"(2) The school may provide "(A) for the deposit into the trust fund, only funds from non-Federal sources, except that the interest on funds received from grants under this part may be used for this purpose; "(B) for the deposit in the account of any earnings on funds deposited in the account; and "(C) for the sole use of the school any noncash, in-kind contributions of real or personal property, such property may at any time be converted to cash. "(b) INTEREST.-Interest from the fund established under subsection (a) may periodically be withdrawn and used, at the discretion of the school, to defray any expenses associated with the operation of the school. "SEC. 5213. DEFINITIONS. "For the purposes of this part: "(1) BUREAU.-The term 'Bureau' means the Bureau of Indian Affairs of the Department of the Interior. "(2) ELIGIBLE INDIAN STUDENT. The term 'eligible Indian student' has the meaning of such term in section 1127(f) of the Education Amendments of 1978. "(3) INDIAN TRIBE.-The term 'Indian tribe' means any Indian tribe, band, nation, or other organized group or community, including Alaska Native Village or regional corporations (as defined in or established pursuant to the Alaskan Native Claims Settlement Act, which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. "(4) LOCAL EDUCATIONAL AGENCY.-The term a 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 secondary 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 term includes any other public institution or agency having administrative control and direction of a public elementary or secondary school. "(5) SECRETARY.-The term 'Secretary' means the Secretary of the Interior. "(6) TRIBAL ORGANIZATION. (A) The term 'tribal organization' means "(i) the recognized governing body of any Indian tribe; or "(ii) any legally established organization of Indians which "(I) is controlled, sanctioned, or chartered by such governing body or is democratically elected by the adult members of the Indian community to be served by such organization; and "(II) includes the maximum participation of Indians in all phases of its activities. "(B) In any case in which a grant is provided under this part to an organization to provide services benefiting more than one Indian tribe, the approval of the governing bodies of Indian tribes representing 80 percent of those students attending the tribally controlled school shall be considered a sufficient tribal authorization for such grant. "(7) TRIBALLY CONTROLLED SCHOOL.-The term 'tribally controlled school' means a school operated by a tribe or a tribal organization, enrolling students in kindergarten through grade 12, including preschools, which is not a local educational agency and which is not directly administered by the Bureau of Indian Affairs.". TITLE V-GIFTED AND TALENTED SEC. 501. AMENDMENT TO ESEA RELATING TO "SEC. 10201. SHORT TITLE. "This part may be cited as the 'Jacob K. Javits Gifted and Talented Students Education Act of 1999'. "SEC. 10202. FINDINGS. "The Congress finds the following: "(1) While the families or communities of some gifted students can provide private programs with appropriately trained staff to supplement public educational offerings, most high-ability students, especially those from inner cities, rural communities, or lowincome families, must rely on the services and personnel provided by public schools. Therefore, gifted education programs, provided by qualified professionals in the public schools, are needed to provide equal educational opportunities. (2) Due to the wide dispersal of students who are gifted and talented and the national interest in a well-educated populace, the Federal Government can most effectively and appropriately conduct scientifically based research and development to provide an infrastructure and to ensure that there is a national capacity to educate students who are gifted and talented to meet the needs of the 21st century. "(3) State and local educational agencies often lack the specialized resources and trained personnel to consistently plan and implement effective programs for the identification of gifted and talented students and for the provision of educational services and programs appropriate for their needs. "(4) Because gifted and talented students generally are more advanced academically, are able to learn more quickly, and study in more depth and complexity than others their age, their educational needs require opportunities and experiences that are different from those generally available in regular education programs. "(5) Typical elementary school students who are academically gifted and talented already have mastered 35 to 50 percent of the school year's content in several subject areas before the year begins. Without an advanced and challenging curriculum, they often lose their motivation and develop poor study habits that are difficult to break. "(6) Elementary and secondary teachers have students in their classrooms with a wide variety of traits, characteristics, and needs. Most teachers receive some training to meet the needs of these students, such as students with limited English proficiency, students with disabilities, and students from diverse cultural and racial backgrounds. However, most teachers do not receive training on meeting the needs of students who are gifted and talented. "SEC. 10203. CONDITIONS ON EFFECTIVENESS OF SUBPARTS 1 AND 2. “(a) SUBPART 1.-Subpart 1 shall be in effect only for a fiscal year for which subpart 2 is not in effect. "(b) SUBPART 2.— "(1) IN GENERAL.-Subpart 2 shall be in effect only for "(A) the first fiscal year for which the amount appropriated to carry out this part equals or exceeds $50,000,000; and "(B) all succeeding fiscal years. "(2) CONTINUATION OF AWARDS.-Notwithstanding any other provision of this part, a State receiving a grant under subpart 2— “(A) shall give special consideration to a request for the continuation of an award within the State, made by any public or private agency, institution, or organization that was awarded a grant or contract under subpart 1 for a fiscal year for which such subpart was in effect; and "(B) may use funds received under such grant for the purpose of permitting the agency, institution, or organization to continue to receive funds in accordance with the terms of such award until the date on which the award period terminates under such terms. "Subpart 1-Discretionary Grant Program "SEC. 10211. PURPOSE. "The purpose of this subpart is to initiate a coordinated program of scientifically based research, demonstration projects, innovative strategies, and similar activities designed to build a nationwide capability in elementary and secondary schools to meet the special educational needs of gifted and talented students. "SEC. 10212. GRANTS TO MEET EDUCATIONAL NEEDS OF GIFTED AND TALENTED STUDENTS. "(a) ESTABLISHMENT OF PROGRAM. "(1) IN GENERAL.-Subject to section 10203, from the sums available to carry out this subpart in any fiscal year, the Secretary (after consultation with experts in the field of the education of gifted and talented students) shall make grants to, or enter into contracts with, State educational agencies, local educational agencies, institutions of higher education, other public agencies, and other private agencies and organizations (including Indian tribes and Indian organizations (as such terms are defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b)) and Native Hawaiian organizations) to assist such agencies, institutions, and organizations in carrying out programs or projects authorized by this subpart that are designed to meet the educational needs of gifted and talented students, including the training of personnel in the education of gifted and talented students and in the use, where appropriate, of gifted and talented services, materials, and methods for all students. "(2) APPLICATION.-Each entity desiring assistance under this subpart shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require. Each such application shall describe how "(A) the proposed gifted and talented services, materials, and methods can be adapted, if appropriate, for use by all students; and "(B) the proposed programs can be evaluated. “(b) USES OF FUNDS.-Programs and projects assisted under this subpart may include the following: "(1) Carrying out "(A) scientifically based research on methods and techniques for identifying and teaching gifted and talented students, and for using gifted and talented programs and methods to serve all students; and "(B) program evaluations, surveys, and the collection, analysis, and development of information needed to accomplish the purpose of this subpart. "(2) Professional development (including fellowships) for personnel (including leadership personnel) involved in the education of gifted and talented students. "(3) Establishment and operation of model projects and exemplary programs for serving gifted and talented students, including innovative methods for identifying and educating students who may not be served by traditional gifted and talented programs, including summer programs, mentoring programs, service learning programs, and cooperative programs involving business, industry, and education. "(4) Implementing innovative strategies, such as cooperative learning, peer tutoring and service learning. "(5) Programs of technical assistance and information dissemination, including assistance and information with respect to how gifted and talented programs and methods, where appropriate, may be adapted for use by all students. "(c) COORDINATION.-Scientifically based research activities supported under this subpart "(1) shall be carried out in consultation with the Office of Educational Research and Improvement to ensure that such activities are coordinated with and enhance the research and development activities supported by such Office; and "(2) may include collaborative scientifically based research activities which are jointly funded and carried out with such Office. "SEC. 10213. PROGRAM PRIORITIES. "(a) GENERAL PRIORITY.In the administration of this subpart, the Secretary shall give highest priority to programs and projects designed to develop new information that "(1) improves the capability of schools to plan, conduct, and improve programs to identify and serve gifted and talented students; and "(2) assists schools in the identification of, and provision of services to, gifted and talented students who may not be identified and served through traditional assessment methods (including economically disadvantaged individuals, individuals of limited English proficiency, and individuals with disabilities). "(b) SERVICE PRIORITY.-In approving applications for assistance assistance under section 10212(a)(2), the Secretary shall ensure that in each fiscal year at least one-half of the applications approved under such section address the priority described in subsection (a)(2). "(c) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES FOR AUTHORIZED ACTIVITIES. "(1) IN GENERAL.-For fiscal year 2001 and succeeding fiscal years, the Secretary shall ensure that a percentage of the excess amount described in paragraph (2) is used to increase (in proportion to any increases in such excess amounts) the number and size of the grants under this subpart to State educational agencies to begin implementing activities described in section 10222(b) through competitive subgrants to local educational agencies. "(2) EXCESS AMOUNT.-For purposes of paragraph (1), the excess amount described in this paragraph is, for fiscal year 2001 and succeeding fiscal years, the amount (if any) by which the funds appropriated to carry out this subpart for the year exceed such funds for fiscal year 2000. "SEC. 10214. GENERAL PROVISIONS FOR SUBPART. "(a) REVIEW, DISSEMINATION, AND EVALUATION. The Secretary "(1) shall use a peer review process in reviewing applications under this subpart; "(2) shall ensure that information on the activities and results of programs and projects funded under this subpart is disseminated to appropriate State and local educational agencies and other appropriate organizations, including nonprofit private organizations; and "(3) shall evaluate the effectiveness of programs under this subpart in accordance with section 14701, both in terms of the impact on students traditionally served in separate gifted and talented programs and on other students, and submit the results of such evaluation to the Congress not later than 2 years after the date of the enactment of the Student Results Act of 1999. "(b) PROGRAM OPERATIONS.-The Secretary shall ensure that the programs under this subpart are administered within the Department by a person who has recognized professional qualifications and experience in the field of the education of gifted and talented students and who "(1) shall administer and coordinate the programs authorized under this subpart; “(2) shall serve as a focal point of national leadership and information on the educational needs of gifted and talented students and the availability of educational services and programs designed to meet such needs; and "(3) shall assist the Assistant Secretary of the Office of Educational Research and Improvement in identifying research priorities which reflect the needs of gifted and talented students. "Subpart 2-Formula Grant Program "SEC. 10221. PURPOSE. "The purpose of this subpart is to provide grants to States to support programs, teacher preparation, and other services designed to meet the needs of the Nation's gifted and talented students in elementary and secondary schools. "SEC. 10222. ESTABLISHMENT OF PROGRAM; USE OF FUNDS. "(a) IN GENERAL.-In the case of each State that in accordance with section 10224 submits to the Secretary an application for a fiscal year, subject to section 10203, the Secretary shall make a grant for the year to the State for the uses specified in subsection (b). The grant shall consist of the allotment determined for the State under section 10223. "(b) AUTHORIZED ACTIVITIES.-Each State receiving a grant under this subpart shall use the funds provided under the grant to assist local educational agencies to develop or expand gifted and talented education programs through one or more of the following activities: "(1) Development and implementation of programs to address State and local needs for in-service training programs for general educators, specialists in gifted and talented education, administrators, or other personnel at the elementary and secondary levels. "(2) Making materials and services available through State regional educational service centers, institutions of higher education, or other entities. "(3) Supporting innovative approaches and curricula used by local educational agencies (or consortia of such agencies) or schools or (consortia of schools). "(4) Providing funds for challenging, highlevel course work, disseminated through new and emerging technologies (including distance learning), for individual students or groups of students in schools and local educational agencies that do not have the resources otherwise to provide such course work. "(c) COMPETITIVE PROCESS.-A State receiving a grant under this subpart shall distribute at least 95 percent of the amount of the grant to local educational agencies through a competitive process that results in an equitable distribution by geographic area within the State. "(d) LIMITATIONS ON USE OF FUNDS."(1) COURSE WORK PROVIDED THROUGH EMERGING TECHNOLOGIES.-Activities under subsection (b)(4) may include development of curriculum packages, compensation of distance-learning educators, or other relevant activities, but funds provided under this subpart may not be used for the purchase or upgrading of technological hardware. "(2) ADMINISTRATIVE COSTS.-A State receiving a grant under this subpart may use not more than 5 percent of the amount of the grant for State administrative costs. “SEC. 10223. ALLOTMENTS TO STATES. "(a) RESERVATION OF FUNDS. From the amount made available to carry out this subpart for any fiscal year, the Secretary shall reserve 2 of 1 percent for the Secretary of the Interior for programs under this subpart for teachers, other staff, and administrators in schools operated or funded by the Bureau of Indian Affairs. "(b) STATE ALLOTMENTS. "(1) IN GENERAL.-Except as provided in paragraph (2), the Secretary shall allot the total amount made available to carry out this subpart for any fiscal year and not reserved under subsection (a) to the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico on the basis of their relative populations of individuals aged 5 through 17, as determined by the Secretary on the basis of the most recent satisfactory data. **(2) MINIMUM GRANT AMOUNT.-No State receiving an allotment under paragraph (1) may receive less than 1/4 of 1 percent of the total amount allotted under such paragraph. "(c) REALLOTMENT.-If any State does not apply for an allotment under this section for any fiscal year, the Secretary shall reallot such amount to the remaining States in accordance with this section. “SEC. 10224. APPLICATION. (a) IN GENERAL.-To be eligible to receive a grant under this subpart, a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may reasonably require. (b) CONTENTS.-Each application under this section shall include assurances that"(1) funds received under this subpart will be used to support gifted and talented students in public schools and public charter schools, including students from all economic, ethnic, and racial backgrounds, students of limited English proficiency, students with disabilities, and highly gifted students; "(2) not less than 95 percent of the amount of the funds provided under the grant shall be used for the purpose of making, in accordance with this subpart and on a competitive basis, subgrants to local educational agencies: "(3) funds received under this subpart shall be used only to supplement, but not supplant, the amount of State and local funds expended for specialized education and related services provided for the education of gifted and talented students; and "(4) the State shall develop procedures to evaluate program effectiveness. "(c) APPROVAL.-To the extent funds are made available for this subpart, the Secretary shall approve an application of a State if such application meets the requirements of this section. “SEC. 10225. ANNUAL REPORTING. "Beginning 1 year after the date of the enactment of the Student Results Act of 1999, a State receiving a grant under this subpart shall submit an annual report to the Secretary that describes the number of students served and the activities supported with funds provided under this subpart. The report shall include a description of the measures taken to comply with paragraphs (1) and (4) of section 10224(b). To the extent practicable and otherwise authorized by law, this report shall be submitted as part of any consolidated State performance report for State formula grant programs under this Act. "Subpart 3-National Center for Research and Development in the Education of Gifted and Talented Children and Youth "SEC. 10231. CENTER FOR RESEARCH AND DEVELOPMENT. "(a) IN GENERAL.-The Secretary (after consultation with experts in the field of the education of gifted and talented students) shall establish a National Center for Research and Development in the Education of Gifted and Talented Children and Youth through grants to or contracts with one or more institutions of higher education or State educational agencies, or a combination or consortium of such institutions and agencies and other public or private agencies and organizations, for the purpose of carrying out activities described in section 10212(b)(1). "(b) DIRECTOR.-Such National Center shall have a Director. The Secretary may authorize the Director to carry out such functions of the National Center as may be agreed upon through arrangements with institutions of higher education, State or local educational agencies, or other public or private agencies and organizations. "(c) COORDINATION.-Scientifically based research activities supported under this subpart "(1) shall be carried out in consultation with the Office of Educational Research and Improvement to ensure that such activities are coordinated with and enhance the research and development activities supported by such Office; and "(2) may include collaborative scientifically based research activities which are jointly funded and carried out with such Office. "Subpart 4-General Provisions "SEC. 10241. CONSTRUCTION. "Nothing in this part shall be construed to prohibit a recipient of funds under this part. from serving gifted and talented students simultaneously with students with similar educational needs, in the same educational settings where appropriate. "SEC. 10242. PARTICIPATION OF PRIVATE SCHOOL CHILDREN AND TEACHERS. "In making grants and entering into contracts under this part, the Secretary shall ensure, where appropriate, that provision is made for the equitable participation of students and teachers in private nonprofit elementary and secondary schools, including the participation of teachers and other personnel in professional development programs serving such children. "SEC. 10243. DEFINITIONS. "For purposes of this part: "(1) The term 'scientifically based research' "(A) means the application of rigorous, systematic, and objective procedures to obtain valid knowledge relevant to the education of gifted and talented children; and "(B) shall include research that "(i) employs systematic, empirical methods that draw on observation or experiment; "(ii) involves rigorous data analyses that are adequate to test the stated hypotheses and justify the general conclusions drawn; "(iii) relies on measurements or observational methods that provide valid data across evaluators and observers and across multiple measurements and observations; and "(iv) has been accepted by a peer-reviewed journal or approved by a panel of independent experts through a comparably rigorous, objective, and scientific review. "(2) STATE.-The term 'State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. "SEC. 10244. AUTHORIZATION OF APPROPRIA TIONS. "(a) SUBPART 1 OR 2.-Subject to section 10203, there are authorized to be appropriated $10,000,000 to carry out subpart 1 or 2 for fiscal year 2000 and such sums as may be necessary for each of fiscal years 2001 through 2004. "(b) SUBPART 3.-There are authorized to be appropriated to carry out subpart 3 $1,950,000 for each of fiscal years 2000 through 2004.". TITLE VI-RURAL EDUCATION SEC. 601. RURAL EDUCATION. Part J of title X of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 8271 et seq.) is amended to read as follows: "PART J-RURAL EDUCATION INITIATIVE "SEC. 10951. SHORT TITLE. "This part may be cited as the 'Rural Education Initiative Act of 1999'. "SEC. 10952. FINDINGS. "Congress finds the following: "(1) The National Center for Educational Statistics reports that 46 percent of our Nation's public schools serve rural areas. "(2) While there are rural education initiatives identified at the State and local level, no Federal education policy focuses on the specific and unique needs of rural school districts and schools. "(3) Small school districts often cannot use Federal grant funds distributed by formula because the formula allocation does not provide enough revenue to carry out the program the grant is intended to fund. "(4) Rural schools often cannot compete for Federal funding distributed by competitive grants because the schools lack the personnel needed to prepare grant applications and the resources to hire specialists in the writing of Federal grant proposals. "(5) A critical problem for rural school districts involves the hiring and retention of qualified administrators and certified teachers (especially in reading, science, and mathematics). As a result, teachers in rural schools are almost twice as likely to provide instruction in three or more subject areas than teachers in urban schools. Rural schools also face other tough challenges, such as shrinking local tax bases, high transportation costs, aging buildings, limited course offerings, and limited resources. "Subpart 1-Small and Rural School Program "SEC. 10961. FORMULA GRANT PROGRAM AUTHORIZED. "(a) ALTERNATIVE USES. any "(1) IN GENERAL.-Notwithstanding other provision of law, an eligible local educational agency may use the applicable funding, that the agency is eligible to receive from the State educational agency for a fiscal year, to support local or statewide education reform efforts intended to improve the academic achievement of elementary school and secondary school students and the quality of instruction provided for the students. "(2) NOTIFICATION.-An eligible local educational agency shall notify the State educational agency of the local educational agency's intention to use the applicable funding in accordance with paragraph (1) not later than a date that is established by the State educational agency for the notification. "(b) ELIGIBILITY.— "(1) IN GENERAL.-A local educational agency shall be eligible to use the applicable funding in accordance with subsection (a) if “(A)(i) the total number of students in average daily attendance at all of the schools served by the local educational agency is less than 600; and "(ii) all of the schools served by the local educational agency are located in a community with a Rural-Urban Continuum Code of 6, 7, 8, or 9, as determined by the Secretary of Agriculture; or "(B) the agency meets the criteria established in subparagraph (A)(i) and the Secretary, in accordance with paragraph (2), grants the local educational agency's request to waive the criteria described in subparagraph (A)(ii). "(2) CERTIFICATION.-The Secretary shall determine whether or not to waive the criteria described in paragraph (1)(A)(ii) based on certification provided by the local educational agency, or the State educational agency on behalf of the local educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State. "(c) APPLICABLE FUNDING.-In this section, the term applicable funding' means funds provided under each of titles II, IV, VI, parts A and C of title VII, and part I of title X. "(d) DISBURSAL.-Each State educational agency that receives applicable funding for a fiscal year shall disburse the applicable funding to local educational agencies for alternative uses under this section for the fiscal year at the same time that the State educational agency disburses the applicable funding to local educational agencies that do not intend to use the applicable funding for such alternative uses for the fiscal year. "(e) SUPPLEMENT NOT SUPPLANT.-Funds used under this section shall be used to supplement and not supplant any other Federal, State, or local education funds that would otherwise be available for the purpose of this subpart. "(f) SPECIAL RULE.-References in Federal law to funds for the provisions of law set forth in subsection (c) may be considered to be references to funds for this section. "SEC. 10962. PROGRAM AUTHORIZED. "(a) IN GENERAL.-The Secretary is authorized to award grants to eligible local educational agencies to enable the local educational agencies to support local or statewide education reform efforts intended to improve the academic achievement of elementary school and secondary school students and the quality of instruction provided for the students. “(b) ELIGIBILITY.— "(1) IN GENERAL.-A local educational agency shall be eligible to receive a grant under this section if— "(A)(i) the total number of students in average daily attendance at all of the schools served by the local educational agency is less than 600; and "(ii) all of the schools served by the local educational agency are located in a community with a Rural-Urban Continuum Code of 6, 7, 8, or 9, as determined by the Secretary of Agriculture; or "(B) the agency meets the criteria established in subparagraph (A)(i) and the Secretary, in accordance with paragraph (2), grants the local educational agency's request to waive the criteria described in subparagraph (A)(ii). "(2) CERTIFICATION.-The Secretary shall determine whether or not to waive the criteria described in paragraph (1)(A)(ii) based on certification provided by the local educational agency, or the State educational agency on behalf of the local educational agency, that the local educational agency is located in an area defined as rural by a governmental agency of the State. "(c) ALLOCATION.— "(1) IN GENERAL.-Except as provided in paragraph (3), the Secretary shall award a grant to an eligible local educational agency for a fiscal year in an amount equal to the initial amount determined under paragraph (2) for the fiscal year minus the total amount received under the provisions of law described under section 10961(c) for the preceding fiscal year. (2) DETERMINATION OF THE INITIAL AMOUNT.-The initial amount referred to in paragraph (1) is equal to $100 multiplied by the total number of students, over 50 students, in average daily attendance in such eligible agency plus $20,000, except that the initial amount may not exceed $60,000. "(3) RATABLE ADJUSTMENT. "(A) IN GENERAL.-If the amount made available for this subpart for any fiscal year is not sufficient to pay in full the amounts that local educational agencies are eligible to receive under paragraph (1) for such year, the Secretary shall ratably reduce such amounts for such year. "(B) ADDITIONAL AMOUNTS.-If additional funds become available for making payments under paragraph (1) for such fiscal year, payments that were reduced under subparagraph (A) shall be increased on the same basis as such payments were reduced. "(5) CENSUS DETERMINATION.— "(A) IN GENERAL.-Each local educational agency desiring a grant under this section shall conduct a census not later than December 1 of each year to determine the number of kindergarten through grade 12 students in average daily attendance at the schools served by the local educational agency. "(B) SUBMISSION. Each local educational agency shall submit the number described in subparagraph (A) to the Secretary not later than March 1 of each year. "(d) DISBURSAL.-The Secretary shall disburse the funds awarded to a local educational agency under this section for a fiscal year not later than July 1 of that year. "(e) SPECIAL RULE.-A local educational agency that is eligible to receive a grant under this subpart for a fiscal year shall be ineligible to receive funds for such fiscal year under subpart 2. "(f) SUPPLEMENT NOT SUPPLANT.-Funds made available under this section shall be used to supplement and not supplant any other Federal, State or local education funds. "SEC. 10963. ACCOUNTABILITY. "(a) ACADEMIC ACHIEVEMENT.— "(1) IN GENERAL.-Each local educational agency that uses or receives funds under section 10961 or 10962 for a fiscal year shall administer an assessment consistent with section 1111 of title I. "(2) SPECIAL RULE.-Each local educational agency that uses or receives funds under section 10961 or 10962 shall use the same assessment described in paragraph (1) for each year of participation in the program under such section. "(b) STATE EDUCATIONAL AGENCY DETERMINATION REGARDING CONTINUING PARTICIPATION. Each State educational agency that receives funding under the provisions of law described in section 10961(c) shall— "(1) after the second year that a local educational agency participates in a program under section 10961 or 10962 and on the basis of the results of the assessments described in subsection (a), determine whether the students served by the local educational agency participating in the program performed in accordance with section 1111 of title I; and "(2) only permit those local educational agencies that so participated and met the requirements of section 1111(b)(2) of title I to continue to so participate. "Subpart 2-Low-Income And Rural School Program "SEC. 10971. PROGRAM AUTHORIZED. "(a) RESERVATIONS.-From amounts appropriated under section 10982 for this subpart for a fiscal year, the Secretary shall reserve 1/2 of 1 percent to make awards to elementary or secondary schools operated or supported by the Bureau of Indian Affairs to carry out the purpose of this subpart. "(b) GRANTS TO STATES. "(1) IN GENERAL.-From amounts appropriated under section 10982 for this subpart that are not reserved under subsection (a), the Secretary shall award grants for a fiscal year to State educational agencies that have applications approved under section 10973 to enable the State educational agencies to award subgrants to eligible local educational agencies for local authorized activities described in subsection (c)(2). "(2) ALLOCATION. From amounts appropriated for this subpart, the Secretary shall allocate to each State educational agency for a fiscal year an amount that bears the same ratio to the amount of funds appropriated under section 10982 for this subpart that are not reserved under subsection (a) as the number of students in average daily attendance served by eligible local educational agencies in the State bears to the number of all such students served by eligible local educational agencies in all States for that fiscal year. "(3) DIRECT AWARDS TO SPECIALLY QUALIFIED AGENCIES. "(A) NONPARTICIPATING STATE.-If a State educational agency elects not to participate in the program under this subpart or does not have an application approved under section 10973 a specially qualified agency in such State desiring a grant under this subpart shall apply directly to the Secretary to receive an award under this subpart. "(B) DIRECT AWARDS TO SPECIALLY QUALIFIED AGENCIES.-The Secretary may award, on a competitive basis, the amount the State educational agency is eligible to receive under paragraph (2) directly to specially qualified agencies in the State. "(c) LOCAL AWARDS. local educational "(1) ELIGIBILITY.—A agency shall be eligible to receive funds under this subpart if "(A) 20 percent or more of the children aged 5 to 17, inclusive, served by the local educational agency are from families with incomes below the poverty line; and "(B) all of the schools served by the agency are located in a community with a RuralUrban Continuum Code of 6, 7, 8, or 9, as determined by the Secretary of Agriculture. "(2) USES OF FUNDS.-Grant funds awarded to local educational agencies or made available to schools under this subpart shall be used for "(1) educational technology, technology, including software and hardware; "(2) professional development; “(3) technical assistance; "(4) teacher recruitment and retention; "(5) parental involvement activities; or "(6) academic enrichment programs. "SEC. 10972. STATE DISTRIBUTION OF FUNDS. "(a) AWARD BASIS.-A State educational agency shall award grants to eligible local educational agencies "(1) on a competitive basis; or "(2) according to a formula based on the number of students in average daily attendance served by the eligible local educational agencies or schools (as appropriate) in the State, as determined by the State. "(b) ADMINISTRATIVE COSTS.-A State educational agency receiving a grant under this subpart may not use more than 5 percent of the amount of the grant for State administrative costs. "SEC. 10973. APPLICATIONS. "Each State educational agency and specially qualified agency desiring to receive a grant under this subpart shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. Such application shall include specific measurable goals and objectives to be achieved which may include specific educational goals and objectives relating to increased student academic achievement, decreased student drop-out rates, or such other factors that the State educational agency or specially qualified agency may choose to measure. "SEC. 10974. REPORTS. "(a) STATE REPORTS.-Each State educational agency that receives a grant under this subpart shall provide an annual report to the Secretary. The report shall describe"(1) the method the State educational agency used to award grants to eligible local educational agencies and to provide assistance to schools under this subpart; "(2) how local educational agencies and schools used funds provided under this subpart; and "(3) the degree to which progress has been made toward meeting the goals and objectives described in the application submitted under section 10973. "(b) SPECIALLY QUALIFIED AGENCY REPORT.-Each specially qualified agency that receives a grant under this subpart shall provide an annual report to the Secretary. Such report shall describe "(1) how such agency uses funds provided under this subpart; and "(2) the degree to which progress has been made toward meeting the goals and objectives described in the application submitted under section 10971(b)(4)(A). "(c) REPORT TO CONGRESS.-The Secretary shall prepare and submit to the Committee on Education and the Workforce for the House of Representatives and the Committee on Health, Education, Labor, and Pensions for the Senate an annual report. The report shall describe "(1) the methods the State educational agency used to award grants to eligible local educational agencies and to provide assistance to schools under this subpart; "(2) how eligible local educational agencies and schools used funds provided under this subpart; and "(3) progress made in meeting specific measurable educational goals and objectives. "SEC. 10975. DEFINITIONS. "For the purposes of this subpart "(1) The term 'poverty line' means the poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a family of the size involved. "(2) The term 'specially qualified agency' means an eligible local educational agency, located in a State that does not participate in a program under this subpart in a fiscal year, that may apply directly to the Secretary for a grant in such year in accordance with section 10971(b)(4). "Subpart 3-General Provisions "SEC. 10981. DEFINITION. "For the purposes of this part, the term 'State' means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. "SEC. 10982. AUTHORIZATION OF APPROPRIA TIONS. "There are authorized to be appropriated to carry out this part $125,000,000 for fiscal year 2000 and such sums as may be necessary for each of four succeeding fiscal years to be distributed equally between subparts 1 and 2.". TITLE VII-MCKINNEY HOMELESS EDUCATION IMPROVEMENTS ACT OF 1999 SEC. 701. SHORT TITLE. This title may be cited as the "Stewart B. McKinney Homeless Education Assistance Improvements Act of 1999". SEC. 702. FINDINGS. Congress makes the following findings: (1) An estimated 1,000,000 children in the United States will experience homelessness this year. (2) Homelessness has a devastating impact on the educational opportunities of children and youth; homeless children go hungry at more than twice the rate of other children; have four times the rate of delayed development; and are twice as likely to repeat a grade. (3) Despite steady progress in school enrollment and attendance resulting from the passage in 1987 of the Stewart B. McKinney Homeless Assistance Act, homeless students still face numerous barriers to education, including residency, guardianship and registration requirements, as well as delays in the transfer of school records, and inadequate transportation service. (4) School is one of the few secure factors in the lives of homeless children and youth, providing stability, structure, and accomplishment during a time of great upheaval. (5) Homeless children and youth need to remain in school so that they acquire the skills necessary to escape poverty and lead productive, healthy lives as adults. (6) In the 12 years since the passage of the McKinney Act, educators and service providers have learned much about policies and practices which help remove the barriers described. SEC. 703. PURPOSE. The purpose of this title is to strengthen subtitle B of title VII of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11431 et seq.) by amending it— (1) to include innovative practices, proven to be effective in helping homeless children and youth enroll, attend, and succeed in school; and (2) to help ensure that such individuals receive a quality education and secure their chance for a brighter future. SEC. 704. EDUCATION FOR HOMELESS CHILDREN AND YOUTH. Subtitle B of title VII of the Stewart B. McKinney Homeless Education Assistance Act (42 U.S.C. 11431 et seq.) is amended to read as follows: "Subtitle B-Education for Homeless "SEC. 721. STATEMENT OF POLICY. "It is the policy of Congress that"(1) each State educational agency ensure that each child of a homeless individual and each homeless youth has equal access to the same free, public education, including a public preschool education, as provided to other children and youth; "(2) in any State that has a compulsory residency requirement as a component of the State's compulsory school attendance laws or other laws, regulations, practices, or policies that may act as a barrier to the enrollment, attendance, or success in school of homeless children and youth, the State review and undertake steps to revise such laws, regulations, practices, or policies to ensure that homeless children and youth are afforded the same free, public education as provided to other children and youth; "(3) homelessness alone is not sufficient reason to separate students from the mainstream school environment; and "(4) homeless children and youth should have access to the education and other services that such children and youth need to ensure that such children and youth have an opportunity to meet the same challenging State student performance standards to which all students are held. "SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE EDUCATION OF HOMELESS CHILDREN AND YOUTH. "(a) GENERAL AUTHORITY.-The Secretary is authorized to make grants to States in accordance with the provisions of this section to enable such States to carry out the activities described in subsections (d), (e), (f), and (g). "(b) APPLICATION.-No State may receive a grant under this section unless the State educational agency submits an application to the Secretary at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require. "(c) ALLOCATION AND RESERVATIONS.— "(1) IN GENERAL.-Subject to paragraph (2) and section 724(c), from the amounts appropriated for each fiscal year under section 726, the Secretary is authorized to allot to each State an amount that bears the same ratio to the amount appropriated for such year under section 726 as the amount allocated under section 1122 of the Elementary and Secondary Education Act of 1965 to the State for that year bears to the total amount allocated under section 1122 to all States for that year, except that no State shall receive less than $100,000. "(2) RESERVATION.-(A) The Secretary is authorized to reserve 0.1 percent of the amount appropriated for each fiscal year under section 726 to be allocated by the Secretary among the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, according to their respective need for assistance under this subtitle, as determined by the Secretary. "(B)(i) The Secretary shall transfer one percent of the amount appropriated for each fiscal year under section 726 to the Department of the Interior for programs for Indian students served by schools funded by the Secretary of the Interior, as determined under the Indian Self-Determination and Education Assistance Act, that are consistent with the purposes of this Act. "(ii) The Secretary and the Secretary of the Interior shall enter into an agreement, consistent with the requirements of this part, for the distribution and use of the funds described in clause (i) under terms that the Secretary determines best meet the purposes of the programs described in such clause. Such agreement shall set forth the plans of the Secretary of the Interior for the use of the amounts transferred, including appropriate goals, objectives, and milestones. "(3) DEFINITION.-As used in this subsection, the term "State" shall not include the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. "(d) ACTIVITIES.-Grants under this section shall be used "(1) to carry out the policies set forth in section 721 in the State; "(2) to provide activities for, and services to, homeless children, including preschoolaged homeless children, and youth that enable such children and youth to enroll in, attend, and succeed in school, or, if appropriate, in preschool programs; "(3) to establish or designate an Office of Coordinator of Education of Homeless Children and Youth in the State educational agency in accordance with subsection (f); "(4) to prepare and carry out the State plan described in subsection (g); and "(5) to develop and implement professional development programs for school personnel to heighten their awareness of, and capacity to respond to, specific problems in the education of homeless children and youth. "(e) STATE AND LOCAL GRANTS.— “(1) IN GENERAL. (A) Subject to subparagraph (B), if the amount allotted to the State educational agency for any fiscal year under this subtitle exceeds the amount such agency received for fiscal year 1990 under this subtitle, as the subtitle was then in effect, such agency shall provide grants to local educational agencies for purposes of section 723. "(B) The State educational agency may reserve not more than the greater of 5 percent of the amount such agency receives under this subtitle for any fiscal year, or the amount such agency received under this subtitle, as the subtitle was then in effect, for fiscal year 1990, to conduct activities under subsection (f) directly or through grants or contracts. “(2) SPECIAL RULE.-If the amount allotted to a State educational agency for any fiscal year under this subtitle is less than the amount such agency received for fiscal year 1990 under this subtitle, such agency, at such agency's discretion, may provide grants to local educational agencies in accordance with section 723 or may conduct activities under subsection (f) directly or through grants or contracts. “(3) PROHIBITION ON SEGREGATING HOMELESS STUDENTS. "(A) IN GENERAL.-Except as provided in subparagraph (B) and section 723(a)(2)(B)(ii), in providing a free, public education to a homeless child or youth, no State receiving funds under this subtitle shall segregate such child or youth, either in a separate school, or in a separate program within a school, based solely on such child or youth's status as homeless. "(B) EXCEPTION.-A State that has established a separate school for homeless children in the fiscal year preceding the date of the enactment of the Stewart B. McKinney Homeless Education Assistance Improvement Act of 1999 shall remain eligible to receive funds under this subtitle for such program. "(f) FUNCTIONS OF THE OFFICE OF COORDINATOR. The Coordinator of Education of Homeless Children and Youth established in each State shall "(1) gather, to the extent possible, reliable, valid, and comprehensive information on the nature and extent of the problems homeless children and youth have in gaining access to public preschool programs and to public elementary and secondary schools, the difficulties in identifying the special needs of such children and youth, any progress made by the State educational agency and local educational agencies in the State in addressing such problems and difficulties, and the success of the program under this subtitle in allowing homeless children and youth to enroll in, attend, and succeed in, school; "(2) develop and carry out the State plan described in subsection (g); "(3) collect and transmit to the Secretary, information gathered pursuant to paragraphs (1) and (2), at such time and in such manner as the Secretary may require; "(4) facilitate coordination between the State educational agency, the State social services agency, and other agencies providing services to homeless children and youth, including homeless children and youth who are preschool age, and families of such children and youth; and “(5) in order to improve the provision of comprehensive education and related services to homeless children and youth and their families, coordinate and collaborate with "(A) educators, including child development and preschool program personnel; "(B) providers of services to homeless and runaway children and youth and homeless families (including domestic violence agencies, shelter operators, transitional housing facilities, runaway and homeless youth centers, and transitional living programs for homeless youth); "(C) local educational agency liaisons for homeless children and youth; and "(D) community organizations and groups representing homeless children and youth and their families. "(g) STATE PLAN. "(1) IN GENERAL.-Each State shall submit to the Secretary a plan to provide for the education of homeless children and youth within the State, which plan shall describe how such children and youth are or will be given the opportunity to meet the same challenging State student performance standards all students are expected to meet, shall describe the procedures the State edu |