Educational Excellence Act of 1990

Equity and Excellence in Education Act of 1990 - Title I: Readiness - Declares it to be the policy of the United States (toward the year 2000 goal that all children in the United States will start school ready to learn): (1) to provide, by 1994, Head Start services to every eligible child who needs them; (2) to provide, by 1994, sufficient funding for the special supplemental food program for women, infants, and children (WIC) so that all potentially eligible individuals have access to it; and (3) to expand, by 1995, funding for Even Start to allow programs to reach all parts of the United States and allow each State to fund a sufficient number of its programs to make approaches available for adoption and implementation by local educational agencies (LEAs), the State educational agency (SEA), and other organizations.

Title II: School Completion - Declares it to be the policy of the United States (toward the year 2000 goal that the high school graduation rate will increase to at least 90 percent): (1) to expand, by 1995, funding for secondary school dropout prevention and reentry programs and basic skills programs to allow them to reach all parts of the United States and in sufficient numbers within each State; and (2) to collect uniform, reliable data from the States on school completion rates.

Amends the General Education Provisions Act (GEPA) to require the National Center for Education Statistics to ensure that its annual report on the national survey of dropout and retention rates contains nationally comparable and uniform data by State.

Title III: Student Achievement - Declares it to be the policy of the United States (toward the year 2000 goal that students will attain demonstrable competency over specified subject matter and be prepared for responsible citizenship, further learning, and productive employment): (1) to provide remedial assistance to all disadvantaged children in the United States by increasing to 100 percent by FY 1993 participation of eligible children in specified programs under the Elementary and Secondary Education Act of 1965 (ESEA); (2) to provide 40 percent of the costs of educating children with disabilities by the year 2000, and at least 25 percent by 1995; (3) to reward successful programs in schools with concentrations of disadvantaged children; and (4) to promote student involvement in activities demonstrating good citizenship, community service, and personal responsibility.

Part A: Presidential Schools of Distinction - Presidential Schools of Distinction Act - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to establish the Presidential Schools of Distinction Program to recognize and reward public and private elementary and secondary schools that have made substantial progress in: (1) raising student educational achievement; (2) creating a safe and alcohol- and drug-free school environment; and (3) reducing the dropout rate.

Authorizes appropriations.

Authorizes State educational agencies (SEAs) to designate as a Presidential School of Distinction any public or private elementary or secondary school nominated through procedures established by the SEA. Sets forth requirements for selection criteria established by the Secretary of Education (the Secretary) and by SEAs. Directs the SEAs to establish State review panels to assist in such selection.

Provides that each Presidential School of Distinction will be awarded a Presidential Certificate of Distinction, as well as funds to further its educational program. Sets forth allowable uses of such funds.

Prohibits Federal, State, or local reduction of other assistance to a school because it receives such an award.

Directs the Secretary to: (1) evaluate Presidential Schools of Distinction biennially; and (2) submit information on successful Presidential Schools of Distinction programs to the National Diffusion Network for possible dissemination.

Part B: Law-Related Education Programs - Amends ESEA to direct the Secretary to carry out a program, entitled "We the People... The Citizen and the Constitution," to educate students about the history and principles of the Constitution and Bill of Rights and to foster civic competence and civil responsibility, by continuing and expanding the educational activities of the National Bicentennial Competition of the Constitution and Bill of Rights administered by the Center for Civic Education. Authorizes the Secretary to contract with such Center to carry out such program. Sets forth program content, including the simulated congressional hearings, to be made available to public and private elementary and secondary schools. Allows surplus funds to be used for advanced training of teachers about the Constitution and the Bill of Rights. Authorizes appropriations.

Revises provisions for the law-related education program with respect to priorities and durations of grant awards, and review of grant applications by a panel of experts.

Part C: Amendments to Other Education Programs - Amends the Bilingual Education Act to authorize reservation of a specified maximum amount of funds for developmental bilingual education projects and special alternative instructional projects in middle school grades, with emphasis on the arts and humanities, site-based decision-making, magnet schools, community involvement, and collaboration with local colleges.

Amends ESEA to add to those programs which may be established through the Secretary's Fund for Innovation in Education programs for improving the educational performance of and employment opportunities available for underachieving students. Authorizes the Secretary to make grants and contracts with LEAs for such programs, with specified priorities.

Part D: Academic Areas of National Importance - Amends the Foreign Language Assistance Act of 1988 (in part B, title II of ESEA) to provide for teacher training and instructional materials.

Authorizes the Secretary to provide matching grants to States, through SEAs, for foreign language institutes for professional development and retraining of elementary and secondary school teachers in foreign languages, foreign cultures, and international studies. Sets forth program participation requirements and bypass provisions. Authorizes appropriations.

Authorizes the Secretary to provide competitive grants to qualified SEAs and LEAs, higher education institutions, private nonprofit foreign language organizations, nonprofit education associations, or consortia of such entities to act as resource centers to: (1) coordinate development and dissemination of foreign language and culture instructional materials; and (2) expand use of technology in teaching foreign languages and culture at the elementary and secondary school levels. Authorizes appropriations.

Title IV: Mathematics and Science - Declares it to be the policy of the United States (toward the year 2000 goal that U.S. students will be first in the world in mathematics and science achievement): (1) to expand funding for the Dwight D. Eisenhower Mathematics and Science Foundation Act by the year 2000, so that all elementary and secondary teachers of mathematics and science will have an opportunity to update and improve their education skills, and, by the year 1995, so that all elementary school teachers have an opportunity to improve their skills; and (2) to award scholarships to high-achieving students to pursue the study of mathematics, science, and related subjects at postsecondary institutions.

Amends the Higher Education Act of 1965 (HEA) to establish the National Science Scholarships Program to recognize student excellence and achievement in the physical, life, and computer sciences, mathematics, and engineering.

Authorizes the Secretary to award scholarships to outstanding students selected as National Science Scholars by the President. Allows the students who satisfy certain requirements to receive such scholarships for the first year of undergraduate study and, if they satisfy additional requirements, additional scholarships to cover the remaining undergraduate years.

Directs the Secretary to appoint a panel of experts to recommend academic achievement criteria for use in the nomination of scholars.

Sets forth requirements for initial and continuation awards.

Sets the scholarship amount at $5,000 for an academic year, but reduces such amount based on cost of attendance and other grant or scholarship assistance, and adjusts for insufficient appropriation.

Requires that scholarships recipients, to the extent they are otherwise qualified, be given priority consideration for federally financed summer employment in research and development centers.

Establishes a science career scholarship program, to be carried out by the Secretary of Education and the Director of the National Science Foundation and to be known as the Robert Noyce Mathematics and Science Teacher Corps scholarship program. Provides for: (1) an initial scholarship award for one academic year of undergraduate study toward a baccalaureate in physical, life, or computer science; (2) a first continuation award for another year of such study; and (3) a second continuation award for those who have completed the baccalaureate but who require additional education courses for teacher certification. Requires scholarship recipients to commit to: (1) teaching service in elementary or secondary school science or mathematics for at least two years for each year of scholarship aid, up to a maximum of four years' service; or (2) a career option of two years of service in such science, mathematics, or engineering related employment for certain U.S.-connected corporations, or postgraduate education in such fields, or a combination of such employment or education. Requires repayment in cases of noncompliance. Authorizes appropriations.

Makes persons convicted of certain controlled substance and other felony offenses ineligible for assistance under this title, and requires such persons to repay any such assistance already received.

Directs the National Science Foundation to report to the Congress within one year on current efforts to improve the quality of elementary and secondary mathematics and science education and career potential for the underprivileged through joint efforts of business, school districts, and higher education institutions, with recommendations for Federal encouragement of such efforts.

Title V: Family Literacy and Lifelong Learning - Literacy for All Americans Act of 1990 - Declares it to be the policy of the United States (toward the year 2000 goal that every American will be literate, and possess knowledge and skills necessary to compete in a global economy, and exercise their citizenship): (1) to provide all workers and adults opportunity to acquire skills to function productively; (2) to establish programs for large-scale public private partnerships in workforce literacy; (3) to provide for teacher training and instructional technologies to increase the number of learners served and the rate and extent of learning; (4) to provide easy access to model program information by teachers, community-based organizations, volunteers, and business; (5) to help build State capacity to assist large numbers of adults and families; and (6) to promote the pursuit of lifelong learning by all individuals in the United States by providing essential support for the Nation's system of public school, academic, and research libraries.

Part A: Literacy: Strategic Planning, Research, and Coordination - Subpart 1: National Planning, Research and Coordination - Establishes an Interagency Task Force on Literacy. Requires the Task Force to report to the Congress and the President.

Establishes the National Institute for Literacy. Gives the Institute certain responsibilities for research, technical assistance and training, policy analysis, and information. Establishes the National Institute for Literacy Governing Board.

Establishes within the Institute the National Workplace Literacy Assistance Collaborative to improve the basic skills of the currently employed, especially those marginally employed with low basic skills and limited opportunity for long-term employment and advancement. Establishes a grants program to assist small and medium-sized businesses, business associations, and labor organizations to develop and implement literacy programs tailored to workplace and workforce needs.

Requires an annual report to the Congress and the President.

Authorizes appropriations.

Subpart 2: State Planning, Research, and Coordination - Amends the Adult Education Act (AEA) to revise provisions relating to State coordination of adult literacy programs, State literacy coordination plans, and evaluation.

Directs the Secretary to make grants for a network of State or regional adult literacy resource centers. Authorizes appropriations.

Part B: Investment in Literacy - Amends the Adult Education Act (AEA) to extend the authorization of appropriations for AEA programs.

Revises provisions for local applications for use of State grant funds to remove requirements for consultation with local educational agencies (LEAs) as a precondition for awarding such funds to other public or private nonprofit agencies, organizations, and institutions (including community-based organizations and postsecondary educational institutions). Requires States to: (1) ensure that all potential applicants have a fair opportunity to apply and be considered for such assistance; and (2) consider specified factors in making such awards.

Allows basic State grants under AEA to be used for competitive two-year Gateway Grants to public housing authorities for literacy programs and related activities.

Revises procedures for evaluation of AEA grant recipients.

Includes under AEA provisions for demonstration projects: (1) development and expansion of innovative programs; and (2) support for statewide volunteer technical assistance activities.

Requires a State to have in effect a mandatory functional literacy program for individuals in State correctional institutions, as a condition for a State to receive certain AEA funding. Requires such a program to be in effect in: (1) at least one such institution in the State within two years after enactment of this Act; and (2) in all such institutions in the State within five years after such enactment.

Authorizes the Secretary to make matching challenge grants to States for investment in adult literacy instruction staff training and educational technology. Authorizes appropriations.

Establishes a Literacy Leader Training Fund. Directs the Secretary of Education, through the Office on Literacy, to make scholarship grants from the Fund to individuals pursuing careers in adult education, instruction, management, research, or innovation, for education or research to expand their expertise. Authorizes appropriations.

Amends the Elementary and Secondary Education Act of 1965 (ESEA) to provide specified U.S. territories with funding under the Even Start program.

Part C: Business Leadership for Employment Skills - Authorizes the Secretary of Labor to carry out a national workforce literacy strategies program of grants for up to 70 percent of the costs of joint ventures between business, industry, or labor and State, regional, or Federal entities to provide large-scale models in strategic approaches to improving basic skills of workforce sectors. Authorizes appropriations.

Authorizes the Secretary (of Education) to make competitive grants to pay half of the costs of adult education programs which increase commercial drivers' skills necessary to complete the knowledge test requirements under the Commercial Motor Vehicle Safety Act of 1986. Includes among eligible grantees: (1) private employers of commercial drivers; (2) postsecondary education institutions; (3) apprentice training programs; and (4) labor organizations that have commercial drivers as members. Requires grantees to refer individuals identified as having literacy skill problems to appropriate adult education programs. Authorizes appropriations.

Title VI: Safe, Disciplined, and Drug-Free Schools - Declares it to be the policy of the United States (toward the year 2000 goal that every U.S. school be free of drugs and violence and offer a disciplined environment conducive to learning) to expand funding, by 1993, for the Drug-Free Schools and Communities Act of 1986 to ensure that all students receive drug abuse prevention education and counseling services.

Title VII: Teacher Recruitment and Retention - Declares it to be the policy of the United States (toward the year 2000 goal that there will be a well-qualified teacher in every U.S. classroom and that these teachers will reflect the general population's demographic make-up): (1) to recruit talented individuals into the teaching profession, especially minority group members; (2) to ensure that current teachers continually develop their teaching skills and subject matter knowledge; (3) to reward successful teachers and encourage them to further enhance their skills; and (4) encourage qualified professionals in other fields to enter the teaching profession.

Part A: Teacher Recruitment and Retention - 21st Century Teachers' Act - Declares it to be the policy of the United States that, by the year 2000 or earlier, there will be a well-qualified teacher in every classroom.

Subpart 1: Loans Incentives for Teaching - Amends the Higher Education Act of 1965 (HEA) to establish a separate fund for teachers under the National Defense Student Loan (NDSL) program.

Authorizes appropriations for separate capital contributions to NDSL student loan funds.

Requires a student, in order to receive a loan from the special account, to: (1) have completed two undergraduate years; (2) intend to pursue a teaching career; and (3) agree to certain repayment conditions if the student either does not enter full-time teaching within a certain period or ceases such teaching before the end of the five-year service period required for loan cancellations.

Gives priority for such loans to minority students, or those otherwise underrepresented in the teaching profession or curricula areas, and to qualified individuals who need such a loan and who demonstrate high academic achievement and potential for success in teaching. Provides for an expedited loan cancellation option for teaching at certain types of schools.

Subpart 2: Financial Assistance for Institutional Recruitment and Retention of Individuals Preparing to Enter the Teaching Force - Directs the Secretary to allocate funds under this subpart to State educational agencies (SEAs) for grants to institutions of higher education for programs to recruit and retain students, particularly minority students, preparing to enter the teaching profession (including the profession of certified school library media specialist).

Authorizes appropriations.

Subpart 3: Professional Development Academies - Directs the Secretary to allocate 95 percent of funds for this subpart among SEAs, on the basis of number of disadvantaged children, to distribute such funds to consortia of local educational agencies (LEAs) for various activities relating to teacher training (including training for library media specialists, counselors, administrators, and other school personnel).

Directs the Secretary, from the remaining five percent of funds under this subpart, to award to specified consortia grants to establish professional development academies to provide interstate, international, or other exemplary programs. Limits such grants to five years, with renewal for one additional five-year period.

Authorizes appropriations.

Part B: Presidential Awards for Excellence in Education - Amends ESEA to establish the Presidential Awards for Excellence in Education Program to recognize and reward outstanding elementary and secondary school teachers.

Authorizes appropriations.

Makes any full-time public or private elementary or secondary school teacher of academic or vocational subjects eligible for such an award. Makes teachers of religion (other than religion as an academic discipline) ineligible. Allows various individuals, groups, or institutions to nominate teachers for such awards. Requires State panels to select award recipients using criteria approved by the Secretary.

Sets the amount of such an award at $5,000, and allows the recipient to use it for any purpose.

Part C: Nontraditional Routes to Teacher Licensure - Nontraditional Routes to Teacher Licensure Act of 1990 - Amends HEA to establish a program of assistance for nontraditional routes to teacher licensure, to improve the supply of qualified elementary and secondary school teachers by assisting State programs to help talented professionals who have demonstrated high competence in a subject area and wish to pursue education careers to meet State licensing requirements, with special emphasis on minority group member participation.

Authorizes appropriations.

Repeals this part as of July 1, 1993.

Part D: National Writing Program - Authorizes the Secretary to enter into a contract with the National Writing Project (a nonprofit educational organization) to support costs of programs of teacher training and classroom research to improve the teaching of writing and the quality of student writing and learning. Directs the Project to establish a National Advisory Board.

Directs the Secretary, through the Office of Educational Research and Improvement (OERI), to make grants to individuals and higher education institutions for research on the teaching of writing.

Authorizes appropriations.

Title VIII: Equal Opportunity for Postsecondary Education - Declares it to be the policy fo the United States (toward the year 2000 goal that no qualified student be denied the opportunity for postsecondary education because of financial or other barriers): (1) to increase low-income, first-generation-in-college, and minority students' participation in postsecondary eduation; (2) to expand college assistance to middle income families; (3) to reduce reliance on parent and student loans as the principal means of financing postsecondary education, by increasing appropriations and awards under the Pell Grant program by specified amounts each year; and (4) to enhance postsecondary institutions' capacity to recruit, retain, and provide quality education to low-income, first-generation-in-college, minority students, including graduate students by increasing appropriations to the TRIO programs under HEA by specified amounts each year.

Amends HEA to provide for Pell Grant program shortfall adjustments for insufficient appropriations in a fiscal year by requiring expenditures from the next succeeding fiscal year's appropriations.

Removes from the computation of expected family contribution in the determination of need for assistance under the Pell Grant program and other HEA title IV student assistance programs the following nonliquid assets: (1) the family's principal place of residence; or (2) a family farm on which the family resides. Directs the Secretary to recommend to the Congress any changes in such HEA provisions necessary to achieve an equitable assessment of income and assets after exclusion of such nonliquid assets.

Authorizes appropriations for special awards to historically black colleges and universities. Makes institutions that receive such awards ineligible for other specified awards.

Establishes, under HEA, a student mentor pilot program. Authorizes the Secretary to designate from ten to 100 higher education institutions that may use a portion of their Work-Study program allocations to pay college student mentors to help disadvantaged youths at risk of dropping out of elementary or secondary school.

Title IX: Policy Evaluation and Assessment - Part A: Policy Evaluation - National Summit Conference on Education Amendments of 1990 - Amends the National Conference on Education Act of 1984 to revise provisions for the National Summit Conference on Education with respect to: (1) Executive Committee membership; (2) regional meetings; and (3) agenda.

Part B: Assessment - Authorizes the Secretary, through the Office of Educational Research and Improvement, to make grants to SEAs, LEAs, higher education institutions, and consortia of such agencies and institutions (which consortia may include nonprofit or for-profit agencies) for demonstration projects to develop exemplary and innovative diagnostic assessment systems and policies. Limits an LEA to not more than five fiscal years of such a grant. Requires the Secretary to report biennially to the Congress on such grant program. Authorizes appropriations.

Part C: Amendments to the General Education Provisions Act - Amends the General Education Provisions Act (GEPA) to revise provisions relating to National Center for Education Statistics reports to the Congress and their confidentiality.

Revises GEPA with respect to the responsibility of States to furnish information to require biennial (rather than annual) reports by SEAs to the Secretary and by the Secretary to specified congressional committees. Modifies the required contents of such reports.

Revises GEPA enforcement provisions relating to the Office of Administrative Law Judges, recovery of funds, measure of recovery, and use of recovered funds.

Title X: Planning Grants for Innovative Demonstration Projects and Research - Authorizes the Secretary to make grants to SEAs, LEAs, and consortia of such agencies to plan for innovative demonstration projects. Authorizes the use of such funds to plan for the development of: (1) State or local policies and procedures for open enrollment among public schools or programs, and for assisting parents, particularly those of disadvantaged or minority children, to become more involved in their children's education; and (2) improved methods for advancing equity in State and local systems of financing public elementary and secondary education, and for involving businesses and communities in public education.

Sets forth application requirements, providing for SEA comment.

Gives priority in planning grants (other than those for open enrollment) to projects with the greatest potential to improve education of disadvantaged students and minority students. Gives equal priority in open enrollment planning grants to projects for such students and those for rural students.

Authorizes the Secretary, through OERI, to conduct research on open enrollment systems, parental involvement, school finance equalization, and business involvement in public education, and to disseminate such research results. Directs the Secretary to coordinate identification and dissemination of exemplary projects through the National Diffusion Network.

Title XI: Educational Performance Agreements for School Restructuring - Establishes a national demonstration program of educational performance agreements for school restructuring, under which: (1) local authorities develop proposals for enabling students to achieve higher performance; (2) schools with such proposals are allowed to combine Federal, State, and local funds under specified Federal laws relating to the education of special needs students, drug education, and training programs (and to waive certain restrictions under such programs); (3) Federal, State, and local protections with respect to civil rights, discrimination, and safety will be upheld; and (4) States will make available funds necessary to plan, develop, monitor, and evaluate local performance agreements.

Provides that funding combinations and waiver restrictions may include such types of programs under specified Federal laws in the case of: (1) training programs at the secondary level for children in vocational education courses; and (2) special needs programs at the elementary level for disadvantaged children served under chapter 1 title I of ESEA.

Provides for: (1) authority of other Federal agencies; (2) limitations; (3) sunset of combination authority after the sixth year of the agreement; (4) audits; (5) State assurances and State educational performance agreements; (6) local performance agreements and local review and assessment; (7) evaluation and report to the Congress; and (8) assessment to assist the Congress, States, and schools in improving student performance.

Title XII: Suspension of Eligibility for Drug-Related Offenses - Amends the Higher Education Act of 1965 (HEA) to suspend for specified intervals the eligibility for student assistance under title IV of HEA of any individual student convicted of any Federal or State offense involving possession or sale of a controlled substance. Allows such a student to resume eligibility before the end of the ineligibility period (the length of which relates to number and type of offenses) if he or she satisfactorily completes a drug rehabilitation program that meets criteria prescribed by the Secretary.

 
Calendar No. 250
101st CONGRESS
1st Session
S. 695
[Report No. 101-136]
A BILL
To promote excellence in American education by recognizing and rewarding
schools, teachers, and students for their outstanding achievements,
enhancing parental choice, encouraging the study of science, mathematics,
and engineering, and for other purposes.
SEPTEMBER 19 (legislative day, SEPTEMBER 18), 1989
Reported with an amendment
S 695 RS
Calendar No. 250
101st CONGRESS
1st Session
S. 695
[Report No. 101-136]
To promote excellence in American education by recognizing and rewarding
schools, teachers, and students for their outstanding achievements,
enhancing parental choice, encouraging the study of science, mathematics,
and engineering, and for other purposes.
IN THE SENATE OF THE UNITED STATES
April 5 (legislative day, JANUARY 3), 1989
Mrs. KASSEBAUM (for herself, Mr. PELL, Mr. DOLE, Mr. MATSUNAGA, Mr. COCHRAN,
Mr. HATCH, Mr. DODD, Mr. JEFFORDS, Mr. THURMOND, Mr. COATS, Mr. DURENBERGER,
Mr. BOREN, Mr. BOSCHWITZ, Mr. BURNS, Mr. CHAFEE, Mr. COHEN, Mr. DANFORTH,
Mr. DOMENICI, Mr. GORTON, Mr. GRAMM, Mr. HEINZ, Mr. KASTEN, Mr. LOTT,
Mr. LUGAR, Mr. MACK, Mr. MCCAIN, Mr. MCCLURE, Mr. MCCONNELL, Mr. MURKOWSKI,
Mr. NICKLES, Mr. RUDMAN, Mr. SIMPSON, Mr. SPECTER, Mr. STEVENS, Mr. WALLOP,
Mr. WARNER, Mr. WILSON, and Mr. D'AMATO) introduced the following bill;
which was read twice and referred to the Committee on Labor and Human Resources
SEPTEMBER 19 (legislative day, SEPTEMBER 18), 1989
Reported by Mr. KENNEDY, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
A BILL
To promote excellence in American education by recognizing and rewarding
schools, teachers, and students for their outstanding achievements,
enhancing parental choice, encouraging the study of science, mathematics,
and engineering, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
 [Struck out->]   SECTION 1. SHORT TITLE- This Act may be cited as the
 `Educational Excellence Act of 1989'. [<-Struck out]
 [Struck out->]   SEC. 2. TABLE OF CONTENTS- This Act is organized as follows:
 [<-Struck out]
 [Struck out->] TITLE I--IMPROVING ELEMENTARY AND SECONDARY EDUCATION
 [<-Struck out]
 [Struck out->] Part A--Presidential Merit Schools [<-Struck out]
 [Struck out->] Part B--Magnet Schools of Excellence [<-Struck out]
 [Struck out->] Part C--Alternative Certification for Teachers and Principals
 [<-Struck out]
 [Struck out->] Part D--Presidential Awards for Excellence in Education
 [<-Struck out]
 [Struck out->] Part E--Effective Date [<-Struck out]
 [Struck out->] TITLE II--NATIONAL SCIENCE SCHOLARS [<-Struck out]
 [Struck out->] TITLE III--OTHER PROGRAMS [<-Struck out]
 [Struck out->] TITLE I--IMPROVING ELEMENTARY AND SECONDARY EDUCATION
 [<-Struck out]
 [Struck out->] Part A--Presidential Merit Schools [<-Struck out]
 [Struck out->] PRESIDENTIAL MERIT SCHOOLS [<-Struck out]
 [Struck out->]   SEC. 101. Title IV of the Elementary and Secondary Education
 Act of 1965 (20 U.S.C. 2701 et seq.) is amended by adding at the end thereof
 a new part G to read as follows: [<-Struck out]
 [Struck out->] `Part G--Presidential Merit Schools [<-Struck out]
 [Struck out->] `SHORT TITLE [<-Struck out]
 [Struck out->]   `SEC. 4701. This part may be cited as the `Presidential
 Merit Schools Act'. [<-Struck out]
 [Struck out->] `FINDINGS AND PURPOSE [<-Struck out]
 [Struck out->]   `SEC. 4702. (a) FINDINGS- The Congress finds that--
 [<-Struck out]
 [Struck out->]   `(1) the basic goal of all schools is to develop the skills
 and abilities of students to their maximum potential; [<-Struck out]
 [Struck out->]   `(2) achievable standards of excellence can and should be
 set for all students and for all schools; [<-Struck out]
 [Struck out->]   `(3) financial incentives can spur schools to rise to the
 challenge of meeting these standards; and [<-Struck out]
 [Struck out->]   `(4) improvement in the quality of our educational system
 is vital to the Nation's future, and demonstrated schoolwide progress in
 achieving excellence deserves public recognition. [<-Struck out]
 [Struck out->]   `(b) PURPOSE- The purpose of this part is to recognize
 and reward public and private elementary and secondary schools that have
 made substantial progress in-- [<-Struck out]
 [Struck out->]   `(1) raising student educational achievement; [<-Struck out]
 [Struck out->]   `(2) creating a safe and drug-free school environment;
 and [<-Struck out]
 [Struck out->]   `(3) reducing the dropout rate. [<-Struck out]
 [Struck out->] `AUTHORIZATION OF APPROPRIATIONS [<-Struck out]
 [Struck out->]   `SEC. 4703. For the purpose of carrying out this part,
 there are authorized to be appropriated $250,000,000 for fiscal year 1990,
 $350,000,000 for fiscal year 1991, $450,000,000 for fiscal year 1992,
 and $500,000,000 for fiscal year 1993. [<-Struck out]
 [Struck out->] `ALLOCATION OF APPROPRIATIONS [<-Struck out]
 [Struck out->]   `SEC. 4704. (a) RESERVATIONS- From the amount appropriated
 under section 4703 for any fiscal year, the Secretary may reserve--
 [<-Struck out]
 [Struck out->]   `(1) up to one quarter of 1 per centum for grants to
 Guam, American Samoa, the Virgin Islands, the Commonwealth of the Northern
 Mariana Islands, and Palau (until the effective date of the Compact of Free
 Association with the Government of Palau) for activities under this part;
 and [<-Struck out]
 [Struck out->]   `(2) up to $500,000 for-- [<-Struck out]
 [Struck out->]   `(A) special award ceremonies; and [<-Struck out]
 [Struck out->]   `(B) evaluations, studies, and reports. [<-Struck out]
 [Struck out->]   `(b) ALLOCATION AMONG STATES- (1) The amount remaining
 after any reservation of funds under subsection (a) shall be allocated to
 States as follows: [<-Struck out]
 [Struck out->]   `(A) from one half of such amount, each State shall be
 allocated an amount that bears the same ratio to such amount as the number
 of children aged five to seventeen, inclusive, in the State bears to the
 number of such children in all such States, according to the most recent
 available data that are satisfactory to the Secretary; and [<-Struck out]
 [Struck out->]   `(B) the other one half of such amount shall be allocated
 among such States on the same basis as funds are allocated among such States
 under section 1005 of this Act for the same fiscal year. [<-Struck out]
 [Struck out->]   `(2) For purposes of this subsection, the term `State' means
 each of the fifty States, the District of Columbia, and the Commonwealth
 of Puerto Rico. [<-Struck out]
 [Struck out->] `STATE APPLICATIONS [<-Struck out]
 [Struck out->]   `SEC. 4705. (a) FOUR-YEAR APPLICATION- Each State that
 wishes to receive a grant under this part shall submit to the Secretary,
 through its State educational agency, an application for a four-year period,
 at such time and in such manner as the Secretary may prescribe. [<-Struck out]
 [Struck out->]   `(b) APPLICATION CONTENTS- Each State application shall
 contain-- [<-Struck out]
 [Struck out->]   `(1) the criteria the State educational agency will use
 to select Presidential Merit Schools under section 4708; [<-Struck out]
 [Struck out->]   `(2) the criteria it will use to determine the amount of
 awards; [<-Struck out]
 [Struck out->]   `(3) an assurance that it will carry out this part in
 accordance with the requirements of this part and other applicable legal
 requirements; and [<-Struck out]
 [Struck out->]   `(4) other information the Secretary may require. [<-Struck
 out]
 [Struck out->]   `(c) GEPA PROVISIONS INAPPLICABLE- Sections 435 and 436
 of the General Education Provisions Act, except to the extent that such
 sections relate to fiscal control and fund accounting procedures, shall
 not apply to this part. [<-Struck out]
 [Struck out->] `STATE USE OF FUNDS [<-Struck out]
 [Struck out->]   `SEC. 4706. (a) ADMINISTRATION- Each State educational
 agency may use up to 5 per centum of its grant for the administrative costs
 of carrying out this part. [<-Struck out]
 [Struck out->]   `(b) PRESIDENTIAL MERIT SCHOOL AWARDS- Each State educational
 agency shall use at least 95 per centum of its grant for Presidential Merit
 School Awards made in accordance with section 4708. [<-Struck out]
 [Struck out->]   `(c) INSULAR AREAS- The provisions of Public Law 93-134,
 permitting the consolidation of grants to the Insular Areas, shall not
 apply to funds received by such areas under this part. [<-Struck out]
 [Struck out->] `STATE ACTIVITIES AND RESPONSIBILITIES [<-Struck out]
 [Struck out->]   `SEC. 4707. (a) STATE REVIEW PANEL- (1) Each State
 educational agency shall establish a State review panel to assist in the
 selection of Presidential Merit Schools. [<-Struck out]
 [Struck out->]   `(2) The State review panel shall be broadly representative
 of the following interests in the State-- [<-Struck out]
 [Struck out->]   `(A) elementary and secondary school teachers and
 administrators; [<-Struck out]
 [Struck out->]   `(B) college and university faculty and administrators;
 [<-Struck out]
 [Struck out->]   `(C) parents; [<-Struck out]
 [Struck out->]   `(D) State and local boards of education; [<-Struck out]
 [Struck out->]   `(E) State and local governments; [<-Struck out]
 [Struck out->]   `(F) labor; [<-Struck out]
 [Struck out->]   `(G) business; and [<-Struck out]
 [Struck out->]   `(H) the general public. [<-Struck out]
 [Struck out->]   `(b) ANNUAL REPORTS TO THE SECRETARY- (1) Within sixty
 days of making Presidential Merit School awards under this part for any
 fiscal year, each State educational agency shall submit a report to the
 Secretary that-- [<-Struck out]
 [Struck out->]   `(A) identifies the schools chosen as Presidential Merit
 Schools; [<-Struck out]
 [Struck out->]   `(B) states the reasons for their selection; and [<-Struck
 out]
 [Struck out->]   `(C) states the amount of their awards. [<-Struck out]
 [Struck out->]   `(2) Beginning with the second year for which any State
 educational agency receives funds under this part, its annual report shall
 also include a brief description of how schools selected in the previous
 year used their awards. [<-Struck out]
 [Struck out->] `SELECTION OF PRESIDENTIAL MERIT SCHOOLS [<-Struck out]
 [Struck out->]   `SEC. 4708. (a) ELIGIBLE SCHOOLS- (1) A State educational
 agency may designate as a Merit School any public or private elementary or
 secondary school in the State that has been nominated through procedures
 established by such agency. [<-Struck out]
 [Struck out->]   `(2) In selecting Presidential Merit Schools, each State
 educational agency shall apply the selection criteria uniformly to public
 and private schools. [<-Struck out]
 [Struck out->]   `(b) CRITERIA ESTABLISHED BY SECRETARY- (1) The Secretary
 shall establish minimum criteria to be used by every State educational
 agency in selecting Presidential Merit Schools. [<-Struck out]
 [Struck out->]   `(2) The criteria established by the Secretary shall
 address-- [<-Struck out]
 [Struck out->]   `(A) progress in improving educational performance, with
 particular emphasis on mastery of reading, writing, and mathematics skills;
 [<-Struck out]
 [Struck out->]   `(B) the degree to which the school demonstrates progress
 in achieving and maintaining a safe environment, including reduction or
 elimination of problems related to drug and alcohol use; and [<-Struck out]
 [Struck out->]   `(C) progress in reducing the number of students who drop
 out of school or in encouraging those who have dropped out to reenter school
 and complete their schooling. [<-Struck out]
 [Struck out->]   `(c) STATE CRITERIA- (1) Based on the selection criteria
 established by the Secretary, as required by subsection (b), each State
 educational agency shall establish additional criteria that measure progress
 in such areas as-- [<-Struck out]
 [Struck out->]   `(A) student achievement, as measured by such factors
 as year-to-year improvement in test scores, college entrance rates, and
 employment of graduates in jobs with significant potential for career
 development; and [<-Struck out]
 [Struck out->]   `(B) other indicators of a school's success, such as
 improvements in school leadership, the teaching and learning environment,
 and parental and community support and involvement. [<-Struck out]
 [Struck out->]   `(2) In setting criteria for Presidential Merit Schools,
 the State educational agency may establish standards that recognize the
 composition of the student body and other relevant factors, and that give
 special consideration to schools with substantial numbers or proportions
 of children from low-income families. The State educational agency may also
 set different criteria for different grade levels. [<-Struck out]
 [Struck out->]   `(3) In applying the criteria to a school in which a
 program is conducted under part A of chapter 1 of title I of this Act, the
 State educational agency shall consider the desired outcomes identified for
 children in the application submitted under section 1012(b) of this Act by
 the local educational agency operating the school. No school that a local
 educational agency has identified under section 1021(b) of this Act shall
 be eligible for a Presidential Merit School award. [<-Struck out]
 [Struck out->]   `(4) In selecting Presidential Merit Schools and in setting
 the amount of their awards, the State educational agency may not consider
 a school's planned use of a Presidential Merit School award. [<-Struck out]
 [Struck out->]   `(d) AMOUNT OF AWARD- Each State educational agency shall
 establish criteria, subject to subsection (c)(4), including criteria relating
 to the size of the school and the economic circumstances of the student body,
 for determining the amount of Presidential Merit School awards. [<-Struck out]
 [Struck out->]   `(e) BYPASS- If a State educational agency is either
 prohibited by State law from providing funds made available under this part
 to private schools, or is unwilling to do so, it shall notify the Secretary
 of such prohibition or unwillingness, as well as the private schools it has
 designated as Presidential Merit Schools and the amount of their awards. The
 Secretary shall then provide those funds, from the State's allocation under
 this part, to the designated private schools, through such arrangements as
 the Secretary finds suitable. The Secretary shall also withhold from the
 State's allocation under this part the administrative costs of making such
 arrangements. [<-Struck out]
 [Struck out->] `PRESIDENTIAL CERTIFICATES OF MERIT [<-Struck out]
 [Struck out->]   `SEC. 4709. Each Presidential Merit School shall be awarded
 a Presidential Certificate of Merit. [<-Struck out]
 [Struck out->] `USE OF FUNDS BY PRESIDENTIAL MERIT SCHOOLS [<-Struck out]
 [Struck out->]   `SEC. 4710. A Presidential Merit School shall use its
 Presidential Merit School award for activities that further the educational
 program of the school. Such activities may include, but are not limited to--
 [<-Struck out]
 [Struck out->]   `(1) development, implementation, or expansion of special
 programs, such as those focused on: dropout prevention or reentry, student
 transition to college or employment, preschool children, remedial services,
 or gifted and talented students; [<-Struck out]
 [Struck out->]   `(2) the purchase or lease of computers, telecommunications
 equipment, scientific instruments, instructional materials, library books,
 and other equipment and materials, except that a public agency shall have
 title to, and exercise administrative control of, all such equipment and
 materials; [<-Struck out]
 [Struck out->]   `(3) bonus payments for faculty and administrators;
 [<-Struck out]
 [Struck out->]   `(4) college scholarships for secondary school students;
 [<-Struck out]
 [Struck out->]   `(5) parental involvement activities; [<-Struck out]
 [Struck out->]   `(6) community outreach activities; and [<-Struck out]
 [Struck out->]   `(7) helping other schools replicate its success. [<-Struck
 out]
 [Struck out->] `PROHIBITION ON STATE OR LOCAL REDUCTION OF OTHER ASSISTANCE
 [<-Struck out]
 [Struck out->]   `SEC. 4711. No Federal, State, or local agency may, in
 any year, take a Presidential Merit School award into account in determining
 whether to award any other assistance from Federal, State, or local resources,
 or in determining the amount of such assistance, to either the Presidential
 Merit School itself or the local educational agency, if any, that operates
 the school.'. [<-Struck out]
 [Struck out->] Part B--Magnet Schools of Excellence [<-Struck out]
 [Struck out->] MAGNET SCHOOLS OF EXCELLENCE [<-Struck out]
 [Struck out->]   SEC. 111. Title IV of the Elementary and Secondary Education
 Act of 1965 is further amended by adding at the end thereof a new part H
 to read as follows: [<-Struck out]
 [Struck out->] `Part H--Magnet Schools of Excellence [<-Struck out]
 [Struck out->] `SHORT TITLE [<-Struck out]
 [Struck out->]   `SEC. 4801. This part may be cited as the `Magnet Schools
 of Excellence Act of 1989'. [<-Struck out]
 [Struck out->] `FINDINGS [<-Struck out]
 [Struck out->]   `SEC. 4802. The Congress finds that-- [<-Struck out]
 [Struck out->]   `(1) no single method of education, or single way of
 organizing schools and school systems, is best for every community or every
 group of students; [<-Struck out]
 [Struck out->]   `(2) magnet schools have increased competition and choice
 and helped to improve the quality of schools and the education of children
 in the school districts in which they have been established; [<-Struck out]
 [Struck out->]   `(3) magnet schools that focus on mathematics and science
 train future leaders in disciplines that are of critical importance to the
 Nation's economic competitiveness; and [<-Struck out]
 [Struck out->]   `(4) Federal funds should be made available for the
 design and implementation of magnet schools, not only to further school
 desegregation but also to expand educational choices for students and parents
 and the educational benefits of such special academic and vocational school
 programs. [<-Struck out]
 [Struck out->] `PURPOSE [<-Struck out]
 [Struck out->]   `SEC. 4803. (a) It is the purpose of this part to support the
 establishment, expansion, or enhancement of Magnet Schools of Excellence in
 order to promote open enrollment through parental choice and to strengthen
 the knowledge of elementary and secondary school students in academic and
 vocational subjects. [<-Struck out]
 [Struck out->]   `(b) As used in this part, the term `Magnet School
 of Excellence' means a public elementary or secondary school that--
 [<-Struck out]
 [Struck out->]   `(1) offers the highest quality instruction in an academic or
 vocational discipline or creates a unique and effective learning environment;
 [<-Struck out]
 [Struck out->]   `(2) is open to students from beyond the immediate school
 attendance area; and [<-Struck out]
 [Struck out->]   `(3) is capable of attracting students from a variety of
 backgrounds. [<-Struck out]
 [Struck out->] `AUTHORIZATION OF APPROPRIATIONS [<-Struck out]
 [Struck out->]   `SEC. 4804. For the purpose of carrying out this part,
 there are authorized to be appropriated $100,000,000 for fiscal year 1990
 and each of the three succeeding fiscal years. [<-Struck out]
 [Struck out->] `GRANT APPLICATIONS [<-Struck out]
 [Struck out->]   `SEC. 4805. (a)(1) Any local educational agency, intermediate
 educational agency, or consortia of such agencies desiring to receive a grant
 under this part shall submit an application at such time, in such manner,
 and containing such information, as the Secretary may require. [<-Struck out]
 [Struck out->]   `(2) An applicant may be, but is not required to be,
 adopting or implementing a desegregation plan. [<-Struck out]
 [Struck out->]   `(b) Each application shall contain-- [<-Struck out]
 [Struck out->]   `(1) a description of-- [<-Struck out]
 [Struck out->]   `(A) the objectives of the proposed project and how those
 objectives will achieve the purpose of this part, as set out in section 4803;
 and [<-Struck out]
 [Struck out->]   `(B) how the funds made available to the applicant will
 be used to provide an educational program of the highest quality that will
 encourage greater parental decisionmaking and involvement; and [<-Struck out]
 [Struck out->]   `(2) such assurances as the Secretary may reasonably
 require. [<-Struck out]
 [Struck out->]   `(c) The Secretary shall encourage applications for proposed
 projects that-- [<-Struck out]
 [Struck out->]   `(1) recognize the potential of children who are
 educationally disadvantaged or who come from low-income families; and
 [<-Struck out]
 [Struck out->]   `(2) establish, expand, or enhance magnet schools that
 focus on a particular educational approach or on a particular subject area,
 such as mathematics and science. [<-Struck out]
 [Struck out->]   `(d) Each application submitted pursuant to this section
 shall demonstrate to the satisfaction of the Secretary that any proposed
 project assisted with funds under this part will not result in segregation
 based upon race, religion, color, national origin, sex, or handicap,
 or impede the progress of desegregation within the applicant's school
 system. [<-Struck out]
 [Struck out->] `SELECTION OF APPLICATIONS [<-Struck out]
 [Struck out->]   `SEC. 4806. In awarding grants under this part, the Secretary
 shall consider the quality of the proposed project, the likelihood of the
 project's successful implementation, and the likelihood of its strengthening
 the educational program of the applicant. [<-Struck out]
 [Struck out->] `LIMITATIONS [<-Struck out]
 [Struck out->]   `SEC. 4807. (a) No Magnet School of Excellence may be
 supported with funds under this part for more than two years. [<-Struck out]
 [Struck out->]   `(b) No applicant may receive a grant for more than one
 year under this part, unless it demonstrates to the Secretary that the
 Magnet School of Excellence for which assistance was provided in the first
 year is making satisfactory progress in meeting the objectives specified
 in its approved application. [<-Struck out]
 [Struck out->]   `(c) No Federal, State, or local agency may, in any year,
 take a Magnet School of Excellence award into account in determining whether
 to award an other assistance from Federal, State, or local resources, or
 in determining the amount of such assistance, to either a Magnet School
 of Excellence itself or to the local educational agency or intermediate
 educational agency that operates the school.'. [<-Struck out]
 [Struck out->] Part C--Alternative Certification for Teachers and Principals
 [<-Struck out]
 [Struck out->] ALTERNATIVE CERTIFICATION FOR TEACHERS AND PRINCIPALS PROGRAM
 [<-Struck out]
 [Struck out->]   SEC. 121. Title IV of the Elementary and Secondary Education
 Act of 1965 is further amended by adding at the end thereof a new part I
 to read as follows: [<-Struck out]
 [Struck out->] `Part I--Alternative Certification for Teachers and Principals
 [<-Struck out]
 [Struck out->] `SHORT TITLE [<-Struck out]
 [Struck out->]   `SEC. 4901. This part may be cited as the `Alternative
 Certification of Teachers and Principals Assistance Act of 1989'. [<-Struck
 out]
 [Struck out->] `FINDINGS [<-Struck out]
 [Struck out->]   `SEC. 4902. The Congress finds that-- [<-Struck out]
 [Struck out->]   `(1) effective elementary and secondary schools require
 competent teachers and strong leadership; [<-Struck out]
 [Struck out->]   `(2) school systems would benefit greatly by recruitment
 pools of well-qualified individuals, such as scientists and engineers,
 from which to select teachers and principals; [<-Struck out]
 [Struck out->]   `(3) talented professionals who have demonstrated a high
 level of subject area competence or management and leadership qualities
 outside the education profession wish to pursue second careers in education,
 but often do not meet traditional certification requirements; and [<-Struck
 out]
 [Struck out->]   `(4) alternative certification requirements that do not
 exclude such individuals from teaching or school administration solely
 because they do not meet current certification requirements would allow
 school systems to take advantage of these professionals and improve the
 supply of well-qualified teachers and principals. [<-Struck out]
 [Struck out->] `PURPOSE [<-Struck out]
 [Struck out->]   `SEC. 4903. (a) It is the purpose of this part to improve
 the supply of well-qualified elementary and secondary school teachers and
 principals by encouraging and assisting States to develop and implement
 alternative teacher and principal certification requirements. [<-Struck out]
 [Struck out->]   `(b) As used in this part, the term-- [<-Struck out]
 [Struck out->]   `(1) `alternative teacher and principal certification
 requirements' means State or local requirements that permit entry into
 elementary and secondary teacher and principal positions for individuals
 who have demonstrated a high level of appropriate subject area competence,
 or management or leadership qualities, in careers in or out of the education
 field, but who would not otherwise meet existing requirements for teaching
 or supervisory positions. Alternative teacher and principal certification
 requirements may recognize that-- [<-Struck out]
 [Struck out->]   `(A) for teachers, a high level of demonstrated competence
 in an appropriate subject area may be substituted for traditional teacher
 certification requirements (such as teacher training course work); and
 [<-Struck out]
 [Struck out->]   `(B) for principals, a high level of demonstrated competence
 in administration and management may be substituted for traditional principal
 certification requirements (such as teaching experience or supervisory
 experience in the field of education); and [<-Struck out]
 [Struck out->]   `(2) `State' means any of the States of the Union, the
 District of Columbia, and the Commonwealth of Puerto Rico. [<-Struck out]
 [Struck out->] `AUTHORIZATION OF APPROPRIATIONS [<-Struck out]
 [Struck out->]   `SEC. 4904. For the purpose of carrying out this part,
 there are authorized to be appropriated $25,000,000 for fiscal year
 1990. [<-Struck out]
 [Struck out->] `ALLOTMENTS [<-Struck out]
 [Struck out->]   `SEC. 4905. (a)(1) From the amount appropriated to carry
 out this part, the Secretary shall allot to each State the lesser of either
 the amount the State applies for under section 4906 or an amount that is
 proportional to the State's share of the total population of children ages
 five through seventeen in all the States (based on the most recent data
 available that is satisfactory to the Secretary). [<-Struck out]
 [Struck out->]   `(2) If a State does not apply for its allotment,
 or the full amount of its allotment, under the preceding paragraph, the
 Secretary may reallocate the excess funds to one or more other States that
 demonstrate, to the satisfaction of the Secretary, a current need for the
 funds. [<-Struck out]
 [Struck out->]   `(b) Notwithstanding section 412(b) of the General Education
 Provisions Act, funds awarded under this part shall remain available for
 obligation by a recipient for a period of two calendar years from the date
 of the grant. [<-Struck out]
 [Struck out->] `STATE APPLICATIONS [<-Struck out]
 [Struck out->]   `SEC. 4906. (a) Any State desiring to receive a
 grant under this part shall submit an application at such time, in such
 manner, and containing such information, as the Secretary may reasonably
 require. [<-Struck out]
 [Struck out->]   `(b) Each State application shall-- [<-Struck out]
 [Struck out->]   `(1) describe the programs, projects, and activities to
 be undertaken; and [<-Struck out]
 [Struck out->]   `(2) contain such assurances as the Secretary deems
 necessary, including assurances that-- [<-Struck out]
 [Struck out->]   `(A) funds awarded to the State will be used to supplement,
 and not to supplant, any State or local funds available for the development
 and implementation of alternative teacher and principal certification
 requirements; [<-Struck out]
 [Struck out->]   `(B) the State has, in developing its application, consulted
 with the State or local agency that certifies teachers and principals,
 as well as representatives of elementary and secondary school teachers and
 principals, local school systems, parents, and other interested organizations
 and individuals; and [<-Struck out]
 [Struck out->]   `(C) the State will submit to the Secretary, at such time as
 the Secretary may specify, a final report describing the activities carried
 out with funds awarded under this part and the results achieved. [<-Struck
 out]
 [Struck out->]   `(c) Sections 435 and 436 of the General Education Provisions
 Act, except to the extent that such sections relate to fiscal control and
 fund accounting procedures, shall not apply to this part. [<-Struck out]
 [Struck out->] `USE OF FUNDS [<-Struck out]
 [Struck out->]   `SEC. 4907. (a)(1) A State shall use funds awarded under
 this part to support programs, projects, or activities that develop and
 implement new, or expand and improve existing, alternative teacher and
 principal certification requirements. [<-Struck out]
 [Struck out->]   `(2) A State may carry out such programs, projects,
 or activities directly, through contracts, or through subgrants to local
 educational agencies, intermediate educational agencies, institutions of
 higher education, or consortia of such agencies. [<-Struck out]
 [Struck out->]   `(b) Programs, projects, and activities supported under
 this part may include, but are not limited to, the-- [<-Struck out]
 [Struck out->]   `(1) design, development, implementation, testing, and
 evaluation of alternative teacher and principal certification requirements;
 [<-Struck out]
 [Struck out->]   `(2) establishment of administrative structures necessary
 to the development and implementation of alternative teacher and principal
 certification requirements; [<-Struck out]
 [Struck out->]   `(3) training of staff, including the development of
 appropriate support programs, such as mentor programs, for teachers and
 principals entering the school system through the alternative teacher and
 principal certification program; [<-Struck out]
 [Struck out->]   `(4) development of recruitment strategies; and [<-Struck
 out]
 [Struck out->]   `(5) development of reciprocity agreements between or
 among States for the certification of teachers and principals. [<-Struck out]
 [Struck out->] `EXPIRATION DATE [<-Struck out]
 [Struck out->]   `SEC. 4908. Effective October 1, 1990, the Alternative
 Certification of Teachers and Principals Assistance Act of 1989 is
 repealed.'. [<-Struck out]
 [Struck out->] Part D--Presidential Awards for Excellence in Education
 [<-Struck out]
 [Struck out->] PRESIDENTIAL AWARDS FOR EXCELLENCE IN EDUCATION PROGRAM
 [<-Struck out]
 [Struck out->]   SEC. 131. (a) The heading for title II of the Elementary
 and Secondary Education Act of 1965 is amended to read as follows: `CRITICAL
 SKILLS IMPROVEMENT AND PRESIDENTIAL TEACHER AWARDS'. [<-Struck out]
 [Struck out->]   (b) Title II of the Elementary and Secondary Education Act of
 1965 is further amended by adding at the end thereof the following new part:
 [<-Struck out]
 [Struck out->] `Part D--Presidential Awards for Excellence in Education
 Program [<-Struck out]
 [Struck out->] `FINDINGS AND PURPOSE [<-Struck out]
 [Struck out->]   `SEC. 2301. (a) FINDINGS- The Congress finds that--
 [<-Struck out]
 [Struck out->]   `(1) the success of America's elementary and secondary
 schools depends most heavily upon the Nation's teachers; [<-Struck out]
 [Struck out->]   `(2) when teachers are highly motivated and committed to
 excellence, they succeed not only in imparting subject matter knowledge,
 but also in instilling in their students an appreciation of the value and
 importance of education; [<-Struck out]
 [Struck out->]   `(3) elementary and secondary school systems should have
 in place standards of teacher excellence and fair and effective procedures
 for measuring teacher success; and [<-Struck out]
 [Struck out->]   `(4) in return for their efforts, excellent elementary
 and secondary school teachers deserve public recognition, respect, and
 appropriate financial awards. [<-Struck out]
 [Struck out->]   `(b) PURPOSE- It is the purpose of this subpart
 to reward teachers in every State who meet the highest standards of
 excellence. [<-Struck out]
 [Struck out->] `AUTHORIZATION OF APPROPRIATIONS; ALLOCATIONS TO STATES
 [<-Struck out]
 [Struck out->]   `SEC. 2302. (a) AUTHORIZATION OF APPROPRIATIONS- There
 are authorized to be appropriated $7,600,000 for fiscal year 1990 and each
 of the three succeeding fiscal years to carry out the provisions of this
 part. [<-Struck out]
 [Struck out->]   `(b) ALLOCATION FORMULA- (1) From the funds appropriated
 for any fiscal year for this part under subsection (a), the Secretary may
 first reserve an amount not to exceed $200,000 for expenses related to an
 annual award ceremony and the issuance of award certificates. [<-Struck out]
 [Struck out->]   `(2) From the remaining funds, the Secretary shall allocate
 to each State an amount that bears the same relation to the total amount
 available under this paragraph as the number of full-time equivalent public
 elementary and secondary school teachers in such State bears to the total
 number of such teachers in all the States, except that no State shall
 be allocated an amount under this paragraph that is less than the amount
 necessary to fund one Presidential Award for Excellence in Education plus
 the State's administrative expenses as reserved in accordance with subsection
 (c). [<-Struck out]
 [Struck out->]   `(3) In determining a State's allocation under paragraph
 (2), the Secretary shall use the most recent satisfactory data available
 to the Department. [<-Struck out]
 [Struck out->]   `(c) ADMINISTRATIVE EXPENSES- Each State may reserve up to
 5 per centum of its allocation under subsection (b)(2) for administrative
 expenses, including the cost of convening the panel described in section
 2304(c). [<-Struck out]
 [Struck out->]   `(d) USE OF EXCESS FUNDS- If a State has excess funds
 remaining after it has made the maximum number of awards possible in
 accordance with section 2305(a) and reserved a portion of its allocation
 for administrative expenses in accordance with subsection (c), the State
 may use the remainder of its allocation for appropriate State ceremonies
 or other forms of recognition for teachers in the State who do not receive
 a Presidential Award for Excellence in Education. [<-Struck out]
 [Struck out->]   `(e) STATE DEFINED- For the purposes of this part, the
 term `State' shall include the fifty States, the District of Columbia,
 the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa,
 the Northern Mariana Islands, and Palau (until the effective date of the
 Compact of Free Association with the Government of Palau). [<-Struck out]
 [Struck out->]   `(f) INSULAR AREAS- The provisions of Public Law 93-134,
 permitting the consolidation of grants to the Insular Areas, shall not
 apply to funds allocated under this part. [<-Struck out]
 [Struck out->] `STATE APPLICATIONS [<-Struck out]
 [Struck out->]   `SEC. 2303. (a) SUBMISSION OF STATE APPLICATIONS-
 The Secretary is authorized to make grants to States in accordance with
 the provisions of this subpart. In order to receive a grant under this
 subpart, the Governor of each State shall submit a one-time application
 to the Secretary. Such application shall be filed at such time and in such
 manner, and shall contain such information, as the Secretary may reasonably
 require. [<-Struck out]
 [Struck out->]   `(b) DESCRIPTION OF STATE CRITERIA AND PROCEDURES-
 The application shall contain a description of the State's criteria and
 procedures for selecting recipients of Presidential Awards for Excellence
 in Education. The State's criteria and procedures shall be subject to the
 approval of the Secretary. [<-Struck out]
 [Struck out->]   `(c) ASSURANCES- The application shall contain assurances
 that-- [<-Struck out]
 [Struck out->]   `(1) Presidential Awards for Excellence in Education shall
 be made in accordance with the provisions of this subpart; [<-Struck out]
 [Struck out->]   `(2) the State shall provide such fiscal control and fund
 accounting procedures as the Secretary may require; and [<-Struck out]
 [Struck out->]   `(3) the State shall apply the selection criteria uniformly
 to nominations for recipients of Presidential Awards for Excellence in
 Education that are received from public and private schools, teachers,
 associations of teachers, parents, associations of parents and teachers,
 businesses, business groups, or student groups, as well as those received
 from local educational agencies. [<-Struck out]
 [Struck out->] `SELECTION OF AWARD RECIPIENTS [<-Struck out]
 [Struck out->]   `SEC. 2304. (a) ELIGIBLE RECIPIENTS- Any full-time public
 or private elementary or secondary school teacher of academic or vocational
 subjects shall be eligible to receive an award under ths subpart, except
 that teachers of religion (other than religion as an academic discipline)
 shall not be eligible. [<-Struck out]
 [Struck out->]   `(b) NOMINATIONS- (1) Local educational agencies, public and
 private schools, teachers, parents, associations of teachers, associations
 of parents and teachers, businesses, business groups and student groups
 may nominate teachers for awards under this subpart. [<-Struck out]
 [Struck out->]   `(2) The State educational agency shall notify local
 educational agencies, public and private schools, associations of teachers,
 associations of parents and teachers, business groups, and the general public
 of the deadlines and procedures for making nominations, and inform them of
 the selection criteria that will be used in selecting award recipients in
 a given year. [<-Struck out]
 [Struck out->]   `(c) SELECTION BY STATE PANEL- Selection of award recipients
 in each State shall be made from among the teachers nominated in accordance
 with subsection (b). Award recipients shall be selected by a panel that is
 chosen by the Governor in consultation with the chief State officer and is
 composed of members representing parents, school administrators, teachers,
 school board members, and the business community. [<-Struck out]
 [Struck out->]   `(d) SELECTION CRITERIA- The State panel shall select
 award recipients in accordance with the criteria approved by the Secretary
 in the State's application. The selection criteria may take into account,
 but are not limited to, a teacher's success in-- [<-Struck out]
 [Struck out->]   `(1) educating `at-risk' students, such as educationally
 or economically disadvantaged, handicapped, limited English proficient, or
 homeless children, as well as the children of migrant agricultural workers,
 to their fullest potential; [<-Struck out]
 [Struck out->]   `(2) educating gifted and talented students to their
 fullest potential; [<-Struck out]
 [Struck out->]   `(3) encouraging students to enroll, and succeed, in advanced
 classes in subjects such as mathematics, science, and foreign languages;
 [<-Struck out]
 [Struck out->]   `(4) teaching in schools educating large numbers of
 `at-risk' students, including schools in low-income inner-city or rural areas;
 [<-Struck out]
 [Struck out->]   `(5) introducing a new curriculum area into a school or
 strengthening an established curriculum; [<-Struck out]
 [Struck out->]   `(6) acting as a `master teacher' by helping new teachers
 make the transition into a teaching career; or [<-Struck out]
 [Struck out->]   `(7) encouraging potential dropouts to remain in school
 or encouraging individuals who have dropped out to reenter and complete
 their schooling. [<-Struck out]
 [Struck out->] `AMOUNT AND USE OF AWARDS [<-Struck out]
 [Struck out->]   `SEC. 2305. (a) AMOUNT OF AWARDS- The amount of a
 Presidential Award for Excellence in Education shall be $5,000. [<-Struck out]
 [Struck out->]   `(b) USE OF AWARDS- An award to an individual recipient
 under this subpart shall be available for the recipient's use for any
 purpose.'. [<-Struck out]
 [Struck out->] Part E--Effective Date [<-Struck out]
 [Struck out->] EFFECTIVE DATE [<-Struck out]
 [Struck out->]   SEC. 141. The amendments made by this title shall be
 effective October 1, 1989. [<-Struck out]
 [Struck out->] TITLE II--NATIONAL SCIENCE SCHOLARS [<-Struck out]
 [Struck out->] NATIONAL SCIENCE SCHOLARS PROGRAM [<-Struck out]
 [Struck out->]   SEC. 201. Part A of title IV of the Higher Education Act
 of 1965 (20 US.C. 1001 et seq., hereinafter referred to in this title as
 `the Act'), is amended-- [<-Struck out]
 [Struck out->]   (1) by redesignating subparts 7 and 8 as subparts 8 and 9,
 respectively; and [<-Struck out]
 [Struck out->]   (2) by inserting immediately after subpart 6 the following
 new subpart: [<-Struck out]
 [Struck out->] `Subpart 7--NATIONAL SCIENCE SCHOLARS PROGRAM [<-Struck out]
 [Struck out->] `PURPOSE; APPROPRIATIONS AUTHORIZED [<-Struck out]
 [Struck out->]   `SEC. 419L. (a) PURPOSE- It is the purpose of this subpart--
 [<-Struck out]
 [Struck out->]   `(1) to establish a National Science Scholars Program
 to recognize student excellence and achievement in the physical, life,
 and computer sciences, mathematics, and engineering; [<-Struck out]
 [Struck out->]   `(2) to assist students who have demonstrated outstanding
 academic achievement in continuing their education in these fields of study
 at sustained high levels of performance; and [<-Struck out]
 [Struck out->]   `(3) to contribute to strengthening the leadership of the
 United States in these fields. [<-Struck out]
 [Struck out->]   `(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized
 to be appropriated $5,000,000 for fiscal year 1990, $10,000,000 for fiscal
 year 1991, $15,000,000 for fiscal year 1992, and $20,000,000 for fiscal
 year 1993. [<-Struck out]
 [Struck out->] `SCHOLARSHIPS AUTHORIZED [<-Struck out]
 [Struck out->]   `SEC. 419M. (a) PROGRAM AUTHORITY- The Secretary is
 authorized, in accordance with the provisions of this subpart, to carry
 out a program of awarding scholarships to students who are selected by
 the President; have demonstrated excellence and achievement in the life,
 physical, or computer sciences, mathematics, or engineering; and who show
 promise of continued outstanding academic achievement in these fields of
 study. The Secretary may carry out this program through grants, contracts,
 or cooperative agreements. [<-Struck out]
 [Struck out->]   `(b)(1) PERIOD OF INITIAL AWARD- A student who satisfies
 the requirements of section 4190(a) may receive a scholarship, for a
 period of one academic year, for the first year of undergraduate study at
 an institution of higher education. [<-Struck out]
 [Struck out->]   `(2) CONTINUATION AWARDS- A student who satisfies the
 requirements of section 4190(b) may receive additional scholarships, each
 awarded for a period of one academic year, in order to complete his or her
 undergraduate course of study. A student may receive additional scholarships
 for up to three academic years of undergraduate study, except that, in
 the case of a student who is enrolled in an undergraduate course of study
 that requires attendance for five academic years, the student may receive
 additional scholarships for up to four academic years of undergraduate
 study. [<-Struck out]
 [Struck out->]   `(c) USE AT ANY INSTITUTION PERMITTED- A student awarded a
 scholarship under this subpart may attend any institution of higher education,
 as defined in section 1201(a) of the Act. [<-Struck out]
 [Struck out->]   `(d) NATIONAL SCIENCE SCHOLARS- Students awarded scholarships
 under this subpart shall be known as `National Science Scholars'. [<-Struck
 out]
 [Struck out->] `SELECTION OF SCHOLARS [<-Struck out]
 [Struck out->]   `SEC. 419N. (a) SELECTION CRITERIA- The Secretary shall
 appoint a panel of experts, composed of scientists, mathematicians, engineers,
 and representatives of industries that utilize advanced technologies,
 to recommend to the Secretary specific academic achievement criteria for
 use in the nomination of scholars. The Secretary shall review the panel's
 recommendations and publish appropriate academic achievement criteria in
 the Federal Register. [<-Struck out]
 [Struck out->]   `(b) SELECTION PROCESS- (1) Using the criteria described
 in subsection (a), each State shall nominate at least four, but not more
 than ten, students from each congressional district within that State. The
 President shall select students to receive scholarships under this part in
 accordance with paragraph (2). [<-Struck out]
 [Struck out->]   `(2)(A) After considering the students nominated under
 paragraph (1), the President shall select at least thirty students to
 receive scholarships. The President may consult a board, consisting of
 the President's Science Advisor, the Secretary, and the Director of the
 National Science Foundation, regarding the selection of students under this
 subparagraph. [<-Struck out]
 [Struck out->]   `(B) After considering the students nominated under
 paragraph (1), the President shall select an additional five hundred and
 forty students to receive scholarships. Each Senator and Member of the
 House of Representatives (or in the case of the District of Columbia,
 Puerto Rico, the Virgin Islands, Guam, or American Samoa, the Delegate or
 Resident Commissioner) is entitled to make recommendations to the President
 regarding the selection of students, nominated under paragraph (1), for
 one scholarship. [<-Struck out]
 [Struck out->]   `(c) USE OF EXCESS FUNDS- If the funds available under
 this subpart for any fiscal year exceed the amounts required for initial and
 continuing awards under section 419M(b), the President may, after considering
 the students nominated under subsection (b)(1), select additional students
 to receive scholarships under section 419M(b)(1). [<-Struck out]
 [Struck out->]   `(d) DISBURSAL OF SCHOLARSHIP PROCEEDS- Scholarship
 proceeds shall be disbursed on behalf of students who receive scholarships
 under this subpart to the institutions of higher education at which the
 students are enrolled. No scholarship proceeds shall be disbursed on behalf
 of a student until the student is enrolled at an institution of higher
 education. [<-Struck out]
 [Struck out->] `ELIGIBILITY OF SCHOLARS [<-Struck out]
 [Struck out->]   `SEC. 4190. (a) REQUIREMENTS FOR INITIAL AWARD- To be
 eligible to receive a scholarship under section 419M(b)(1), a student shall--
 [<-Struck out]
 [Struck out->]   `(1) be scheduled to graduate from a public or private
 secondary school, or to obtain the equivalent of a certificate of graduation
 (as recognized by the State in which the student resides), during the school
 year in which the award is made, or be scheduled to so graduate or obtain such
 equivalent within three months after the date of the award; [<-Struck out]
 [Struck out->]   `(2) have been accepted for enrollment at an institution
 of higher education as a full-time undergraduate student (as determined by
 the institution); and [<-Struck out]
 [Struck out->]   `(3) have declared a major in one of the life, computer,
 or physical sciences, mathematics, or engineering, or provided a written
 statement to the State of his or her intent to major in one of these fields
 of study, if it is the policy of the institution at which the student has
 been accepted for enrollment that students not declare a major until a
 later point in their course of study. [<-Struck out]
 [Struck out->]   `(b) REQUIREMENTS FOR CONTINUATION AWARDS- A student who has
 received a scholarship under section 419M(b)(1) may receive a scholarship
 for a subsequent academic year of undergraduate education under section
 419M(b)(2) if the student-- [<-Struck out]
 [Struck out->]   `(1) maintains a superior level of academic achievement, as
 determined in accordance with the regulations of the Secretary; [<-Struck out]
 [Struck out->]   `(2) continues to major in, or provides a statement to
 the State as described in subsection (a)(2) of his or her continuing intent
 to major in, one of the life, computer, or physical sciences, mathematics,
 or engineering; and [<-Struck out]
 [Struck out->]   `(3) continues to be enrolled at an institution of higher
 education as a full-time undergraduate student (as determined by the
 institution). [<-Struck out]
 [Struck out->]   `(c) WAIVER OF FULL-TIME ATTENDANCE REQUIREMENT- The
 Secretary may waive the full-time attendance requirements in this section
 in unusual circumstances. [<-Struck out]
 [Struck out->]   `(d) FAILURE TO MEET ELIGIBILITY REQUIREMENTS- In the
 event that the student fails to meet the requirements of this section,
 the student's eligibility to receive further scholarships (or scholarship
 proceeds) under this subpart shall be determined in accordance with the
 regulations of the Secretary. [<-Struck out]
 [Struck out->] `SCHOLARSHIP AMOUNT [<-Struck out]
 [Struck out->]   `SEC. 419P. (a) AMOUNT OF AWARD- Except as provided in
 subsections (b) and (c), the amount of a scholarship awarded under this
 subpart for any academic year shall be $10,000. [<-Struck out]
 [Struck out->]   `(b) RELATION TO COST OF ATTENDANCE AND OTHER GRANTS AND
 SCHOLARSHIPS- Notwithstanding subsection (a), the amount of a scholarship
 awarded under this subpart shall be reduced by the amount that the
 scholarship-- [<-Struck out]
 [Struck out->]   `(1) exceeds the student's cost of attendance, as defined
 in section 472 of the Act; or [<-Struck out]
 [Struck out->]   `(2) when combined with other Federal or non-Federal
 grant or scholarship assistance the student receives in any academic year,
 exceeds the student's cost of attendance, as defined in section 472 of the
 Act. [<-Struck out]
 [Struck out->]   `(c) ADJUSTMENTS FOR INSUFFICIENT APPROPRIATIONS- In the
 event that funds available in a fiscal year are insufficient to fully fund
 all awards under this subpart, the amount paid to each student shall be
 reduced proportionately. [<-Struck out]
 [Struck out->] `SUMMER EMPLOYMENT OPPORTUNITIES FOR SCHOLARS [<-Struck out]
 [Struck out->]   `SEC. 419Q. (a) PRIORITY FOR SUMMER EMPLOYMENT- To the
 extent that they are otherwise qualified, students receiving scholarships
 under this part shall be given priority consideration for federally financed
 summer employment in federally funded research and development centers,
 that, to the maximum extent practicable, complements and reinforces the
 educational program of these students. [<-Struck out]
 [Struck out->]   `(b) FEDERAL AGENCY COOPERATION- Federal agencies shall
 cooperate fully with the Secretary and participate actively in providing
 appropriate summer employment opportunities for such students.'. [<-Struck
 out]
 [Struck out->] CONFORMING AMENDMENTS [<-Struck out]
 [Struck out->]   SEC. 202. (a) Section 401(b) of the Act is amended by
 striking out `subparts 1 through 8,' and inserting in lieu thereof `subparts
 1 through 9,'. [<-Struck out]
 [Struck out->]   (b) Section 481(a)(1) of the Act is amended by striking
 out `except subpart 6' and inserting in lieu thereof `except subparts 6
 and 7'. [<-Struck out]
 [Struck out->]   (c) Section 483(f) of the Act is amended by striking out
 `subparts 4, 5, and 7' each place it appears and inserting in lieu thereof
 `subparts 4, 5, and 8'. [<-Struck out]
 [Struck out->] EFFECTIVE DATE [<-Struck out]
 [Struck out->]   SEC. 203. The amendments made by this title shall be
 effective on October 1, 1989 for academic year 1990-1991 and succeeding
 academic years. [<-Struck out]
 [Struck out->] TITLE III--OTHER PROGRAMS [<-Struck out]
 [Struck out->] DRUG-FREE SCHOOLS URBAN EMERGENCY GRANTS [<-Struck out]
 [Struck out->]   SEC. 301. The Drug-Free Schools and Communities Act of 1986
 (20 U.S.C. 3171 et seq.) is amended-- [<-Struck out]
 [Struck out->]   (1) in section 5111(a)-- [<-Struck out]
 [Struck out->]   (A) in paragraph (1), by striking out `(other than C)'
 and inserting in lieu thereof `(other than part C and section 5132(d))';
 and [<-Struck out]
 [Struck out->]   (B) at the end thereof, by adding a new paragraph to read
 as follows: [<-Struck out]
 [Struck out->]   `(3) For the purpose of carrying out section 5132(d),
 there are authorized to be appropriated $25,000,000 for each of the fiscal
 years 1990, 1991, 1992, and 1993.'; and [<-Struck out]
 [Struck out->]   (2) in section 5132, by adding at the end thereof the
 following new subsection: [<-Struck out]
 [Struck out->]   `(d) URBAN EMERGENCY GRANTS- The Secretary shall use funds
 appropriated under section 5111(a)(3) to award a small number of one-time
 grants to local educational agencies that are located in urban areas that
 have the most severe drug problems, to assist those agencies in developing and
 implementing comprehensive approaches to eliminating the serious drug problems
 that affect schools and students within their boundaries.'. [<-Struck out]
 [Struck out->] HISTORICALLY BLACK COLLEGES AND UNIVERSITIES [<-Struck out]
 [Struck out->]   SEC. 302. Section 360(a)(3) of title III of the Higher
 Education Act of 1965 is amended-- [<-Struck out]
 [Struck out->]   (1) by inserting `(A)' immediately after `(3)'; and
 [<-Struck out]
 [Struck out->]   (2) by adding at the end thereof a new subparagraph to
 read as follows: [<-Struck out]
 [Struck out->]   `(B)(i) There are authorized to be appropriated $10,000,000
 for fiscal year 1990, $20,000,000 for fiscal year 1991, $20,000,000 for
 fiscal year 1992, and $10,000,000 for fiscal year 1993 for awards under
 section 332 of the Act to historically Black colleges and universities that
 qualify as part B institutions. [<-Struck out]
 [Struck out->]   `(ii) A part B institution that receives an award from
 funds appropriated for any fiscal year under clause (i) shall not be
 eligible to receive an award from funds appropriated for that fiscal year
 under subparagraph (A), but a part B institution that does not receive an
 award from funds appropriated for any fiscal year under clause (i) shall
 be eligible to receive an award from funds appropriated for that fiscal
 year under subparagraph (A).'. [<-Struck out]
 [Struck out->] EFFECTIVE DATE [<-Struck out]
 [Struck out->]   SEC. 303. The amendments made by this title shall be
 effective October 1, 1989. [<-Struck out]
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Educational Excellence Act of 1989'.
SEC. 2. TABLE OF CONTENTS.
  This Act is organized as follows:
TITLE I--IMPROVING ELEMENTARY AND SECONDARY EDUCATION
Part A--Presidential Merit Schools
Part B--Schools of Excellence
Part C--Alternative Certification for Teachers and Principals
Part D--Administrative Provision
Part E--Fund for the Improvement and Reform of Schools and Teaching
TITLE II--NATIONAL SCIENCE SCHOLARS
TITLE III--DRUG-FREE SCHOOLS URBAN AND RURAL EMERGENCY GRANTS
TITLE IV--HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
TITLE V--EXTENSION OF SCHOOL DROPOUT DEMONSTRATION PROGRAM
TITLE VI--STAFFORD STUDENT LOAN DEFAULT PREVENTION AND MANAGEMENT PROVISIONS
TITLE VII--NEEDS ANALYSIS AMENDMENTS
TITLE VIII--OTHER HIGHER EDUCATION AMENDMENTS
TITLE IX--WE THE PEOPLE . . . THE CITIZEN AND THE CONSTITUTION
TITLE X--NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS
TITLE XI--MIDDLE SCHOOL TEACHER TRAINING DEMONSTRATIONS
TITLE XII--PRESIDENT'S COUNCIL ON ACADEMIC EXCELLENCE
TITLE XIII--EFFECTIVE DATE
TITLE I--IMPROVING ELEMENTARY AND SECONDARY EDUCATION
Part A--Presidential Merit Schools
SEC. 101. PRESIDENTIAL MERIT SCHOOLS.
  Title IV of the Elementary and Secondary Education Act of 1965 (20
  U.S.C. 2701 et seq.) is amended by adding at the end thereof a new part
  G to read as follows:
`Part G--Presidential Merit Schools
`SEC. 4701. SHORT TITLE.
  `This part may be cited as the `Presidential Merit Schools Act'.
`SEC. 4702. FINDINGS AND PURPOSE.
  `(a) FINDINGS- The Congress finds that--
  `(1) the basic goal of all schools is to develop the skills and abilities
  of students to their maximum potential;
  `(2) achievable standards of excellence can and should be set for all
  students and for all schools;
  `(3) financial incentives can spur schools to rise to the challenge of
  meeting these standards; and
  `(4) improvement in the quality of our educational system is vital to
  the Nation's future, and demonstrated schoolwide progress in achieving
  excellence deserves public recognition.
  `(b) PURPOSE- The purpose of this part is to recognize and reward public
  and private elementary and secondary schools that have made substantial
  progress in--
  `(1) raising student educational achievement;
  `(2) creating a safe and drug-free school environment; and
  `(3) reducing the dropout rate.
`SEC. 4703. AUTHORIZATION OF APPROPRIATIONS.
  `(a) IN GENERAL- The amount authorized to be appropriated for the purposes
  of carrying out the provisions of this part for each of the fiscal years
  1991, 1992, and 1993 is an amount equal to the lesser of--
  `(1) the excess, if any, of--
  `(A) the amount appropriated to carry out parts A, B, D, E, and F of
  chapter 1, of title I, of the Elementary and Secondary Education Act of
  1965 for such fiscal year, over
  `(B) $5,090,000,000, or
  `(2) the excess, if any, of--
  `(A) the amount appropriated to carry out part C of chapter 1 of title I of
  the Elementary and Secondary Education Act of 1965 for such fiscal year, over
  `(B) $200,000,000.
  `(b) LIMITATION- The amount authorized to be appropriated under subsection
  (a) shall not exceed $200,000,000 for fiscal year 1991.
`SEC. 4704. ALLOCATION OF APPROPRIATIONS.
  `(a) RESERVATION- From the amount appropriated under section 4703 for any
  fiscal year, the Secretary may reserve up to one quarter of 1 per centum
  for grants to Guam, American Samoa, the Virgin Islands, the Commonwealth of
  the Northern Mariana Islands, and Palau (until the effective date of the
  Compact of Free Association with the Government of Palau) for activities
  under this part.
  `(b) ALLOCATION AMONG STATES- (1) The amount remaining after any reservation
  of funds under subsection (a) shall be allocated to States as follows:
  `(A) from one half of such amount, each State shall be allocated an amount
  that bears the same ratio to such amount as the number of children aged
  five to seventeen, inclusive, in the State bears to the number of such
  children in all such States, according to the most recent available data
  that are satisfactory to the Secretary; and
  `(B) the other one half of such amount shall be allocated among such States
  on the same basis as funds are allocated among such States under section
  1005 of this Act for the same fiscal year.
  `(2) For purposes of this subsection, the term `State' means each of the
  fifty States, the District of Columbia, and the Commonwealth of Puerto Rico.
`SEC. 4705. STATE APPLICATIONS.
  `(a) THREE-YEAR APPLICATION- Each State that wishes to receive a grant under
  this part shall submit to the Secretary, through its State educational
  agency, an application for a three-year period, at such time and in such
  manner as the Secretary may prescribe.
  `(b) APPLICATION CONTENTS- Each State application shall contain--
  `(1) the criteria the State educational agency will use to select
  Presidential Merit Schools under section 4708;
  `(2) the criteria it will use to determine the amount of awards;
  `(3) an assurance that it will carry out this part in accordance with the
  requirements of this part and other applicable legal requirements; and
  `(4) other information the Secretary may require.
  `(c) GEPA PROVISIONS INAPPLICABLE- Sections 435 and 436 of the General
  Education Provisions Act, except to the extent that such sections relate to
  fiscal control and fund accounting procedures, shall not apply to this part.
`SEC. 4706. STATE USE OF FUNDS.
  `(a) ADMINISTRATION- Each State educational agency may use up to 5 per
  centum of its grant for the administrative costs of carrying out this part.
  `(b) PRESIDENTIAL MERIT SCHOOL AWARDS- Each State educational agency shall
  use at least 95 per centum of its grant for Presidential Merit School
  Awards made in accordance with section 4708.
  `(c) INSULAR AREAS- The provisions of Public Law 93-134, permitting the
  consolidation of grants to the Insular Areas, shall not apply to funds
  received by such areas under this part.
SEC. 4707. STATE ACTIVITIES AND RESPONSIBILITIES.
  `(a) STATE REVIEW PANEL- (1) Each State educational agency shall establish a
  State review panel to assist in the selection of Presidential Merit Schools.
  `(2) The State review panel shall be broadly representative of the following
  interests in the State--
  `(A) elementary and secondary school teachers and administrators;
  `(B) college and university faculty and administrators;
  `(C) parents;
  `(D) State and local boards of education;
  `(E) State and local governments;
  `(F) labor;
  `(G) business; and
  `(H) the general public.
  `(b) ANNUAL REPORTS TO THE SECRETARY- (1) Within sixty days of making
  Presidential Merit School awards under this part for any fiscal year,
  each State educational agency shall submit a report to the Secretary that--
  `(A) identifies the schools chosen as Presidential Merit Schools;
  `(B) states the reasons for their selection; and
  `(C) states the amount of their awards.
  `(2) Beginning with the second year for which any State educational agency
  receives funds under this part, its annual report shall also include a brief
  description of how schools selected in the previous year used their awards.
`SEC. 4708. SELECTION OF PRESIDENTIAL MERIT SCHOOLS.
  `(a) ELIGIBLE SCHOOLS- (1) A State educational agency may designate as a
  Merit School any public or private elementary or secondary school in the
  State receiving services under chapter 1 of title I of the Elementary and
  Secondary Education Act of 1965 that has been nominated through procedures
  established by such agency.
  `(2) In selecting Presidential Merit Schools, each State educational agency
  shall apply the selection criteria uniformly.
  `(b) CRITERIA ESTABLISHED BY SECRETARY- (1) The Secretary shall establish
  minimum criteria to be used by every State educational agency in selecting
  Presidential Merit Schools.
  `(2) The criteria established by the Secretary shall address--
  `(A) progress in improving educational performance, with particular emphasis
  on mastery of reading, writing, and mathematics skills;
  `(B) the degree to which the school demonstrates progress in achieving
  and maintaining a safe environment, including reduction or elimination of
  problems related to drug and alcohol use; and
  `(C) secondary school progress in reducing the number of students who
  drop out of school or in encouraging those who have dropped out to reenter
  school and complete their schooling.
  `(c) STATE CRITERIA- (1) Based on the selection criteria established by
  the Secretary, as required by subsection (b), each State educational agency
  shall establish additional criteria that measure progress in such areas as--
  `(A) student achievement, as measured by such factors as year-to-year
  improvement in test scores, college entrance rates, and employment of
  graduates in jobs with significant potential for career development; and
  `(B) other indicators of a school's success, such as improvements in
  school leadership, the teaching and learning environment, and parental
  and community support and involvement.
  `(2) In setting criteria for Presidential Merit Schools, the State
  educational agency shall establish standards that recognize the composition
  of the student body and other relevant factors, and that give special
  consideration to schools with substantial numbers of proportions of
  children from low-income families. The State educational agency may also
  set different criteria for different grade levels.
  `(3) In applying the criteria to a school in which a program is conducted
  under part A of chapter 1 of title I of this Act, the State educational
  agency shall consider the desired outcomes identified for children in
  the application submitted under section 1012(b) of this Act by the local
  educational agency operating the school. No school that a local educational
  agency has identified under section 1021(b) of this Act shall be eligible
  for a Presidential Merit School award until such time as the school has
  demonstrated progress in complying with the provisions of the State or
  local improvement plan set forth under section 1220 or 1221 of this Act.
  `(4) In selecting Presidential Merit Schools and in setting the amount
  of their awards, the State educational agency may not consider a school's
  planned use of a Presidential Merit School award.
  `(5) Except as provided in section 4706, each State educational agency
  receiving assistance under this Act shall make the same number of awards
  to elementary schools within the State as such State educational agency
  makes to secondary schools within the State.
  `(d) AMOUNT OF AWARD- Each State educational agency shall establish
  criteria, subject to subsection (c)(4), including criteria relating to
  the size of the school and the economic circumstances of the student body,
  for determining the amount of Presidential Merit School awards.
  `(e) BYPASS- If a State educational agency is either prohibited by State
  law from providing funds made available under this part to private schools,
  or is unwilling to do so, it shall notify the Secretary of such prohibition
  or unwillingness, as well as the private schools it has designated as
  Presidential Merit Schools and the amount of their awards. The Secretary
  shall then provide those funds, from the State's allocation under this part,
  to the designated private schools, through such arrangements as the Secretary
  finds suitable. The Secretary shall also withhold from the State's allocation
  under this part the administrative costs of making such arrangements.
`SEC. 4709. PRESIDENTIAL CERTIFICATES OF MERIT AND AWARDS CEREMONY.
  `(a) PRESIDENTIAL CERTIFICATES OF MERIT- Each Presidential Merit School
  shall be awarded a Presidential Certificate of Merit.
  `(b) AWARDS CEREMONY- The Secretary is authorized to accept gifts to pay
  the costs of conducting awards ceremonies for Presidential Merit Schools.
`SEC. 4710. PUBLIC SCHOOL USE OF FUNDS BY PRESIDENTIAL MERIT SCHOOLS.
  `A Presidential Merit School shall use its Presidential Merit School award
  for activities that further the educational program of the school. Such
  activities may include, but are not limited to--
  `(1) development, implementation, or expansion of special programs, such
  as those focused on: dropout prevention or reentry, student transition to
  college or employment, preschool children, remedial services, or gifted
  and talented students;
  `(2) the purchase or lease of computers, telecommunications equipment,
  scientific instruments, instructional materials, library books, and other
  equipment and materials, except that a public agency shall have title to,
  and exercise administrative control of, all such equipment and materials;
  `(3) bonus payments for faculty, administrators, and school personnel;
  `(4) school based management/shared decision making;
  `(5) parental involvement activities; and
  `(6) community outreach activities;
`SEC. 4711. PRIVATE SCHOOL USE OF FUNDS BY PRESIDENTIAL MERIT SCHOOLS.
  `Each private school receiving financial assistance under this Act may only
  use such assistance for capital expenses as set forth in section 1017(d)
  of the Elementary and Secondary Education Act of 1965.
`SEC. 4712. PROHIBITION ON STATE OR LOCAL REDUCTION OF OTHER ASSISTANCE.
  `No Federal, State, or local agency may, in any year, take a Presidential
  Merit School award into account in determining whether to award any other
  assistance from Federal, State, or local resources, or in determining the
  amount of such assistance, to either the Presidential Merit School itself
  or the local educational agency, if any, that operates the school.
`SEC. 4713. EVALUATION.
  `(a) IN GENERAL- The Secretary shall conduct an biennial evaluation of
  Presidential Merit Schools.
  `(b) NATIONAL DIFFUSION NETWORK- The Secretary shall submit information on
  successful Presidential Merit Schools programs to the National Diffusion
  Network for possible dissemination.
`SEC. 4714. DEFINITION.
  `(a) IN GENERAL- As used in this part the term `school based
  management/shared decision making' means a process by which a team of
  individuals is formed at a school site to make decisions regarding
  the management of the school. Such a team may include teachers, the
  school principal, other school administrators, parents, and community
  representatives.
  `(b) RESPONSIBILITIES- The school based management/shared decision making
  team is responsible for decisions which affect the school and classroom
  environment. Such decisions may include decisions regarding--
  `(1) curriculum and instruction priorities which meet priorities and
  goals of the local education agency, including materials and activities,
  organization, evaluation and assessment, while taking into account the
  special needs of students;
  `(2) student grouping, promotion, and tracking;
  `(3) school rules and discipline policies;
  `(4) the scheduling and structure of the school day;
  `(5) the school environment;
  `(6) the physical structure of school facilities;
  `(7) the administrative structure of the school;
  `(8) the use of funds available to the school;
  `(9) hiring and evaluation of teachers and administrators;
  `(10) professional development programs which will meet faculty needs; and
  `(11) relationships with parents and community.'.
Part B--Schools of Excellence
SEC. 111. SCHOOLS OF EXCELLENCE.
  Title IV of the Elementary and Secondary Education Act of 1965 is further
  amended by adding at the end thereof a new part H to read as follows:
`Part H--Schools of Excellence
`SEC. 4801. SHORT TITLE.
  `This part may be cited as the `Schools of Excellence Act of 1989'.
`SEC. 4802. FINDINGS.
  `The Congress finds that--
  `(1) no single method of education, or single way of organizing schools
  and school systems, is best for every community or every group of students;
  `(2) schools that have increased competition and choice and helped to
  improve the quality of schools and the education of children in the school
  districts in which they have been established; and
  `(3) schools that focus on mathematics and science train future leaders in
  such disciplines that are of critical importance to the Nation's economic
  competitiveness;
`SEC. 4803. PURPOSE.
  `It is the purpose of this part to support the establishment, expansion,
  or enhancement of Schools of Excellence in order to promote open enrollment
  through parental choice and to strengthen the knowledge of elementary and
  secondary school students in academic and vocational subjects.
`SEC. 4804. DEFINITION.
  `As used in this part, the term `School of Excellence' means a public
  elementary or secondary school that--
  `(1) offers the highest quality instruction in an academic or vocational
  discipline or creates a unique and effective learning environment;
  `(2) is open to students from beyond the immediate school attendance
  area; and
  `(3) is capable of attracting students from a variety of backgrounds.
`SEC. 4805. AUTHORIZATION OF APPROPRIATIONS.
  `(a) IN GENERAL- The amount authorized to be appropriated for the purposes
  of carrying out the provisions of this part for each of the fiscal years
  1991, 1992, and 1993 is an amount equal to the lesser of--
  `(1) the excess, if any, of--
  `(A) the amount appropriated to carry out title III of the Elementary and
  Secondary Education Act of 1965 for such fiscal year, over
  `(B) $165,000,000, or
  `(2) the excess, if any, of--
  `(A) the amount appropriated to carry out section 4606 of the Elementary
  and Secondary Education Act of 1965 for such fiscal year, over
  `(B) $35,000,000.
  `(b) LIMITATION- The amount authorized to be appropriated under subsection
  (a) shall not exceed $50,000,000 for fiscal year 1991.
`SEC. 4806. GRANT APPLICATIONS.
  `(a) IN GENERAL- (1) Any local educational agency, intermediate educational
  agency, or consortia of such agencies desiring to receive a grant under
  this part shall submit an application at such time, in such manner, and
  containing such information, as the Secretary may require.
  `(2) An applicant may be, but is not required to be, adopting or implementing
  a desegregation plan.
  `(b) REQUIREMENTS- Each application shall contain--
  `(1) a description of--
  `(A) the objectives of the proposed project and how those objectives will
  achieve the purpose of this part, as set out in section 4803; and
  `(B) how the funds made available to the applicant will be used to provide
  an educational program of the highest quality that will encourage greater
  parental decisionmaking and involvement;
  `(C) the method of information dissemination;
  `(D) the unique learning environment; and
  `(E) the open enrollment policy for students beyond the immediate attendance
  area; and
  `(2) such assurances as the Secretary may reasonably require.
  `(c) SPECIAL RULE- The Secretary shall encourage applications for proposed
  projects that--
  `(1) recognize the potential of children who are educationally disadvantaged
  or who come from low-income families; and
  `(2) establish, expand, or enhance schools that focus on a particular
  educational approach or on a particular subject area, such as mathematics
  and science.
  `(d) DEMONSTRATION- Each application submitted pursuant to this section
  shall demonstrate to the satisfaction of the Secretary that any proposed
  project assisted with funds under this part will not result in segregation
  based upon race, religion, color, national origin, sex, or handicap,
  or impede the progress of desegregation within the applicant's school system.
`SEC. 4807. SELECTION OF APPLICATIONS.
  `In awarding grants under this part, the Secretary shall consider the
  quality of the proposed project, the likelihood of the project's successful
  implementation, and the likelihood of its strengthening the educational
  program of the applicant.
`SEC. 4808. LIMITATIONS.
  `(a) IN GENERAL- No School of Excellence may be supported with funds under
  this part for more than two years.
  `(b) SATISFACTORY PROGRESS- No applicant may receive a grant for more than
  one year under this part, unless it demonstrates to the Secretary that
  the School of Excellence for which assistance was provided in the first
  year is making satisfactory progress in meeting the objectives specified
  in its approved application.
  `(c) SPECIAL RULE- No Federal, State, or local agency may, in any year,
  take a School of Excellence award into account in determining whether
  to award any other assistance from Federal, State, or local resources,
  or in determining the amount of such assistance, to either a School of
  Excellence itself or to the local educational agency or intermediate
  educational agency that operates the school.'.
Part C--Alternative Certification for Teachers and Principals
SEC. 121. ALTERNATIVE CERTIFICATION FOR TEACHERS AND PRINCIPALS PROGRAM.
  Title IV of the Elementary and Secondary Education Act of 1965 is further
  amended by adding at the end thereof a new part I to read as follows:
`Part I--Alternative Certification for Teachers and Principals
`SEC. 4901. SHORT TITLE.
  `This part may be cited as the `Alternative Certification of Teachers and
  Principals Assistance Act of 1989'.
`SEC. 4902. FINDINGS.
  `The Congress finds that--
  `(1) effective elementary and secondary schools require competent teachers
  and strong leadership;
  `(2) school systems would benefit greatly by recruitment pools of
  well-qualified individuals, such as scientists and engineers, from which
  to select teachers and principals;
  `(3) talented professionals who have demonstrated a high level of subject
  area competence or management and leadership qualities outside the education
  profession wish to pursue second careers in education, but often do not
  meet traditional certification requirements; and
  `(4) alternative certification requirements that do not exclude such
  individuals from teaching or school administration solely because they do not
  meet current certification requirements would allow school systems to take
  advantage of these professionals and improve the supply of well-qualified
  teachers and principals.
`SEC. 4903. PURPOSE.
  `It is the purpose of this part to improve the supply of well-qualified
  elementary and secondary school teachers and principals by encouraging
  and assisting States to develop and implement alternative teacher and
  principal certification requirements.
`SEC. 4904. DEFINITION.
  `As used in this part--
  `(1) The term `alternative teacher and principal certification requirements'
  means State or local requirements that permit entry into elementary
  and secondary teacher and principal positions for individuals who have
  demonstrated a high level of appropriate subject area competence, or
  management or leadership qualities, in careers in or out of the education
  field, but who would not otherwise meet existing requirements for teaching
  or supervisory positions. Alternative teacher and principal certification
  requirements may recognize that--
  `(A) for teachers, a high level of demonstrated competence in an appropriate
  subject area may be substituted for traditional teacher certification
  requirements (such as teacher training course work); and
  `(B) for principals, a high level of demonstrated competence in
  administration and management may be substituted for traditional principal
  certification requirements.
  `(2) The term `State' means any of the States of the Union, the District
  of Columbia, and the Commonwealth of Puerto Rico.
`SEC. 4905. AUTHORIZATION OF APPROPRIATIONS.
  `For the purpose of carrying out this part, there are authorized to be
  appropriated $15,000,000 for fiscal year 1991.
SEC. 4906. ALLOTMENTS.
  `(a) IN GENERAL- (1) From the amount appropriated to carry out this part,
  the Secretary shall allot to each State the lesser of either the amount
  the State applies for under section 4907 or an amount that is proportional
  to the State's share of the total population of children ages five through
  seventeen in all the States (based on the most recent data available that
  is satisfactory to the Secretary).
  `(2) If a State does not apply for its allotment, or the full amount of
  its allotment, under the preceding paragraph, the Secretary may reallocate
  the excess funds to one or more other States that demonstrate, to the
  satisfaction of the Secretary, a current need for the funds.
  `(b) SPECIAL RULE- Notwithstanding section 412(b) of the General Education
  Provisions Act, funds awarded under this part shall remain available for
  obligation by a recipient for a period of two calendar years from the date
  of the grant.
`SEC. 4907. STATE APPLICATIONS.
  `(a) IN GENERAL- Any State desiring to receive a grant under this part
  shall submit, through its State educational agency, an application at such
  time, in such manner, and containing such information, as the Secretary
  may reasonably require.
  `(b) REQUIREMENTS- Each State application shall--
  `(1) describe the programs, projects, and activities to be undertaken; and
  `(2) contain such assurances as the Secretary deems necessary, including
  assurances that--
  `(A) funds awarded to the State educational agency will be used to
  supplement, and not to supplant, any State or local funds available for
  the development and implementation of alternative teacher and principal
  certification requirements;
  `(B) the State educational agency has, in developing the State's application,
  consulted with representatives of local educational agencies, elementary
  and secondary school teachers and principals, parents, and other interested
  organizations and individuals; and
  `(C) the State educational agency will submit to the Secretary, at such
  time as the Secretary may specify, a final report describing the activities
  carried out with funds awarded under this part and the results achieved.
  `(c) SPECIAL RULE- Sections 435 and 436 of the General Education Provisions
  Act, except to the extent that such sections relate to fiscal control and
  fund accounting procedures, shall not apply to this part.
`SEC. 4908. USE OF FUNDS.
  `(a) IN GENERAL- (1) A State educational agency shall use funds awarded
  under this part to support programs, projects, or activities that develop
  and implement new, or expand and improve existing, alternative teacher
  and principal certification requirements.
  `(2) A State educational agency may carry out such programs, projects,
  or activities directly, through contracts, or through subgrants to local
  educational agencies, intermediate educational agencies, institutions of
  higher education, or consortia of such agencies.
  `(b) PROGRAMS, PROJECTS, AND ACTIVITIES- Programs, projects, and activities
  supported under this part may include, but are not limited to, the--
  `(1) design, development, implementation, testing, and evaluation of
  alternative teacher and principal certification requirements;
  `(2) establishment of administrative structures necessary to the development
  and implementation of alternative teacher and principal certification
  requirements;
  `(3) training of staff, including the development of appropriate support
  programs, such as mentor programs, for teachers and principals entering the
  school system through the alternative teacher and principal certification
  program;
  `(4) development of recruitment strategies; and
  `(5) development of reciprocity agreements between or among States for
  the certification of teachers and principals.
`SEC. 4909. EXPIRATION DATE.
  `Effective October 1, 1992, the Alternative Certification of Teachers and
  Principals Assistance Act of 1989 is repealed.'.
Part D--Administrative Provision
SEC. 131. DEFINITION.
  Section 403(6) of Public Law 81-874 is amended by adding the following
  sentence at the end thereof:
  `Such term does not include any agency or school authority that the
  Secretary determines, on a case-by-case basis--
  `(A) was constituted or reconstituted primarily for the purpose of receiving
  assistance under this Act or increasing the amount of that assistance; and
  `(B) is not constituted or reconstituted for legitimate educational
  purposes.'.
Part E--Fund for the Improvement and Reform of Schools and Teaching
  SEC. 141. DIRECTOR OF THE FUND- The first sentence of section 3231(b)(1)
  of the Fund for the Improvement and Reform of Schools and Teaching Act
  is amended to read as follows: `The Board shall appoint a Director of the
  Fund to serve a 4-year term.'.
TITLE II--NATIONAL SCIENCE SCHOLARS
SEC. 201. NATIONAL SCIENCE SCHOLARS PROGRAM.
  Part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1001 et
  seq., hereinafter referred to in this title as `the Act'), is amended--
  (1) by redesignating subparts 7 and 8 as subparts 8 and 9, respectively; and
  (2) by inserting immediately after subpart 6 the following new subpart:
`Subpart 7--National Science Scholars Program
`purpose
  `SEC. 419L. (a) PURPOSE- It is the purpose of this subpart--
  `(1) to establish a National Science Scholars Program to recognize student
  excellence and achievement in the physical, life, and computer sciences,
  mathematics, and engineering;
  `(2) to encourage role models in physical, life, and computer sciences,
  mathematics, and engineering fields for young people by offering
  opportunities to pursue a postsecondary education in such fields;
  `(3) to strengthen the leadership of the United States in the fields of
  physical, life, and computer sciences, mathematics, and engineering; and
  `(4) to assist students who have demonstrated outstanding academic
  achievement in continuing their education in these fields of study.
`SCHOLARSHIPS AUTHORIZED
  `SEC. 419M. (a) PROGRAM AUTHORITY- (1) The Secretary is authorized,
  in consultation with the Director of the National Science Foundation
  (hereinafter referred to as the `Director') and in accordance with the
  provisions of this subpart, to carry out a program of awarding scholarships
  for the study of the life, physical, or computer sciences, mathematics,
  or engineering.
  `(2) The Director, in consultation with the Secretary, shall establish
  and implement a merit-based program for annually awarding scholarships
  for the study of physical, life, or computer sciences, mathematics, or
  engineering to--
  `(A) one male and one female from each congressional district of the United
  States, the District of Columbia, and Puerto Rico, and
  `(B) one male and one female from Guam, the Virgin Islands, American
  Samoa, Palau, the Republic of the Marshall Islands, the Federated States
  of Micronesia, and the Commonwealth of the Northern Mariana Islands.
  `(3) Wherever possible in awarding scholarships, special consideration
  shall be given to economically disadvantaged students or students from
  groups traditionally underrepresented in the life, physical, or computer
  sciences, mathematics, and engineering professions.
  `(b) NOTIFICATION OF SECONDARY SCHOOLS- The Secretary shall notify all public
  and private secondary schools and all institutions of higher education in
  each State and in each of the entities set forth in subsection (a)(2)(B)
  annually of the availability of scholarships under this subpart.
  `(c) CRITERIA AND PROCEDURE FOR NOMINATION AND SELECTION- (1) Individuals
  shall be nominated and selected for scholarships under this Act on the
  basis of the student's--
  `(A) academic achievement in the life, physical, or computer sciences,
  mathematics, or engineering;
  `(B) promise of outstanding academic achievement in physical, life, or
  computer sciences, mathematics, or engineering;
  `(C) potential to successfully complete a post-secondary program in physical,
  life, or computer sciences, mathematics, or engineering; and
  `(D) motivation to pursue a career in physical, life, or computer sciences,
  mathematics, or engineering.
  `(2) The Director, in consultation with the Secretary, shall appoint a
  National Science Scholars Program Board (hereinafter referred to as the
  `Board'), composed of scientists, mathematicians, educators, engineers,
  and representatives of the business community, to--
  `(A) recommend to the Director specific academic achievement criteria for
  use in the nomination of scholars; and
  `(B) make recommendations for awarding scholarships to the Director,
The Director, in consultation with the Secretary, shall review the Board's
recommendations and shall each publish the appropriate academic achievement
criteria in the Federal Register.
  `(3) The Director, in consultation with the Secretary, is authorized to
  establish, either directly or by contract, a procedure for nominating at
  least 4, but not more than 10 students from each congressional district
  and from each of the entities set forth in subsection (a)(2)(B), for
  scholarships under this subpart. The Director shall ensure that such
  nominations shall be made in consultation with educators, scientists,
  mathematicians, engineers, and representatives of the business community.
  `(4) After considering the students nominated under paragraph (3), the
  Director, in consultation with the Board, shall recommend to the President
  one male and one female from each Congressional district of the United
  States, and one male and one female from each of the entities set forth
  in subsection (a)(2)(B), for scholarships under this subpart.
  `(d) DISBURSAL OF SCHOLARSHIP PROCEEDS- Scholarship proceeds shall be
  disbursed by the Secretary on behalf of students who receive scholarships
  under this subpart to the institutions of higher education at which the
  students are enrolled. No scholarship proceeds shall be disbursed on
  behalf of a student until the student is enrolled at an institution of
  higher education.
  `(e)(1) NATIONAL SCIENCE SCHOLARS- Students awarded scholarships under
  this subpart shall be known as `National Science Scholars'.
  `(2) Students nominated under subsection (c) but not awarded scholarships
  under this subpart shall be known as `National Science Scholarship
  Finalists'.
  `(f) NATURE AND AMOUNT OF SCHOLARSHIPS- (1) Scholarships shall be limited
  to a maximum of $5,000 per student, per year, for a period not to exceed
  4 years.
  `(2) In the event that funds available in a fiscal year are insufficient to
  fully fund all awards under this subpart, the amount paid to each student
  shall be ratably reduced.
  `(g) USE OF EXCESS FUNDS- If the funds available under this subpart for
  any fiscal year exceed the amounts required for initial and continuing
  awards under this section, additional scholarships may be awarded by the
  President, in consultation with the Director, to students selected as
  National Science Scholarship Finalists for the award year.
  `(h) RELATION TO COST OF ATTENDANCE AND OTHER GRANTS AND SCHOLARSHIPS- (1)
  The amount of a scholarship awarded under this subpart shall be reduced by
  the amount that the scholarship exceeds the student's cost of attendance,
  as defined in section 472 of the Act.
  `(2) Notwithstanding any other provision of law, the award made under this
  subpart shall be considered as income for the purposes of awarding Federal
  student financial aid.
  `(i) ANNOUNCEMENT AND AWARD OF SCHOLARSHIPS- The selection process shall
  be completed, and the announcement of the selection of National Science
  Scholars will be made by the President prior to January 1st of each fiscal
  year. The Secretary shall notify Members of Congress of selections before
  the public announcement by the President. Presentation of scholarships
  shall be made in a public ceremony.
`ELIGIBILITY OF SCHOLARS
  `SEC. 419N. (a) REQUIREMENTS FOR INITIAL AWARD- To be eligible to receive
  a scholarship under section 419M, a student shall--
  `(1) be scheduled to graduate from a public or private secondary school,
  or to obtain the equivalent of a certificate of graduation (as recognized
  by the State or entity in which the student resides), during the school
  year in which the award is made;
  `(2) be a citizen or national of the United States or the entities set
  forth in subsection (a)(2)(B), or be an alien lawfully admitted to the
  United States for permanent residence;
  `(3) have applied, or intend to apply, for admission to an institution of
  higher education in the United States or an institution of higher education
  in the entities set forth in subsection (a)(2)(B), that is accredited by
  a nationally recognized accrediting agency or association in accordance
  with the provisions of section 1201(a) of this Act.
  `(b) MAINTAINING ELIGIBILITY- (1) In order to maintain eligibility to receive
  funds pursuant to a scholarship awarded under this subpart, a student must--
  `(A) be enrolled at an institution of higher education that is accredited
  by a nationally recognized accrediting agency or association in accordance
  with the provisions of section 1201(a) of the Act;
  `(B) major in any field of physical, life, or computer science, mathematics,
  or engineering;
  `(C) maintain academic performance in good standing, as determined by such
  institution; and
  `(D) except as provided in paragraph (2), carry a full-time academic work
  load, as determined by the institution in which the student is enrolled under
  standards applicable to all students enrolled in that student's program.
  `(2) The Secretary shall make exceptions to the requirement under paragraph
  (1)(D) in the case of a student who--
  `(A) is on active duty as a member of the armed services;
  `(B) has a disability or serious injury as certified by a qualified
  physician; or
  `(C) has exceptional personal circumstances or emergencies, as determined
  by the Secretary.
  `(c) FAILURE TO MEET ELIGIBILITY REQUIREMENTS- In the event that the student
  fails to meet the requirements of this section, the student's eligibility
  to receive further scholarships (or scholarship proceeds) under this subpart
  shall be determined in accordance with the regulations of the Secretary.
`SUMMER EMPLOYMENT OPPORTUNITIES FOR SCHOLARS
  `SEC. 419O. (a) PRIORITY FOR SUMMER EMPLOYMENT- To the extent that they
  are otherwise qualified, students receiving scholarships under this
  subpart shall be given priority consideration for federally financed
  summer employment in federally funded research and development centers,
  that, to the maximum extent practicable, complements and reinforces the
  educational program of these students.
  `(b) FEDERAL AGENCY COOPERATION- Federal agencies shall cooperate fully
  with the Secretary and participate actively in providing appropriate summer
  employment opportunities for such students.
`EFFECTIVE DATE
  `SEC. 419P. The amendments made by this subpart shall be effective on October
  1, 1990, for award year 1991-1992 and each succeeding award year thereafter.
`AUTHORIZATION OF APPROPRIATIONS
  `SEC. 419Q. There are authorized to be appropriated to the Department
  of Education for the purpose of carrying out this subpart $6,000,000 for
  the fiscal year 1991, and such sums as may be necessary for each of the
  2 succeeding fiscal years.'.
SEC. 202. CONFORMING AMENDMENTS.
  (a) Section 401(b) of the Act is amended by striking out `subparts 1
  through 8,' and inserting in lieu thereof `subparts 1 through 9,'.
  (b) Section 481(a)(1) of the Act is amended by striking out `except subpart
  6' and inserting in lieu thereof `except subparts 6 and 7'.
TITLE III--DRUG-FREE SCHOOLS URBAN AND RURAL EMERGENCY GRANTS
SEC. 301. DRUG-FREE SCHOOLS URBAN AND RURAL EMERGENCY GRANTS.
  (a) AUTHORIZATION OF APPROPRIATIONS- Section 5111(a) of the Drug-Free
  Schools and Communities Act of 1986 (20 U.S.C. 3171 et seq.) is amended
  by striking `$350,000,000' and inserting `$375,000,000'.
  (b) EMERGENCY GRANTS TO SCHOOLS IN URBAN AND RURAL AREAS- Section 5122 of
  the Drug-Free Schools and Communities Act of 1986 is amended--
  (1) by redesignating subsections (a) and (b) as subsections (b) and (c),
  respectively;
  (2) by inserting the following new subsection (a) after the section
  designation:
  `(a) EMERGENCY GRANTS TO SCHOOLS IN URBAN AND RURAL AREAS- (1) From the
  amount available to carry out this section pursuant to section 5121(a),
  33.3 percent of such amount shall be used by the chief executive officer in
  consultation with the State educational agency or the chief State school
  officer of a State, to make contracts with, and emergency grants to,
  local educational agencies serving urban and rural communities with severe
  drug problems.
  `(2)(A) In awarding grants under this subsection the chief executive shall
  first award grants to local educational agencies serving the largest
  city in the State to develop and implement comprehensive approaches to
  eliminating the serious drug problem that affects schools and students
  within the boundaries of the local educational agency. Such grants shall
  be of sufficient size, scope, and quality to be of value and effective.
  `(B) After satisfying the requirements of subparagraph (A) the chief
  executive officer of a State receiving a grant pursuant to the provisions of
  this section shall make grants to urban and rural local educational agencies
  with severe drug problems as determined by the incidence of drug abuse in
  relation to the size of the school age population. Such grants shall be
  of sufficient size, scope, and quality to be of value and effective. Such
  grants to the local educational agency shall be used for the development
  and implementation of comprehensive approaches to eliminating the serious
  drug problem that affects schools and students within the boundaries of
  the local educational agency.
  `(3) The Secretary may waive the provisions of this subsection for States
  in which there is no concentration of drug problems.';
  (3) in subsection (b) (as amended in paragraph (1)) by striking `IN GENERAL-
  Not' and inserting `REMAINDER- From the remainder available to carry out
  this section, not'.
TITLE IV--HISTORICALLY BLACK COLLEGES AND UNIVERSITIES
SEC. 401. HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.
  Section 360(a)(3) of the Higher Education Act of 1965 is amended by--
  (1) redesignating paragraph (4) as paragraph (5);
  (2) inserting the following new paragraph after paragraph (3):
  `(4) There are authorized to be appropriated $20,000,000 for fiscal year
  1990 and such sums as may be necessary for each of fiscal years 1991, 1992,
  and 1993 for awards under section 332 of the Act to historically black
  colleges and universities that qualify as part B institutions, except that
  any part B institution that receives an award from funds appropriated for
  any fiscal year under paragraph (4), shall not be eligible to receive an
  award in the same fiscal year under paragraph (3).'.
TITLE V--EXTENSION OF SCHOOL DROPOUT DEMONSTRATION PROGRAM
SEC. 501. EXTENSION OF SCHOOL DROPOUT DEMONSTRATION PROGRAMS.
  Section 6003 of the Elementary and Secondary Education Act of 1965 (20
  U.S.C. 3243) is amended--
  (1) by striking `There' and inserting the following: `(a) IN GENERAL-
  Subject to subsection (b), there';
  (2) by inserting `each of' before `the fiscal';
  (3) by striking `year' and inserting `years';
  (4) by inserting before the period the following: `, 1990, and 1991'; and
  (5) by adding at the end the following new subsection:
  `(b) No amounts are authorized to be appropriated under subsection (a) for
  any fiscal year in which assistance is made availalbe to local educational
  agencies under part C of chapter 1 of title I.'.
SEC. 502. AUTHORIZATION OF USE OF FUNDS FOR EVALUATION ACTIVITIES.
  Subsection (a) of section 6004 of the Elementary and Secondary Education
  Act of 1965 (20 U.S.C. 3244) is amended--
  (1) by inserting after `the Secretary' the following: `shall first
  reserve not more than $1,500,000 for the purposes of evaluating programs
  carried out with assistance under this part. From the remaining amount,
  the Secretary'; and
  (2) by striking `the amount appropriated' each place it appears after the
  first occurrence and inserting `such remaining amount'.
SEC. 503. AUTHORIZATION OF REALLOTMENT OF CERTAIN FUNDS.
  Paragraph (1) of section 6004(b) of the Elementary and Secondary Educaiton
  Act of 1965 (20 U.S.C. 3244(b)) is amended by striking `25 percent' and
  inserting `not less than 25 percent and not more than 50 percent'.
SEC. 504. DEADLINE FOR EVALUATIONS.
  Subsection (d) of section 6201 of the Elementary and Secondary Education
  Act of 1965 is amended by striking `at the end' and all that follows and
  inserting `not later than the expiration of the 6-month period following
  the end of the grant period.'.
TITLE VI--STAFFORD STUDENT LOAN DEFAULT PREVENTION AND MANAGEMENT PROVISIONS
SEC. 601. GUARANTY AGENCY PROHIBITION ON THE SALE OF CERTAIN STAFFORD STUDENT
LOAN LISTS.
  Section 428(b)(3) of the Higher Education Act of 1965 (hereafter in this
  title referred to as the `Act' is amended--
  (1) by striking out `or' at the end of subparagraph (B);
  (2) by striking out the period at the end of subparagraph (C) and inserting
  in lieu thereof a semicolon and `or'; and
  (3) by adding at the end thereof the following:
  `(D) sell lists of student borrowers who have loans made, insured, or
  guaranteed under this part.'.
SEC. 602. GUARANTY AGENCY USE OF STATE LICENSING BOARD INFORMATION.
  Section 428(b) of the Act is amended by adding at the end thereof the
  following new paragraph:
  `(7) STATE GUARANTY AGENCY INFORMATION REQUEST OF STATE LICENSING BOARDS-
  Each guaranty agency is authorized to enter into agreements with each
  appropriate State licensing board under which the State licensing board,
  upon request, will furnish the guaranty agency with the address of a
  student borrower in any case in which the location of the student borrower
  is unknown or unavailable to the guaranty agency.'.
SEC. 603. SPECIAL LIMITATION ON THE DEFERMENT OF PAYMENT OF PRINCIPAL AND
INTEREST ON PLUS LOANS.
  Section 428B(c)(1) of the Act is amended--
  (1) by striking out `(A)'; and
  (2) by striking out `; and (B) during any period during which the borrower
  has a dependent student for whom a loan obligation was incurred under the
  section and who meets the conditions required for a deferral under clause
  (i) of either such section'.
SEC. 604. CREDIT BUREAUS.
  (a) NOTICE OF DELINQUENCY- Section 430A(a) of the Act is amended--
  (1) by striking `and' at the end of paragraph (2);
  (2) by redesignating paragraph (3) as paragraph (4); and
  (3) by inserting after paragraph (2) the following:
  `(3) with respect to any payment on a loan that has been delinquent for
  90 days, information concerning the date the delinquency began and the
  repayment status of the loan; and'.
  (b) NOTICE TO BORROWER- Section 430A(c) of the Act is amended--
  (1) by striking `and' at the end of paragraph (3);
  (2) by striking the period at the end of paragraph (4) and inserting `;
  and'; and
  (3) by adding at the end the following:
  `(5) with respect to notices of delinquency under subsection (a)(3), the
  borrower is informed that credit bureau organizations will be notified of
  any payment that is delinquent for 90 days or more.'.
  (c) LIMITATION ON REPORTING- Section 463(c)(3)(B) of the Act is amended
  by striking `, if that account has not been previously reported by any
  other holder of the notes'.
SEC. 605. ADDITIONAL BORROWER INFORMATION REQUIRED.
  Section 484(b) of the Act is amended by adding at the end thereof the
  following new paragraph:
  `(5) In order to be eligible to receive any loan under this title,
  a student shall provide to the lender at the time of applying for the
  loan the driver's license number of the student borrower, if applicable,
  and the name and address of the next of kin of the student borrower.'.
SEC. 606. RESTRICTIONS ON INSTITUTIONAL PROMOTIONAL ACTIVITIES.
  Section 487(a) of the Act (20 U.S.C. 1094(a) is further amended by adding
  at the end thereof the following:
  `(11) The institution does not--
  `(A) use any contractor or any person other than salaries employees of the
  institution or a volunteer to conduct any activities related to recruiting
  and admission of students, including canvassing, surveying, promotion,
  or similar activities; or
  `(B) pay any commission, bonus, or other incentive payment based directly
  or indirectly on success in securing enrollments to any person engaged in
  any such activity.'.
SEC. 607. ACADEMIC YEAR DEFINITION.
  Section 487(a) of the Act is further amended by adding at the end thereof
  the following new paragraph:
  `(12) The institution will use the same definition of `academic year'
  for all programs authorized by this title.'.
SEC. 608. NOTICE ON DELINQUENT LOANS REQUIRED.
  (a) PRE-CLAIMS ASSISTANCE- Section 435(d) of the Act is amended--
  (1) in paragraph (1) by striking `(5)' the first two places it appears
  and inserting `(6)'; and
  (2) by adding at the end thereof the following new paragraph:
  `(6) REQUEST FOR PRE-CLAIMS ASSISTANCE- To be an eligible lender under this
  part, each eligible lender shall, if the agency that guaranteed the loan
  offers pre-claims assistance for default prevention, request pre-claims
  assistance within the first 10 days such assistance is available as
  specified by the guarantee agency.'.
  (b) NOTICE- Section 428(k) of the Act is amended by--
  (1) redesignating paragraph (2) as paragraph (3); and
  (2) inserting the following new paragraph after paragraph (1):
  `(2) PROVISION OF NOTICE OF REQUEST FOR PRE-CLAIMS ASSISTANCE TO ELIGIBLE
  INSTITUTIONS- Each guaranty agency shall, within 30 days of receipt of
  the request for pre-claims assistance, notify each eligible institution,
  with respect to students who are delinquent on the repayment of any loan
  received for attendance at such institution, of the lender's request for
  pre-claims assistance for default prevention on such loan. Such information
  may be provided to the eligible institution by submission of a copy of
  the lender's pre-claims request or through other means.'.
SEC. 609. REGULATIONS FOR INSTITUTIONAL DISCLOSURE OF BORROWER RECORDS.
  The Secretary shall promulgate regulations specifying the legal restrictions
  and the requirements of eligible institutions relating to loan counseling
  and reporting requirements including but not limited to disclosure of
  borrower records to third parties, the Fair Debt Collection Practices Act,
  and any other applicable Federal law.
SEC. 610. EFFECT OF LOSS OF ACCREDITION.
  (a) STATUS AS ELIGIBLE INSTITUTION FOR STAFFORD STUDENT LOAN PROGRAM-
  Section 435 of the Act (20 U.S.C. 1085) is amended--
  (1) in subsection (a)(1), by striking out `The term' and inserting `Subject
  to subsection (m), the term'; and
  (2) by adding at the end thereof the following:
  `(m) IMPACT OF LOSS OF ACCREDITATION- An institution may not be certified
  or recertified as an eligible institution under subsection (a) of this
  section if such institution--
  `(1) had its institutional accreditation withdrawn, revoked, or otherwise
  terminated for cause during the preceding 24 months; or
  `(2) has withdrawn from institutional accreditation voluntarily under
  a show cause order, suspension order, or other simiar order during the
  preceding 24 months;
unless--
  `(A) such accreditation has been restored by the same accrediting agency
  which had accredited it prior to the withdrawal, revocation, or termination;
  or
  `(B) the institution has demonstrated its academic integrity to the
  satisfaction of the Secretary in accordance with section 1201(a)(5) (A)
  or (B) of this Act.'.
  (b) STATUS AS ELIGIBLE INSTITUTION FOR OTHER TITLE IV PROGRAMS- Section
  481 of the Act (20 U.S.C. 1088) is amended--
  (1) in subsection (a)(1), by striking out `For the purpose' and inserting
  `Subject to subsection (e), for the purpose'; and
  (2) by adding at the end thereof the following:
  `(e) IMPACT OF LOSS OF ACCREDITATION- An institution may not be certified
  or recertified as an eligible institution under subsection (a) of this
  section if such institution--
  `(1) had its institutional accreditation withdrawn, revoked, or otherwise
  terminated for cause during the preceding 24 months; or
  `(2) has withdrawn from institutional accreditation voluntarily under
  a show cause order, suspension order, or other similar order during the
  preceding 24 months;
unless--
  `(A) such accreditation has been restored by the same accrediting agency
  which had accredited it prior to the withdrawal, revocation, or termination;
  or
  `(B) the institution has demonstrated its academic integrity to the
  satisfaction of the Secretary in accordance with section 1201(a)(5) (A)
  or (B) of this Act.'.
SEC. 611. SPECIAL ACCREDITATION RULES.
  Section 487(c) of the Act is amended--
  (1) by redesignating paragraph (3) as paragraph (5); and
  (2) by adding after paragraph (2) the following new paragraphs:
  `(3) The Secretary is authorized to carry out the provisions of paragraph
  (1)(D), relating to limitation, suspension, or termination of an eligible
  institution whenever the institution withdraws from a nationally recognized
  accrediting agency or association during a show cause or suspension
  proceeding brought against that institution.
  `(4)(A) Whenever a nationally recognized accrediting agency or association
  reports pursuant to subparagraph (B) that an eligible institution was
  denied institutional accreditation, the Secretary is authorized to carry
  out the provisions of paragraph (1)(D) relating to limitation, suspension,
  or termination of an eligible institution.
  `(B) The Secretary is authorized to enter into such arrangements with
  accrediting agencies and associations as may be necessary to assure notice of
  the denial of institutional accreditation in order to carry out subparagraph
  (A).'.
SEC. 612. ELIGIBLE INSTITUTION ACCREDITATION RULE.
  Section 481(a) of the Act is amended by inserting after paragraph (2)
  the following new paragraph:
  `(3) Whenever the Secretary determines accreditation for the purpose
  of paragraph (1), the Secretary shall not approve the accreditation of
  any eligible institution of higher education under this section if the
  eligible institution of higher education is in the process of receiving new
  institutional accreditation by a national or regional accreditation agency
  unless the eligible institution submits to the Secretary all materials
  relating to the prior accreditation, including the reasons, if applicable,
  for changing the accrediting agency or association.'.
SEC. 613. TOLL-FREE CONSUMER HOTLINE.
  Section 485 of the Act is amended by adding at the end thereof the following
  new paragraph:
  `(e) TOLL-FREE CONSUMER HOTLINE- (1) In addition to the toll-free telephone
  information provided for in section 483, the Secretary shall contract for, or
  establish, and publicize a toll-free telephone number for use by the public,
  in order to permit students who allege fraud or unfair practices by eligible
  institutions to inform the Department of such fraud or unfair practices.
  `(2) The Secretary shall, directly or by way of contract or other
  arrangement, make the toll-free telephone number, and the availability of
  the consumer hotline established by this subsection, generally available
  to students receiving financial assistance under this title.'.
SEC. 614. TUITION REFUNDS.
  (a) REFUND RULE- Section 487(c)(2)(B)(i) of the Act is amended by adding
  at the end thereof the following new sentence: `In addition, the Secretary
  may require such eligible institutions to make refunds in accordance with
  division (iii).'.
  (b) REFUND PROCEDURES- Section 487(c)(2)(B) of the Act is amended by adding
  the following new division after division (ii):
  `(iii) When the Secretary determines there has been a violation, failure,
  or misrepresentation pursuant to division (i), the Secretary may require
  the institution to refund the student's tuition and fees. The Secretary
  shall establish procedures for refunding the tuition and fees. Such
  procedures shall--
  `(I) first require the payment by the institution to the United States
  Government of any portion of the tuition and fees paid with Federal funds
  received under this title (other than funds under subpart 3 of part A and
  part B of this title); and
  `(II) then require payment by the institution to the lender of that portion
  of the tuition and fees attributable to a loan made, issued, or guaranteed
  under part B of this title.'.
SEC 615 . PELL GRANT PROGRAM AMENDMENT.
  Section 411(c)(1)(A) of the Act (20 U.S.C. 1070a(c)(1)(A)) is amended by
  striking clauses (i) and (ii) and inserting the following:
  `(i) the number of academic years (or portion of an academic year) that
  the undergraduate degree or certificate program normally requires, plus
  one academic year; or
  `(ii) 6 academic years in the case of a undergraduate degree or certificate
  program normally requiring more than 4 academic years;'.
SEC. 616. REVISED DISCLOSURE REQUIREMENTS OF SLS LOANS.
  Section 433(a) of the Higher Education Act is amended--
  (1) in subsection (a) by inserting `and except as specified in subsection
  (e) of this section' after `section 428C.'; and
  (2) by inserting the following new subsection after subsection (d):
  `(e) SPECIAL RULES FOR SUPPLEMENTAL LOANS FOR STUDENTS- Loans made under
  section 428A shall not be subject to the disclosure of projected monthly
  payment amounts required under subsection (a)(8) of this section, provided
  that the lender provides the borrower with sample projections of monthly
  repayment amounts assuming different levels of borrowing and interest
  accruals resulting from capitalization of interest while the borrower is
  in school.'.
SEC. 617. STUDY OF DISCHARGE OF STAFFORD STUDENT LOANS IN BANKRUPTCY.
  (a) STAFFORD STUDENT LOAN DISCHARGE STUDY- The Comptroller General shall
  conduct a study relating to the discharge of student loan indebtedness in
  proceedings in bankruptcy. Such study shall include--
  (1) an evaluation of the treatment of student loan debtors under chapter
  13 of title 11, United States Code, including--
  (A) the frequency of attempts to discharge or the discharging of such
  loans compared to such attempts to discharge or the discharging of other
  consumer loans by such students; and
  (B) the number and amount of such loans discharged;
  (2) an evaluation of the effect of students who attempt to or do discharge
  such loans relative to the costs of the Stafford Student Loan Program and
  the institutional costs of the Perkins Loans Program; and
  (3) an evaluation of the behavior of student loan debtors who discharge
  such loans as compared to other debtors who discharge debts in bankruptcy
  by evaluating such factors as--
  (A) the average age of the debtors in each group;
  (B) the amounts and types of debts sought to be discharged by each group; and
  (C) the percentage of discharge of other types of consumer debts by
  each group.
  (b) STAFFORD STUDENT LOAN DISCHARGE REPORT- The Comptroller General shall
  prepare a report of the study required by this section and shall submit the
  study of the Congress within 3 years after the date of enactment of this Act.
TITLE VII--NEEDS ANALYSIS AMENDMENTS
SEC. 701. DEFINITION OF INDEPENDENT STUDENT.
  (a) SECTION 411F- Section 411F(12) of the Higher Education Act of 1965
  (hereafter in this title referred to as the `Act') is amended to read
  as follows:
  `(12) The term `independent', when used with respect to a student, means
  any individual who--
  `(A) is 24 years of age or older by December 31 of the first calendar year
  of the award year;
  `(B) is an orphan or is or has been a ward of the court;
  `(C) is a veteran of the Armed Forces of the United States;
  `(D) is a graduate or professional student and will not be claimed by his
  or her parents (or guardian) for income tax purposes for the award year;
  `(E) is married or has legal dependents;
  `(F) is an undergraduate student who was not claimed by his or her parents
  (or guardian) for income tax purposes for the 2 calendar years preceding the
  first calendar year of the award year, and who either was awarded assistance
  under this title as an independent student in the prior year, or demonstrates
  to the student financial aid administrator total self-sufficiency during
  the 2 calendar years preceding the first calendar year of the award year
  by demonstrating annual total resources (including all sources other than
  parents and student aid) of $4,000; or
  `(G) is a student for whom a financial aid administrator makes a documented
  determination of independence by reason of other unusual circumstances.'.
  (b) SECTION 480(d)- Section 480(d) of the Act is amended to read as follows:
  `(d) INDEPENDENT- The term `independent', when used with respect to a
  student, means any individuals who--
  `(1) is 24 years of age or older by December 31 of the first calendar year
  of the award year;
  `(2) is an orphan or is or has been a ward of the court;
  `(3) is a veteran of the Armed Forces of the United States;
  `(4) is a graduate or professional student and will not be claimed by his
  or her parents (or guardian) for income tax purposes for the award year;
  `(5) is married or has legal dependents;
  `(6) is an undergraduate student who was not claimed by his or her parents
  (or guardian) for income tax purposes for the 2 calendar years preceding the
  first calendar year of the award year, and who either was awarded assistance
  under this title as an independent student in the prior year, or demonstrates
  to the student financial aid administrator total self-sufficiency during
  the 2 calendar years preceding the first calendar year of the award year
  by demonstrating annual total resources (including all sources other than
  parents and student aid) of $4,000; or
  `(7) is a student for whom a financial aid administrator makes a documented
  determination of independence by reason of other unusual circumstances.'.
SEC. 702. MODIFICATION TO COMPUTATION OF CONTRIBUTIONS.
  (a) PELL GRANT NEEDS ANALYSIS- (1) Section 411B(b)(3) of the Act is amended
  by striking out `a program of postsecondary education' and inserting in lieu
  thereof `a program of postsecondary education which meets the requirements
  of section 484(a)(1)'.
  (2) Section 411C(a)(3) of the Act is amended by striking out `a program
  of postsecondary education' and inserting in lieu thereof `a program of
  postsecondary education which meet the requirements of section 484(a)(1)'.
  (3) Section 411D(a)(3) of the Act is amended by striking out `a program
  of postsecondary education' and inserting in lieu thereof `a program of
  postsecondary education which meet the requirements of section 484(a)(1)'.
  (b) GENERAL NEEDS ANALYSIS- Section 475(b)(3) of the Act is amended by
  striking out `a program of postsecondary education' and inserting in lieu
  thereof `a program of postsecondary education which meets the requirements
  of section 484(a)(1)'.
  (2) Section 477(a)(3) of the Act is amended by striking out `a program
  of postsecondary education' and inserting in lieu thereof `a program of
  postsecondary education which meet the requirements of section 484(a)(1)'.
SEC. 703. STUDENT CONTRIBUTION MODIFICATION.
  Section 475(g)(1)(C) of the Act is amended by striking out `70 percent'
  and inserting in lieu thereof `not less than 50 percent'.
SEC. 704. NEEDS ANALYSIS FINANCIAL AID ADMINISTRATOR ADJUSTMENTS.
  (a) IN GENERAL- Section 479A(a) of the Act is amended to read as follows:
  `SEC. 479A. (a) IN GENERAL- Nothing in this title shall be interpreted as
  limiting the authority of the student financial aid administrator, on the
  basis of adequate documentation, to make necessary adjustments to the cost of
  attendance and expected student or parent contribution (or both) to allow for
  treatment of individual students with special circumstances. In addition,
  nothing in this title shall be interpreted as limiting the authority of
  the student financial aid administrator to use supplementary information
  about the financial status or personal circumstance of eligible applicants
  in selecting recipients and determining the amount of awards under subparts
  1 and 2 of part A and parts B, C, and E of this title.'.
  (b) SPECIAL RULE- Section 479A of the Act is amended--
  (1) by redesignating subsection (c) as subsection (d), and
  (2) by inserting immediately after subsection (b) the following new
  subsection:
  `(c) SPECIAL ADJUSTMENTS-
  `(1) ADJUSTMENTS FOR INDEPENDENT STUDENTS WITH DEPENDENTS- A student
  financial aid administrator shall be considered to be making a necessary
  adjustment in accordance with subsection (a) if the administrator determines
  that the cost of attendance in section 472 should include costs of food and
  shelter for dependent care when the total income for independent students
  with dependents is less than the Standard Maintenance Allowance under
  section 477(b)(4).
  `(2) ADJUSTMENT FOR DISLOCATED WORKER- A student financial aid administrator
  shall be considered to be making a necessary adjustment in accordance with
  subsection (a) if, in the case of dislocated workers--
  `(A) the administrator uses the income for the year in which the
  determination is made (the award year) rather than the income reported in
  the preceding tax year; and
  `(B) the administrator excludes the net value of investments and real estate,
  including the primary residence in the calculation of the family contribution
  for the Pell Grant Program and the expected family contribution under part F.
  `(3) ADJUSTMENT FOR DISPLACED HOMEMAKER- A student financial aid
  administrator shall be considered to be making a necessary adjustment
  in accordance with subsection (a) if, for displaced homemakers, the
  administrator excludes the net value of investments and real estate,
  including the primary residence, from the calculation of the Pell Grant
  family contribution and from the expected family contribution under part F.'.
  (c) CONFORMING AMENDMENTS- (1) Section 479A(d) of the Act (as amended by
  subsection (a)) is amended by striking out `subsection (b) is an example'
  and inserting in lieu thereof `subsections (b) and (c) are examples'.
  (2)(A) Section 411B(g)(1) of the Act is amended by striking out `, except
  that in the case of a dislocated worker (certified in accordance with
  title III of the Job Training Partnership Act) or a displaced homemaker
  (as defined in section 480(e) of this Act), the net value of a principal
  place of residence shall be considered to be zero'.
  (B) Section 411B(l) of the Act is amended by striking out `, except
  that in the case of a dislocated worker (certified in accordance with
  title III of the Job Training Partnership Act) or a displaced homemaker
  (as defined in section 480(e) of this Act), the net value of a principal
  place of residence shall be considered to be zero'.
  (C) Section 411C(f)(1) of the Act is amended by striking out `, except
  that in the case of a dislocated worker (certified in accordance with
  title III of the Job Training Partnership Act) or a displaced homemaker
  (as defined in section 480(e) of this Act), the net value of a principal
  place of residence shall be considered to be zero'.
  (D) Section 411D(f)(3) of the Act is amended by striking out `, except
  that in the case of a dislocated worker (certified in accordance with
  title III of the Job Training Partnership Act) or a displaced homemaker
  (as defined in section 480(e) of this Act), the net value of a principal
  place of residence shall be considered to be zero'.
  (E)(i) Section 411F(1)(G) of the Act is repealed.
  (ii) Section 411F(9)(E) of the Act is repealed.
  (F) Section 475(d)(2)(B) of the Act is amended by striking out `except
  that in the case of a dislocated worker (certified in accordance with
  title III of the Job Training Partnership Act) or a displaced homemaker
  (as defined in section 480(e) of this Act)'.
  (G) Section 475(h) of the Act is amended by striking out `, except that
  in the case of a dislocated worker (certified in accordance with title III
  of the Job Training Partnership Act) or a displaced homemaker (as defined
  in section 480(e) of this Act), the net value of a principal place of
  residence shall be considered to be zero'.
  (H) Section 476(c)(2)(B) of the Act is amended by striking out `except in
  the case of a displaced worker (certified in accordance with title III of
  the Job Training Partnership Act) or a displaced homemaker (as defined in
  section 480(e) of this Act)'.
  (I) Section 477(c)(2)(B) of the Act is amended by striking out `except in
  the case of a dislocated worker (certified in accordance with title III
  of the Job Training Partnership Act) or a displaced homemaker (as defined
  in section 480(e) of this Act)'.
SEC. 705. TREATMENT OF VETERANS BENEFITS.
  (a) PELL GRANT NEEDS ANALYSIS- (1) Section 411B(d)(1)(C) of the Act
  is amended by striking out `one-half of the student's total veterans
  educational benefits, excluding Veterans' Administration contributory
  benefits,' and inserting in lieu thereof `the student's total veterans
  educational benefits'.
  (2) Section 411C(c)(1)(C) of the Act is amended by striking out `one-half
  of the student's total veterans educational benefits, excluding Veterans'
  Administration contributory benefits,' and inserting in lieu thereof
  `the student's total veterans educational benefits'.
  (3) Section 411D(c)(1)(C) of the Act is further amended by striking out
  `one-half of the student's total veterans educational benefits, excluding
  Veterans' Administration contributory benefits,' and inserting in lieu
  thereof `the student's total veterans educational benefits'.
  (b) GENERAL NEEDS ANALYSIS- (1) Section 475(a) of the Act is amended--
  (A) by striking out `and' at the end of paragraph (2);
  (B) by striking out the period at the end of paragraph (3) and inserting
  in lieu thereof a semicolon and the word `and'; and
  (C) by adding at the end thereof the following new paragraph:
  `(4) any veterans educational benefits paid because of enrollment in
  a postsecondary institution, including (but not limited to) benefits
  received under chapters 105, 106, and 107 of title 10, and chapters 30,
  31, 32, 34, and 35 of title 38, United States Code.'.
  (2) Section 476(b)(1)(D) of the Act is amended by striking out `plus the
  amount of veterans' benefits paid during the award period under chapters
  32, 34, and 35 of title 28, United States Code'.
  (3) Section 477(a) of the Act is amended--
  (A) by inserting `and' at the end of subparagraph (A) of paragraph (1);
  (B) by striking out `and' at the end of subparagraph (B) of paragraph (1);
  (C) by striking out subparagraph (C) of paragraph (1);
  (D) by striking out `and' at the end of paragraph (2);
  (E) by adding at the end of paragraph (3) the word `and'; and
  (F) by adding at the end thereof the following new paragraph:
  `(4) adding any veterans educational benefits paid because of enrollment
  in a postsecondary institution, including (but not limited to) benefits
  received under chapters 106 and 107 of title 10, and chapters 30, 31, 32,
  34, and 35 of title 38, United States Code.'.
  (c) CONFORMING AMENDMENT- Section 428(a)(2)(C)(i) of the Act is amended
  by striking out `and any amount paid to the student under chapters 32,
  34, and 35 of title 38, United States Code'.
SEC. 706. TREATMENT OF NONLIQUID ASSETS.
  (a) PELL GRANT NEEDS ANALYSIS- Section 411F(2) of the Act is amended--
  (1) by inserting `(A)' after `(2)'; and
  (2) by adding at the end thereof the following:
  `(B) For academic year 1991-1992 and succeeding academic years, the term
  `assets' shall not not include, in the case of a family with an adjusted
  gross income which is equal to or less than $30,000, the net value of--
  `(i) the family's principal place of residence; or
  `(ii) a farm on which the family resides.
  (b) GENERAL NEED ANALYSIS- Section 480(g) of the Act is amended--
  (1) by inserting `(1)' after `ASSETS- '; and
  (2) by adding at the end thereof the following:
  `(2) For academic year 1991-1992 and succeeding academic years, the term
  `assets' shall not include, in the case of a family with an adjusted gross
  income which is equal to or less than $30,000, the net value of--
  `(A) the family's principal place of residence; or
  `(B) a farm on which the family resides.
TITLE VIII--OTHER HIGHER EDUCATION AMENDMENTS
SEC. 801. SUBSIDIZED EMPLOYMENT MODIFICATION UNDER WORKSTUDY.
  Section 443(b)(4) of the Higher Education Act of 1965 (hereafter in this
  title referred to as the `Act') is amended to read as follows:
  `(4) provide that for a student employed in a work-study program under this
  part, at the time income derived from any need-based employment (including
  non-working-study or both) is in excess of the determination of the amount
  of such student's need by more than $200, continued employment shall not
  be subsidized with funds appropriated under this part;'.
SEC. 802. STUDENT LOAN MARKETING ASSOCIATION AMENDMENTS.
  (a) ESTABLISHMENT- Section 439(b) of the Act is amended to read as follows:
  `(b) ESTABLISHMENT-
  `(1) IN GENERAL- There is hereby created a body corporate to be known as
  the Student Loan Marketing Association (hereinafter referred to as the
  `Association'). The Association shall have succession until dissolved. It
  shall maintain its principal office in the District of Columbia or the
  metropolitan area thereof and shall be deemed, for purposes of jurisdiction
  and venue in civil actions, to be a District of Columbia corporation. Offices
  may be established by the Association in such other place or places as it
  may deem necessary or appropriate for the conduct of its business.'.
  (b) DIRECTORS- Section 439(c) of the Act is amended to read as follows:
  `(c) BOARD OF DIRECTORS-
  `(1) COMPOSITION OF BOARD; CHAIRMAN- The Association shall have a Board of
  Directors (hereinafter in this section referred to as the `Board') which
  shall consist of 21 persons, 7 of whom shall be appointed by the President
  of the United States and shall be representative of the general public. The
  remaining 14 directors shall be elected by the common stockholders of the
  Association entitled to vote pursuant to subsection (e). Commencing with
  the annual shareholders meeting to be held in 1989--
  `(A) 7 of the elected directors shall be affiliated with an eligible
  institution, and
  `(B) 7 of the elected directors shall be affiliated with an eligible lender.
The President shall designate 1 of the directors to serve as Chairman.
  `(2) TERMS OF APPOINTED AND ELECTED MEMBERS- The directors appointed by
  the President shall serve at the pleasure of the President and until their
  successors have been appointed and have qualified. The remaining directors
  shall each be elected for a term ending on the date of the next annual
  meeting of the common stockholders of the Association, and shall serve until
  their successors have been elected and have qualified. Any appointive seat
  on the Board which becomes vacant shall be filled by appointment of the
  President. Any elective seat on the Board which becomes vacant after the
  annual election of the directors shall be filled by the Board, but only
  for the expired portion of the term.
  `(3) AFFILIATED MEMBERS- For the purpose of this subsection, the references
  to a director `affiliated with an eligible institution' or a director
  `affiliated with an eligible lender' means an individual who is, or within
  5 years of election to the Board has been, an employee, officer, director,
  or similar official of--
  `(A) an eligible institution or an eligible lender;
  `(B) an association whose members consist primarily of eligible institutions
  or eligible lenders; or
  `(C) a State agency, authority instrumentality, commission, or similar
  institution, the primary purpose of which relates to educational matters
  or banking matters.
  `(4) MEETINGS AND FUNCTIONS OF THE BOARD- The Board shall meet at the call
  of its Chairman, but at least semiannually. The Board shall determine the
  general policies which shall govern the operations of the Association. The
  Chairman of the Board shall, with the approval of the Board, select, appoint,
  and compensate qualified persons to fill the offices as may be provided for
  in the bylaws, with such functions, powers, and duties as may be prescribed
  by the bylaws or by the Board, and such persons shall be the officers of
  the Association and shall discharge all such functions, powers, and duties.'.
  (c) STOCK- Section 439(f) of the Act is amended to read as follows:
  `(f) STOCK OF THE ASSOCIATION-
  `(1) VOTING COMMON STOCK- The Association shall have voting common stock
  having such par value as may be fixed by its Board from time to time. Each
  share of voting common stock shall be entitled to one vote with rights of
  cumulative voting at all elections of directors.
  `(2) NUMBER OF SHARES; TRANSFERABILITY- The maximum number of shares of
  voting common stock that the Association may issue and have outstanding
  at any one time shall be fixed by the Board from time to time. Any voting
  common stock issued shall be fully transferable, except that, as to the
  Association, it shall be transferred only on the books of the Association.
  `(3) DIVIDENDS- To the extent that net income is earned and realized,
  subject to subsection (g)(2), dividends may be declared on voting common
  stock by the Board. Such dividends as may be declared by the Board shall be
  paid to the holders of outstanding shares of voting common stock, except
  that no such dividends shall be payable with respect to any share which
  has been called for redemption past the effective date of such call.
  `(4) SINGLE CLASS OF VOTING COMMON STOCK- As of the effective date of
  the Student Loan Marketing Association Amendments of 1989, all of the
  previously authorized shares of voting common stock and nonvoting common
  stock of the Association shall be converted to shares of a single class of
  voting common stock on a share-for-share basis, without any further action
  on the part of the Association or any holder. Each outstanding certificate
  for voting or nonvoting common stock shall evidence ownership of the same
  number of shares of voting stock into which it is converted. All preexisting
  rights and obligations with respect to any class of common stock of the
  Association shall be deemed to be rights and obligations with respect to
  such converted shares.'.
  (d) SHORT TITLE- This section may be cited as the `Student Loan Marketing
  Association Amendments of 1989'.
SEC. 803. FORMS AND REGULATIONS.
  (a) FINANCIAL AID APPLICATION PREPARER- Section 483 of the Act is amended
  by inserting the following new subsection at the end thereof:
  `(g) Any financial aid application required to be made under subpart 1
  of part A of this title or part B or this title shall include the name,
  signature, address, social security number, and organizational affiliation
  of the preparer of such financial aid application.
  (b) NOTICE OF FEDERAL STUDENT AID- Section 483(f) of the Act is amended
  to read as follows:
  `(f) NOTICE OF FEDERAL STUDENT AID RECEIPT- Each eligible institution shall
  provide to each recipient of assistance under this title (except assistance
  received under subparts 4, 5, and 8 of part A) a statement listing the
  estimated student assistance received by the recipient, and specifying
  the estimated amount and type of assistance awarded under this title and
  specifically indicating that such aid is federally supported assistance.'.
SEC. 804. LENDER OF LAST RESORT.
  Section 428(j) of the Act is amended by adding at the end thereof the
  following: `Each State guaranty agency shall ensure that there is a lender
  of last resort in its State. The lender of last resort shall process loan
  applications of students enrolled in an eligible institution within 30
  days after such application has been filed. The lender of last resort shall
  make loans to any eligible applicant attending an eligible institution.'.
SEC. 805. PERKINS LOAN PROGRAM AMENDMENT.
  Section 462(c)(3) of the Act is amended--
  (1) by redesignating clause (B) and (C) as clause (C) and (D); and
  (2) by inserting after clause (A) the following new clause:
  `(B) 75 percent of the cash on hand at the institution under the program
  authorized by this part for the second year preceding the beginning of
  the award period;'.
SEC. 806. ELIGIBILITY FOR EDUCATION PROGRAMS.
  (a) HIGHER EDUCATION- Section 484 of the Act is amended by adding a new
  subsection (k) at the end thereof:
  `(k) STUDENTS ATTENDING INSTITUTIONS IN THE FREELY ASSOCIATED STATES AND
  ELIGIBILITY FOR TRIO PROGRAMS- Notwithstanding any other provision of law,
  a student who meets the requirements of paragraph (a)(5) of this section
  or who is a resident of the freely associated states, and who attends
  a public or nonprofit institution of higher education located in any of
  the freely associated states rather than a State, shall be eligible, if
  otherwise qualified, for assistance under subparts 1, 2, or 4 of part A
  or part C of this title.
  (b) TERRITORIAL TEACHER TRAINING ASSISTANCE PROGRAM- Section 4502 of the
  Elementary and Secondary Education Act of 1965 is amended by striking `the
  Northern Mariana Islands, and the Trust Territory of the Pacific Islands'
  each place is appears and inserting in lieu thereof `the Commonwealth of
  the Northern Mariana Islands, Palau, the Republic of the Marshall Islands,
  and the Federated States of Micronesia.'.
SEC. 807. CLERICAL AND TECHNICAL AMENDMENTS TO THE HIGHER EDUCATION ACT
OF 1965.
  The Higher Education Act of 1965 is further amended--
  (1) in section 312(c)(2) (20 U.S.C. 1058(c)(2)), by striking `second'
  the second place it appears and inserting `the second such';
  (2) in section 332(b)(5) (20 U.S.C. 1065(b)(5)), by striking out `year'
  the first place it appears;
  (3) in section 411B(g)(5)(B) (20 U.S.C. 1070a-2(g)(5)(B))--
  (A) by striking out `effective family income' each place it appears and
  inserting `discretionary income'; and
  (B) by striking out `subsection (d)' and inserting `subsection (f)';
  (4) in section 411C(f)(5)(B) (20 U.S.C. 1070a-3(f)(5)(B)), by striking out
  `effective family income' and inserting `discretionary income';
  (5) in section 411D(f) (20 U.S.C. 1070a-4(f))--
  (A) by striking out `effective family income' in paragraph (1) and inserting
  `discretionary income'; and
  (B) by striking out `subsection (c)' each place it appears in paragraph
  (1) and (2) and inserting `subsection (e)';
  (6) in section 411F(2) (20 U.S.C. 1070a-6(2)), by striking out `including
  amount' and inserting `including amounts';
  (7) in section 411F(9)(B) (20 U.S.C. 1070a-6(9)(B)), by striking out
  `Student' and inserting `student';
  (8) in section 413D(d)(3)(C) (20 U.S.C. 1070b-2(d)(3)(C)), by striking out
  `three-fourths in' and inserting `three-fourths of';
  (9) in section 427(a)(2)(G)(i) (20 U.S.C. 1077(a)(2)(G)(i)); by striking
  out `system,' and inserting `system';
  (10) in section 428C(c)(3)(A) (20 U.S.C. 1078-3(c)(3)(A)), by inserting
  `be' before `equal to';
  (11) in section 428E(a)(1) (20 U.S.C. 1078-5(1))--
  (A) by inserting `(A)' after `except that' the first place is appears; and
  (B) by striking out `except that' the second place it appears and inserting
  `, and (B)';
  (12) in section 435(c)(1) (20 U.S.C. 1085(c)(1)), by striking out `section
  481(d)' and inserting `section 484(d)';
  (13) in section 435(d)(2) (20 U.S.C. 1085(d)(2))--
  (A) by striking out `institutions' in subparagraph (C) and inserting
  `institution'; and
  (B) by indenting the matter following subparagraph (D) two spaces;
  (14) in section 435(d)(3) (20 U.S.C. 1085(d)(3)), by striking out `section
  435(o)' and inserting `subsection (l) of this section';
  (15) in the last sentence of section 442(e)(2) by striking `section 447(c)'
  and inserting `section 442(c)';
  (16) in section 454(a)(3)(C) (20 U.S.C. 1087d(a)(3)(C)), by striking out
  `fourth and fifth' and inserting `fourth or fifth';
  (17) in sections 462(a)(1) and 462(a)(2)(D) (20 U.S.C. 1087bb(a)(1),
  (a)(2)(D)), by striking out `institution which' and inserting `institution';
  (18) in section 464(c)(2)(A)(iv) (20 U.S.C. 1087dd(c)(2)(A)(iv)), by
  inserting `Service' after `Volunteer';
  (19) in section 465(a)(2)(D) (20 U.S.C. 1087ee(a)(2)(D)), by striking out
  `services' and inserting `service';
  (20) in the table contained in section 475(c)(2) (20 U.S.C. 1087oo(c)(2))--
  (A) by striking out `less than $15,000 or' and inserting `less than
  $15,000'; and
  (B) by striking out `$15,000 more' and inserting `$15,000 or more';
  (21) in the table contained in section 475(c)(4) (20 U.S.C. 1087oo(c)(4))--
  (A) by striking out `substract' and inserting `subtract'; and
  (B) by striking out `1,430' and inserting `$1,430';
  (22) in section 475(e) (20 U.S.C. 1087oo(e)), by striking out `section 479'
  and inserting `section 478';
  (23) in the table contained in section 477(b)(4) (20 U.S.C. 1087qq(b)(4)),
  by striking out `1,430' and inserting `$1,430';
  (24) in the last sentence of section 481(b) (20 U.S.C. 1088(b)), by striking
  out `section 413(e)' and inserting `section 435(b)';
  (25) in the last sentence of section 483(a)(1) (20 U.S.C. 1090(a)(1)),
  by striking out `that is' and inserting `that are';
  (26) in section 491(h)(1) (20 U.S.C. 1098(h)(1)), by striking out `subtitle
  III' and inserting `subchapter III';
  (27) in section 525(g) (20 U.S.C. 1105d(g)), by striking out `subpart'
  and inserting `part';
  (28) in section 557 (20 U.S.C. 1111f), by striking out `part B of this
  title' and inserting `part B of title IV of this Act';
  (29) in section 558(a)(6) (20 U.S.C. 1111g(a)(6)), by striking out the
  comma after `preschool';
  (30) in section 571(g) (20 U.S.C. 1115(g)), by striking out `subpart'
  each place it appears and inserting `part';
  (31) in section 622(a)(6) (20 U.S.C. 1132(a)(6)), by striking out `language
  an area studies' and inserting `language and area studies';
  (32) in section 762(a) (20 U.S.C. 1132g-2(a)), by striking out `Secretary
  notwithstanding' and inserting `Secretary, notwithstanding';
  (33) in section 762(h) (20 U.S.C. 1132g-2(h)), by striking out
  `subcontractors or any project' and inserting `subcontractors on any
  project';
  (34) in section 764(b)(3)(B) (20 U.S.C. 1132g-3(b)(3)(B)), by striking out
  `anyone' and inserting `any one';
  (35) in section 764(e) (20 U.S.C. 1132g-3(e)), by striking out `member'
  and inserting `members';
  (36) in section 802(d)(1)(B) (20 U.S.C. 1133a(d)(1)(B)), by striking out
  `has demonstrated' and inserting a comma and `as demonstrated';
  (37) in section 942(b)(2) (20 U.S.C. 1134m(b)(2)), by inserting a period
  at the end thereof;
  (38) in section 1045(a) (20 U.S.C. 1135d-4(a)), by striking out `sexual,
  geographic,' and inserting `gender, geography,'; and
  (39) in section 1204(a) (20 U.S.C. 1144a(a)), by striking out `Trust
  Territories of the Pacific Islands, and the Northern Mariana Islands'
  and inserting `Commonwealth of the Northern Mariana Islands Palau, and,
  subject to the provisions of Public Law 99-239, the Federated States of
  Micronesia, and the Republic of the Marshall Islands.'.
TITLE IX--WE THE PEOPLE . . . THE CITIZEN AND THE CONSTITUTION
SEC. 901. WE THE PEOPLE . . . THE CITIZEN AND CONSTITUTION.
  Part F of title IV of the Elementary and Secondary Education Act of 1965
  is amended by--
  (1) redesignating section 4607 as section 4608,
  (2) inserting after section 4606 the following new section:
  `SECTION 4607- We the People . . . The Citizen and the Constitution.
  `(a) GENERAL AUTHORITY- (1) The Secretary shall, in accordance with
  the provisions of this section, carry out a program entitled `We the
  People . . . The Citizen and the Constitution' to educate students about
  the history and principles of the Constitution and Bill of Rights and to
  foster civic competence and civil responsibility.
  `(2) The education program authorized by this section shall continue and
  expand the educational activities of the National Bicentennial Competition
  of the Constitution and Bill of Rights administered by the Center for
  Civic Education.
  `(3) The Secretary is authorized to contract with the Center for Civic
  Education to carry out the provisions of this section.
  `(b) PROGRAM CONTENT- The education program authorized by this section
  shall provide--
  `(A) a course of instruction on the basic principles of our constitutional
  democracy and the history of the Constitution and Bill of Rights.
  `(B) school and community simulated congressional hearings following the
  course of study at the request of participating schools.
  `(C) an annual competition of simulated congressional hearings at the
  congressional district, state, and national level for secondary students
  who wish to participate in such program.
  `(c) PROGRAM PARTICIPANTS- The education program authorized by this section
  shall be made available to public and private elementary and secondary
  schools in the 435 congressional districts, Puerto Rico, the Virgin Islands,
  Guam, American Samoa, and the District of Columbia.
  `(d) SPECIAL RULE- Funds provided under this section may be used for the
  advanced training of teachers about the Constitution and Bill of Rights
  after the provisions of subsection (b) have been implemented.
  `(e) AUTHORIZATION OF APPROPRATIONS- There are authorized to be appropriated
  $5,000,000 for fiscal year 1991 and such sums as may be necessary for each of
  the fiscal years 1992 and 1993 to carry out the provisions of this section.'.
TITLE X--NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS
SEC. 1001. SHORT TITLE.
  This title may be cited as the `National Board for Professional Teaching
  Standards Act of 1989'.
SEC. 1002. FINDINGS AND PURPOSES.
  (a) FINDINGS- The Congress finds that--
  (1) the economic well-being and national security of the United States
  depends on efforts to strengthen the educational system to provide all
  children with an education which will ensure a well-educated workforce;
  (2) improved teaching is central to the goal of ensuring a well-educated
  workforce;
  (3) incentives to enhance the professionalism and status of teaching
  can be provided through the development and promulgation of voluntary
  standards of professional certification that are rigorous and unbiased,
  that complement and support State licensing practices and recognize the
  diversity of American society;
  (4) the National Board for Professional Teaching Standards, a private
  nonprofit organization has been created to establish such voluntary
  standards and a significant initial investment in research and development
  from non-Federal sources will be required to create such a system of
  professional certification; and
  (5) the Federal Government has played an active role in funding vital
  educational research and can continue to support this national effort by
  providing limited but essential support for critical research activities.
  (b) PURPOSE- It is the purpose of this Act to provide financial assistance to
  the National Board for Professional Teaching Standards to enable the board
  to conduct independent research and development related to the establishment
  of national, voluntary professional standards and assessment methods for
  the teaching profession.
SEC. 1003. DEFINITIONS.
  For the purpose of this Act--
  (1) The term `Board' means the National Board for Professional Teaching
  Standards.
  (2) The term `Committee' means the Research and Advisory Committee
  established pursuant to section 1005 of this Act.
  (3) The term `elementary school' has the same meaning given that term in
  section 1471(8) of the Elementary and Secondary Education Act of 1965.
  (4) The term `secondary school' has the same meaning given that term in
  section 1471(21) of the Elementary and Secondary Education Act of 1965.
  (5) The term `Secretary' means the Secretary of Education.
SEC. 1004. PROGRAM AUTHORIZATION.
  (a) PROGRAM AUTHORIZED- From sums appropriated under subsection (b) in
  any fiscal year, the Secretary is authorized and directed, in accordance
  with this Act, to provide financial assistance to the National Board for
  Professional Teaching Standards, in order to pay the Federal share of the
  costs of the activities described in section 1006.
  (b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated
  $25,000,000 for the period beginning October 1, 1989, and ending September
  30, 1993 to carry out the provisions of this title.
  (c) TERMS AND CONDITIONS- (1) No financial assistance may be made available
  under this Act except upon an application as required by section 1007.
  (2) No financial assistance may be made available under this Act unless
  the Secretary determines that--
  (A) the Board will comply with the provisions of this Act;
  (B) the Board will use the Federal funds only for research and development
  activities in accordance with section 1006 and such teacher assessment
  and certification procedures will be free from racial, cultural, gender
  or regional bias;
  (C) the Board--
  (i) will widely disseminate for review and comment announcements of
  specific research projects to be conducted with Federal funds, including
  a description of the goals and focus of the specific project involved and
  the specific merit review procedures and evaluation criteria to be used
  in the competitive award process, and
  (ii) will send such announcements to the Secretary of Education, the
  Director of the National Science Foundation, the National Research Council,
  and the educational research community.
  (D) the Secretary, pursuant to an arrangement with the Board, will pubish the
  announcement described in subparagraph (C) in the Federal Register (or such
  other publication deemed appropriate by the Secretary) and in publications
  of general circulation designed to disseminate such announcements widely
  to the educational research community;
  (E) the Board will, after offering any interested party an opportunity to
  make comment upon, and take exception to, the projects contained in the
  announcements described in subparagraph (C) for a 30-day period following
  publication, and after reconsidering any project which comment is made
  or to which exception is taken, through the Secretary issue a request
  for proposals in the Federal Register (or such other publication deemed
  appropriate by the Secretary) containing any revised project information;
  (F) the Board will make awards of Federal funds competitively on the basis
  of merit, and, in the award process, the Board will select, to the extent
  practicable consistent with standards of excellence--
  (i) a broad range of institutions associated with educational research
  and development; and
  (ii) individuals who are broadly representative of the educational research
  and teaching communities with expertise in the specific area of research
  and development in question;
  (G) the Board will adopt audit practices customarily applied to nonprofit
  private organizations and will comply with section 1009(c);
  (H) the Board will not use Federal funds to meet the administrative and
  operating expenses of the Board;
  (I) the Board will submit an annual report to Congress in accordance with
  the provisions of section 1009(a); and
  (J) the Board will, upon request, disseminate to States, local educational
  agencies, or other public educational entities the results of any research
  or research project produced with funds authorized by this Act, upon the
  payment of the cost of reproducing the appropriate material.
  (d) AVAILABILITY OF FUNDS- (1) Notwithstanding any other provision of
  law, funds appropriated to carry out this Act shall remain available
  for obligation and expenditure until the end of the second fiscal year
  succeeding the fiscal year for which the funds were appropriated.
  (2) No funds shall be made available to the Board after September 30,
  1993, except as authorized by paragraph (1) of this subsection.
SEC. 1005. RESEARCH AND DEVELOPMENT ADVISORY COMMITTEE.
  (a) ESTABLISHMENT- The Board shall establish a Research and Development
  Advisory Committee composed of ten recognized scholars and experts in
  teaching, assessment, and other relevant fields. In carrying out the
  previous sentence the Board shall appoint two individuals selected by the
  Secretary. The Board shall consult with the Secretary of Education, the
  Director of the National Science Foundation, the National Research Council,
  and the educational research community on the appointment of other Members
  to the Committee.
  (b) FUNCTIONS- The Committee shall advise the Board on the design and
  execution of its overall research and development strategy, including
  procedures to assure compliance with the requirements of this Act. The
  procedures shall include--
  (1) an outline of specific research and development agenda and activities
  to be conducted with the Federal funds; and
  (2) provisions to ensure compliance with the open competition and merit
  review requirements of this Act for proposals and projects assisted under
  this Act.
SEC. 1006. AUTHORIZED ACTIVITIES.
  (a) IN GENERAL- Federal funds received under this Act may only be used for
  research and development activities directly related to the development
  of teacher assessment and certification procedures for elementary and
  secondary school teachers.
  (b) PRIORITIES- (1) The Board shall give priority to research and development
  activities in--
  (A) mathematics;
  (B) the sciences;
  (C) foreign languages; and
  (D) literacy, including the ability to read, write and analyze.
  (2) The Board shall give priority to research and development activities
  for the certification of elementary and secondary school teachers and the
  need and ability of such teachers to teach special educational populations,
  including--
  (A) limited English proficient children;
  (B) gifted and talented children;
  (C) handicapped children; and
  (D) economically and educationally disadvantaged children.
SEC. 1007. APPLICATION.
  (a) IN GENERAL- The Board shall submit applications to the Secretary at
  such time and in such manner as the Secretary may reasonably require. Each
  such application shall--
  (1) describe the activities for which assistance is sought; and
  (2) provide assurances that the non-Federal share of the cost of activities
  of the Board is paid from non-Federal sources, together with a description
  of the manner in which the Board will comply with the requirements of
  this paragraph.
  (b) APPROVAL- The Secretary shall approve an application unless such
  application fails to comply with the provisions of this Act.
SEC. 1008. FEDERAL SHARE.
  (a) IN GENERAL- The Secretary shall pay to the Board the Federal share
  of the costs of the activities of the Board for the period for which the
  application is approved under section 1007.
  (b) AMOUNT OF FEDERAL SHARE- The Federal share shall be 50 percent of the
  costs of the activities described in section 1006.
SEC. 1009. REPORTS AND AUDITING PROVISION.
  (a) NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS REPORT- (1) The Board
  shall submit an annual report to the appropriate committees of the Congress
  not later than December 31 of 1990, and each succeeding year thereafter
  for any fiscal year in which Federal funds are expended pursuant to this
  Act. The Board shall disseminate the report for review and comment to the
  Department of Education, the National Science Foundation, the National
  Research Council, and the education research community. The report shall--
  (A) include a detailed financial statement and a report of the audit
  practices described in section 4(c)(2)(G);
  (B) include a description of the general procedure to assure compliance
  with the requirements of this Act as required in section 1006; and
  (C) provide a comprehensive and detailed description of the Board's agenda,
  activities, and planned activities for the preceding and succeeding fiscal
  years, including --
  (i) the Board's overall research and development program and activities;
  (ii) the specific research and development projects and activities conducted
  with Federal funds during the preceding fiscal year, including--
  (I) a description of the goals and methodology of the project;
  (II) a description and assessment of the findings (or status and preliminary
  findings if project is not yet completed);
  (III) a description of the competitive bidding process, the merit review
  procedures, and the evaluation criteria used to award project funds; and
  (IV) a description of the Board's plans for dissemination of the findings
  described in clause (ii);
  (iii) the specific research and development projects and activities planned
  to be conducted with Federal funds during the succeeding fiscal year,
  including the goals and methodologies to be used; and
  (iv) a listing of available publications of the Board, including publications
  related to policies, standards and general information, research reports,
  and commissioned papers of the Board.
  (2) The first annual report required by this subsection shall include
  a description of the Board's research and development agenda for the
  succeeding 5-year period. Such first report shall include to the maximum
  extent practicable, a description of specific research and development
  projects and activities, and the goals and methodologies of such projects
  and activities
  (b) ADDITIONAL REPORTS- The Department of Education, the National
  Science foundation, and the National Research Council shall report to
  the appropriate committees of the Congress on the compliance of the Board
  with the requirements of this Act not later than 30 days after the Board
  submits its annual report pursuant to subsection (a).
  (c) AUDITING PROVISION- The Comptroller General of the United States, and
  any of his authorized representatives, shall have access, for the purpose
  of audit and examination, to any books, documents, papers, and records
  of the Board, and to any recipient of the Board, that is pertinent to the
  sums received and disbursed under this Act.
SEC. 1010. CONSTRUCTION.
  Nothing in this Act shall be construed to--
  (1) establish a preferred national curriculum or preferred teaching
  methodology for elementary and secondary school instruction;
  (2) infringe upon the rights and responsibilities of the States to license
  elementary and secondary school teachers;
  (3) provide an individual certified by the Board with a right of action
  against a State, local educational agency, or other public educational entity
  for any decisions related to hiring, promotion, retention or dismissal; or
  (4) authorize the Secretary to exercise supervision or control over the
  research program, standards, assessment practices, administration, or
  staffing policies of the Board.
TITLE XI--MIDDLE SCHOOL TEACHER TRAINING DEMONSTRATIONS
SEC. 1101. SHORT TITLE.
  This title may be cited as the `Middle School Teacher Training Demonstration
  Program Act of 1989'.
SEC. 1102. PROGRAM AUTHORIZED.
  The Secretary is authorized to make grants to institutions of higher
  education for the development of innovative models related to the specialized
  training of teachers of grades 6 through 9.
SEC. 1103. AUTHORIZATION OF APPROPRIATIONS.
  There are authorized to be appropriated $25,000,000 for fiscal year 1991
  to carry out the provisions of this title.
TITLE XII--PRESIDENT'S COUNCIL ON ACADEMIC EXCELLENCE
SECTION 1201. SHORT TITLE.
  This title may be cited as the `President's Council on Academic Excellence'.
SEC. 1202. STATEMENT OF PURPOSE.
  It is the purpose of this title to establish a President's Council on
  Academic Excellence to define the components or courses of an academically
  rigorous secondary school curriculum and to develop and present a medal or
  other suitable award to all secondary students who complete the curriculum.
SEC. 1203. COUNCIL ESTABLISHED.
  There is established a President's Council on Academic Excellence
  (hereinafter referred to as the `Council').
SEC. 1204. DUTIES OF THE COUNCIL.
  (1) The Council shall--
  (A) enlist the active support and assistance of individual citizens, civic
  groups, private enterprise, voluntary organizations, the media, educators,
  and others in efforts to promote and improve American education and to
  encourage the pursuit of academic excellence in our secondary schools;
  (B) initiate programs to inform the general public of the importance of
  academic excellence and the link which exists between academic excellence
  and international competitiveness;
  (C) encourage State and local governments, private enterprise, and the
  media to recognize and honor academic excellence;
  (D) encourage students to undertake an academically rigorous course of study;
  (E) develop cooperative programs with professional societies to encourage
  the pursuit of academic excellence;
  (F) stimulate and encourage research on academic excellence and achievement;
  (G) assist educational agencies at all levels in developing high quality,
  innovative, educational programs which emphasize the importance of academic
  excellence; and
  (H) encourage and cosponsor programs with public and private organizations
  which support and promote academic excellence.
  (2) In addition to academic coursework, the Council may elect to
  include other activities such as school and community service, athletic
  participation, and artistic achievement in defining the components of an
  academically rigorous secondary school curriculum.
  (3) The Council may adopt achievement standards that might be used to
  document academic excellence.
SEC. 1205. SPECIAL RULE.
  The Council shall emphasize that the Council does not intend to establish a
  national curriculum, nor a national secondary school diploma; rather, the
  Council intends to recognize the successful completion of an academically
  demanding course of study.
SEC. 1206. MEMBERSHIP AND LOCATION.
  (a) MEMBERSHIP- The Council shall consist of--
  (1) 11 members selected by the President;
  (2) 5 members selected by the Senate Majority Leader; and
  (3) 5 members selected by the Speaker of House.
  (b) VACANCIES- A vacancy in the Council shall be filled in the same manner
  as the original appointment was made. A vacancy in the Council shall not
  affect the powers of the Council.
  (c) CHAIRPERSON- The members of the Council shall elect a Chairperson from
  among the members of the Council.
  (d) COMPENSATION- Members of the Council shall serve without compensation.
  (e) TRAVEL- While away from their home or regular places of business in the
  performance of duties for the Council, all members of the Council shall
  be allowed travel expenses, including per diem in lieu of subsistence,
  at a rate established by the Council not to exceed the rates authorized
  for employees of agencies under section 5702 and 5703 of title 5, United
  States Code.
  (f) LOCATION- The Council shall be located in Washington, D.C.
SEC. 1207. COMMISSION STAFF.
  (a) EXECUTIVE DIRECTOR- The Council shall appoint an Executive Director who
  shall be compensated at a rate established by the Council not to exceed
  the rate of basic pay prescribed for level V of the Executive Schedule
  under section 5316 of title 5, United States Code.
  (b) ADDITIONAL PERSONNEL- With the approval of the Council, the Executive
  Director may appoint and fix the compensation of such additional personnel
  as the Executive Director considers necessary to carry out the duties of
  the Council.
SEC. 1208. AUTHORIZATION OF APPROPRIATIONS.
  There are authorized to be appropriated $5,000,000 for fiscal year 1991
  and such sums as may be necessary for each fiscal year thereafter to carry
  out the provisions of this title.
TITLE XIII--EFFECTIVE DATES
SEC. 1301. EFFECTIVE DATE RULE.
  (a) GENERAL RULE- Except as otherwise provided, the amendments made by
  this Act shall be effective upon the date of enactment of this Act.
  (b) SPECIAL RULE- (1) The amendments made by sections 603, 605, 606,
  and 803(b) shall take effect for award year 1990-1991 and thereafter.
  (2) The amendments made by title VII and section 615, 801, and 803(a)
  shall take effect for award year 1991-1992 and thereafter.
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