Legislation

‘‘PART B—RURAL EDUCATION INITIATIVE

‘‘SEC. 6201. SHORT TITLE.

‘‘This part may be cited as the ‘Rural Education Achievement

Program’.

‘‘SEC. 6202. PURPOSE.

‘‘It is the purpose of this part to address the unique needs

of rural school districts that frequently—

‘‘(1) lack the personnel and resources needed to compete

effectively for Federal competitive grants; and

‘‘(2) receive formula grant allocations in amounts too small

to be effective in meeting their intended purposes.

‘‘Subpart 1—Small, Rural School Achievement

Program

‘‘SEC. 6211. USE OF APPLICABLE FUNDING.

‘‘(a) ALTERNATIVE USES.—

‘‘(1) IN GENERAL.—Notwithstanding any 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 carry out local activities

authorized under any of the following provisions:

‘‘(A) Part A of title I.

‘‘(B) Part A or D of title II.

‘‘(C) Title III.

‘‘(D) Part A or B of title IV.

‘‘(E) Part A of title V.

‘‘(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), by 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)(I) the total number of students in average daily

attendance at all of the schools served by the local educational

agency is fewer than 600; or

‘‘(II) each county in which a school served by the local

educational agency is located has a total population density

of fewer than 10 persons per square mile; and

‘‘(ii) all of the schools served by the local educational

agency are designated with a school locale code of 7 or

8, as determined by the Secretary; 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 to waive the criteria described in paragraph (1)(A)(ii)

based on a demonstration by the local educational agency,

and concurrence by the State 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 DEFINED.—In this section, the term

‘applicable funding’ means funds provided under any of the following

provisions:

‘‘(1) Subpart 2 and section 2412(a)(2)(A) of title II.

‘‘(2) Section 4114.

‘‘(3) Part A of title V.

‘‘(d) DISBURSEMENT.—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 as 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) APPLICABLE RULES.—Applicable funding under this section

shall be available to carry out local activities authorized under

subsection (a).

‘‘SEC. 6212. GRANT PROGRAM AUTHORIZED.

‘‘(a) IN GENERAL.—The Secretary is authorized to award grants

to eligible local educational agencies to enable the local educational

agencies to carry out activities authorized under any of the following

provisions:

‘‘(1) Part A of title I.

‘‘(2) Part A or D of title II.

‘‘(3) Title III.

‘‘(4) Part A or B of title IV.

‘‘(5) Part A of title V.

‘‘(b) ALLOCATION.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (3),

the Secretary shall award a grant under subsection (a) to

a local educational agency eligible under section 6211(b) 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 by the agency under the provisions of law

described in section 6211(c) for the preceding fiscal year.

‘‘(2) DETERMINATION OF INITIAL AMOUNT.—The initial

amount referred to in paragraph (1) is equal to $100 multiplied

by the total number of students in excess of 50 students,

in average daily attendance at the schools served by the local

educational 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 to

carry out this section 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.

‘‘(c) DISBURSEMENT.—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 fiscal year.

‘‘(d) SPECIAL ELIGIBILITY RULE.—A local educational agency

that is eligible to receive a grant under this subpart for a fiscal

year is not eligible to receive funds for such fiscal year under

subpart 2.

‘‘SEC. 6213. ACCOUNTABILITY.

‘‘(a) ACADEMIC ACHIEVEMENT ASSESSMENT.—Each local educational

agency that uses or receives funds under this subpart

for a fiscal year shall administer an assessment that is consistent

with section 1111(b)(3).

‘‘(b) DETERMINATION REGARDING CONTINUING PARTICIPATION.—

Each State educational agency that receives funding under the

provisions of law described in section 6211(c) shall—

‘‘(1) after the third year that a local educational agency

in the State participates in a program under this subpart

and on the basis of the results of the assessments described

in subsection (a), determine whether the local educational

agency participating in the program made adequate yearly

progress, as described in section 1111(b)(2);

‘‘(2) permit only those local educational agencies that

participated and made adequate yearly progress, as described

in section 1111(b)(2), to continue to participate; and

‘‘(3) permit those local educational agencies that participated

and failed to make adequate yearly progress, as described

in section 1111(b)(2), to continue to participate only if such

local educational agencies use applicable funding under this

subpart to carry out the requirements of section 1116.

‘‘Subpart 2—Rural and Low-Income School

Program

‘‘SEC. 6221. PROGRAM AUTHORIZED.

‘‘(a) GRANTS TO STATES.—

‘‘(1) IN GENERAL.—From amounts appropriated under section

6234 for this subpart for a fiscal year that are not reserved

under subsection (c), the Secretary shall award grants (from

allotments made under paragraph (2)) for the fiscal year to

State educational agencies that have applications submitted

under section 6223 approved to enable the State educational

agencies to award grants to eligible local educational agencies

for local authorized activities described in section 6222(a).

‘‘(2) ALLOTMENT.—From amounts described in paragraph

(1) for a fiscal year, the Secretary shall allot to each State

educational agency for that fiscal year an amount that bears

the same ratio to those amounts as the number of students

in average daily attendance served by eligible local educational

agencies in the State for that fiscal year bears to the number

of all such students served by eligible local educational agencies

in all States for that fiscal year.

‘‘(3) SPECIALLY QUALIFIED AGENCIES.—

‘‘(A) ELIGIBILITY AND APPLICATION.—If a State educational

agency elects not to participate in the program

under this subpart or does not have an application submitted

under section 6223 approved, a specially qualified

agency in such State desiring a grant under this subpart

may submit an application under such section directly to

the Secretary to receive an award under this subpart.

‘‘(B) DIRECT AWARDS.—The Secretary may award, on

a competitive basis or by formula, the amount the State

educational agency is eligible to receive under paragraph

(2) directly to a specially qualified agency in the State

that has submitted an application in accordance with

subparagraph (A) and obtained approval of the application.

‘‘(C) SPECIALLY QUALIFIED AGENCY DEFINED.—In this

subpart, the term ‘specially qualified agency’ means an

eligible local educational agency served by a State educational

agency 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 under this subsection.

‘‘(b) LOCAL AWARDS.—

‘‘(1) ELIGIBILITY.—A local educational agency shall be

eligible to receive a grant under this subpart if—

‘‘(A) 20 percent or more of the children ages 5 through

17 years 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 designated

with a school locale code of 6, 7, or 8, as determined

by the Secretary.

‘‘(2) AWARD BASIS.—A State educational agency shall award

grants to eligible local educational agencies—

‘‘(A) on a competitive basis;

‘‘(B) according to a formula based on the number of

students in average daily attendance served by the eligible

local educational agencies or schools in the State; or

‘‘(C) according to an alternative formula, if, prior to

awarding the grants, the State educational agency demonstrates,

to the satisfaction of the Secretary, that the

alternative formula enables the State educational agency

to allot the grant funds in a manner that serves equal

or greater concentrations of children from families with

incomes below the poverty line, relative to the concentrations

that would be served if the State educational agency

used the formula described in subparagraph (B).

‘‘(c) RESERVATIONS.—From amounts appropriated under section

6234 for this subpart for a fiscal year, the Secretary shall reserve—

‘‘(1) one-half of 1 percent to make awards to elementary

schools or secondary schools operated or supported by the

Bureau of Indian Affairs, to carry out the activities authorized

under this subpart; and

‘‘(2) one-half of 1 percent to make awards to the outlying

areas in accordance with their respective needs, to carry out

the activities authorized under this subpart.

‘‘SEC. 6222. USES OF FUNDS.

‘‘(a) LOCAL AWARDS.—Grant funds awarded to local educational

agencies under this subpart shall be used for any of the following:

‘‘(1) Teacher recruitment and retention, including the use

of signing bonuses and other financial incentives.

‘‘(2) Teacher professional development, including programs

that train teachers to utilize technology to improve teaching

and to train special needs teachers.

‘‘(3) Educational technology, including software and hardware,

as described in part D of title II.

‘‘(4) Parental involvement activities.

‘‘(5) Activities authorized under the Safe and Drug-Free

Schools program under part A of title IV.

‘‘(6) Activities authorized under part A of title I.

‘‘(7) Activities authorized under title III.

‘‘(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

and to provide technical assistance to eligible local educational

agencies.

‘‘SEC. 6223. APPLICATIONS.

‘‘(a) IN GENERAL.—Each State educational agency or 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.

‘‘(b) CONTENTS.—At a minimum, each application submitted

under subsection (a) shall include information on specific measurable

goals and objectives to be achieved through the activities

carried out through the grant, which may include specific educational

goals and objectives relating to—

‘‘(1) increased student academic achievement;

‘‘(2) decreased student dropout rates; or

‘‘(3) such other factors as the State educational agency

or specially qualified agency may choose to measure.

‘‘SEC. 6224. ACCOUNTABILITY.

‘‘(a) STATE REPORT.—Each State educational agency that

receives a grant under this subpart shall prepare and submit 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 6223.

‘‘(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 6223.

‘‘(c) REPORT TO CONGRESS.—The Secretary shall prepare and

submit to the Committee on Education and the Workforce of the

House of Representatives and the Committee on Health, Education,

Labor, and Pensions of the Senate a biennial report. The report

shall describe—

‘‘(1) the methods the State educational agencies used to

award grants to eligible local educational agencies, and to provide

assistance to schools, under this subpart;

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 applications

submitted under section 6223.

‘‘(d) ACADEMIC ACHIEVEMENT ASSESSMENT.—Each local educational

agency or specially qualified agency that receives a grant

under this subpart for a fiscal year shall administer an assessment

that is consistent with section 1111(b)(3).

‘‘(e) DETERMINATION REGARDING CONTINUING PARTICIPATION.—

Each State educational agency or specially qualified agency that

receives a grant under this subpart shall—

‘‘(1) after the third year that a local educational agency

or specially qualified agency in the State receives funds under

this subpart, and on the basis of the results of the assessments

described in subsection (d)—

‘‘(A) in the case of a local educational agency, determine

whether the local educational agency made adequate yearly

progress, as described in section 1111(b)(2); and

‘‘(B) in the case of a specially qualified agency, submit

to the Secretary information that would allow the Secretary

to determine whether the specially qualified agency has

made adequate yearly progress, as described in section

1111(b)(2);

‘‘(2) permit only those local educational agencies or specially

qualified agencies that made adequate yearly progress, as

described in section 1111(b)(2), to continue to receive grants

under this subpart; and

‘‘(3) permit those local educational agencies or specially

qualified agencies that failed to make adequate yearly progress,

as described in section 1111(b)(2), to continue to receive such

grants only if the State educational agency disbursed such

grants to the local educational agencies or specially qualified

agencies to carry out the requirements of section 1116.

‘‘Subpart 3—General Provisions

‘‘SEC. 6231. ANNUAL AVERAGE DAILY ATTENDANCE DETERMINATION.

‘‘(a) CENSUS DETERMINATION.—Each local educational agency

desiring a grant under section 6212 and each local educational

agency or specially qualified agency desiring a grant under subpart

2 shall—

‘‘(1) not later than December 1 of each year, conduct a

census to determine the number of students in average daily

attendance in kindergarten through grade 12 at the schools

served by the agency; and

‘‘(2) not later than March 1 of each year, submit the number

described in paragraph (1) to the Secretary (and to the State

educational agency, in the case of a local educational agency

seeking a grant under subpart (2)).

‘‘(b) PENALTY.—If the Secretary determines that a local educational

agency or specially qualified agency has knowingly submitted

false information under subsection (a) for the purpose of

gaining additional funds under section 6212 or subpart 2, then

the agency shall be fined an amount equal to twice the difference

between the amount the agency received under this section and

the correct amount the agency would have received under section

6212 or subpart 2 if the agency had submitted accurate information

under subsection (a).

‘‘SEC. 6232. SUPPLEMENT, NOT SUPPLANT.

‘‘Funds made available under subpart 1 or subpart 2 shall

be used to supplement, and not supplant, any other Federal, State,

or local education funds.

‘‘SEC. 6233. RULE OF CONSTRUCTION.

‘‘Nothing in this part shall be construed to prohibit a local

educational agency that enters into cooperative arrangements with

other local educational agencies for the provision of special, compensatory,

or other education services, pursuant to State law or a

written agreement, from entering into similar arrangements for

the use, or the coordination of the use, of the funds made available

under this part.

‘‘SEC. 6234. AUTHORIZATION OF APPROPRIATIONS.

‘‘There are authorized to be appropriated to carry out this

part $300,000,000 for fiscal year 2002 and such sums as may

be necessary for each of the 5 succeeding fiscal years, to be distributed

equally between subparts 1 and 2.