that State educational agency is entitled to receive for that period under this title. (WITHHOLDING [SEc. 605. Whenever the Secretary, after reasonable notice and opportunity for a hearing to any State educational agency, finds that there is a failure to mee the requirements of any provision of this title, the Secretary shall notify that agency that further pay- ments will not be made to the agency under this title, or in the discretion of the Secretary, that the State educational agency shall not make further payments under this title to specified local educa- tional agencies whose actions cause or are involved in such failure until the Secretary is satisfied that there is no longer any such fail- ure to comply. Until the Secretary is so satisfied, no further pay- ments shall be made to the State educational agency under this title or payments by the State educational agency under this title shall be limited to local educational agencies whose actions did not cause or were not involved in the failure, as the case may be. ESTATE ENTITLEMENTS Pm 606. (a) The Secretary shall, in accordance with the provi- sions of this section, make payments to State educational agencies for each of the fiscal years 1985, 1986, 1987, 1988, and 1989 for the purpose set forth in section 607. 2:, 2 252 [(bX1) Except as provided in paragraph (3) and in subsections (c) and (d) of this section, the amount of the grant to which a State educational agency is entitled under this title shall be equal to the product of (A) the number of immigrant children "nrolled during such fiscal year in elementary and secondary pub schools under the jurisdiction of each local educational agency described under paragraph (2) within that State, and in any elementary or second- ary nonpublic school within the district served by each such local educational agency, multiplied by (B) $500. [(2) The local educational agencies referred to in paragraph (1) are those local educational agencies in which the sum of the number of immigrant children who are enrolled in elementary or secondary public schools under the jurisdiction of such agencies, and in elementary or secondary nonpublic schools within the dis- trict served by such agencies, during the fiscal year for which the payments are to be made under this title, is equal to [(A) at least five hundred; or [(B) at least 3 per centum of the total number of students enrolled in such public or nonpublic schools during such fiscal Tar; whichever number is less [(3XA) The amount of the grant of any State educational agency for any fiscal year as determined under paragraph (1) shall be re- duced by the amounts made available for such fiscal year under any other Federal law for expenditure within the State for the same purpose as those for which funds are available under this title but such reduction shall be made only to the extent that (i) such amounts are made available for such purpose specifically be- cause of the refugee, parollee,' asylee, or other immigrant status of the individuals served by such funds, and (ii) such amount are made available to provide assistance to individuals eligible for serv- ices under this title. [(B) No reduction of a grant under this title shall be made under subparagraph (A) of any fiscal year if a reduction is made, pursu- ant to a comparable provision in any such other Federal law, in the amount made available for expenditure in the State for such fiscal year under such other Federal law, based on the amount as- sumed to be available under this title. [(cX1) Determinations by the Secretary under this section for any period with respect to the number of immigrant children shall be made on the basis of data or estimates provided to the Secretary by each State educational agency in accordance with criteria estab- lished by the Secretary, unless the Secretary determines, after notice and opportunity for a hearing to the affected State educa- tional agency, that such data or estimates are clearly erroneous. [(2) No such determination with respect to the number of immi- grant children shall operate because of an underestimate or overes- timate to deprive any State educational agency of its entitlement to any payment (or the amount thereof) under this section to which such agency would be entitled had such determination been made on the basis of accurate data. [(d) Whenever the Secretary determines that any amount of a payment made to a State under this title for a fiscal year will not be used by such State for carrying out the purpose for which the 253 253 payme t was made, the Secretary shall make such amount avail- able for carrying out such purpose to one or more other States to the extend the Secretary determines that such other States will be able co use such additional amount for carrying out such purpose. Any amount made available to a State from an appropriation for a fiscal year in accordance with the preceding sentence shall, for pur- poses of this title, be regarded as part of such State's payment (as determined under subsection OA for such year, but shall remain available until the end of the succeeding fiscal year. [USES OF FUNDS [SEC. 607, (a) Payments made under this title to any State may be used in accordance with applications approved under section 608 for supplementary educational services and costs, as described under subsection (b) of this section, for immigrant children enrolled in the elementary and secondary public schools under the jurisdic- tion of the local educational agencies of the State described in sec- tion 606(bX2) and in elementary and secondary nonpublic schools of that State within the districts served by such agencies. [(b) Financial assistance provided immigrint children supple- mentary educational services, including but not limited to [(1) supplementary educational services necessary to enable those children to achieve a satisfactory level of performance, including- [(A) English language instruction; [(B) other bilingual educational services; and [(C) special materials and supplies; [(2) additional basic instructional services which are directly attributable to the Presence in the school district of immigrant children, including the costs of providing additional classra nn supplies, overhead costs, costs of cons uction, acquisition or rental of space, costs of transportation, or such other costs as are directly attributable to such additional basic instructional services; and [(3) essential inservice training for personnel who will be providing instruction described in either paragraph (1) or (2) of this subsection. [APPLICATIONS 'SEC. 608. (a) No State educational agency shall be entitled to . ,3, payment under this title for any period unless that agency sub- mits an application to the Secretary at such time, in such manner, and containing or accompanied by such information, as the Secre- tary may reasonably require. Each such application shall [(1) provide 'hat the educational programs, services, and ac- tivities for which payments under this title are made will be administered by or under the supervision of the agency; [(2) provide assurances 11-zt payments under this title will be used for purposes set forth in section 607; [(3) provide assurances that such payments will be distribut- ed among local educational agencies within that State on the basis of the number of children counted with respect to such local educational agency under section 606(b)1), adjusted to re- flect any reductions imposed pursuant to section 606(b)(3) which are attributable to such local educational agency; 2Zi 4 254 [(4) provide assurances that the State educational agency will not finally disapprove in whole or in part any application for funds received under this title without first affording the local educational .gency submitting an application for such funds reasonable notice and opportunity for a hearing, [(5) provide for making such reports as the Secretary may, rasonably require to perform the functions under this title; and [(6) provide assurances [(A) that to the extent consistent with the number of immigrant children enrolled in the elementary or second- ary nonpublic schools within the district served by a local educational agency, such agency, after consultation with appropriate officals of such schools, shall provide for the benefit of these children secular, neutral, and nonideologi- cal cervices, materials, and equipment necessary for the education of such children; [(B) that the control of funds provided under this title and the title to any materials, equipment, and property re- paired, remodeled, or constructed with those funds shall be in a public agency for the uses and purposes provided in this title, and a public agency shall administer such funds and property; and [(C) that the provision of services pursuant to this para- graph shall be provided by employees of a public agercy or through contract by such public agency with a person, as- sociation, agency, or corporation who or which, in the pro- vision or such services, is independent of such elementary or secondary nonpublic school and of any religious organi- zation; and such employment or contract shall be under the control and supervision of such public agency, and the funds provided under this paragraph shall not be commin- gled with State or local funds. [(b) `.1. ie Secretary shall approve an application which meets the requirements of subsection (a). The Secretary shall not finally dis- approve an application of a State educational agency except after reasonable notice and opportunity for a hearing on the record to such agency. [PAYMENTS [SEC. 609. (a) Except as provided in section 603(b), the Secretary shall pay to each State educational agency having an application approved under section 608 the amount which that State is entitled to receive under this title. [(b) If by reason of any provision of law a local educational agency is prohibited from providing educational services for chil- dren enrolled in elementary and secondary nonpublic schools, as required by section 608(aX6), or if the Secretary determines that a local educational agency has substantially failed or is unwilling to provide for the participation on an equitable basis of children en- rolled in such schools, the Secretary may waive such requirement and shall arrange for the provision of services to such children through arrangements which shall be subject to the requirements 2 :15 255 of this title. Such waivers she" be subject to consultation, with- holding, notice, and judicial review requirements in accordance with section 557(b) (3) and (4) of the Education Consolidation and Improvement Act of 1981.] a a a a a EDUCATION AMENDMENTS OF 1978 a a a a a a TITLE XIINDIAN EDUCATION a a a a a PART BBUREAU OF INDIAN AFFAIRS PROGRAMS STANDARDS FOR THE BASIC EDUCATION OF INDIAN CHILDREN IN BUREAU OF INDIAN AFFAIRS SCHOOLS SEC. 1121. (a) ' " ' * ' ' ' ' [(gXl) Except as specifically required bT statute, no school or pe- ripheral dormitory operated by the Bureau of Indian Affairs on or after the date of enactment of the Indian Education Technical Amendments Act of 1985 may be closed or consolidated or have its program substantially curtailed unless done according to the re- quirements of this subsection, except that, in those cases where the tribal governing body, or the local school board concerned (if so des- ignated by the tebal governing body), requests closure or consolida- tion, the requirements of this subsection shall not apply. The re- quirements of this subsection shall not apply when a tempt ary closure, consolidation, or substantial curtailment is required by plant conditions which constitute an immediate hazard to health and safety. [(2) The Secretary shall, by regulation, promulgate standards and procedures for the closing, consolidation, or substantial curtail- ment of Bureau schools in accordance with the requirements of this subsection.] (g)(1) All Bureau funded schools and dormitories (including but not limited to those operated by the Bureau under contract or grant with the Bureau, those scheduled within appropriations or adminis- trative action to begin or to be expanded as of January 1, 1987, those eligible for contract under the Indian Self-Determination and Education Assistance Act (P.L. 93-638), those eligible to receive a grant under subtitle B of this title and the facilities improvements, and repairs and new construction associated with such schools and dormitories) which operated or were funded as of January 1, 1987, or which are funded after such date by the Bureau under any au- thorit:, are hereby specifically recognized and authorized by Con- gress. (2) No education program covered under this subsection may be terminated, transferred to any other authority or consolidated or have its programs substantially curtailed without the express per- mission of Congress except upon formal request of the tribal council where only one tribe is provided services, or where the facility serves _.2 1 G 256 a multitribal base. the tribal councils representing an aggregate of 90 percent or more of the students served by the school under consid- eration. (3) [Such staneards and procedures shall require that when- ever] Whenever closure, transfer to any other authority, consolida- tion, or substantial curtailment of a school is under active consider- ation or review by any division of the Bureau or the Department of the Interior, the affected tribe, tribal governing body, and designat- ed local school board, will be notified as soon as such consideration or review begins, kept fully and cui rently informed, and afforded an opportunity to comment with respect to such consideration or review. When a formal decision is made to close, transfer to any other authority, consolidate, or substantially curtail a school, the affected tribe, tribal governing body, and designated local school board shall be notified at least 6 months prior to the end of the school year preceding the proposed effective date. Copies of any such notices and information shall be transmitted promptly to the Con- gress and published in the Federal Register. (4) The Secretary shall make a report to Congress, the affected tribe, and the designated local school board describing the process of the active consideration or review referred to in paragraph (3). At a minimum, the report shall include a study of the impact of such action on the student population, with every effort to identify those students with particular educational and social needs, and to insure that alternative services are available to such students. Such report shall include the description of the consultat;Jn con- ducted between the potential service provider, current service pro- vider, parents, tribal representative and the tribe or tribes in- volved, and the Director of the Office of Indian Education Pro- grams within the Bureau regarding such students. No irreversible action may be taken in futherance of any such proposed school clo- sure, transfer to any other authority, consolidation, or substantial curtailment (including any action which would prejudice the per- sonnel or programs of such school) until the end of the first full academic year after such report is made. (5)(A) Subject to subparagraph (B), the requirements of para- graphs (2), (3), and (4) shall not apply when temporary closure, con- solidation, or substantial curtailment is required by facility condi- tions which constitute an immediate hazard to health and safety, except that (i) no action under this provision can be for longer than one academic year or one calendar year, whichever is shorter, and (ii) no action may be takat until the Bureau has requested, and pro- vided a reasonable period for the conduct of an inspection by the appropriate tribal or country, State, or municipal building inspector, to determine the presence of an immediat, threat to health and safety. (BXi) No building insfector other than one designat d by the tribe shall make a inspection under this paragraph unless notice is given to the involved tribes at the same time that the request is made. (ii) No action shall be taken under this paragraph if the inspec- tion by the outside inspector finds no immediate hazard to health and safety. 2 ri 7 257 (6) The Assistant Secretary shall develop regulations to estab- lish new schools and to make program expansions in existing schools operated by the Bureau, and contracted under the Indicn Self- Def'rmination and Education Assistance Act, except that no rtzulations may be promulgated which base the decision primarily upon the geographic proximity of public edu- cation, and which do not give equal weight to geographic and demographic factors, the history and record of success or failure of the programs offered by the Bureau and by all alternative providers or potential providers of education services for the students under consideration, and the input of all parties, in- cluding the public school. (7) Notwithstanding any other provision of law, subject to a determination by the local school board, the schools at the Pueblo of Zia and the Tama Settlement shall expand to kinder- garten through grade 8. NATIONAL CRITERIA FOR DORMITORY SITUATIONS SEC. 1122. (a) * (d) Th, standards under this section shall be subject to the waiver provisions in section 1121(d), provided that no school in operation on or before January 1, 1987 (regardless of compliance or noncompli- ance with these standards) may be closed, transferred to another au- thority, consolidated or have its program substantially curtailed for failure to meet these standards. Before February 1, 1988, the Assist- ant Secretary sAcill sub nit to Congress a report detailing the costs associated with, and the actions necessary for, complete compliance with the standards under this section. [(d)] (e) There are hereby authorized to be appropriated such sums as may be necessary in order to bring each school up to the level required by the criteria established under this section. [REGULATIONS [SAC. 1123. The Secretary shall establish such regulations as ar-s necessary to carry out sections 1121 and 1122 within eighteen months after the date of enactment of this Act.] REGULATIONS SEC. 1123. (a) The provisions of 25 CFR parts 31, 32, 33, 36, 39, 42, 43, as in . ffect on January 1, 1986 are hereby incc-porated and made a part of this Act. Except as may be specifically authorized by law, such provisions may not be changed or amended. (b) Except as required by Public Law 99-288 or as may be specifi- cally required by this Act or any subsequent Act, the Assistant Sec- retary for Indian Affairs or the Secretary of the Interior shall pub- lish no regulations, guidelines, policies, or procedures of general effect on the issues covered by such provisions. 72-850 87 - 9 2 258 ALLOTMENT FORMULA SEC. 1128. (a) The Secretary shall establish, by regulation adopt- ed in accordance with section 1138, a formula for determining the minimum annual amuunt of funds necessary to sustain each Bureau or contract school. In establishing such formula, the Secre- tary shall consider (1) the number of eligible Indian students served and size of the school; (2) special cost factors, suchas (A) isolation of the school; (B) need for special staffing, transportation, or educa- tional programs; (C) food and housing costs; (D) maintenance and repair costs associated with the physical condition of the educational facilities; (E) special transportation and other costs of isolated and small schools; (F) the costs of boarding arrangements, where deter- mined necessary by a tribal governing body or designated local school board; (G) costs associated with greater lengths of service by educational personnel; and (H) special programs for gifted and talented students; (3) cost of providing academic services which are at least equivalent to those provided by public schools in the State in which the school is located; (4) such other relevant factors as the Secretary determines are appropriate. For the fiscal year 1989 and for each subsequent fiscal year in which the Assistant Secretary does not provide funds to educational programs in accordance with the last sentence of this subsection, the Assistant Secretary shall use a weighted student unit of 1.2 for stu- dents in the seventh and eighth grades; shall use a factor of 200 stu- dents when determining an adjustment for a small school factor; and, where requested by the local supervisor and school board, shall make provision in the formula for the provision of residential serv- ices on a less than 9-month basis. [(c)(1) The formula established under subsection (a) of this sec- tion shall be implemented for fiscal year 1980 and each succeding fiscal year, except that [(A) for fiscal year 1980, no school shall as a consequence of such formula receive less than 90 per centum, nor more than 120 per centum, of the funds it recived from Bureau education funds for fiscal year 1979; [(B) for fiscal year 1981, no school shall as a consequence of such formula receive less then 70 per centum, nor more than 170 per centum, of the funds it received from Bureau education funds for fiscal year 1979; and [(C) for fiscal year 1982 and any succeeding fiscal year the formula shall be fully implemented. 2 259 [(2) All Buteau and contract schools receiving funds under this section shall receive an equal amount as an allowance for local school board training and activities including, notwithstanding any other provis..3n of law, meeting expenses aril the cost of member- ship in or support of organizations engaged in activities on behalf of Indian education. [(3) The Secretary shall, subject to appropriations, provide to all contract schools an amount for administrative and indirect costs which is at least equal to the amount which would be expended by the Secretary if such school were directly operated by the Secre- tary. The Secretary shall take such actions as are necessary to pro- vide contract schools with the full amount as determined by this paragraph without reducing funds available under subsection (a) of this section.] "(cX1) The Secretary shall compute, on an annual basis, and shall pay for funds appropriated for payment of the formula under sub- section (a) of this section an administrative cost payment based upon this subsection to each contractor (under the Indian Self-Deter- mination and Education Assistant Act; Public Law 93-638) or grantee (under the Self-Determination Grant Act of 1987). Any other provision of kw notwithstanding, the Secretary shall not compute administrative cost by any other means. (2XA) Subject to the adjustments in subparagraph (B), the admin- istrative cost shall be the sum of 12 percent of the amount under clause (i) of this, pa h added to the amount under clause (ii) of this paragraph, dit=by the sum of the amounts in clauses (i) and (ii) of this subparagraph, calculated as a percentage to two deci- mal places, multiplied by the amount of clause (iv) of this para- graph. For purposes of this subparagraph, the following will be usa (i) The total direct program funding of each grantee for all Bureau elementary and secondary education functions, as de- fined in paragraph (3) of this paragraph, and all Bureau of Indian Arairs programs or parts of programs contracted for, or for which grants are received from the Bureau dur;.ig the pro- ceding fiscal year, which shared common administrative serv- ices (as such term is defined in subsection (e) with the pro- grams covered by subsection (a) of this section, irrespective cr the number of contracts involved. (ii) Fifty percent of the amount under clause (iii). (iii) The average total direct program funding for all Bureau programs or parts of programs under clause (i) for all contractors contracting bureau of Indian Affairs elementary and secondary education functions during the preceding fiscal period. (iv) Each grantee's total direct program funding for Bureau elementary and secondary education functions, as defined under paragraphs (3) of this paragraph and all other Bureau pro- grams or parts of programs contracted for, o, for which grants are received from the Bure ,u, for the fiscal year for which this computation is being performed which will share common ad- ministrative services (as defined by subsection (0. (B) The percentage rate as determined under subparagraph (A) of this paragraph shall be adjusted as follows: 2130 260 (i) An additional 1 percent shall be added for each 100 miles that the average of the distances from the principal offices of the grantee or contractor to the nearest office of the banking in- stitution used by the contractor for regular business, the net-rest office of the banking institution used by the grantee or contrac- tor at which a draw down upon a tette,- of credit request mast be presented, if different, the nearest site for regular procure- ment of bulk school, office and janitorial supplies office and school equipment ant. related maintenance and , ,..air items, and the nearest post office, exceeds 20 miles. (ii) An additional '4 percent for each school in excess of one administered by the same contractor or grantee. (iii) An additional '4 percent Tor each Bureau program or part of a program contracted for, or for which a grant is received, whit requires bookkeeping and fiscal management procedures in excess of those normally maintained by the contractor or grantee for the program under this sectia-,. (C) The Bureau, as lead agency, shall pay administrative costs as determined by the formula under this ;ubsection for the total pro- gram dollars contracted pursuant to 2 Indian Self-Determination and Education Assistance Act (P.L. 59 -638) or granted pursuant to title II of this Act for basic educational operations including ISEP, chapter 1 of the Edu:ation C,onsr-lidation and Improvement Act, the Education of the Handicapped nct, and operation and maintenance or ''re part or parts contracted or granted by a tribally controlled syhool, except that the Secretary of the Interior may (i) reduce ad- min. .trative costs payments from the Bureau to the extent of admin- istrative costs funds actually received by tribally controlled schools under such Acts and programs and (ii) shall take such steps a nay be necessary to collect any additional sums under such Act Ind programs. (3) For purposes of this section, the te; m "Bureal: elernentar) 'id secondary functions" sha'l include, but not be limited io, Ill pro- grams funded under this section, all contr,cted or granted programs or projects distributed by the Bureau -nit funded under authorities of the Department of Education, and all contracted or granted oper- ations and maintenance funds, from whatever enurce cl.,ived. (4) Subject to this subsection, .133 percent. 6, he funds under sub- section (a) shall lx reserved by the Assistant Secretruy for distribu- tion under this section for national school board il ...,:ning to be con- tucted in the manner in which it was conducted in fiscal year 1986 except that the contract for such trair *ng may nct be awarded after May 1 of each fiscalyear. The agenda for the training sessions sliall be established by the school thrds through their regional or nat ,t n- al organizations. For a school operated by the Bureau of Indion t' f- fairs (A) for each year in which the Assistant Secretary funds edu- cation programs under a weighted unit formula, a school whi,:h generates less than 168 weighted units will receive an addition- al 2 weighted units, to defray school board activities; and (B) from the funds received under subsection (a) of this sec- tion, an amount which is the greater of $4,000 or 2 percent of the funds received shall be reserved for school board activities, including but not limited to, and notwithstanding arty other 2 '4 261 provision of law, meets:.; expenses and tl.e cost of membership in and support of orgratizations engaged in activities on behalf of Indian education. (3) For each fiscal year beginning October 1, 1987, and each suc- ceeding fiscal year, Bureau operated education programs are hereby authorized to carry forward, at the election (made at any time in the fiscal year) of the local school authority, with the approval of the local board, an amount equal to no more than 15 percent of the amount received under this section, and shall remain available until expended (h) The term "administrative costs" as used in this section shall mean the additional costs which a tribe or tribal organization incurs as a result of a contract or grant operation of a function au- thorized by or previously accomplished by Cte Assistant Secretary. The additional costs may include but not be limited to contract su- pervision, program management, fiscal management, planning and development personnel, property and procurement, corporate and safety, executive management, office services, policy direction securi- ty, and recordkeeping. UNIFORM DIRECT FUNDING AND SUPP')RT SEC. 1129. (A)(1) * * * * * * * * * * k4) [Pursuant to guidelines established by the Assistant Secretary, notwithstanding. Notwithstanding any law or regulation governing procurement by Feder ' agencies, for the fiscal year 1988 and thereafter, the supervisor of each school receiving funds under section 1128 shall, subject to school board approval, have the author- ity to expend no more than $25,000 annually of the funds allotted by section 1128 to procure supplies and equipment, without competitive bidding. Purchases made pursuant to this authority shall (A) be restrict, I to funds received under section 1128 of this Act, (B) include certification by superviscr of the school that the price paid is fair and reasonable, (C) have specific school aard au thorio- for c'ach purchase, (D) be documented by c journal which details the tame of the school, the type of items purchased, and the amount, date, and size of the transaction, business, (E) specifically cite this provision of law for authority to make the purchase, and (F) not exceed a cost of $10,000 fo, any single item purchase. * * * * * * * (f) Subject to the funds generated by t provisions of this Act, where specifically requested by the tribes, the Bureau of Indian Af- fairs shall implement any cooperative agreement involving a Bu-eau operated education program entered into between the tribe and the local public school. The tribe and the local school district shall decide what shall be encompassed by the agreement, and the agree- ment may encompass coordination of all or any part of the follow- ing: (1) The academic program and curriculum (if a Bureau oper- ated facility which is currently accredited by a State or regional accrediting entity would still be State accredited). 262 (2) Support servi,es, including procurement and facilities maintenance. (3) Transportation. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION SEC. 1130. (a) It shall be the policy of the Bureau, in carrying out the functions of the Bureau to facilitate In -hail control of Indian affairs in all matters relating to education. (b)(1) Ad actions under this Act shall be done with active consul- tation with the tribes. (2) For purposes of this Ac , the term "consultation" means a proc- ess of meeting with tribes, Alaskan natives entities, and Indian and tribal organizations on a periodic and systematic basis not less than every 8 months. Notice of all such meetings shall be given at least 30 dc.ys prior to any such meeting. Notice shall be given in the Fed- eral Register, alonfT with a list of topics to be covered. Meetings will be held in different regions of the country, so as to facilitate partici- pation. During such meetings, department officials shall provide in- formation on all matters, including budget initiatives and discus- sions, all regulatory provisions which will be or are being consid- ered for, amendment or change withn the next 6 months, all admin- istrative changes affecting delivery mechanisms, and seek inpu' on all issues considered important by the Indian entities participa. iag, including those issues affecting programs in other Federal agencies. Unless for clear and convincing reasons, Depa; tment officials shall give effect to the views of these entities. Th consultation require- ment of this section will be met only by opez discussion at the re- quired meetings. Bureau officials ;. hall meet if requested by the Indian entities. EDUCATION PERSONNEL SEC. 1131. (aX1) * * * a a a a a a (fX1)Notwithstanding any provision of the Indian preference laws, such laws shall not apply in the a ge of any initial hire or any other personnel action within the pu,view of this section re- 9per+i g an employee not entitled to Indian perference if each ganization concerned grants, in writing, a waiver of the ap- _dcion of such laws with respect to such personnel action, where such a waiver is in writing deemed to be a necessity by the tribal organization, except that this shall in no way relieve the Bureau of its responsibility to issue timely and adequate announcements and advertisements concerning any such personnel action if it is in- tended to fill a vacancy (no matter how such vacancy is created). * a a PERSONNEL SEC. 11.40C. (a) Not later than Math 1, 1988, from funds appro- priated :or administration, the Assistant Secretary shall conduct a study and make a report to the Congress of Bureau of Indian Af fairs funded school personnel costs, including el rl 0 4 fl 1 1 263 (1) current salaries paid to education personnel in Bureau of Indian Affairs funded schools; (2) current salaries paid to personnel in positions comparable to Bureau of Indian Affairs education positions in proximate local educoJ 'anal agencies of States in which Bur,,c u of Indian Affairs funded schools are found; and (3) State average salaries. Such surveys shall take into consideration starting salaries, tenure, length of service, educational rea,iirements, and fringe benefits and projections for the next five years. (b) The Bureau shall detail such staff to the study as may be nec- essary. Such staff shall include not less than 2 career emoloyees from the Division of Education who have substantial experience in the administration at the agency level of school operations and in the drafting of per.onnel regulations, including but not limited to those under the Education Amendments of 1978. (c) The Assistant Secretary may conduct the study required by this section by contract with an Indian educational organization. (d) For purposes of this section, the term "educational personnel" shall mean a person who fills an "education position'; as such term is defined in section 1 131 of the Education Amendments of 1978. (eX1) In those instances where the Assistant Secretary determines that the disparity of compensation affects the recruitment and re- tention of employees at a school to the extent the ability to prc"ide education services (including support services) is impaired, the As- sistant Secretary shall grant the local Bureau school supervisor the authority under section 113 1(hX2), subject to the approval of the local school board. (2) The presence of more than 10 percent vacancy in staff positions or a 5 percent disparity in compensation rates (as determined by survey to be conducted by the Agency Education Office no ss than once every 5 years) at a school at any one time shall automatically trigger the authority under paragraph (1). (3) The assistant Secretary shall make a separate report to the Congress each fiscal year (at the time of the budget submission) of all requests of authority under paragraph (1), of all grants of this authority, and all positions contracted under such grants. PART C-MISCELLANEOUS AMENDMENTS; EFFECTIVE DATES [i :;NERAL ASSISTANCE FOR THE VIRGIN ISLANDS [SEc. 1524. There is hereby authorized to be appropriated $5,000,000 for the fiscal year ending September 30, [1979,] 1985, and for each of the four succeeding fiscal years, for the purpose of providing general assistance to improve public education in the Virgin Islands. [TERRITORIAL TEACHER TRANINING ASSISTANCE [SEC. 1525. There is hereby authorized to be appropriated $2,t100,000 for the fiscal year ending September 30, [19791 1985, 2h4 264 and for each of the four succeeding fiscal years for the purpose of assisting teacher training programs in Guam, American Snmoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. From the sums appropriated pursu- ant to this section the Commissioner of Education shall make grants and enter into contracts for the purpose of providing train- ing to teachers in schools in Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. The Commissioner may make grants to or con- tracts with any organization that he deems qualified to provide training for teachers in such schools and shall allot such sums among such te.:iteries on the basis of the need for such training.] * * * * . * * ACT OF SEPTEMBER 30, 1950 To provide financial assistance for local educational agencies a areas affected by FeCeral activities, and for other purposes. TITLE IFINANCIAL ASSISTANCE FOR LOCAL EDUCATION AGENCIES IN AREAS .4./TECTED BY FEDERAL ACTIVITY * * * * * * 4, FEDERAL ACQUISITION OF REAL PROPERTY SEC. 2. (a) Where the Commissioner, after consultation with any loial educational agency and with the appropriate State education- al agency, determines for any fiscal year ending prior to October 1, (1988] 1993 (1) that tne United States owns Federal property in fir school district of such local educational agency, end that such property , A) has been acquired by the United States Since 1938, (13\ was not acquired by exchange for other Federal prop- erty it aie school district which the United States owned before 1939, and (C) hat' an assessed value (determined as of the time or times when so acquired) aggregating 10 per centum or more of the assessed value of all real property in the school district (similarly determined as of the time or times when suc: Federal property was so acquired); and 4 * * * * * CHILDREN RESIDING ON, OR WHOSE PA^ENTS ARE EMPLOYED ON, FEDERAL PROPERTY CHILDREN OF PERSONS WHO RESIDE AND WORK ON FEDERAL PROPERTY SEC. 3. (a) * ' * CHILDREN OF PERSONS WHO RESIDE OR WORK ON FEDERAL PROPERTY (b) For the purpose of computing the amount to which a local educational agency is entitled under this section for any fiscal year ending prior to Octc Jer 1, [:988,] 1993, the Commissioner shall, in addition to any determination made with respect to such agency 44nder subsection (a), determine the number of children (other than 2 R5 265 children with respect to whom a determination is made for such fiscal year under subsection (a) who were in average daily attend- ance at the schools of such agency, and for whom such agency pro- vided free public education, during such fiscal year and who, while in attendance at such schools, either (1) resided on Federal property, or (2) resided with a parent employed on Federal property situ- ated (A) in whole or in part in the county in which the school district of such agency is located, or in whole or in part in the school district of : uch agency if the school district is located in more than one county, or (B) if not in such county or district, in whole or in part in the same State as the school district of such agency, or (3) had a parent who was on active duty in the uniformed services (as defined in section 101 of title 37, United States Code). Fo- such purpose, with respect to a local eduational agency, in the case of any fiscal year ending prior to October 1, [1988,] 1993, the Commissioner shall also determine the number of children (other than children to whom subsection (a) or the precedirk, sentence ap- plies) who were in average daily attendance at the schools of such agency , nd for whom such agency provided free public education, during such fiscal year, and who, while in attendance at such schools resided with a parent who was, at any time during the three-year period immediately preceding the beginning of the fiscal year for which the determination is made, a refugee who meets the requirements of clauses (A) and (B) of section 2(bX3) of the Migra- tion and Refugee Assistance Act of 1962, except that the Commis- sioner shall not include in his determination under this sentence of any fiscal year any child with respect to whose education a pay- ment was made under section 2(bX4) of such Act. * 4. * * * AMOUNT OF PAYMENTS (dX 1 ) * ' ' (2X A ) a ' ' ' ' a ' ' ' (D) The amount of the entitlements of any local educational agency under this section for any fiscal year with respect to chil- dren who, while in attendance a , such agency, resided on Indian lands, as described in clause (A) of section 403(1), shall be the amouizt determined ander paragraph (1) with respect to such chil- dren for such fiscal year multiplied by 125 per centum. Tuition funds under this section may be paid for any student not eligible for funding under section 1128 of P.L. 95 -561 in any school receiving funding under such section. No condition involving program or per- sonnel shall apply to any such payments. (EXi) ' ' ' (E) The amount of the entitlement of any local educational agency under this section for any of the fiscal years 1983 through [19883 1993 with respect to children determined under subsection (b) with respect to such agency shall be the amount determined 266 under paragrap:, (1) with respect to such children multiplied by 33% per centum. t SULJEN AND S-1BSTP_NTIAL INCREASES IN ATTENDANCE INCREASES HEREAFTER OCCURRING SEC. 4. (a) If the Commissioner determines for any fiscal year ending prior to October 1, (1988] 1999 (1) that, as a direct result of activities of the United States (carried on either directly or through a contractor), an increase in the number of children in average daily attendance at the schools of any local educational agency has occurred in such fiscal year, which increase so resulting from activities of the United States is equal to at least 5 per centum of the differ- ence between the number of children in average daily attend- ance at the schools of such during the preceding fiscal year and the number of such children whose attendance during such year resulted from activities of the United States (inc id- ing children who resided on Federal property or with a parent employed on Federal property); 4 ASSISTANCE FOR CURRENT SCHOOL EXPENDITURES IN CLASS OF CERTAIN DISASTERS SEC. 7. (a) In any case in which (1XA) the Director of the Office of Emergency Planning de- termines with respect to any local educational agency (includ- ing for the purpose of this section any other public agency which operates schools providing technical, vocational, or other special education to children of elementary or secondary school age) that such agency is located in whole or in part within an area which after August 30, 1965, and prior to October 1. (1988,] 1993, has suffered a major disaster as the result of any flood, drought, fire, hurricane, earthquake, storm, or other catastrophe which, in the determination of the President pur- suant to sectiori 2(a) of the Act of September 30, 1950 (42 U.S.C. 1855a(a)), is or threatens to be of sufficient severity and magni- tude to warrant disaster assistance by the Federal Govern- ment; or (B) the Commissioner determines with respect to any such agency that public elementary or secondary school facilities of such agency have been destroyed or seriously damaged prior to October 1, (1988,] 1998, as a result of flood, hurricane, earth- quake, storm, fire, or other catastrophe, except any such catas- trope caused by negligence or malicious action; and LIMITATION ON PAYMENTS SEC. 8. Notwithstanding any other provision el' this title, amounts appropriated for the purposes of this title for fiscal year 1988 may not exceed $735,000,000. 267 TITLE IIIFINANCIAL ASSISTANCE TO LOCAL EDUCATION- AL AGENCIES FOR THE EDUCATION OF INDIAN CHIL- DREN AUTHORIZATION OF APPROPRIATIONS; ADJUSTMENTS SEC. 307. (a) For the purpose of making payments under this title, there are authorized to be appropriated (1) for each of the fiscal years ending prior to October 1, 1986, such sums as may be necessary, and (2) for each of the fiscal years 1987, 1988, and 1.4893 fiscal year 1987 an amount not to exceed the amount appropriated for such purpose for fiscal year 1986. For the purposes of making payments under this title there are authorized to be appropriated $70,000,000 for fiscal year 1988 and such sums as may be necessary for each of the five succeeding fiscal years. INJIAN EDUCATION ACT PART BSPECIAL PROGRAMS AND PROJECTS TO IMPROVE EDUCATIONAL OPPORTUNITIES FOR INDIAN CHILDREN « SPECIAL EDUCATIONAL TRAINING PROGRAMS FOR TEACHERS OF INDIAN CHILDREN SEC. 422. (a) ' ' " [(c) There is authorized to be appropriated $2,000,000 for the fiscal year ending June 30, 1975, and for each of the succeeding fiscal years ending prior to October 1, 1986 to carry out the provi- sions of this section. There is also authorized to be appropriated to carry out the provisions of this section for each of the fiscal years, 1987, 1988, and 1989, an amount not to exceed the amount appro- priated for such purpose for fiscal year 19861 (c) There are authorized to be appropriated for each of the fiscal years 1988, 1989, 1990, 1991, 1992, and 1993, such sums as may be necessary. FELLOWSHIPS FOR INDIAN STUDENT.- SEC. 423. (a) During the fiscal year ending June 30, 1975, and each of the succeeding fiscal years ending prior to October 1, [19893 1993, the Commissioner is authorized to award fellowships to be used for study in graduate and professional pro rams at insti- tutions of higher education. Such fellowships shall be awarded to Indian students in order to enable them to pursue a course of study of not more than four, academic years leading toward a postbacca- laureate degree in medicine, clinical psychology, law, education, and related fields or leading to an undergraduate or graduate degree in engineering, businebs ad:ninistration, natural resources, 2 lq 8 268 and related fields. The Commissioner may, if a fellowship is vacat- ed prior to the end of the period for which it was awarded, award an additional fellowship for the remainder of such period. [(d) The amount that is authorized to be appropriated to carry out the provisions of this section for each of the fiscal years 1987, 1988, 1989, is the amount appropriated for such purpose for fiscal year 1986.] (d) There is authorized to be appropriated for the purpose of this section such sums as may be necessary fur each fiscal year ending prior to October 1, 1993. a * a a a PART DOFFICE OF INDIAN EDUCATION a a a a a NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION SEC. 442. (a) There is hereby established the National Advisory Council on Indian Education (referred to in this title as the "Na- tional Council"), which shall consist of fifteen members who are In- dians and Alaska Natives appointed by the President of the United States. Such appointments shall be made by the President from lists of nominees furnished, - om time to time, by Indian tribes and organizations and shall represent diverse geographic areas of the country. Subject to section 448(b) of the General Education Provi- sions Act, the National Council shall continue to exist until Octo- ber 1, [1989.] 1993. a * a a a a PART EMISCELLANEOUS PROV.SIONS * * a * a DEFINITION SEC. 453. (a) For the purposes of this title, the term "Indian" means any individual who (1) is a member, as defined by the tribe, and, or other organized group, of a t ibe, band, or other organized group of Indians, including those tribes, bands, or groups terminat- ed since 1940 and those recognized by the State in which they reside, or who is a descendart, in the first or second degree, of any such member, or (2) is considered by to Secretary of tne Interior to be an Indian for any purpose, or (3) is an Eskimo or Aleut or other Alaska Native, or (4) is determined to be an Indian under regula- tions promulgated by the Commissioner, after consultation with the National Advisory Council on Indian Education, which regula- tions shall further define the term "Indian". [(b) The Assistant Secretary of Health, Education, and Welfare for Education, in consultation with Indian tribes, national Indian organizations, and the Secretary of the Interior, shall supervise a thorough study and analysis of the definition of Indian contained in subsection (a) and submit, a report on the results of such study 2R9 269 and analysis to the Congress not later than January 1, 1980. Such study and analysis shall include but not be limited to [(1) an identification of the total number of Indian children being served under this title; [(2) an identification of the number of Indian children eligi- ble and served under each of the four clauses of such definition in such subsection; [(3) an evaluation of the consequences of eliminating desce- dants in the second degree from the terms of such definition, or of specifying a final date by which tribes, bands, and groups must be recognized or of both; [(4) other options for changes in the terms of such definition and an evaluation of the consequences of such changes, togeth- er with supporting data; [(5) rec- -emendations with respect to criteria for use_by the Commissioner udner the rulemaking authority contained in clause (4) of such subsection.] [(c) On the form establishing a child's eligibility for entitlement under part A of this Act, the Commissioner shall request at least the following information on the student eligibility form:] (b) For the purpose of collecting statistical information only, and not for the purpose of establishing eligibility, forms provided by the Department may provide for the provision of the following informa- tion, where available to the parent and at the option ofthe parent: (1) the name of the tribe, band, or other organized group of Indians with which the applicant claims membership, along with the enrollment number establishing membership (where applicable), and the name and address of the organization which has 'dated and accurate membership data for such tribe, band, c ether organized group of Indians; or, if the child is not a memo, r of a tribe, band, or other orgarized group of Indians, the student eligibility form shall bear the name, the enrollment number (where applicable) and the organization (and address thereof) responsible for main Aining updated and accurate membership, membership roles of any of the appli- cant's parents or grandparents, from whom, the applicant claims eligibility; (2) whether the tribe, band, or other organized group of Indi- ans with which the applicant, his parents, or grandparents claim membership are federally recognized; (3) the name and address of the parent or legal guardian; (4) the signature of the parent or legal guardian verifying the accw acy of the information supplied; and (5) any other information which the Secretary deems neces- sary to provide an accurate program profile. Nothing in the requirements of paragraphs (1) through (5) of this subsection shall be construed as changing or restricting the appli- cable eligibility definition set forth in subsection (a) of this section. Failure to provide any of the information listed above shall have no bearing on the determaation of eligibility of the student. 6 DETERMINATION OF ELIGIBILITEDetermination cf a student's eligivility to participate in this program, under the definition of subsection (a), shall vest solely with tke varent committee and the local educational agency. It shall be based upon such information of 270 270 eligibility as the parents may submit, include written proofs the the student is and has been for his or her life regarded by the col - munity in which he or she resid,s as Indian. Such information shall be initially reviewed by the parent committee (under written guidelines established by such committee and the local educational agency which shall be on file and available to the public), which shall make a finding as to eligibility and shall submit such finding to the local education agency. The local education agency shall review and may accept or eject such finding with respect to any in- dividual, except that a local educational agency may not count as eligible. Determinations of eligibility which are agreed to by the parent committee and the local educational agency shall not be sub- ject to further administrative review. ELEMENTARY AND SECONDARY EDUCATION AMENDMENTS OF 1966 [TITLE IIIADULT EDUCATION [SHORT TITLE [SEC. 301. This title may be cited as the "Adult Education Act". [STATEMENT OF PURPOSE [SEC. 302. It is the purpose of this title to expand educational opportunities for adults and to encourage the establishment of pro- grams of adult education that will [(1) enable all adults to acquire basic literacy skills neces- sary to function in society. [(2) enable adults who so desire to continue their education to at least the level of completion of secondary school, and [(3) to make available to adults the means to secure training and education that will enable them to become more employ- able, productive, and responsible citizens. [DEFINITIONS [SEC. 303. As used in this title [(a) The term "adult" means an individual who has attained 16 years of age or who is beyond the age of compulsory school attend- ance under State law, except that for the purpose of section 305(a), the term "adult" means an individual 16 years of age or older. [(b) The term "adult education" means instruction or services below the college level for adults who do not have [(1) the basic skills to enable them to function effectively in society; or [(2) a certificate of graduation from a school providing sec- ondary education (and who have not achieved an equivalent level of education). [(c) The term "adult basic education" means adult education for adults whose inability to speak, read, or write the English lanugage constiutes a substantial impairment of their ability to get or retain employment commensutate with their real ability, which is de- signed to help eliminate such inability and raise tha level of educa- tion of such individuals with a view to making them less likely to become 1-mendent on others, to improving their ability to benefit 271 271 from occupational training and otherwise increasing their opportu- nities for more productive and profitable employment, and to making them better able to meet their adult responsibilities. [(d) The wrm "Secretary" means the Secretary of Education. [(e) The terf.' "community school program' is a program in which a public building, including but not limited to a public ele- mentary or secondary school or a community or junior college, is used as a community center operated in conjunction with other groups in the community, community organizations, ani local gov- ernmental agencies, L.o provide educational, recreational, cultural and other related community services for the community that center serves in accordance with the needs, interest, and concerns of that community. [(f) The term "local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of public ele- mentary or secondary schools in a city, county, township, school district, or other political subdivision of a State, or combina- tion of school districts or counties as are recognized in a State as an administrative agency for its public elementary or secondary schools, except thr4, if there is a separate board or other legally constituted local authority having administrative control and direc- tion of adult education in public schools therein, such term means such other board or authority. [(g) The term "State" includes, in addition to the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Is- lands, and the Trust Territory of the Pacific Islands. [(h) The term "State educational agency" means the State board of education or other agency nr officer primary responsible for the State supervision of public elementary and secondary schools, or if there is a separate State agency or officer primarily responsible for supervision of adult education in public schools then such agency or officer may be designated for the purpose of this title by the Governor or by State law. If no agency or officer qualifies u- der the preceding sentence, such term sha". mean an appror :t ate agency or officer designated for the purposes of this title by the Governor. [(i) The term "academic education" means the theoretical, the liberal, the speculative, and classical subject matter found to com- pose the curriculum of the public secondary school. [(j) The term "institution of higher education" means any such institution as defined by section 481 of the Higher Education Act of 1965. (GRANTS TO STATES FOR ADULT EDUCATION [SEC. 304. (aX1) The Secretary is authorized to make grants to States, which hay: State plans approved by him under section 306 for the ourposes of this section, to pay the Federal share of the cost of (A) the establishment or expansion of adult basic education pro- grams to be carried out by local educational agencies and by public or private agenices, organizations, and institutions, and (B) the es- tablishment or expansion of adult education programs to be carried 272 272 out by local educational agencies and by public or private agencies, organizations, and institutions. Grants provided under this section to States to carry out the programs described in the preceding sen- tence may be carried out by public agencies, organizations, and in- stitutions only if the applicable local educati nal agency has been consulted with and has had an opportunity to comment on the ap- plication of such agency, organization, or institution. The State educational agency shall not approve any application unless as- sured that such consultation has taken place. Such application shall contain a description of the cooperative arrangements that have been made to deliver services to adult students. [(2) Grants provided under this section may not be used to carry out programs by a for-profit agency, organization, or institution unless such agency, organization, or instituticn (A) can make a sig- nificant contribution to attaining the objectives of this Act, and (B) can provide substantially equivalent education at a lesser cost or can provide services and equipment not available in public institu- tions. Whenever the establishment or expansion of programs is car- ried out by a for-profit agency, organization, or institution, the State educational agency or eligible applicant shall enter into a contract with such agency, organization, or institution, for the es- tablishment or expansion of such programs. [(b) Not more than 20 per centum of the funds granted to any Sta.e under subsection (a) for any fiscal year shali be used for the education of institutionalized individuals. CALLOTMI.NT FOR ADULT EDUCATION [SEC. 305. (a) Subject to the last sentenct of this subsection, from the sums available for purposes of section 304(b) for the fiscal year ending June 30, 1972, and for any succeeding fiscal year, the Secre- tary shall allot (1) $100,000 each to Guam, American Samoa, the Trust Territory of the Pacific Islands, the Northern Mariana Is- lands, and the Virgin Islands according to their respective needs for assistance under such section, and (2) $250,000 to each State. From the remainder of such sums he shall allot to each State an amount which bears the same ratio to such remainder as the number of adults wile do not have a certificate of graduation from a school providing secondary education (or its equivalent) and who are not currently required to be enrolled in schools in such State bears to the number of such adults in all States. No State shall be allotted in any fiscal year beginning after September 30, 1984, an amount less than that State received for fiscal year 1984. i(b) The portion of any State's allotment under section (a) for a fiscal year which the Secretary determines will not be required, for the period of such allotment is available for carrying out the State plan approved under this title shall be available for reallotment from time to time, on such dates during such period as the Secre- tary shall fix, to other States in proportion to the original allot- ments to such States under subsection (a) for such year, but with such proportionate amount for any of such other State being re- duced to the extent it exceeds the sum which the Secretary esti- mates such State needs and will be able to use for such period for carrying out its State plan approved under this title, and the total 273 273 of such redtictions shall be similarly reallotted among the States whose proportionate amounts are not so reduced. Any amount al- lotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) for such year. [STATE PLANS [SEC. 306. (a) A State shall be eligible to receive its allotment under section 305 if [(1) it has on file with the Secretary a general State applica- tion under section 435 of the General Education Provisions Act, and [(2) it has submitted to the Secretary at such times (not more frequently than one every three years), and in such detail, as the Secretary shall prescribe a State plan meeting the requirements of subsection (b). [(b) A State plan under this title shall [(1) set forth a program for the use of funds provided under this title to carry out the purposes stated in section 302 with respect to all segments of the adult population in the State, in- cluding residents of rural areas, residents of urban areas with high rates of unemployment, adults with limited English lan- guage skills, and institutionalized adults; [(2) provide for the administration of the program by the State educational agency; [(3) describe the procedures the State will use to er_...ure that in carrying out such program there will be adequate consulta- tion, cooperation, and coordination among the State education- al agency, State manpower service covncils, State occupational information systems, and other agencies, organizations, and in- stitutions in the State which operate employment and training programs or other educational or training programs for adults; and for coordination of programs carried on under this title with other programs, including reading improvement pro- grams, designed to provide reading instrt ction for adults car- ried on by State and local agencies; [(4) identify (A) the needs of the population of the State for services authorized under this title, (B) the other resouri;es ir_ the State available to meet those needs, and (C) the goals the State will seek to achieve in meeting those needs over the period cov,trer' by the plan; [(5) provide that such agency will make available not to exceed 20 per centum of the State's allotment for programs of equivalency for a certificate of graduation from a secondary school; [(6) provide such fiscal control and fund accounting proce- dhres as may be necessary to assure proper disbursement of and accounting for Federal funds paid the State under this title (including such funds paid by the State to local education- al agencies and public or private nonprofit agencies, organiza- tions, and institutions); [(7) describe the means by which the delivery of adult edu- cat;on services will be significantly expanded through the use of agencies, institutions, and organizations other than the 274 274 public school systems, such as business, labor unions, libraries, institutions of higher education, pi Aic health authorities, anti- werty programs, and community organizations. [(8) describe the r ,eans by which representatives of business and industry, labor unions, public and private educational agencies and institutions, churches, fraternal and voluntary or- ganizations, community organizations, State and local man - powe' and trainin,:: agencies, and representatives of special adult populations, including residents of rural areas, residents of urban areas with high rate of unemployment, adults with limited English language skills, and institutionalized adults, and other entities in the State concerned with adult education have been involved in the development of the plan and will continue to be involved in carrying out the p''n, especially with regard to the e pansion of the delivery of adult educ services through these agencies, institutions, and organiza- tions; [(9) describe the efforts to be undertaken by the State to assist adult participation in adult education programs through flexible course schedules, convenient locations, adequate trans- portation, and meeting child care needs; L(10) provide that special emphasis be given to adult education programs eAcept where such needs are shown io have been met in the State; [(11) provide that special qcsistanc be to the needs of persons with limbed Engli: i roficiency (as refined in section 703(a) of title VII of the Elementary and Secondary AAuf tion Act of 1965) by providing a bilingual adult educaticu program of instruction in English er to the extent necessary to allow such persons to progresr: effectively thru the a cult educa- tion program, in the native language of such persons, carried out in coordination with programs of ..ilingual education assist- ed under title VII and bilingual vocational education programs under the Carl D. Perkins Vocational Education Act; [(12) demonstrate that the special educational needs of adult immigrants in the State have been examined, and provide for the implemrIntation A adult education and adult oasic educa- tion programs for immigrant:: to meat e isting needs; [(13) set forth the criteria by which the State will e'aluate the quality of proposals frum local agencies, organizations, and institutions; [(14) provide such further information about the State's adult education students, programs, expenditures, and goals as the Secretary may require, together with information with re- speL, to the age, sex, and race of students in tne programs as- sisted unde. tliis Act and whether the students complete such programs; and [(15) provide such further awarances and information as the Secretary ri.ay require. [(c) The Secretary shall not finally disapprove any State plan subn itted under this title, or any im iification thereof, without first affording the State educational agency reasonable notice and opportunity for a heating. 2-'r" 275 [PAYMENTS [SEC. 307. (a) The Federal share of expenditures carry out a State plan shall be paid from a State's allotment available for grants to thai, State. The Federal share shall be 90 per centum A the cost of carrying out the State's programs, except that with re- spect tc Guam, American Samoa, the Virgin Islands, the Northern Mariana Hands, and the Trust Territory of the Pacific Islands, the Federal share shall be 100 per centum. [(bX1) No payment shall be made to any State from its allotment for any fiscal year unless the Secretary finds that the fiscal effort per student or the amount available for exp:,nditure by such State for adult education from non-Federal sources for the preceding fiscal year was not less than suck. fiscal effort per student or such amount available for expenditure for such purposes from such sources during the second preceding fiscal year, but no State shall be require( tc use its funds to supplant any portion of the Federal share. [(2) The Secretary may waive, for one fiscal year only, the re- quirements of paragri.ph (1) of this subsection, if the Secretary ee termines that such a waiver would be equitable due tc exceptional or uncontrollable -ircumstances such as a natural disaster or a pre- cipitous and unforeseen decline in ti financial resources of the State educational agency. rADMINISTRATION OF STATE PLANS [SEC. 308. Wl.enever the Secretary has reason to believe that, in administering its State plan. a State has failed to comply s' bstan- tially with any provision of that State plan, the Secretary may take appropriate action under sections 453 and 454 of the General Edtt- cation Provisions Act. LESEARCH, DEVELOPMENT, DEMO iSTRATION, DISSEMINATIC I, AND EVALUATION [SEC. 309. (OD The Secretary sh il with funds set aside .nder section 314(b), support applied res' arch, eks.elopment, demonstra- tion, dissemination, evaluation, and related activities which will contribute to the improvement and expansion of adult education in the United States. The activities required by this subsection may include [(A) improving adult education opportunities for elderly in- dividuals and adult immigrants, [(13) evaluating educational tech. ..klogy and computer soft- ware suitable for providing instructii i to adults, and [(C) supporting exemplary cooperative adult education pro- grams which combine the resources of businesses, schools and cc mmunity organizations. [(2)(A) The Secretary may st,pport such activities directly, or through grants to, or contracts or cooperative agrecm-mts with, public or p ivate institutions, agencies, or organizations, or indivld- uals, including business concerns. [(i3) Whenever the Secretary makes a grant or enters into a con- tract or cooper ive agreement with any private for-profit institu- tion, agency, organization, individual, or business concern, the Sec- 2 -1 6 276 retary shall assure that participants in the program assisted under this subsection are not charged for their participatim. [(b) In addition to the responsibilities of the Director under sec- tion 405 of the General Education Provisions Act, the Director of the National Institute of Education may, with funds available under that section or with funds set aside under section 314(b) of this Act, support research on the special needs of individuals re- quiring adult education. The Director may support such research directly, or through grants to, or contracts or cooperative agree- ments with, public or private institutions, agencies, or cimaniza- tions, or individuals. [USE OF FUNDS FOR SPECIAL EXPERIMENTAL DEMONSTRATION PROJECTS AND TEACHER TRAINING [SEC. 310. Of the funds allotted to a State under section 305 for a fiscal year, not less than 10 per centum shall be used for [(1) special projects which will be carried out in furtherance of the purposes of this title and which [(A) involve the use of innovative methods, including methods for educating persons of limited English-speaking ability, systems, materials, or programs which may have national significance or be of special value in promoting ef- fective programs under this title, or [(131 involve programs of adult education, including edu- cation for persons of limited English-Speaking ability; which are part of community school programs, carried out in cooperation with other Federal, federally assisted, State or local programs which have unusual promise in prumot- !rig a comprehensive or coordinated approach to the prob- lems of persons with educational deficiencies; and ((2) training persons engaged, or preparing to engage, as personnel in programs designed to carry out the purposes of this title. [STATE ADVISORY COUNCILS [SEC. 311. Any State may use funds granted under s ,zion 304 to support a State advisory council winch cssists the State education- al agency to plan, implement, or evaluate programs or activities as- sisted under this Act. (NATIONAL ADVISORY COU 'CIL ON ADULT EDUCATION [SFC. 312. (a) The President shall appoint a National Advisory Council on Adult Eaucation (hereinafter in this section referred to as the "Council"). [(b) The Council shall consist of fifteen members who shall, to the extent possible, include persons knowledgeable in the field of ac tilt education including education for persons of limited English- speaking ability in which instruction is given in English and, to the extent necessary to allow such persons to progress effectively through the adult education program, in the native language of such persons, State and local public school officials, and other per- sons having special knowledge and ex wrience, or qualifications with respect to adult education, and persons represtatative of the 2 -"1 277 general put lic. The Council shall meat initially at the call of the Secretary and elect from its number a chairman. The Council will thereafter meet at the call of the chairman, but not less often than twice a year. Subject to section 448(b) of the General rducation Provisions Act, the Council shall continue to exist until October 1, 1988. [(c) The Council shall advise the Secretary in the pr-naration of general regulations and with respect to policy matters arising in the administration of this title, including policies and procedures governing the approval of State plans under section 306 and poli- cies to eliminate duplication, and to effectuate the coordination of programs under this title and other pr igrams offering adult educa- tion activities and services. [(d) The Council shall review the administration and effective- ness of programs under this title, make recommendations with 'a- spect thereto, and make annual reports to the President of its find- ings and recommendations (including recommendations for changes in this title and other Federal laws relating to adult education ac- tivities and services). The President shall transmit each such report to the Congress together with his comments and recommen- dations. The Secretary of Health, Education, and Welfare shall co- ordinate the work of the Council with that of other related adviso- ry councils. (LIMITATION [SEC. 313. No grant may be made under this title for any educa- tional program, activity, or service related to sectarian instruction or religious worship, or provided by a school or department of di- vinity. For purposes of this section, the term "school a.: department of Livinity means an institution or a department or branch of an institution whose program is specifically for the education of stu- dents to prepare them to become ministers of religion or to enter upon some other religious vocation, or to prepare them to teach theological subjects. (APPROPRIATIONS AUTHORIZED (SEC. 314. (a) For the purpose of tarrying out this title there are authorized to be appropriated $140,000,000 for fiscal year 1985 and such sums as may be necessary for each of the three succeeding fiscal years. [(b)(1) From the amount appropriated pursuant to subsection (a) fo- any fiscal year the Secretary may set aside not to exceed 5 per cehtuir of that amount for programs under section 309. The re- mainder of the amov c, appropriated Li each fiscal year shall be available for grants made under section 304. [(2) No set aside may be made pursuant to paragraph (1) of this subsection in any fiscal year in which the amount apprcpriated pursuant to subsection (a) of this section is 1sss than $112,000,000. (IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT INDIANS (SEC. 315. (a) The Secretary shall carry out a program of making grants to State and local educational agencies, and to Indian tribes, institutions, and organizations, to support planning, pilot, and dem- 2 78 278 onstration projects which are designed to plan for, and test and den, strate the effectiveness of, programs for providing adult edu- cation for Indians ((1) to support planning, pilot, and demonstration project.; which are designed to test and demonstrate the lectiveness of programs for improving employment and educe iional opportu- nities for adult Indians; ((2) to assist in the establishment and operation of programs which are designed to stimulate (A) the prevision of basic liter acy opportunities to all nonliterate Indian adults, and (B) the provision of opportunities to all Indian adults to qualify for a high school equivalency certificate in the shortest period 'f time feasible; ((3) to support a najor research and development program to develop more innovative and effective techniques for achiev- ing the literacy and high school equivalency goals; ((4) to provide for basic surveys rind evaluation thereof to define accurately the extent of the problems of illiteracy and lack of high school completion among Indians; [(5) to encourage the dissemination of information and ma- terials relating to, and the evaluation of the effectiveness of, education programs which may offer educational opportunities to Indian adults. [(b) The Secretary is also authorized to make grants to Indian tribes, Indian institutions, and Indian organizations to develop and establish educational services and programs specifically designed to improve educational opportunities for Indian adults. ((c) The Secretary is also authorized to make grants to, and con- tracts with, public agencies, and institutions, and Indian tribes, in- stitution , and organizations for C(1) the dissemination -1 information coucerning educational programs, servic es, and resources available to Indian adults, including evaluations thereof; and ((2) the evaluation of the effectiveness of federally assisted programs in which Indian adults may participate in achieving the purposes of such programs with respect to such adults. ((d) Applications for a grant under this section shall be submit- ted at such time, in such manner, and contain such information, and shall be consistent with such criteria, as may be established as requirements in regulations promulgated by the Secretary. Such applications snail ((1) set forth a statement describi:ig the activities for which assistance is sought; ((2) provide for an evaluation of the effectiveness of the project in achieving its purposes and those of this section. The Secretary shall not approve an application for a grant under su)section (a) unless he is satisfied that such application, and any documents submitted with respect thereto, indicate that there has been adequate _participation by the individuals to be served and tribal communities in the planning and development of the project, and that there will be such a participation in the operatior and evaluation of the project. In approving applications under subsec- tion (a), the Secretary shall give priority to applications from Indian educational agencies, c ganizations, and institutions. 2.9 279 [(e) For the purpose of making grants under this section there are hereby authorized to be appropriated $5,C00,000 for the fiscal year ending June 30, 1973, and $8,000,000 for each of the succeed- ing fiscal years ending prior to October 1, 1986. There is authorized to be appropriated for such purpose for each of the fiscal years 1987, 1988, and 1989, an amount not to exceed the amount appr,- priated for such purpose for fiscal year 19861 TITLE HIADULT EDUCATION PROGRAMS SEC. 301. SHORT TITLE. This title may be cited as the "Adult Education Act". PART ABASIC PROGRAM PROVISIONS SEC. 311 STATEMENT OF PURPOSE. It is she purpose of this title to assist the States to improve educa- tic- -al opportunities for adults who lack the level of literacy skills requisi' - !o effective citizenship and productive employment, to expana and improve the current system for delivering adult educa- tion set ,aces including delivery of such services to educationally dis- advantaged adults, and to encourage the establishment of adult education programs that will- (1) enable these adults to acquire the basic educational skills necessary for literate functioning; (2) provide these adults with sufficient basic education to enable them to benefit from job training and retraining pro- grams and obtain and retain productive employment so that they might more fully enjoy the benefits and responsibilities of citizensh0; and (3) enable adults who so desire to continue their education to at least the level of completion of secondary school. SEC. 312. DEFINITIONS. As used in this title (1) The term "adult" means an individual who has attained 16 years of age who is beyond the age of compulsory school attendance under State law, except that for the purpose of sec- tion 313(b), the term "adult" means an individual 16 years of age or older. (2) The term "adult education" means services or instruction below the college level for adults (A) who lack sufficient mastery of basic educational skills to enable them to function effectively in society or who do not have a certificate of graduation from a s -hool voviding secondary education and who hat t? not achieved an equivalent level of education; (B) who are not currently required to be enrolled in schools and are not enrolled in school; and (C) whose inability to speak, read, or write the English language constitutes a substantial impairment of their abil- ity to get or retain employment commensurate with their real ability, and thus are in need of programs to help elimi- nate such inability and raise the level of education of s,ich iadtvidua:3 with a view to making them less like:y to become dependent on others. 23() 280 (3) The term "educationally disadvantaged adult" means an adult who (A) demonstrates basic skills equivalent to or below that of students at the fifth grade level; or (B) has been placed in the lowest or beginning level of an adult education program when that program does not use grade level equivalencies as a measure of students' basic skills. (4) The term "community school program" is a program in which a public building, including but not limited to a public elementary or secondary school or a community or junior col- lege, is used as a community center operated in conjunction with other grrups in the community; community organizations, and local governmental agencies, to provide educational, recre- at Tonal, cultural, and other related community services for the community that center serves in accordance with the needs, in- terest, and concerns of that community. '5) The term "local educational agency" means a public board of education or other public authority legally constituted within a State for either administrative control or direction of public elementary or secondary schools in a city, co-nty, township, school district, or other political subdivision of a State, or such combination of school districts or counties as are recognized in a State as an administrative agency for its public elementary o, secondary schools, except that, if there is a separate board or other legally constituted local authority having admir,istrative control and direction of adult education in public schools there- in, such term means such other board or authority. (6) The term "Secretary" means the Secretary of Education. (7) The term "State" includes the District of Columbia, the Commonwealth of Puerto Rico, and except for the purposes of section 313, Guam, Ameaican Samoa, the Trust Territory of me Pacific Islands. tyre Northern Mariana Islands, and the Virgin Islands. (8) The term " State educational agency" means the State board of education or other agency or officer primarily responsi- ble for the State supervision of public elementary and s "condary schools, or if there is a separate State agency or office -,rimari- ly responsible fo, .supervision of adult education ..4 ublic dchoolq then such agency or officer may be des grated fopr the purpose of this title by the Governor or by State law. If no agency or officer qualifies under the preceding sentence, such term shall mean an appropriate agency or officer designated for the purposes of this title by the Governor. (9) The term "academic education" means the theoretical, the liberal, the speculative, and classical subject matter found to compose the curriculum of the public secondary school. (10) The term "institution of higher education" , _arts any such institution co5 defined by section 1201(a) of the Higher Education Act of 1965. SEC. AUTHORIZATION OF APPROPRIATIONS; ALLOTMENTS (a) Al ITHORIZATION OF APPROPRIATIONS.There are authorized to be appropriated $200,000,000 for fiscal year 1988 and such sums as 2--1J 281 may be "ecessary for each succeeding fiscal year through fiscal yPar 1993 for carrying out the purposes of this title (b) ALLOTMENT.From tne sums available for the purposes of sec- tion 311 for any fiscal year, the Secretary shall allot (1) $190,000 each to Guam, American Samoa, the Northern Mariana Islands, the Virgin Islands, and the Trust Territory of the Pacific Islands, and (2) 250,000 to each of the other States. From the remainder of such sums the Secretary shall allot to each State an amount which bears the same ratio to such remainder as the number of adults who do not have a certificate of graduation from a school providing second- ary education (or its equivalent) and who are not currently enrolled or required to be enrolled in schools in such State bears io the number of such adults in all States. (c) REALLOTMENT.The portion of any State's allotment under subsection (b) for a fiscal year which the St. retary determines will RN be required, fcr the period of such allotment is available for car- rying out the State plan approved under this title shill be available for reallotment from time to time on such dates during such period as the Secretary shall fix, to other States it.. proportion to the origi- nal allotments to such States under subsection (b) for such year, but with such proportionate amount for any of such other State being reduced to the extent it exceeds the sum which the Secretary esti- mates such &ate needs and Dili be able to use for such period for carrying out its State plan approved under this title, and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts are not sc reduced. Any amount allot- ted to a State under this subsection during a year shall be deemed part of its allotment under subsection (b) for such year. (d) MINIMUM ALLOTMENT.Notwithstanding any other provision of this section, the sum of any State's allotments under this section for any fiscal year shall rot be less than the total amount of pay- ments the State received for fiscal year 1987. Any amounts necessary for ii creasing the sum of allotments of certain States to comply with the preceding sentence shall be obtained by ratably reducing the sums of the allotments of the other States, but no such sum shall be thereby reduced to an arn,ant which is less than the total amount ( r payments received by the State fa,- fiscal year 1987. (e) RELZRVATION OF FUNDS FOR NATIONAL PROGRAMS.For any fiscal year, if mounts appropriated to .arty out the purposes of this title exceeds $1 08,000,000, not more than 3 percent of sich amu-ents shall be r served to carry out the programs described in part C, re- lating to national programs. PART BSTA.'S PROGRAMS Subpart 1 ? asic State Grants SEC. 321. BASIC GRANTS. From the sums allotte.1 to States for this subpart purse ant to sec- tion 313, the Secretary is authorized to make giants w States to assist them in funding adult education programs, serv-vs, and ac- tivities carried out by eligible "ecipients to achieve the purposes of this Wk. 2 2 282 SEC 322. USE OF FUNDS; LOCAL APPLICATIONS. (a) USE O. FUNDS. 01 Grants 'o States under this subpart shall b, used in ac- cordance with State plans (and amendments thereto) approved under sections 341 and 351, to pay the Federal share of the cost of the establishment or expansion of adult education programs to be carried out by local educational agencies and by public or private nonprofit agencies, organizations, and institutions. 3rants provided under this section to States to carry out the programs described in the preceding sentence mad be carried out by public or private nonprofit agencies, organizations, and insti- tutions only if the applicable local education agency has been consulted with and has had an opportunity to comment on the application of such agency, organization, or institution. The comments of the local educational agency, and responses ther to, shall be attached to the application when it is forwarded to the State. (2) Grants to States provided under this section may also be used to carry out programs by a consortivit which includes a for-profit agency, organization, or institution if such agency, or- ganizat,on, or institution can make a significant contribution to attaining the objectives of this Act. Whenever the establishment or expansion of programs includes a for-profit agency, organiza- tion, or institution, as part of a consortium, a contract with such agency, organization, or institution, for the establishment or exp ,nsion of such programs shall be entered into by the public or private nonprofit agency, institution, or organization. (3) The State educational agency shall not approve any appli- cation r iless evidence that such consultation has taken place is provided. Such application shall contain such information as the State educational agency considers necessary, including a description of current programs, activities, and services receiv- ing assistance from Federal, State, awl local sources; coopera- tive arrangements (including arranvments i'ith business, in- tustry, and vo:un.eer literacy organizations as appropriate) that have been made to deliver services to adults as ten?' as assur- ances that adult educational programs, services, or activities provided under this title are cc -dinated with and not drplica- tive of services, programs, or activities nade available to adults under other Federal, State, and local programs, including the Job Training Partnership Act, the Carl D. Perkins Vocational Education Act, the Rehabilitation Act of 1973, the Education of the Handicapped Act, the Indian Education Act, the Higher Education Act of 1965, and the Domestic Volunteer Service Act. (4) The State educational agency shall give preference to those applicants who have demonstrated or can demonstrate a capa- bility to recruit and se,-ve educationa Fly disadvantaged adults. (b) LIMIT, TIONS UN USE OF FUNDS. (11 Not more than 20 percent of the funds granted to any State under ....zbsection (a) for any fiscal year shall be used for the education of institutionalized individuals. (2) Not more than 20 percent of a State's allotment shall be used for programs of equivalency for a certificate of graduation from a secondary school. 2' 3 283 SEC. 323. PRWATE SECTOR ADULT EDUCATION TRAINING. (a) LITERACY PROGRAMS FOR EMPLOYEES.From the grants awarded to States described in section 322(a), a State may designate up to 10 percent of their State allotment for use to support, consist- ent with section 361(a) programs designed to provide literacy and other basic skills in order to improve the productivity of current em- ployees through the use of business industry, labor organizatio,ts, and education partnerships. (b) REQUIREMENTS FOR PROGRAMS. Programs funded under this section shall be designed to inicr3ve the productivity of the work- force and shall be jointly applied for and conducted by a business or industry or labor organization, or private industry council as de- fined under the Job Training Partnership Act and a local educa- tional agency or institution of higher education. SEC. 324. LOCAL ADMIN. 7RATIEr COST LIMITS (a) Of the percent pro.iided k the State agency to eligible recipients, at least 95 percent must be expended for provision of adult educa- tion instructional activities. The remainder shall be used for plan- ning, administration, personnel development, and .:nteragency co- ordination. (b) In cases where the administrative cost limits under subsection (a) would be imufficient for adequate planning, administration, evaluation,and coordination of programs supported under this Act, the Stat-, agency shall negotz 'e with the local grant recipient in order to determine an adequa .. level of funds to be used for nonin- structiona: purposes. Subpart 2State Administrative Responsibilities SEC. 331. STATE ADMIN-STRATION. (a) STATE AGENCY RESPC. 'BILITIES.Any State desiring . oar- ticipate in the prog,rarris authorized by this title stall c-esignate the State educational agency to be the sole State ager, y responsible for the administration and supervision of such programs. The responsi- bilities of the State agency shall include (1) the development, submission, and implementation of the State application and plan and any amendments thereto (pursu- ant to sections 342 and 351), and the State evaluation (pursuant to section J52); (2) consultation with the State advisory council established pursuant to section 332, and other appropriate agencies, groups, and individuals involved in the planning, administration, eval- uation, and coordination of programs funded under his title; and (3) the assignment of such personnel as may be necessary fc- the State administration of programs under this Act. (b) STATE IPO3EP REQumEmENTs.The imposition of any State rule or per7,ey relating to the administration and operation of pro- grams funded by this title (including i, ny rule or policy based on state interpretation of any Federal law, regulation, or guideline) shall be identified as a State imposed requirement. (c) LIMITATION ON STATE ADMINISTRATIVE COSTS.From the amount appropriated to each State, pursuant to section 313, for any fiscal year, not more th.ln 5 percent may be made ava:lable to pay 24 284 the cost of administration and development of the State plan and other activities required pursuant to this title (including the oper- ations of the State Advisory council under section 332). SEC. 332. STATE ADVISORY COUNCIL ON ADULT EDUCATION. (a) REQUIREMENT.Any State which desires to participate in pro- grams under this title for any fiscal year shall designate a body, or establish a new body if there is no suitable existing body to act as a State advisory council on adult education, appointed by the Gover- nor. The membership of the State advisory council shall be broadly representative of citizens and groups within the State having an in- terest in adult education, and shall consist of representatives of public education; private and public sector employment; recognized State labor organizations; private, voluntary, or community literacy organizations; libraries; and State economic development agencies. (b) REPRESENTATION ON COUNCILThe State shall ensure that there is appropriate representation on the State advisory council of urban as well as rural areas, of women, persons with handicaps, and racial and ethnic minorities. (c) CERTIFICATION.The State shall certify the establishment and membership )f the State advisor) -ouncil to the Secretary pricy- to beginning of any fiscal year in which the State desires to receive a grant under this title. (d) PROCEDURES.Members of the State advisory council shall, using procedures agreed upon, elect their own chairperson. The State adv 3ory council shall determine its own procedures, staffing needs (subject to funding levels authorized by the Governor), and the number, time, place, and conduct of meetings, except that it shall hold at least one public meeting each year at which the general public is given an opportunity to Dxpress views concerning adult education programs in the State. In tarrying out the ?valuations under subsection (f)(3XA), the council shall ensure that persons knowledgeable of the daily operation ot adult education programs are involved (e) TERMS.Members shall be appointed fc fixed and staggered terms and may serve until their successors are appointed. Any va- cancy in the membership of the council shall be filled in the same manner as the original appoi 7tment. Any member of the council may be removed for cause in accordance with procedures established by the council. (f) DUTIES.Each Stale advisory council shall (1) meet with the State agency or its representatives during the planning year to advise on the development of the State plan; (2) advise the State agency concerning (A) policies the State should pursue to strengthen adult education; and (B) initiatives and methods the private sector could un- dertake to assist the State's improvement of adult educa- tion programs; and (SXA) approve the plan for evaluations required in section 352 and participate in the implementation and dissemination of such evaluations, (B) advise the Governor, the State legislature, and the geteral nub& of the State of the findings of such eval- 285 uations, and (C) include in any report of such evaluations its comments and recommendations. Subpart 3Planning and Applications SEC. 3/1. STATE PLAN AND APPLICATION (a) REQUIREMENT. Any State desiring to receive funds under this title steal submit to the Secretary, during the fiscal year 1988 and during each fourth fiscal year occurring thereafter, a State plan and application for adult education (in one document) for the four fiscal years succeeding each fiscal year in which the State plat and appli- cation are submitted. (b) PROCEDURE FOR SUBMISSION AND CONSIDERATION.Each State plan and application shall be submitted to the Secretary by July 1 preceding the beginning of the first fiscal year for which the plan is in effect. The Secretary shall approve, within sixty days, each such pla, and application which is formulated in accordance with sec- tions 342 and 343 and which meets the requirements of such sec- tions, and shall not finally disapprove a State plan except after giving reasonable notice and an opportunity for a hearing tn the State agency. (c) GEPA PROVISION.Such document shalt be cortoidered the general application required to be submitted by the Ski . funds received under this Act for purposes the provisions o, sec- tion 435 of the General Education Provision ict. SEC. 112. FOUKTEAR STATE PLAN. (a) PROCEDURES R2QUIRED IN FORMULATING STATE PLAN.(1) In formulating the State plan, the State agency shall meet with and utilize the State advisory council, established pursuant to section 332 of this title. (2) The State agency shall conduct public hearings in the State, after appropriate and sufficient notice, for the purpose of affordir.j all segments of the public, including groups serving educationally disadvantaged adults, and interested organizatiGns and groups an opportunity to prevent their views and make recommendations re- garding the State plan. A summary of sr It recommendations and the State agency's response shall be included with the State plan submitted to the Secretary. (3)(A) Not less than sixty aays before submission of the State plan to the Secretary u. der section 341, the State agency shall simulta- neously submit the proposed State plan to (i) the State Board or agency for vocational education, (ii) the State Job training Coordi- nating Council under the Job Training Partnership Act, ant. (iii) the State Boa d responsible for postsecondary education +4 review and comment. Such comments (to the extent such comm. are re- ceived in a timely fashion) and the State's response shall be includ- ed with the State plal submitted to the Secretary. The Secretary shall consider such ce-nments in reviewing suc' plan. (B) Not less than sixty days before the submission of the State plan to the Secretary, such plan shall be submitted to the State plan advisory council. Should the State advisory council find that it has substantial disagreement with the final State plan, the Council may file timely objections with the State agency. The State agent.; shall respond to all substantial objections of the State advisory cow cil in 2 er=i 6 286 submitting such plan to the Secretary. The Secretary shall consider such comments ih reviewing the State plan. (b) REQUIRED ASSESSMENTS.In developing the four-year State plan, each State shall (1) make a thorough assessment of (A) the needs of adults, including educationaily disadvantaged adults, eli- gible to be served as well as adults proposed to be served and those served and (B) the capability of existing programs and institutions to meet those needs, and (2) state the changes and improvements re- quired in adult education to fulfill the purposes of this title, and the options for implementing these changes and improvements. (c) COMPONENTS OF STATE PLAN.Consistent with the assessments described in subsection (b) each such plan shall (1) set forth the goals, the methods and strategies, and the ex- pea,'" outcomes of programs, services, and activities during the four year period; (2) describe the curriculum, equipment, and instrument that are being used by instruction personnel and indicate how cur- rent these elements are; (3) describe the means by which the delivery of adult educa- tion services will be significantly expanded (including efforts to reach typically underserved groups such as educationally disad- vantaged adults, individuals with limited English proliciemy and individuals with handicaps) through the use of agencies, institutions, and organizations other than the public school system, such as businesses, labor unions, libraries, institutions of higher education, public health authorities, employment or training programs, antipoverty programs, organizations prcuid- ing assistance to the homeless, and community and voluntary organizations; (4) describe the means by which representatives of the public and private sector are invoked in the development and imple- mentation of the plan, especially in the expansion of the deliv- ery of acsult education services by cooperation and collaboration with those public and private agencies, institution;, and organi- zations; (5) describe specialized efforts to attract and assist meaning- ful participation in adult education programs through flexible course schedules, provision of auxiliary aids and services, con- venient locations, adequate transportation, and meeting child care needs; (6) provide for the needs of persons with limited English pro- ficiency (as defined in section 703(a) of title VII of the Elemen- tary and Secondary Education Act of 1965) or no English profi- ciency by providing adequate appropriate language assistance to the extent necessary to all such persons so they may progress ef- fectively through adult education programs; (7) describe how the special education needs of adult immi- grants, the incarcerated, persons with handicaps, the chronic unemployed, the homeless, the disadvantaged, and minorities will be addresed; (8) describe the progress the State has made in achieving the goals set forth in each State plan subsequent to the initial State plan: 2 7 287 (9) describe the prograss it expects to make toward achieving the purposes of this title -luring the four-year period of the State Plan; (10) set forth the criteria the State agency will use in approv- ing applications by eligible recipients and allocating funds made available under this title to such recipients; (11) describe the methods pre osed for the joint planning and coordination of programs carried out under this title with those conducted under applicable Federal and State programs, in- cluding the Carl D. Perkins Vocational Educational Act of 1963, the Job Training Partnership Act, the Rehabilitation Act of 1973, the Education of the Handicapped Act, the Immigra- tion Reform and Control Act of 1986, the Higher Education Act of 1965 and the Domestic Volunteer Service Act to assure maxi- mum utilization of funds under these Acts and to avoid dupli- cation of services; (12) describe the steps taken to utilize volunteers, particularly volunteers assigned to the Literacy Corps established under the Domestic Volunteer Sesrvice Act and volunteers trained in pro- grams carried out by section 374 -.4 this title, but only to the extent that such volunteers supr:ement and do not supplant sal- aried employees; and (13) describe the measure; to be taken to ensure that adult education programs, services, and activities assisted under this title will take into account the findings cr program reviews and evaluations carried out pursuant to section 352. SEC. 343. STATE APPLICATIONS. (1) The State applicatich submitted pursuant to section 341 shall provide assurances (1) that the State will provide such methods of administra- tion as are necessary for the proper and efficient adminiL ',lion of this title; (2) that Federal funds made available under this title will be so used as to supplement the amount of State and local funds available for uses specified in this Act, and in no case to sap- plant each State and local funds; (3) that the programs, services, and activities funded in ac- cordance with the uses specified in section 322 are designed to expand or improve the quality of adult education programs in- cluding programs for educationally disadvantaged adults, to initiate new programs of high quality, or where necessary, to maintain programs; (4) that the State will provide such fiscal control and fund- inqs accounting procedures as may be necessary to ensure proper disbursement of and accr,nting for, Federal funds paid to the State ;including such funds paid by the State to eligible recipi- ents under this title); and (5) that tl- 2 State has instituted policies and procedures to ensure that copies of the State plan and all statements of gener- al policy, rules, regulations, and procedures will be made avail- able to the public. 2 ('-4-' 8 288 Subpart 4Evaluation and State Plan Amendments SEC. 351. STATE PLAN AMENDMENTS. (a) TIMELY SUBMISSION.When changes are necessary in the State plan, a State shall submit by July 1 preceding the fiscal year of op- eration, amendments to its State plan. (b) CONSIDERATION BY SECRETARYThe Secretary shall approve, within 60 days of submission, t; 7 State plan amendments which meet the requirements of this section, unless such amendments pro- pose changes that are inconsistent with the requirements and pur- poses of this title. The Secretary shall not finally disapprove such amendments except after giving reasonable notice and an opportuni- ty for hearing to the State agency. SEC. 352. EVALUATION. In order to assist grant recipients receiving funds under this title to plan and operate the best possible programs of adult education, each State agency during the four-year period of the State plan shall (1) arrange a program review of grant recipients each year. During the first year of reauthorization at least 15 percent of the grant recipients shall be evaluated; during the second year, t least 20 percent shall be evaluated; and during subsequent years, at least 25 percent of the grant recipients within the State receiving funds under this title shall be evaluated. These eval- uations shall re:dew (A) the planning and content of the program; (B) the curriculum, qualifications of all personnel, equip- ment, and instructional materials; (C) the effect of the program on the subsequent work expe- rience of graduates; and (D) other such factors as are determined to affect pro- gram operation; ar.d (2) gather and analyze data (including standardized test data) to determine the extent to which the adult programs are achieving the goals set forth in the plan including the goal of serving educationally disadvantaged adults, and the exent to which grant recipients have improved their capacity to achieve the purposes of this title as set forth in section 311. Subpart 5Demonstration Projects SEC. 353. SPECIAL EXPERIMENTAL DEMONSTRATION PROJECTS AND TEACHER TRAINING. (a) USE OF FUNDS.Of the funds allotted to a State under section 312 for a fiscal year, not less than 10 prcent shall be used for (1) special projects which will be carried out in furtherance of the purposes of this title, which will be coordinated with other programs funded under this title and which (A) involve the use of innovative methods, including methods for educating persons with handicaps, the home- less, and persons of limited English-speaking ability, sys- tems, materials, or programs which may have national sig- nificance or be of special value in promoting effective pro- grams under this title, or 289 (B) involve programs of adult education, including educa- tion for persons with handicaps, the homeless, and persons of limited English-speaking ability, which are part of com- munity school programs, carried out in cooperation with other Federal, State, or local programs which have unusual promise in promoting a comprehensive or coordinated ap- proach to the problems of persons with educational defi- ciencies; and (2) training persons engaged, or preparing to engage, as pc - sonnel in programs designed to carry out the purposes of this title. (b) APPLICATIONS.Applications for funds under subsection (a; shall include such information as the State educational agency con- siders appropriate, including plans for continuing the activities and services under the project after the completion of the funding. Subpart 6Federal Share; Federal Administrative Responsibilities SEC. 361. PAYMENTS (a) FEDERAL SHARE.The Federal share of expenditures to carry out a State plan shall be paid from a State's allotment available for grants to that State. The Federal share shall be 90 percent of the cost of carrying out the State's programs for fisca. 'oar 1988, 87 per- cent for fiscal year 1989, 83 percent for fiscal year 1990, and 80 per- cent for fiscal years 1991, 1992, and 1993, except that with respect to Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, the Federal share shall be 100 percent. (b) MAINTENANCE OF EFFORT.(1) No payment shall be made to any State from its allotment for any fiscal year unless the Secretary finds that the fiscal effort per student or the amount available for expenditure by such State for adult education from non-Federal sources for the preceding fiscal year was not less than such fiscal effort per student or such amount available for expenditure for such purposes from such sources during the second preceding fiscal year. (2) The Secretary may waive the requirements of this subsection for one fiscal year only, upon making a determination that such waiver would be equitable due to exceptional or uncontrollable cir- cumstances affecting the ability of the applicant to meet such re- quirements, such as a natural disaster or an unforeseen and precipi- tous decline in financial resources. PART CNATIONAL PROGRAMS SEC. 372. ADULT MIGRANT FARMWORKER AND IMMIGRANT EDUCATION. The Secretary shall carry out a program of making grants to States and local eligible recipients to support planning, developing, and evaluating programs which are designed to provide adult edu- cation progi- :ms, services, and activities to meet the special needs of migrant farm workers and immigrants. Programs operated from such grants shall be included in a State's plan and must con, Jrm to all requirements of programs provided for by the State's basic grant. In carrying out this part, the Secretary may enter in i interagency agreements with the Secretary of Health and Human Services to 72-850 87 - 10 290 290 conduct programs in conjunction with activities authorized under the Immigration Reform and Control Act of 1986. SEC. 373. STATE PROGRAM ANALYSIS ASSISTANCE AND POLICY STUDIES. (a) FEDERAL ASSISTAA'CE.The Secretary shall assist States in evaluating the status and progress of adult education in achieving the purposes of this Act, and activities designed to provide such as- sistance will include, but are not limited to (1) an analysis of State plans and of the findings of evalua- tions conducted pursuant to section 852, with suggestions to State agencies for improvements in planning or program oper- ation; and (2) the provision 01 an information network (in conjunction with the National Diffusion Network) on the results of research in adult education, the operation of model or innovative pro- grams (including efforts to continue activities and services, under the program after the Federal funding has been discon- tinued) successful experiences in the planning, administrati-n, and conduct of adult education programs, advances in currxu- lum and instructional practices, and other information useful in the improvement of adult education. (b) DETERMINATION OF LITERACY. The Secretary, in consultation with the Co shall, within the first two years after enactment of the AdultnEst:cation Amendments of 1987, make a determination of the criteria for defining literacy, taking into consideration reports prepared by the National Assessment of Educational Progress and others and shall identify concretely those skills that comprise the basic educational skills needed for literate functioning. The Secre- tary, once he definition of literacy has been determined, shall, in consultation with the Congress and using the appropriate statistical sampling methodology, determine an accurate estimate of the number of illiterate adults in the Nation. (c) REPORT ON STATUS OF LITERACY AND ADULT EDUCATION. Subsequent to the determination of literacy and the number of illit- erate individuals required in subsection (b), the Secretary shall so' nit a report every four years to the President and to the Congress on the status of literacy and adult education in the Nation. (d) EVALUATION REPORT.Three years after the date of enactment of the Adult Education Amendments of 1987, and thereafter in con- junction with the report under subsection (c), the Secretary shall report to the Congress on the results of program evaluations re- quired under this title and conclusions drawn therefrom regarding pr -'gress toward meeting the goals and purposes of this title, togeth- er with such recommendations as the Secretary may wish to make. SEC. 374. ADULT LITERACY VOLUNTEER TRAINING. The Secretary shall carry out a program of mai- g grants to States and local eligible recipients to support plannin8, implementa- tion, and evaluation of programs designed to train adult volunteers, especially the elderly, who wish to participate as tutors in local adult education programs. SEC. 375. JOINT STUDY OF SERVICES. The Secretary of Education, in conjunction with the Secretary of Labor and the Secretary of Health and Human Services, shall con- 24. 291 duct a joint study of Federal funding sources for and services for adult education programs currently available, including literacy initiatives offered by public and private agencies, and shall jointly act to facilitate interagency coordination. The Secretary shall ensure the local and State officials involved in the delivery of adult educa- tion and literacy programs are involved in the study under this sec- tion. Not later than 24 months after the date of enactment of the Adult Education Amendments of 1987, a joint report shall be sub- mitted to the Congress describing the findings of the study. SEC. 376. NATIONAL RESEARCH ACTIVITIES (a) APPROVED ACTIVITIES.The Secretary shall, with funds set aside under section 818(e), support applied research, development, demonstration, dissemination, evaluation, and related. activities which will contribute to the improvement and expansion of adult education in the Nation. Such activities shall include the establish- ment of a national clearinghouse to compile information on literacy curriculum and resources for adults, including youth and adults of limited English proficiency and adults with handicaps. The Secre- tary may support such activities directly, or through grants to, or co- operative agreements with, public or private institutions, agencies, or organizations, or individuals. (b) RESEARCH CONCERNING SPECIAL NEEDS.In addition to the responsibilities of the Assistant Secretary for Educational Research and Improvement under section 405 of the General Education Provi- sions Act, the Assistant Secretary may, with funds available under that section with funds available under other Federal programs, or with funds set aside under section 812(e) of this title, support re- search on the special needs of persons requiring adult education in- eluding a study of the magnitude and nature of the needs of adults with learning disabilities who are eligible for participation in adult education programs. The Assistant Secretary may support such re- search directly or through grants to, or contracts or cooperative agreements with, public or private institutions, agencies, or organi- zations. SEC. 377. LIMITATION. No grant may be made under this title for any educational pro- gram, activity, or service related to sectarian instruction or religious worship, or provided by a school or department of divinity. For pur- poses of this section, the term "school or department of divinity" means an institution or a department or branch of m institution whose program is specifically for the education of st dents to pre- pare them to become ministers of religion or tc enter upon some other religious vocation, or to prepare them to teach theological sub- jects. SEC. 378. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT IN- DIANS. (a) USE OF FUNDS.The Secretary shall carry out a program of making grants to State and local educational agencies, and to Indian tribes, institutions, and organizations, to support p:ctnning, pilot, and demonstration projects which are designed to plan for, and test and demonstrate the effeciiveness of, programs for provid- ing adult education for Indians- 2 rgi 2 292 (1) to support planning, pilot, and demonstration projects which are designed to test and demonstrate the effectiveness .1' programs for improving employment and educational opportuni- ties for adult Indians; (2) to assist in the establishment and operation of programs which are designed to stimulate (A) the provision of basic liter- acy opportunities to all nonliterate Indian adults, and (B) the provision of opportunities to all Indian adults to qualify for a high school equivalency certificate in the shortest period of time feasible; (2) to support a major research and development program to develop more innovative and effective techniques for achieving the literacy and h4h school equivalency goals; (4) to provide for basic surveys and evaluation thereof to define accurately the extent of the problems of illiteracy and lack of high school completion among Indians; (5) to encourage the dissemination of information and materi- als relating to, and the evaluation of the effectiveness of edu:a- tion programs which may offer educational opportunities to Indian adults. (b) IMPROVEMENT "1' EDUCATIONAL OPPORTUNITYThe Secretary is alga authorized to make grants to Indian tribes, Indian institu- tions, and Indian organizations to develop and establish education- al services and programs specifically designed to improve education- al opportunities for Indian adults. (c) EVALUATION AND DISSEMINATION.The Secretary is also au- thorized to make grants to, and contracts with, public agencies, and institutions, and Indian tribes, institutions, and organizations for (1) the dissemination of information concerning educational programs, services, and resources available to Indian adults, in- cluding evaluations thereof and (2) the evaluation of the effectiveness offederally assisted pro- grams in which Indian adults may participate in achieving the (d) of such programs with respect to such adults. (d) APPLICATIONS.Applications for a grant under this section shall he surimitted at such time, in such manner, and contain such information, and shall be consistent with such criteria, as may be established as requirements in regulations promulgated by the Sec- retary. Such applications shall (1) set forth a statement describing the activities for which as- sistance is sought; (2) provide for an evaluation of the effectiveness of the project in achieving its purposes and those of this section. The Secretary shall not approve an application for a grant under subsection (a) unless he is satisfied that such application, and any documents submitted with respect thereto, indicate that there has been adequate participation by the individuals to be served and tribal communities in the planning and development of the project, and that there will be such a participation in the operation and evaluation of the project. In approving applications under subsec- tion (a), the Secretary shall give priority to applications from Indian educational agencies, organizations, and institutions. (e) AUTHORIZATION OF APPROPRIATIONS.For the purpose of making grants under this section there are authorized to be appro- 27,4 3 i ... 293 priated $8,000,000 for fiscal year 1988 and such sums as may be nec- essary for each of the fiscal years 1989, 1990, 1991. 1992, and 1993. SEC. 379. NATIONAL ADVISORY COUNCIL ON ADULT EDUCATION. (a) APPOINTMENT.The President shall appoint a National Advi- sory Council on Adult Education (hereinafter in this section re- ferred to as the "Council"). (b) MEMBERSHIP.The Council shall consist of fifteen members who shall, to the extent possible, include persons knowledgeable in the field of adult education including education for persons of lim- ited English-speaking ability in which :nstruction is given in Eng- lish and, to the extent necessary to allow such persons to progress effectively through the adult education program, in the native lan- guage ci. f such persons, State and local public school officials, and other persons having special knowledge and experience, or qualifica- tions with respect to adult education, and persons representative of the general public. The Council shall meet initially at the call of the Secretary and elect from its number a chairman. The Council will thereafter meet at the call of the chairman, but not less often than twice a year. (c) DUTIES.The Council shall advise the Secretary in the prepa- ration of general regulations and with respect to policy matters aris- ing in the administration of this title, including policies and proce- dures governing the approval of State plans and policies to elimi- nate duplication, and to effectuate the coordination of programs under this title and other programs offering adult education activi- ties and services. (d) REPORTS.The Council shell review the administration and ejectivene_ss of programs under this title, make recommendations with respect thereto, and make annual reports to the President of its findings and recommendations (including recommendations for changes in this title and other Federal laws relating to adult educa- tion activities and services). The President shall transmit each such report to the Congress together with comments and recommenda- tions. The Secretary of Education shall coordinate the work of the Council with that of other related advisory councils. ACT OF SEPTEMBER 23, i950 AN ACT Relating to the construction of school facilities in areas affected by Federal activities, and for other purposes. * ESTABLISHMENT OF PRIORITIES SEC. 3. The Commissioner shall from time to time set dates by which applications for payments under this Act with respect to construction projects must be filed, c-xcept that the last such date with respect to applications for payments on account of children re- ferred to in paragraphs (2) or (3) of section 5(a) shall be not later that September 30, [1988.] 1993. The Commissioner shall by regu- lation prescribe an order of priority, based on relative urgency of need, to be followed in approving applications in the event the funds appropriated under this Act and remaining available on any 2 .ci 4 294 such date for payment to local educational agencies are less than the Federal share of the cost of the projects with respect to which applications have been filed prior to such aate (and for which funds under this Act have not already been obligated). Only applications meeting the conditions for approval undo- this Act (other than sec- tion 6(bX2XC) shall be considered applications for purposes of the preceding sentence. 4 a * a a a DEFINITIONS SEC. 15. For the purposes of thisAct (1) a * * * ' * * * (15) The term "base year" means the third oi fourth regular school year preceding the fiscal year in which an application was filed under tnis Act, as may be designated in the application, except that in the case of an application based on children referred to in paragraph (2) or (3) of section 5(a), the base year shall in no event be later than the regular school year [1978-1979;] 1988- 1989; and * a a SCHOOL CONSTRUCTION ASSISTANCE IN CASES OF CERTAIN DISASTERS SEC. 16. (a) In any case in which (1XA) the Director of the Office of Emergency Planning de- termines with respect to any local educational agency (includ- ing for the purpose of this section any other public agency which operates schools providing technical, vocational, or other special education to children of elementary or secondary school age) that such agency is located in whole or in part within an area which, after August 30, 1965, and prior to October 1, [19883 1993, has suffered a major disaster as the result of any flood, drought, fire, hurricane, earthquake, storm, or other catastrophe which, in the determination of the President pur- suant to section 2(a) of the Act of September 30, 1950 (42 U.S.C. 1855a(a), is or threatens to be or sufficient severity and magni- tude to warrant disaster assistance by the Federal Govern- ment; or 4, * a a a * a LIMITATION ON PAYMENTS SEC. 18. Notwithstanding any other provision of this Act, amounts appropriated for the purposes of this Act "lr fiscal year 1988 may not exceed $24,000,000. GENERAL EDUCATION PROVISIONS ACT * a a a * a a 2:a 295 PART AEDUCATION DIVISION OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OFFICE OF EDUCATIONAL RESEARCH AND IMPROVEMENT SEC. 405. (a) (eX1) In addition to the other responsibilities of the Office under this section, the Office shall carry out, by grant or cooperative agreement with a nonprofit educational organization, a National Assessment of Educational Progress which shall have as a primary purpose the assessment of the performance of children and young adults in the basic skills of reading, mathematics, communication, and other subjects and skills. Such a National Assessment shall (A) collect and report at least once every five years data as- sessing the performance of students at various age or grade levels in each of the areas of reading, writing, and mathemat- ics, including data on the performance in these areas of stu- dents served by chapter 1 of the School Improvement Act of 1987; (0(1) There are authorized to be appropriated to carry out this section [and section 406] of this Act, $72,231,000 for fiscal year 1987 and such sums as may be necessary for each of the four r-_-_c- ceeding fiscal years. NATIONAL CENTER FOR EDUCATION STATISTICS SEC. 406. (a) (1) There is established, with the Office of Education- al Research and Improvement, a National Center for Education Statistics (hereafter in this section referred to as the "Center"). [The Center shall be headed by a Director who shall be appointed by the Assistant Secretary in accordant? with the provisions of title 5, United States Code, relating to appointments in the com- petitive service.] The general design and duties of the National Center for Education Statistics shall be to acquire and diffuse among the people of 'he United States useful statistical information on subjects connected with education, in the most general and co'n- prehensive sense of the word, particularly the retention of students, the assessment of their progress, the financing of institutions of edu- ,ation, financial aid to students, the supply of and demand for teachers and other school personnel, comparisons of the education of the United States and foreign nations and the means of promoting material, social, and intellectual prosperity through education. (2XA) The Center shall be headed by a Commissioner of Educa- tion Statistics who shall be appointed by the President, by and with the advice and consent of the Senate. The Commissioner of the Na- tional Center for Education Statistics shall have substantial experi- ence and knowledge of programs encompassed by the National Center. The Commissioner shall be paid in accordance with section 5315 of title 5, United States Code. The Commissioner shall serve 2f6 296 for terms of 4 years, except that in the case of the initial appoint- ment, the Commissioner shall serve until June 21, 1991. (B) There shall be within the Center (i) an Associate Commission- er for Statistical Standards and Methodology who shall be quali- fied in the field of mathematical statistics or statistical n-, ;hodolo- gx and (ii) an Associate Commissioner for International Education Statistics who shall promote United States participation in interna- tional research on educational statistics. The Commissioner shall appoint such other Associate Commissioners as may be necessary and appropriate. (b) The purpose of the Center shall be to collect, and analyze and disseminate statistics and other data related to education in the United States and in other nations. TheCenter shall (1) (3) assist State and local educational agencies, including State agencies responsible for postsecondary education, in im- proving and automating their statistical and data collection ac- tivities (and shall establish a special program to train employ- ees of such State and local agencies in the use of the Center's standard statistical procedures and concepts and may establish a fellows program to temporarily appoint such employees as fel- lows at the Center for the purpose of familiarization with the operations of the Center), (c)(1) There shall be an Advisory Council on Education Statistics which shall be composed of 7 public members appointed by the Sec- retary and such ex officio members as are listed in subparagraph (2). Not more than 4 of the appointed members of the Council may be members of the same political party. (2) The ex officio members of the Council shall be (A) (B) the Director of the Census, [and] (C) the Commissioner of Labor Statistics [.] ; and (D) Commissioner of Education Statistics. * * . . (4) The [Assistant Secretary] Commissioner of Education Statis- tics shall serve as the non-voting presidhig officer of the Council. . * . . * . (7) The Council shall review general policies for the operation of the Center and shall be responsible for [establishing] advising on standards to insure that statistics and analyses disseminated by the Center are o' high quality and are not subject to political influence. (8) The Commissioner may appoint such other ad hoc advisory committees as the Commissioner considers necessary. (dXl) The [Secretary] Commissioner shall, not later than June 1 of each year, submit to the Congress an annual report which-- ( ) . . . (C) includes a statistical report on the condition of education in the United States during the two preceding fiscal years and 2 7 297 a projection, for the three succeeding fiscal years, of estimated statistics related tc ,ducation in the United States[; and (D) clearly sets forth areas of critical need for additional qualified education personnel in local education agencies and, after discussion and review by the Advisory Council on Educa- tion Statistics, identifies priorities within projected areas of need, and includes recommendations of the Council with re- spect to the most effective manner in which the Nation and the Federal Government may address such needs]. (2) The Secretary may submit annually a report to the Congress giving information of the State of Education in the Nation. In such report the Secretary shall clearly set forth his views of critical needs In education and the most effective manner in which the nation and tho Federal Government may address such needs. [(2)] (3) The Center shall develop and enforce standards de- signed to protect the confiden+iality of persons in the collection, re- porting, and publication of data under this section. This subpara- graph shall not be construed to protect the confidentiality of infor- mation about institutions, organizations, and agencies receiving grants from or having contracts with the Federal Government. (/:)(A) Except as provided in this section, no person may (i) use any individually identifiable information furnished under the provisions of this section for any purpose other than statistical purposes for which it is supplied; (ii) stake any publication whereby the data furnished by any particular person under this section can be identified; or (iii) permit anyone other than the individuals authorized by the Commissioner to examine the individual reports; or (B) no department, bureau, agency, officer, or employee of the Gov- ernment, except the Commissioner of Education Statistics in carry- ing out the purposes of this section, shall require, for any reason, copies of reports which have been filed under this section with the Center for Education Statistics or retained by any individual re- spondent. Copies of such reports which have been so retained or filed with the Center or any of its employees or contractors or agents shall be immune from legal process, and shall not without the con- sent of the individual concerned, be admitted as evidence or used for any purpose in any action, suit, or other judicial or administra- tive proceeding. This subsection shall only apply to individually identifiable data (as defined in subparagraph (E). (C) Whoever, being or have been an employze or staff member ap- pointed under the authority of the Commissioner or in accordance with this section of the Act, having taken and subscribed the oath of office, or having sworn to observe the limitations imposed by sub- section (a), publishes or communicates any individually identifiable information (as defined in subparagraph (E), the disclosure of which is prohibited under the provisions of subparagraph (A), and which comes into his or her possession by reason of employment (or otherwise providing services) under the provisions of this section, shall be fined not more than $5,000 or imprisoned not more than 5 years, or both. 298 (D) The Commissioner may utilize temporary staff including em- ployees of Federal, State, or local agencies or instrumentalities in- cluding local education agencies, and employees ofprivate organiza- tions to assist the Center in performing the work authorized by this section, but only if such temporary staff is sworn to observe the limi- tations imposed by this section. (E) For the purposes of this section (i) the term "individually identifiable information" means any record, response form, completed survey or aggregation thereof from which information about individual students, teachers, administrators or other individual persons may be re- vealed; (ii) the term "report" means a response provided by or about an individual to an inquiry from the Center and does not in- clude a statistical aggregation from which individually identi- fiable information cannot be revealed; and (iii) as used in clause (i), the ierm "persons" does not include States, local educational agencies, or schools. (eX1) The Center is authorized to furnish transcripts or copies of tables and other statistical records [of the Office] and make spe- cial statistical compilations and surveys for State and local offi- cials, public and private organizations, and individuals. The Center shall pro dde State and local educational agencies opportunities to suggest the development of particular compilations of statistics, surveys, and analyses that would assist those educational agencies. The Center shall furnish such special statistical compilations and surveys as the Committees on Labor and Human Resources and on Appropriations of the Senate avid the Committees on Education and Labor and on Appropriations of the House of hepresentatives may request. Such statistical compilations and iurveys, other than those carried out pursuant to the preceding sentence, shall be made subject to the payment of the actual or estimated cost of such work. In the case of nonprofit organizations or agencies, the Secre- tary may engage in joint statistical projects, the cost of which shall be shared equitably as determined by the Secretary: Provided, That the purpose of such projects are otherwise authorized by law. (3) In carrying out any authorized responsibilities under this sec- tion, the Commissioner may enter into contracts or other financial arrangements. Contracts or financial arrangements may include sole source contracts, with States, organizations performing internation- al studies, and associations that are nationally representative of a wide variety of State or nonpublic schools. The Commissioner shall submit annually a report to the appropriate c3mmittees of the Con- gress, listing each sole source contract, its purpose, and the reasons why competitive bidding was not feasible in each such instance. (4) The Commissioner is authorized to prepare and publish such information and documents as may be of value in carrying out the purposes of this section. Periodically, the Commissioner shall issue a regular schedule of publications. (5) In addition to the condition of education report under subsec- tion (d), the Commissioner is authorized to make special reports on particular subjects wh,..never requried to do so by the Tiresident or 299 either House of C ,ngress or when considered appropriate by the Commissioner. (6) The Commissioner is authorized to use informition collected by other executive agencies and to enter into interagency agreements for the collection of statistics for the purposes of this section. The Commissioner is authorized to arrange with any agency, organiza- tion, or institution for the collection of statistics for the purposes of this section and may assign employees of the Center to any such agency, organization, or institution to assist in such collection. (7) The Commissioner is authorized to use the statistical method known as sampling to carry out this section. Data may be collected from States, local educational agencies, schools, administrators, teachers, students, and general public, and such other individuals, persons, organizations, agencies, and institutions as the Commis- sioner may consider appropriate. [(f) Funds to carry out this section are authorized by section 405(g) of this Act.] [(f)(1) There are authorized to be appropriated for the purposes of this section (including salaries and expense& $25,809,000 for fiscal year 1988, $32,823,000 for fiscal year 1989, $37,323,000 for fiscal year 1990, and such sums as may be necessary for each of the fiscal years 1991. 1992, and 1993. (2) The Commissioner may contract with States to carry out sub- section (0. Such contracts may not exceed 33.5 percent of the cost: to the State of compliance with such subsection. (g) (1) In addition to its other responsibilities, the Center shall collect uniform data from the States on the financing of elementa- ry and secondary education. Each State receiving funds under the Education Consolidation and Improvement Act of 1981 shall coop- ez ote with the Center in this effort. (2) In addition to other duties of the Commissioner under this sec- tion, it shall be the responsbiility of the Commissioner to issue regu- lar public reports to the President and Congress on dropout and re- tention rates, results of education, supply and demand of teachers and scholl personnel, financial aid and on such other education in- dicators as the Commissioner determines to be appropriate. (3) There is established within the Center a special study panel to make recommendations concerning the termination of education in- dicators for study and report under paragraph (2). The panel shall be appointed by the Commissioner. Not more than 18 months after the date of enactment of the School Improvement Act of 1987, the panel shall submit a report to the appropriate committees of the Congress. The panel shall cease to exist 6 months after the date of such submission. (4XA) The Ce-ter shall conduct an annual national survey of dropout and retention rates as an education indicator. (B) The Commissioner shall appoint a special task force to develop and test an effective methodology to accurately measure dropout and retention rates. Not later than 1 year after the date of enGct- ment of the School Improvement Act of 1987, the task force shall submit a report of its recommendations, including procedures for implementation of such recommendations, to the Commissioner and the appropriate committees of the Congress. 3 1-', 0 300 (C) On the second Thesday after La&or Day of 1988 and on each such Tuesday thereafter, the Center shall submit a report to the ap- propriate committees of the Congress of the dropout and retention rate prevailing on March 30 of each such year. (5) As of March 30, 1990, and ev,:y 3 years thereafter, the Center shall conduct a national study and survey of f al aid in ac- cordance with the provisions of section 1303(c) 14ther Educa- tion Act Amendments of 1986. The Center sh... .onit n report to the appropriate committees of the Congress concerning tne findings of such study. (6) On April 1, 1992, and every 10 years thereafter, the Center shall sul... a report to the appropriate committees of the Congress .:once. -ring the social and economic status of children who reside in the areas served by different local educational agencies. Such report shall be based on data collected during the most recent decennial census. (7) The Center shall conduct a study of a statistically relevant sample of students enro.&ed 'n elementary and secondary school con- cerning educational pr- gress, intellectual develo,ment, and econom- ic prosperity. Sue,- tudy shall evaluate such students by such crite- ria at 2-year interzu.s. As of February 1, 1988, and every 8 years thereafter, the Commissioner shall select a sample of students en- rolied in school for this study. (iX1) There is established within :he Center a National Coopera- tive Education Statistics System (hereafter referred to in this subsec- tion as the "System"). The purpose of the System is to produce and maintain, with the cooperation of the States, comparable and uni- form educational information and data that are useful for policy- making at the Federal, State, and local level. (2) Each State that desires tr e-ticipate in the system shall (A, first develop with z ,enter the information and data- gathering requirements thi. t are needed to report on the condi- tion and progress of elementary and secondary education in the United States, such as information and data on (i) schools and school districts; (i) students and en:altments, including special popula- tions; (iii) teacher: and school administrators; (iv) the financing of elementary and secondary education; (v) student outcomes, including scores en standardized tests and other measures of educational achievement: and (vi) the progress of education reform in ',tie States a r the Nation; and (B) then enter into an agreement with the Center for that fiscal year to comply with those information and data-gather- ing requirements. (3) To establish and maintain the system, he Commissioner (A) shall (i) provide technical assistance to the States regarding the collection, maintenance, ana use of the System's data; and 3 -1 301 (ii) to the extent possible; implement standard definitions and data collection procedures,. and (B) may (i) directly, or through grants, cooperative agreements, or contracts, conduct research, development, demonstration, and evaluation activities that are related to the purposes of the System; and (ii) prescribe apprvriate guidelines to ensure that the statistical activities of the States participating in the System produce data that are uniform, timely, and appro- priately accessible. [PART E.ENFORCEMENT [EDUCATION APPEAL BOARD [SEC. 451. (a) The Commissioner shall establish in the Office of Education an Education Appeal Board (hereinafter in this part re- ferred to as the "Board") the functions of which shall be to con- duct [(1) audit appeal hearings pursuant to section 452 of this Act, [(1) audit appeal hearings pursuant to section 452 of this Act, [(3) cease and desist hearings pursuant to section 454 of this Act, and [(4) other proceedings designated by the Commissioner. [(b) The members of the Board shall be designated by the Secre- tary, in consultation with the Assistant Secretary for Education and the Commissioner, and mEy include individuals who are offi- cers or employees of the United States, as well as individuals who are not full-time employees of the Federal Government. [(c) The Board shall be composed of not less than fifteen nor more than thirty members, of whom no more than one-third shall be officers or employees of the Department. The Secretary shall designate one of the members of the Board to be the Chairman. [(d) For the purposes of conducting hearings as provided in sub- section (a) the Chairman may appoint hearing panels of not less than three members of the Board, or the Chairman may designate the entire Board to sit as a panel for any case or class of cases. On any sut,h panel [(1) the majority of members shall not be individuals in the full-time employment of the Federal Government, [(2) the membership shall not include any individual who is a party to, or has any responsibility for, any particular matt.lr assigned to that panel, and [(3) the Chairman of the Board shall designate one member of each such panel to be the presiding officer. [(e) The proceedings of the Board shall be conducted according co such rules as the Commissioner shall prescribe by regulation in conformance with the rules relating to hearings in title 5, United States Code, sections 554, 556, and 557 respecting (1) the receipt of oral or written testimony, (2) notice of the issues to be considered, (3) the right to counsel, 3 2 302 [(/...) intervention of third parties, [(5) transcripts of proceedings, and [(6) such other matters as may be necessary to carry out the functions of the Board. [(f) If there has been established within the Department of Health, Education, and Welfare an appeal board which the Com- missioner determines is capable of carrying out the functions of the Board eat _.,:fished under this section, he may, with the approval of the Secretary, designate such Department appeal board to carry out the functions of this section. [AUDIT DETERMINATIONS [SEC. 452. (a) Whenever the Commissioner determines that an expenditure not allowable under a program listed in section 435(a) of this title, or conducted under title VI and title VII of the Ele- mentary and Secondary Education Act of 1965, or under the Emer- gency School Aid Act, has been made by a State or by a local edu- cational agency, or that a State or local educational agency has otherwise failed to discharge its obligation to account for funds under any such program, the Commissioner shall give such State or local educational agency written notice of a final audit determi- nation, and he shall at the same time notify such State or agency of its right to have such determination reviewed by the Board. [(b) A State or a local educational agency that has received writ- ten notice of a final audit determination and that desires to have such determination reviewed by the Board shall submit to the Board an application for review not later than thirty days after re- ceipt of notification of the final audit determination. The applica- tion for review shall be in the form and contain the information specified by the Board. The Board shall return to the Commission- er for such action as lie deems appropriate any final audit determi- nation which, in the judgment of the Board, contains insufficient detail to identify with particularity those expenditures which are not allowable. Unless the Board determines that a final audit de- termination lacks sufficient detail, the burden shall be upon the State or local educational agency to demonstrate the allowability of expenditures disallowed in the final audit determination. [(c) When a State or a local educational agency has submitted an application for review with respect to a final audit determina- tion, no action shall be taken by the Commissioner to collect the amount determined to be owing until the Board has issued a final decision upholding the audit determination as to all or any part of such amount. The filing of such an application shall not affect the authority of the Commissioner to take any other adverse action against such State or agency under this part. [(d) A decision of the Board with respect to an application for review under this section shall become final unless within sixty days following receipt by the State or by the local educational agency of written notice of the decision [(1) the Commissioner for good cause shown, modified or sets aside the decision, in whole or in part, in which case the deci- sion shall become final sixty days after such action by the Commissioner, or 3 3 303 [(2) the State or the local educational agency files petition for judicial review as provided in section 455 of this AC [(e) A final audit determination by the Commissioner under sub- section (a) with respect to which review has not been requested pursuant to subsection (b), or a final decision of the Board under this section upholding a final audit determination against a State or a local educational agency shall establish the amount of the audit determination as a claim of the United States which the State or the local educational agency shell be required to pay to the United States and which may be collected by the Commissioner in accordance with the Federal Claims Collection Act of .1966. [(0(1) Notwithstanding any other provision of law, the Commis- sioner may, subject to the notice requirements of paragraph (2), compromise any claim established under this section for which the initial determination was found to be not in excess of $50,000, where the Commissioner determines that (A) the collection of any or all of the amount thereof would not be practical or in t1.e public interest, and (B) the practice which resulted in the claim has been corrected and will not recur. [(2) Not less than forty-five days prior to the exercise of the au- thority to compromise a claim pursuant to paragraph (1), the Com- missioner shall publish in the Federal Register a notice of his in- tention to do so. Such notice shall provide interested persons an op- portunity to comment on any proposed action under this subsection through the submission of written data, views, or arguments. [tg) No State and no local educational agency shall be liable to refund any amount expended under an applicable program which is determined to be unauthorized by law if that expenditure was made more than five years before that State or local educational agency is given the notice required by subsection (a). [(h) The Secretary shall employ, assign, or transfer sufficient professional personnel to ensure that all matters brought before the Board may be dealt with in a timely manner. [WITHHOLDINGS [SEC. 453. (a) Whenever the Commissioner has reason to believe that any recipient of funds under any applicable program (other than a program to which regulations promulgate under section 497A of the Higher Education Act of 1935 apply), has failed to comply substantially with any requirement of law applicable to such funds, he shall notify such recipient in writing of his inten- tion to withhold, in whole or in part, further payments under such program, including payments for State or local administrative costs, until he is satisfied that the recipient no longer fails to comply with such assurances or other terms. [(b) The notification required under subsection (a) shall state (1) the facts upon which the Commissioner has based his belief and (2) a notice of opportunity for a hearing to be held on a date at least thirty days after the notification has been sent to the recipient. The hearing shall be held before the Board and shall be conducted in accordance with rules prescribed pursuant to section 451(e) of this Act. I i 3 304 [(c) Pending the outcome of any proceeding initiated under this section, the Commissioner may suspend payments to such a recipi- ent, after such recipient has been given reasonable notice and op- portunity to show cause 'illy such action should not be taken. [(d) The decision of the Board in any proceeding brought under this section shall become final unless within sixty days following receipt by the recipient of written notice of the decision [(1) the Commissioner for good cause shown, modifies, or sets aside the decision in whole or in part, in which case the decision as modified shall become final sixty days after such action by the Commissioner, or [(2) the recipient files a petition for judicial review as pro- vide,' :a section 455 of this Act. [CEASE AND DESIST ORDERS [SEC. 454. (a) Whenever the Commissioner has reason to believe that any State or any local educational agency that receives funds under any applicable program has failed to comply substantially with any requirement of law applicable to such funds in lieu of pro- ceeding under section 453 of this Act, the Commissioner may issue and cause to be served upon such State or upon such local educa- tional agency a complaint (1) stating the charges upon which his belief is based, and (2) containing a notice of a hearing to be held before the Board on a date at least thirty days after the service of that complaint. ((b) The State ,-- the local educational agency upon which such a complaint has been served shall have the right to appear before the Board on the date specified and to show cause why an order should not be entered by the Board requiring such State or such local educational agency to cease and desist from the violation of law charged in the complaint. [(c) The testimony in any hearing held under this section shall be reduced to writing and filed with the Board. If upon that hear- ing the Board shall be of the opinion that the State or the local educational agency is in violation of any requirement of law as charged in the complaint, it shall make a report in writing stating its findings of fact and shall issue and cause to be served upon the State or the local educational agency an order requiring the State or the local educational agency to cease and desist from the prac- tice, policy, or procedure which resulted in such violation. [(d) The report and order of the Board shall become final on the sixtieth day following the date upon which the order of the Board was served upon the State or the local educational agency unless before that day the State or local educational agency files a peti- tion foil judicial review as provided in section 455 of this Act. [(e) A final order of the Board under this section may be en- forced, as determined by the Ccmmissioner, by [(1) the withholding of any portion of the amount payable, including amounts payable for administrative costs, under the affected program to the State or the local educational agency against which the final order has been issued, or 3 :',5 305 [(2) the Commissioner certifying the facts to the Attorney General whose duty it shall be to cause appropriate proceeding to be brought for the enforcement of the order.' [JUDICIAL REVIEW [SEC. 455. (a) Any recipient of funds under an applicable pro- gram that would be adversely affected by any action under section 452, 453, or 454 of this Act, and any State entitled t) receive funds under a program listed in section 435(a) of this title whose applica- tion therefor has been disapproved by the Commissioner, shall be entitled to judicial review of such action in accordance with the provision of this section. [(b) Any State, local educational agency, or other recipient enti- tled to judicial review under subsection (a) that desires such review of any action by the Commissioner or the Board qualifying for review under this section shall, within sixty days of that action, file with the United States Court of Appeals for the circuit in which that State, local educational agency, or other recipient is located, a petition for review of such action. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Commission- er. The Commissioner thereupon shall file in the court the record of the proceedings on which the action was based, as provided in section 2112 of title 28, United States Code. [(c) The findings of fact by the Board, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Board to take further evidence, and the Board may thereupon make new or modified findings of fact and may modify its previous action, and shall certify to the court the record of the further proceedings. Such new or modified find- ings of fact shall likewise be conclusive if supported by substantial evidence. [(d) The court shall have jurisdiction to affirm the action of the Board or the Commissioner or to set it aside, in whole or in part. Th.. judgment of the court shall be subject to review by the Su- preme Court of the United States upon certiorari or certification as provided in section 1254 of title 28, United States Code. [USE OF RECOVERED FUNDS [SEC. 456. (a) Whenever the Commissioner has recovered funds following a final audit determination with respect to any applicable program, he may consider those funds to be additional funds avail- able for that program and may arrange to repay to the State or the local agency affected by that action not to ex( --ed 75 percent of those funds upon his determination that- - [(1) the practices or procedures of the State or local agency that resulted in the audit determination have been corrected, and that the Str to or the local agency is in all other respects in compliance wish the requirement of that program; [(2) the State or the local agency has submitted c the Com- missioner a plan for the use of those funds pursuant to the re- quirements of that program and, to the extent possible, for the benefit of the population that was affected by the failure to 366 306 comply or by the misexpenditures that resulted in the audit exception; and [(3) the use of those funds in accordance with that plan would serve to achieve the purposes of the program under which the funds were originally granted. [(b) Any payments by the Commissioner under this section shall be subject to such other conditions as the Commissioner deems nec- essary to accomplish the purposes of the affected programs, includ- ing [(1) the submission of periodic reports on the use of funds provided under this section; and [(2) consultation by the State or local agency with parents or representatives of the population that will benefit from the payments. C(c) Notwithstanding any other provisions of law, the Commis- sioner may authorize amounts made available under this section to remain available for expenditure, subject to such conditions as he deems appropriate, for up to three fiscal years following the fiscal year in which the audit determination referred to in subsection (a) was made. [(d) At least thirty days prior to entering into an arrangement under this section, the Commissioner shall publish in the Federal Register a notice of his intent to do so and the terms and condi- tions under which payments will be made. Interested persons shall have an opportunity for at least thirty days to submit comments to the Commissioner regarding the proposed arrangement.] PART EENFORCEMENT SEC. 451. OFFICE OF ADMINISTRATIVE LAW JUDGES. (a) The Secretary shall establish in the .Department of Education an Office of Administrative Law Judges (hereinafter in this part re- ferred to as the "Office") which shall conduct (1) recovery of funds hearings pursuant to section 452 of this Act, (2) withholding hearings pursuant to section 455 of this Act, (3) cease and desist hearings pursuant to section 456 of this Act, and (4) other proceedings designated by the Secretary. (b) The administrative law judges (hereinafter "judges") of the Office shall be appointed by the Secretary in accordance with sec- tion 3105 of title 5, United States Code. (c) The judges shall be officers or employees of the Department. The judges shall meet the requirements imposed for administrative law judges pursuant to sectic-i 3105 of title 5, United States Code. In choosing among equally qualified candidates for such positions the Secretary shall give favorable consideration to the candidates' experience in State or local education agencies and their knowledge of the workings of Federal education programs in such agencies. The Secretary shall designate one of the judges of the Office to be the chief judge. (d) For the purposes of conducting hearings described in subsec- tion (a), the chief judge shall assign a judge to each case or class of cases. With respect to any case, the judge shall not have been a 3 ,-.7 307 party to, or have had any responsibility for, any particular matter assigned to thnt judge. (e) The judge shall review and may require that evidence be taken on the sufficiency of the preliminary departmental determination as set forth in section 452. (f)(1) The proceedings of the Office shall be conducted according to such rules as the Secretary shall prescribe by regulation in conform- ance with the rules relating to hearings in title 5, United States Code, sections 554, 556, and 557. (2) The provisions of title 5, United States Code, section 504, relat- ing to costs and fees of parties, shall apply to the proceedings before the Department. (gX1) In order to secure a fair, expeditious, and economical resolu- tion of cases and where the judge determines that the discovered in- formation is likely to elicit relevant information with respect to an issue in the case, is not sought primarily for the purposes of delay or harassment, and would serve the ends of justice, the judge may order a party to (A) produce relevant documents; (13) answer written interrogatories that inquire into relevent matters; and (C) have depositions taken. The judge shall set a time limit on the discovery period. The judge may extend this period for good cause shown. At the request of any party, the judge may establish a specific schedule for the conduct of discovery. (2) In order to carry out the provisions of subsections (f)(1) and (01), the judge is authorized to issue subpoenas and apply to the appropriate court of the United States for enforcement of a subpoe- na. The court may enforce the subpoenas as if it pertained io a pro- ceeding before that court. (h) The Secretary shall establish a process for the voluntary medi- cation of disputes pending before the Office. The mediator shall be agreed to be all parties involved in rnedition and shall be independ- ent of the parties to the dispute. (i) The Secretary shall employ, assign, or transfer sufficient profes- sional personnel, including judges of the Office, to ensure that all matters brough before the Office may be &alt with in a timely manner. SEC. 452. RECOVERY OF FUNDS. (a) (1) Whenever the Secretary determines that a recipient of a grant or cooperative agreement under an applicable program must return funds because the recipient has made an expenditure of funds that is not allowable under that grant or cooperative agree- ment, or has otherwise failed to discharge its obligation to account properly for funds un&r the grant or cooperative agreement, the Secretary shall give the recipient written notice of a preliminary de- partmental decision and notify the recipent of its right to have that decision reviewed by the Office and of its right to request mediation. (2) In a preliminary departmental decision, the Secretary shall have the burden of stating a prima facie case for the recovery of funds. The facts to serve as the basis of the preliminary departmen- tal decision may come from an audit report, an investigative report, 3+48 308 a monitoring report, or other evidence. The amount of funds to be recovered shall be determined on the bars of section 458. (3) For the purpose of paragrph (2), failure by a recipient to main- tain records required by law, or to allow the Secretary access to such records, shall constitute a prima facie case. (bX1) A recipient that has received written notice of a preliminary departmental decision and that desires to have such decision re- viewed by the Office shall sumit to the Office an application for review not later than 30 days after receipt of notice of the prelimi- nary department decision. The application shall be in the form and contain the information specified by the Office. The Office shall return to the Secretary for such action as the Secretary considers ap- propriate any preliminary departmental decision which, the Office determines does not meet the requirements of subsection (aX2). (2) In cases where the preliminary departmental decision requests a recovery of funds from a State recipient, that State recipient may .rot recover funds from an affected local educational agency unless that States recipient has (A) transmitted a copy of the preliminary departmental deci- sion to any affected subrecipient within ten days of the date that the State recipient in a State administered program re- ceived such written notice; and (B) consulted with each affected subrecipient to determine whether the State recipient should submit an application for review under paragraph (1). (3) In any proceeding before the Office under this section, the burden shall be upon the recipient to demonstrate that it should not be required to return the amount of funds for which recovery is sought in the preliminary departmental decision under subsection (a). (c) Upon review of a decision of the Office by the Secretary, the findings of fact by the Office, if supported by substantial evidence, shall be conclusive. However, the Secretary, for good cause shown, may remand the case to the Office to take further evidence, and the Office may thereupon make new or modified findings of fact and may modify its previous action. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evi- dence. (dX1) If a recipient submits a timely application for review of a preliminary departmental decision, the Secretary shall take no col- lection action until the decision of the Office upholding the prelimi- nary Department decision in whole or in part becomes final agency action under subsection (e). (2) If a recipient files a timely petition for judicial review under section 458, the Secretary shall take no collection action until judi- cial review is completed. (3) The filling of an application for review under paragraph (1) or a petition for judicial review under paragraph (2) shall not affect the authority of the Secretary to take any other adverse action under this part against the recipient. (e) A decision of the Office regarding an application for review of a preliminary department decision shall become final agency action 60 days after the recipient receives written notice of the decision unless the Secretary either 3 f;9 309 (1) modifies or sets aside the decision, in whole or in part, in which case the decision of the Secretary shall become final agency action when the recipient receives written notice of the Secretary's action, or (2) remands the decision to the Office. (f) The Secretary shall public decisions that have become final agency action under subsection (e) in the Federal Register or in an- other appropriate publication within 60 days. (g) The amount of a preliminary departmental decision under sub- section (a) for which review has not been requested in accordance with subsection (b), and the amount sustained by a decision of the Office or the Secretary which becomes final agency action under subsection (e), may be collected by the Secretary in accordance with chapter S7 of title Si, United States Code. (h)(1) Notwithstanding any other provision of law, the Secretary may, subject to the notice requirements of paragraph (2), compromise any preliminary departmental decision under this section which does not exceed the amount agreed w be returned. by more than $200,000, if the Secretary determines that (A) the collection of any or all or the amount thereof would not be practical or in the public interest, and (B) the collection of any or all or the amount thereof would not be practical or in the public interest, and (B) the practice which resulted in the preliminary departmental decision has been corrected and will not recur. (2) Not less than 45 days prior to the exercise of the authority to compromise a preliminary departmental decision pursuant to para- graph (1), the Secretary shall publish in the Federal Register a notice of intention to do so. The notice shall provide interested per- sons an opportunity to comment on any proposed action under this subsection through the submission of written data, views, or argu- ments. (i) No recipient under an applicable program shall be liable to return funds which were expended in a manner not authorized by law more than five years before the recipient received written notice of a preliminary departmental decision. SEC. 451 MEASURE OF RECOVERY. (a)(1) A recipient determined to have made an unallowable ex- penditure, or to have otherwise failed to discharge its responsibility to account properly for funds, shall be required to return funds in an amount that is proportionate to the extent of the harm its viola- tion caused to an identifiable Federal interest associated with the program under which the recipient received the award. ( ) For the purpose of paragraph (1), an identifiable Federal inter- est includes, but is not limited to, serving only eligible beneficiaries; providing only authorized services or benefits; complying with ex- penditure requirements and conditions (such as set-aside, excess cast, maintenance of effort, comparability, supplement-not-supplant, and matching requirements); preserving the integrity of planning, application, recordkeeping, and reporting requirements; and main- taining accountability for the use of funds. (bX1) In no case shall a State or Weal educational agency that is determined to have made an unallowable expenditure, or to have otherwise failed to discharge its responsibility to account properly ai 0 310 for funds, be required to return funds with respect to a violation for which mitigating circumstances exist, as described in paragraph (2). The burden of demonstrating the existence of mitigating circum- stances shall be upon the State or local educational agency. (2) For the purpose of paragraph (1), mitigating circumstances exist only when it would be unjust to compel the recovery cf funds because the State or local educational agency (A) actually and reasonably relied upon erroneous written guidance provided by the Department; (B) made an expenditure or engaged in a practice after (i) the State or local educational agency submitted to the Secretary, in good faith, a written request for guidance with respect to the expenditure or practice at issue, and (ii) the Department official did not respond within 90 days of receipt by the Department of such request; or (C) actually and reasonably relied upon a judicial decree issued to the recipient. If the Secretary responds to a written request for guidance de- scribed in paragraph (2XB) more than 90 days after its receipt, the State or local educational agency that submitted the request shall comply with the guidance received at the earliest practicable time. (4) In order to demonstrate the existence of the mitigating circum- stances described in paragraph (2XB), the State or local educational agency shall demonstrate that (A) the written request for guidance accurately describes the proposed expenditure or practice and includes the facts neces- sary for a determination of its legality; and (B) the written request for guidance contains a certification by the chief legal officer of the State educational agency that such officer has examined the proposed expenditure or practice and believes the proposed expenditure or practice is permissable under State and Federal law; and (C) the State or local educational agency has no reason to be- lieve that the proposed expenditure or practice is not permissa- ble. (5) The Secretary shall disseminate to State educational agencies responses to written requests for guidance, described in paragraph (4), that reflect significant interpretations of applicable law or policy. (c) Secretary shall periodically review the written requests for guidance submitted under this section to determine the need for new or supplementary regulatory or other guidance under applicable pro- grams. SEC. 454. REMEDIES FOR EXISTING VIOLATIONS. (a) Whenever the Secretary has reason to believe that any recipient of funds under any applicable program is failing to comply substan- tially with any requirement of law applicable to such funds, the Secretary may (1) withhold further payments under that program, as author- ized by section 455; (2) issue a complaint to compel compliance through a cease and desist order of the Office, as authorized by section 4M; 3 i 1 311 (3) enter into a compliance agreement with a recipient to bring it into compliance, as authorized by section 457(a); or (4) take any other action authorized by law with respect to the recipient. (b) Any action, or failure to take action, by the Secretary under this section shall not preclude the Secretary from seeking a recovery of funds under section 452. SEC. 455. WITHHOLDING. (a) In accordance with section 454, the Secretary may withhold from a recipient, in whole or in part, further payments (including payments for administrative costs) under an appliz able program. (b; Before withholding payments, the Secretary shall notify the re- cipient, in writing of (1) the intent to withhold payments; (2) the factual and legal basis for the Secretary's belief that the recipient has failed to comply substantially with a require- ment of law; and (3) an opportunity for a hearing to be held on a date at least 30 days after the notification has been sent to the recipient. (c) The hearing shall be held before the Office and shall be con- ducted in accordance with the rules prescribed pursuant to subsec- tions (f) and (g) of section 451 of this Act. (d) Pending the outcome of any hearing under this section, the Secretary may suspend payments to a recipient after such recipient has been given reasonable notice and an opportunity to show cause why future payments should not be suspended. (e) Upon review of a decision of the Office by the Secretary, the findings of fact by the Office, if supported by substantial evidence, shall be conclusive However, the Secretary, for good cause shown, may remand the case to the Office to take further evidence, and the Office may thereupon make new or modified findings of fact and may modify its previous action. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evi- dence. (f) The decision of the Office in any hearing under this section shall become final agency action 60 days after the recipient receives written notice of the decision unless the Secretary either (1) modifies or sets aside the decision, in whole or in part, in which case the decision of the Secretary shall become final agency action when the recipient receives written notice of the Secretary's action; or (2) remands the decision of the Office. SEC. 456. CEASE AND DESIST ORDERS. (a) In accordance with section 454, the Secretary may issue to a recipient under an applicable program a complaint which (1) describes the factual and legal basis for the Secretary's belief that the recipient is failing to comply substantially with a requirement of law; and (2) contains a notice of a hearing to be held before the Office on a date at least 30 days after the service of the complaint. (b) The recipient upon which a complaint has been served shall have the right to appear before the Office on the date specified and to show cause why an order should not be entered by the Office re- 3 i 2 312 glaring the recipient to cease and desist from the violation of law charged in the complaint. (c) The testimony in any hearing held under this section shall be reduced to writing and filed with the Office. If upon that hearing the Office is of the opinion that the recipient is in violation of any requirement of law as charged in the complaint, the Office shall (1) make a report in writing stating its findings of fact; and (2) issue to the recipient an order requiring the recipient to cease and desist from the practice, policy, or procedure which resulted in the violation. (d) The report and order of the Office under this section shall become the final agency action when the recipient receives the report and order. (e) The Secretary may enforce a final order of the Office under this section which becomes final agency action by (1) withholding from the recipient any portion of the amount payable to it, including the amount payable for administrative costs, under the applicable program; or (2) certifying the facts to the Attorney General who shall cause an appropriate proceeding to be brought for the enforce- ment of the order. SEC. 457. COMPLIANCE AGREEMENTS. (a) In accordance with section 454, the Secretary may enter into a compliance agreement with a recipient under an applicable pro- gram. The purpose of any compliance agreement under this section shall be to bring the recipient into full compliance with the applica- ble requirements of law as soon as feasible and not to excuse or remedy past violations of such requirements. (bX1) Before entering into a compliance agreement with a recipi- ent, the Secretary shall hold a hearing at which the recipient, af- fected students and parents or their representatives, and other inter- ested parties are invites' to participate. The recipient shall have the burden of persuading the Secretary that full compliance with the applicable requirements of law is not genuinely feasible until a future date. (2) If the Secretary determines, on the basis of all the evidence presented, that full compliance is genuinely not feasible until a future date, the Secretary shall make written findings to that effect and shall publish those findings, along with the substance of any compliance agreement, in the Federal Register. (c) A compliance agreement under this section shall contain (1) an expiration date not later than three years from the date of the written findings under subsection (b)(2), by which the re- cipient shall be in full compliance with the applicable require- ments of law, and (2) those terms and conditions with which the recipient must comply until it is in full compliance. (d) If a recipient fails to comply with the terms and conditions of a compliance agreement under this section, the Secretary may con- sider that compliance agreement to be no longer in effect, and the Secretary may take any action authorized by law with respect to the recipient. 3 i 3 313 SEC. 458. JUDICIAL REVIEW. (a) Any recipient of funds under an applicable program that would be adversely affected by a fir-al agency action under section 452, 455, or 456 of this Act, and any State entitled to receive funds under a program listed in section 435(a) of this title whose applica- tion has been disapproved by the Secretary, shall be entitled to judi- cial review of such action in accordance with the provision of this section. The Secretary may not take any action on the basis of a final agency decision until judicial review is completed. (b) A recipient that desires judicial review of an action described in subsection (a) shall, within 60 days of that action, file with the United States Court of Appeals for the circuit in which that recipi- ent is located, a petition for review of such action. A copy of the pe- tition shall be transmitted by the clerk of the court to the Secretary. The Secretary shall file in the court the record of the proceedings on which the action was based, as provided in section 2112 of title 28, United States Code. (c) The findings of fact by the Office, if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Office to take farther evidence, and the Office may make new or modified findings of fact and may modify its previous action, and shall certify to the court the record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive i f supported by substantial evidence. (d) The court shall have jurisdiction to affirm the action of the Office or the Secretary or to set it aside, in whole or in part. The judgment of the court shall be subject to reviev ) by the Supreme Court of the United States upon certiorari or certification as provid- ed in section 1254 of title 28, United States Code. SEC 459. USE OF RECOVERED FUNDS. (a) Whenever the Secretary recovers funds paid to a recipient under a grant or cooperative agreement made under an applicable program because the recipient made an expenditure of funds that was not allowable, or otherwise failed to discharge its responsibility to account properly for funds, the Secretary may consider those funds to be additional funds available for that program and may arrange to repay to the recipient affected by that action an amount not to exceed 75 percent of the recovered funds if the Secretary deter- mines that (I) the practices or procedures of the recipient that resulted in the violation of law hay. been corrected, and that the recipient is in all other respects in compliance with the requirements of that program; (2) the recipient has submitted to the Secretary a plan for the use of those funds pursuant to the requirements of that program and, to the extent possible, for the benefit of the population that was affected by the failure to comply or by the misuse of funds that resulted in the recovery; and al the use of those funds in accordance with that plan would serve to achieve the purposes of the program under which the funds were originally paid. (b) Any payments by the Secretary under this section shall be sub- ject to such other terms and conditions as the Secretary considers 3 1 4 314 necessary to accomplish the purposes of the affected prog 71S, in- cluding (1) the submission of periodic reports on the use of funds pro- vided under this section; and (2) consultation by the recipient with students, parents, or rep- resentatives of the population that will benefit from the pay- ments. (c) Notwithstanding any other rovisions of law, the fund. made available under this section shall remain available for expenditure for a period of time deemed reamable by the Secretary, bia in no case to exceed more than three f L al years following the fiscal year in which the preliminary department& decision under section 452(a) was issued. (d) At least 30 days prior to entering into an arrangement under this section, the Secretary shall publish in the Federal Register a notice of intent to enter into such an arrangement and the terms and conditions under which payments will be made. Interested per- sons shall have an opportunity for at least 30 day:: :4, submit com- ments to the Secretary ;yarding the proposed arrange:nent. SEC. 460. DEP'NITIONS. For purposes of this Act, the following terms have the following meanings: (1) The term "recipient" means a recipient of a grant or coop- erative agreement under an applicable program. (2) The term "applicable program" excludesprograms author- ized by the Higher Education Act of 1965 and assistance pro- grams provided under the Act of September 30, 1950 (P.L. 874, 81st Congress), and the Act of September 23, 1950 (P.L. 815, 81st Congress). SEC. 5315 of Title 5, UNITED STATES CODE § 5315. Positions at level IV Level IV of the Executive Schedule applies to the following posi- tions, for which the annual rate of basic pay shall be the rate de- termined with respect to such level under eliapter 11 of title 2, as adjusted by section 5318 of this title: Deputy Administrator of General Services. Commissioner, National Center for Education Statistics. 3 o ADDITIONAL VIEWS OF REPRESENTATIVES FAWELL AND BALLENGER The School Improvement Act reaffirms a strong federal commit ment for elementary r...d secondary education. The bill makes sev- eral improvements in major elementary and secondary education programs, p. rticulariy in Chapter 1 compensatory education, math and science education, and bilingual education. Chapter 1 is the centerpiece of federal elementary and secondary education for improving the basic skill needs of educational disad- vantaged children. H.R. 5 makes needed improvements in this pro- gram to help these children attain grade-level proficiency. One major improvement is a new provision which allows local school districts to establish innovative projects for enhancing Chap- ter 1 services. A school district will not be able to use up to 5 per- cent of its Chapter 1 allocation for various innovative activities. These activities include offering incentive payments to schools with successful Chapter 1 programs, training regular classroom teachers to work with Chapter 1 children, and fostering active community and private-sector involvement in Chapter 1. Schools will not be accountable for their Chapter 1 programs and be required to demonstrate student achievement. Schools that have declining Chapter 1 achievement must turn to the local education agency (LEA) for technical assistance. If there is not improvement in Chapter 1 achievement rates. the state educational agency (SEA) must intervene and provide the technical assistance to reverse the declining achievement trend. This provision ensures that schools will be accountable for addressing the educational needs of Chapter 1 students. Pai.lital involvement is also critical to successful academic achievement. H.R. 5 recognizes the strategic role parents have in the education of their children. School districts must implement ac- tivities include training parents to work with their children at home, encouraging school personnel to work and consult with par- ents, and establishing parent advisory councils. Targeting was also an issue of serious debate on Chapter 1. The committee rightfully recognizes that a correlation exists between low academic achievement and areas with high levels of poverty. The first $400 million of new Chapter 1 appropriations will be tar- geted to school districts with high concentrations of poverty. The committee is commended for essentially retaining the Chap- ter 2 block grant in its present form. By continuing the current state formula allocation, whereby 80 percent of the funds is distrib- uted to the LEAs and 20 percent to the SEA, state and local au- thorities will maintain the much-needed discretion to implement programs that respond to new challenges in education. The committee wisely did not consider turning back the clock to use Chapter 2 funds for categorical education programs. Instead, (315) 3 i 6 316 the committee maintains the program's flexibility by allowing the use of funds for at-risk and high-cost children, effective schools projects, instructional and educational materials, personnel en- hancement, and special projects, including gifted and talented edu- cation. The School Improvement Act provides a teacher training pro- gram in math and science education (Title II of the Education for Economic Security Act) which should produce successful results. The current program, established in 1984, has been ineffective be- cause of hampering set-aside and reporting requirements. The bill streamlines many of these reporting requirements and attempts to channel most of the appropriations to the local level. One of the problems, however, of driving funds to the local level is that too many school districts receive small grants. This is a par- ticularly true of this program, which has never received an appro- priations in excess of $100 million. The committee responded to this concern by accepting an amendment which requires school dis- tricts that receive grants of less than $3,000 to form a consortium with other school districts or higher education institutions. An ex- emption from this requirement is provided for schools is rural and sparselypopulated areas. Although the consortium requirement is an improvement, a better approach is to award teacher training funds to school dis- tricts on a competitive grants basis if the Tit:. II appropriations is less than $150 million. The rationale for a competitive grants pro- gram is sound. A $150 million appropriations allocated to LEAs on a formula basis results in grants of less than $1,000 to 33 percent of the countrys school districts and grants of less than $5,000 to 71 percent of the country's school districts. A competitive grants com- petition ensures that all of the Title II funds are used efficiently and for effective teacher training purposes. The committee also accepted an amendment to increase the allo- cation for the Secretary's discretionary fund for national programs from three to five percent. Because Title II is a relatively new pro- gram, direction at the federal level to determine what works in math and science teacher training is critical. The Secretary would be required to inform state and local school authorities of exempla- ry teacher training programs conducted at the national level. The changes made in bilingual education are also a step in the right direction toward recognizing that native-language instruction is not the exclusive method of instruction for teaching limited-Eng- lish proficient (LEP) children. H.R. 5 allows up to 75 percent of new appropriations in bilingual education to be used for special al- ternative instruction programs, usually English as a Second Lan- guage (ESL) and English immersion. Although this change moves in the right direction, it does not go far enough. A better approach is found in legislation proposed by the Secret,ry of Education which would lift the 4 percent cap under Part A programs for special alternative instruction. This cap effectively earmarks an overwhelming majority of Part A funds for transitional bilingual education programs in native-language in- struction, although the research does not demonstrate that transiti- tional instruction is more effective than alternative instruction in teaching LEP children. It has been demonstrated, however, that many school districts want to provide special alternative instruction to LEP children be- 3i7 317 cause they believe this approach best suits their bilingual needs. In 1985, the first year special alternative instruction funds were avail- able, one-fourth of the applications for federal funding were for special alternative instruction programs. 25 percent of the applica- tions were for 4 percent of Part A funds. In hearings before the Elementary and Secondary Education Subcommittee this year, the director of Prince George's County Public Schools ESOL program, Lillian Falk, testified in support of giving local school districts the flexibility to determine which method of instruction best suits the need of LEP children. Ms. Falk convincingly showed that Prince George's County, which must edu- cate LEP children from 126 different language backgrounds, cannot use transitional bilingual instruction in its programs. Accordingly to Ms. Falk, the county's ESOL approach "provides the very di- verse students we are serving with the most efficient, most rapid way of preparing them to understand, speak, read, and write Eng- lish." Congress should recognize what is desired at the local school level and eliminate the set-aside in Part A. Local school districts are in the best position to determine the needs of its LEP children. Finally, the committee bill has the effect of eliminating funding for the National School Recognition Program. This program is cur- rently funded under the National Diffusion Network (NDN). An amendment approved in subcommittee removed this program from NDN. By eliminating this activity from NDN, the Secretary of Education will no longer be a:Jle to allocate funding for the Nation- al School Recognition Program. This National School Reccgnition Program is one of the most popular education programs administered by the federal govern- ment. Its purpose is to identify and call attention to a national group of schools that are unusually successful in meeting the edu- cational needs for their students. During the five-year history of this program, 800 elementary and secondary public and private schools have been recognized for out- standing achievement. Schools that qualify for recognition have met certain criteria, such as scoring in the 75th percentile or above on standardized tests in reading and mathematics for the last three years, or A ving dramatic improvement toward that goal in the past three 3 _ sirs. Schools are also judged on the basis of six indica- tors: school organization, building leadership, instructional pro- gram and curriculum, instruction, school climate, and community relations. America's good schools know no geographic or class barriers. They exist in small towns or large cities and serve both affluent and low-income communities. They share the common bond of having goals for success and achieving these goals. The National School Recognition Program has served to focus na- tional attention on school that have reached ;,heir goals. The pro- gram itself has inspired other schools across the nation to set simi- lar goals and strive for recognition. The program is worthy and should continue. 72-850 (320) HARRIS W. FAWELL. CASS BALLENGER. 0 3 i