H.R. 5656 — Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5656 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5656

 Making appropriations for the Departments of Labor, Health and Human 
   Services, and Education, and related agencies for the fiscal year 
           ending September 30, 2001, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 14, 2000

  Mr. Porter introduced the following bill; which was referred to the 
                      Committee on Appropriations

_______________________________________________________________________

                                 A BILL


 
 Making appropriations for the Departments of Labor, Health and Human 
   Services, and Education, and related agencies for the fiscal year 
           ending September 30, 2001, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the Departments of Labor, Health and Human Services, 
and Education, and related agencies for the fiscal year ending 
September 30, 2001, and for other purposes, namely:

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

    For necessary expenses of the Workforce Investment Act, including 
the purchase and hire of passenger motor vehicles, the construction, 
alteration, and repair of buildings and other facilities, and the 
purchase of real property for training centers as authorized by the 
Workforce Investment Act; the Women in Apprenticeship and 
Nontraditional Occupations Act; and the National Skill Standards Act of 
1994; $3,207,805,000 plus reimbursements, of which $1,808,465,000 is 
available for obligation for the period July 1, 2001 through June 30, 
2002; of which $1,377,965,000 is available for obligation for the 
period April 1, 2001 through June 30, 2002, including $1,102,965,000 to 
carry out chapter 4 of the Workforce Investment Act and $275,000,000 to 
carry out section 169 of such Act; and of which $20,375,000 is 
available for the period July 1, 2001 through June 30, 2004 for 
necessary expenses of construction, rehabilitation, and acquisition of 
Job Corps centers: Provided, That $9,098,000 shall be for carrying out 
section 172 of the Workforce Investment Act, and $3,500,000 shall be 
for carrying out the National Skills Standards Act of 1994: Provided 
further, That no funds from any other appropriation shall be used to 
provide meal services at or for Job Corps centers: Provided further, 
That funds provided to carry out section 171(d) of such Act may be used 
for demonstration projects that provide assistance to new entrants in 
the workforce and incumbent workers: Provided further, That funding 
provided to carry out projects under section 171 of the Workforce 
Investment Act of 1998 that are identified in the Conference Agreement, 
shall not be subject to the requirements of section 171(b)(2)(B) of 
such Act, the requirements of section 171(c)(4)(D) of such Act, or the 
joint funding requirements of sections 171(b)(2)(A) and 171(c)(4)(A) of 
such Act: Provided further, That funding appropriated herein for 
Dislocated Worker Employment and Training Activities under section 
132(a)(2)(A) of the Workforce Investment Act of 1998 may be distributed 
for Dislocated Worker Projects under section 171(d) of the Act without 
regard to the 10 percent limitation contained in section 171(d) of the 
Act: Provided further, That of the funds made available for Job Corps 
operating expenses in the Department of Labor Appropriations Act, 2000, 
as enacted by section 1000(a)(4) of Public Law 106-113, $586,487 shall 
be paid to the city of Vergennes, Vermont in settlement of the city's 
claim: Provided further, That $4,600,000 provided herein for dislocated 
worker employment and training activities shall be made available to 
the New Mexico Telecommunications Call Center Training Consortium for 
training in telecommunications-related occupations.
    For necessary expenses of the Workforce Investment Act, including 
the purchase and hire of passenger motor vehicles, the construction, 
alteration, and repair of buildings and other facilities, and the 
purchase of real property for training centers as authorized by the 
Workforce Investment Act; $2,463,000,000 plus reimbursements, of which 
$2,363,000,000 is available for obligation for the period October 1, 
2001 through June 30, 2002, and of which $100,000,000 is available for 
the period October 1, 2001 through June 30, 2004, for necessary 
expenses of construction, rehabilitation, and acquisition of Job Corps 
centers.

            community service employment for older americans

    To carry out title V of the Older Americans Act of 1965, as 
amended, $440,200,000.

              federal unemployment benefits and allowances

    For payments during the current fiscal year of trade adjustment 
benefit payments and allowances under part I; and for training, 
allowances for job search and relocation, and related State 
administrative expenses under part II, subchapters B and D, chapter 2, 
title II of the Trade Act of 1974, as amended, $406,550,000, together 
with such amounts as may be necessary to be charged to the subsequent 
appropriation for payments for any period subsequent to September 15 of 
the current year.

     state unemployment insurance and employment service operations

    For authorized administrative expenses, $193,452,000, together with 
not to exceed $3,172,246,000 (including not to exceed $1,228,000 which 
may be used for amortization payments to States which had independent 
retirement plans in their State employment service agencies prior to 
1980), which may be expended from the Employment Security 
Administration account in the Unemployment Trust Fund including the 
cost of administering section 51 of the Internal Revenue Code of 1986, 
as amended, section 7(d) of the Wagner-Peyser Act, as amended, the 
Trade Act of 1974, as amended, the Immigration Act of 1990, and the 
Immigration and Nationality Act, as amended, and of which the sums 
available in the allocation for activities authorized by title III of 
the Social Security Act, as amended (42 U.S.C. 502-504), and the sums 
available in the allocation for necessary administrative expenses for 
carrying out 5 U.S.C. 8501-8523, shall be available for obligation by 
the States through December 31, 2001, except that funds used for 
automation acquisitions shall be available for obligation by the States 
through September 30, 2003; and of which $193,452,000, together with 
not to exceed $773,283,000 of the amount which may be expended from 
said trust fund, shall be available for obligation for the period July 
1, 2001 through June 30, 2002, to fund activities under the Act of June 
6, 1933, as amended, including the cost of penalty mail authorized 
under 39 U.S.C. 3202(a)(1)(E) made available to States in lieu of 
allotments for such purpose: Provided, That to the extent that the 
Average Weekly Insured Unemployment (AWIU) for fiscal year 2001 is 
projected by the Department of Labor to exceed 2,396,000, an additional 
$28,600,000 shall be available for obligation for every 100,000 
increase in the AWIU level (including a pro rata amount for any 
increment less than 100,000) from the Employment Security 
Administration Account of the Unemployment Trust Fund: Provided 
further, That funds appropriated in this Act which are used to 
establish a national one-stop career center system, or which are used 
to support the national activities of the Federal-State unemployment 
insurance programs, may be obligated in contracts, grants, or 
agreements with non-State entities: Provided further, That funds 
appropriated under this Act for activities authorized under the Wagner-
Peyser Act, as amended, and title III of the Social Security Act, may 
be used by the States to fund integrated Employment Service and 
Unemployment Insurance automation efforts, notwithstanding cost 
allocation principles prescribed under Office of Management and Budget 
Circular A-87.

        advances to the unemployment trust fund and other funds

    For repayable advances to the Unemployment Trust Fund as authorized 
by sections 905(d) and 1203 of the Social Security Act, as amended, and 
to the Black Lung Disability Trust Fund as authorized by section 
9501(c)(1) of the Internal Revenue Code of 1954, as amended; and for 
nonrepayable advances to the Unemployment Trust Fund as authorized by 
section 8509 of title 5, United States Code, and to the ``Federal 
unemployment benefits and allowances'' account, to remain available 
until September 30, 2002, $435,000,000.
    In addition, for making repayable advances to the Black Lung 
Disability Trust Fund in the current fiscal year after September 15, 
2001, for costs incurred by the Black Lung Disability Trust Fund in the 
current fiscal year, such sums as may be necessary.

                         program administration

    For expenses of administering employment and training programs, 
$110,651,000, including $6,431,000 to support up to 75 full-time 
equivalent staff, the majority of which will be term Federal 
appointments lasting no more than 1 year, to administer welfare-to-work 
grants, together with not to exceed $48,507,000, which may be expended 
from the Employment Security Administration account in the Unemployment 
Trust Fund.

              Pension and Welfare Benefits Administration

                         salaries and expenses

    For necessary expenses for the Pension and Welfare Benefits 
Administration, $107,832,000.

                  Pension Benefit Guaranty Corporation

               pension benefit guaranty corporation fund

    The Pension Benefit Guaranty Corporation is authorized to make such 
expenditures, including financial assistance authorized by section 104 
of Public Law 96-364, within limits of funds and borrowing authority 
available to such Corporation, and in accord with law, and to make such 
contracts and commitments without regard to fiscal year limitations as 
provided by section 104 of the Government Corporation Control Act, as 
amended (31 U.S.C. 9104), as may be necessary in carrying out the 
program through September 30, 2001, for such Corporation: Provided, 
That not to exceed $11,652,000 shall be available for administrative 
expenses of the Corporation: Provided further, That expenses of such 
Corporation in connection with the termination of pension plans, for 
the acquisition, protection or management, and investment of trust 
assets, and for benefits administration services shall be considered as 
nonadministrative expenses for the purposes hereof, and excluded from 
the above limitation.

                  Employment Standards Administration

                         salaries and expenses

    For necessary expenses for the Employment Standards Administration, 
including reimbursement to State, Federal, and local agencies and their 
employees for inspection services rendered, $361,491,000, together with 
$1,985,000 which may be expended from the Special Fund in accordance 
with sections 39(c), 44(d), and 44(j) of the Longshore and Harbor 
Workers' Compensation Act: Provided, That $2,000,000 shall be for the 
development of an alternative system for the electronic submission of 
reports required to be filed under the Labor-Management Reporting and 
Disclosure Act of 1959, as amended, and for a computer database of the 
information for each submission by whatever means, that is indexed and 
easily searchable by the public via the Internet: Provided further, 
That the Secretary of Labor is authorized to accept, retain, and spend, 
until expended, in the name of the Department of Labor, all sums of 
money ordered to be paid to the Secretary of Labor, in accordance with 
the terms of the Consent Judgment in Civil Action No. 91-0027 of the 
United States District Court for the District of the Northern Mariana 
Islands (May 21, 1992): Provided further, That the Secretary of Labor 
is authorized to establish and, in accordance with 31 U.S.C. 3302, 
collect and deposit in the Treasury fees for processing applications 
and issuing certificates under sections 11(d) and 14 of the Fair Labor 
Standards Act of 1938, as amended (29 U.S.C. 211(d) and 214) and for 
processing applications and issuing registrations under title I of the 
Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. 1801 
et seq.).

                            special benefits

                     (including transfer of funds)

    For the payment of compensation, benefits, and expenses (except 
administrative expenses) accruing during the current or any prior 
fiscal year authorized by title 5, chapter 81 of the United States 
Code; continuation of benefits as provided for under the heading 
``Civilian War Benefits'' in the Federal Security Agency Appropriation 
Act, 1947; the Employees' Compensation Commission Appropriation Act, 
1944; sections 4(c) and 5(f) of the War Claims Act of 1948 (50 U.S.C. 
App. 2012); and 50 percent of the additional compensation and benefits 
required by section 10(h) of the Longshore and Harbor Workers' 
Compensation Act, as amended, $56,000,000 together with such amounts as 
may be necessary to be charged to the subsequent year appropriation for 
the payment of compensation and other benefits for any period 
subsequent to August 15 of the current year: Provided, That amounts 
appropriated may be used under section 8104 of title 5, United States 
Code, by the Secretary of Labor to reimburse an employer, who is not 
the employer at the time of injury, for portions of the salary of a 
reemployed, disabled beneficiary: Provided further, That balances of 
reimbursements unobligated on September 30, 2000, shall remain 
available until expended for the payment of compensation, benefits, and 
expenses: Provided further, That in addition there shall be transferred 
to this appropriation from the Postal Service and from any other 
corporation or instrumentality required under section 8147(c) of title 
5, United States Code, to pay an amount for its fair share of the cost 
of administration, such sums as the Secretary determines to be the cost 
of administration for employees of such fair share entities through 
September 30, 2001: Provided further, That of those funds transferred 
to this account from the fair share entities to pay the cost of 
administration, $34,910,000 shall be made available to the Secretary as 
follows: (1) for the operation of and enhancement to the automated data 
processing systems, including document imaging, medical bill review, 
and periodic roll management, in support of Federal Employees' 
Compensation Act administration, $23,371,000; (2) for conversion to a 
paperless office, $7,005,000; (3) for communications redesign, 
$1,750,000; (4) for information technology maintenance and support, 
$2,784,000; and (5) the remaining funds shall be paid into the Treasury 
as miscellaneous receipts: Provided further, That the Secretary may 
require that any person filing a notice of injury or a claim for 
benefits under chapter 81 of title 5, United States Code, or 33 U.S.C. 
901 et seq., provide as part of such notice and claim, such identifying 
information (including Social Security account number) as such 
regulations may prescribe.

                    black lung disability trust fund

                     (including transfer of funds)

    For payments from the Black Lung Disability Trust Fund, 
$1,028,000,000, of which $975,343,000 shall be available until 
September 30, 2002, for payment of all benefits as authorized by 
section 9501(d)(1), (2), (4), and (7) of the Internal Revenue Code of 
1954, as amended, and interest on advances as authorized by section 
9501(c)(2) of that Act, and of which $30,393,000 shall be available for 
transfer to Employment Standards Administration, Salaries and Expenses, 
$21,590,000 for transfer to Departmental Management, Salaries and 
Expenses, $318,000 for transfer to Departmental Management, Office of 
Inspector General, and $356,000 for payment into miscellaneous receipts 
for the expenses of the Department of the Treasury, for expenses of 
operation and administration of the Black Lung Benefits program as 
authorized by section 9501(d)(5) of that Act: Provided, That, in 
addition, such amounts as may be necessary may be charged to the 
subsequent year appropriation for the payment of compensation, 
interest, or other benefits for any period subsequent to August 15 of 
the current year.

             Occupational Safety and Health Administration

                         salaries and expenses

    For necessary expenses for the Occupational Safety and Health 
Administration, $425,983,000, including not to exceed $88,493,000 which 
shall be the maximum amount available for grants to States under 
section 23(g) of the Occupational Safety and Health Act, which grants 
shall be no less than 50 percent of the costs of State occupational 
safety and health programs required to be incurred under plans approved 
by the Secretary under section 18 of the Occupational Safety and Health 
Act of 1970; and, in addition, notwithstanding 31 U.S.C. 3302, the 
Occupational Safety and Health Administration may retain up to $750,000 
per fiscal year of training institute course tuition fees, otherwise 
authorized by law to be collected, and may utilize such sums for 
occupational safety and health training and education grants: Provided, 
That, notwithstanding 31 U.S.C. 3302, the Secretary of Labor is 
authorized, during the fiscal year ending September 30, 2001, to 
collect and retain fees for services provided to Nationally Recognized 
Testing Laboratories, and may utilize such sums, in accordance with the 
provisions of 29 U.S.C. 9a, to administer national and international 
laboratory recognition programs that ensure the safety of equipment and 
products used by workers in the workplace: Provided further, That none 
of the funds appropriated under this paragraph shall be obligated or 
expended to prescribe, issue, administer, or enforce any standard, 
rule, regulation, or order under the Occupational Safety and Health Act 
of 1970 which is applicable to any person who is engaged in a farming 
operation which does not maintain a temporary labor camp and employs 10 
or fewer employees: Provided further, That no funds appropriated under 
this paragraph shall be obligated or expended to administer or enforce 
any standard, rule, regulation, or order under the Occupational Safety 
and Health Act of 1970 with respect to any employer of 10 or fewer 
employees who is included within a category having an occupational 
injury lost workday case rate, at the most precise Standard Industrial 
Classification Code for which such data are published, less than the 
national average rate as such rates are most recently published by the 
Secretary, acting through the Bureau of Labor Statistics, in accordance 
with section 24 of that Act (29 U.S.C. 673), except--
            (1) to provide, as authorized by such Act, consultation, 
        technical assistance, educational and training services, and to 
        conduct surveys and studies;
            (2) to conduct an inspection or investigation in response 
        to an employee complaint, to issue a citation for violations 
        found during such inspection, and to assess a penalty for 
        violations which are not corrected within a reasonable 
        abatement period and for any willful violations found;
            (3) to take any action authorized by such Act with respect 
        to imminent dangers;
            (4) to take any action authorized by such Act with respect 
        to health hazards;
            (5) to take any action authorized by such Act with respect 
        to a report of an employment accident which is fatal to one or 
        more employees or which results in hospitalization of two or 
        more employees, and to take any action pursuant to such 
        investigation authorized by such Act; and
            (6) to take any action authorized by such Act with respect 
        to complaints of discrimination against employees for 
        exercising rights under such Act:
Provided further, That the foregoing proviso shall not apply to any 
person who is engaged in a farming operation which does not maintain a 
temporary labor camp and employs 10 or fewer employees.

                 Mine Safety and Health Administration

                         salaries and expenses

    For necessary expenses for the Mine Safety and Health 
Administration, $246,747,000, including purchase and bestowal of 
certificates and trophies in connection with mine rescue and first-aid 
work, and the hire of passenger motor vehicles; including up to 
$1,000,000 for mine rescue and recovery activities, which shall be 
available only to the extent that fiscal year 2001 obligations for 
these activities exceed $1,000,000; in addition, not to exceed $750,000 
may be collected by the National Mine Health and Safety Academy for 
room, board, tuition, and the sale of training materials, otherwise 
authorized by law to be collected, to be available for mine safety and 
health education and training activities, notwithstanding 31 U.S.C. 
3302; and, in addition, the Mine Safety and Health Administration may 
retain up to $1,000,000 from fees collected for the approval and 
certification of equipment, materials, and explosives for use in mines, 
and may utilize such sums for such activities; the Secretary is 
authorized to accept lands, buildings, equipment, and other 
contributions from public and private sources and to prosecute projects 
in cooperation with other agencies, Federal, State, or private; the 
Mine Safety and Health Administration is authorized to promote health 
and safety education and training in the mining community through 
cooperative programs with States, industry, and safety associations; 
and any funds available to the department may be used, with the 
approval of the Secretary, to provide for the costs of mine rescue and 
survival operations in the event of a major disaster.

                       Bureau of Labor Statistics

                         salaries and expenses

    For necessary expenses for the Bureau of Labor Statistics, 
including advances or reimbursements to State, Federal, and local 
agencies and their employees for services rendered, $374,327,000, 
together with not to exceed $67,257,000, which may be expended from the 
Employment Security Administration account in the Unemployment Trust 
Fund; and $10,000,000 which shall be available for obligation for the 
period July 1, 2001 through June 30, 2002, for Occupational Employment 
Statistics.

                        Departmental Management

                         salaries and expenses

    For necessary expenses for Departmental Management, including the 
hire of three sedans, and including the management or operation, 
through contracts, grants, or other arrangements of Departmental 
bilateral and multilateral foreign technical assistance, of which the 
funds designated to carry out bilateral assistance under the 
international child labor initiative shall be available for obligation 
through September 30, 2002, and $37,000,000 for the acquisition of 
Departmental information technology, architecture, infrastructure, 
equipment, software, and related needs which will be allocated by the 
Department's Chief Information Officer in accordance with the 
Department's capital investment management process to assure a sound 
investment strategy, $380,529,000; together with not to exceed 
$310,000, which may be expended from the Employment Security 
Administration account in the Unemployment Trust Fund: Provided, That 
no funds made available by this Act may be used by the Solicitor of 
Labor to participate in a review in any United States court of appeals 
of any decision made by the Benefits Review Board under section 21 of 
the Longshore and Harbor Workers' Compensation Act (33 U.S.C. 921) 
where such participation is precluded by the decision of the United 
States Supreme Court in Director, Office of Workers' Compensation 
Programs v. Newport News Shipbuilding, 115 S. Ct. 1278 (1995), 
notwithstanding any provisions to the contrary contained in Rule 15 of 
the Federal Rules of Appellate Procedure: Provided further, That no 
funds made available by this Act may be used by the Secretary of Labor 
to review a decision under the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 901 et seq.) that has been appealed and 
that has been pending before the Benefits Review Board for more than 12 
months: Provided further, That any such decision pending a review by 
the Benefits Review Board for more than 1 year shall be considered 
affirmed by the Benefits Review Board on the 1-year anniversary of the 
filing of the appeal, and shall be considered the final order of the 
Board for purposes of obtaining a review in the United States courts of 
appeals: Provided further, That these provisions shall not be 
applicable to the review or appeal of any decision issued under the 
Black Lung Benefits Act (30 U.S.C. 901 et seq.): Provided further, That 
beginning in fiscal year 2001, there is established in the Department 
of Labor an office of disability employment policy which shall, under 
the overall direction of the Secretary, provide leadership, develop 
policy and initiatives, and award grants furthering the objective of 
eliminating barriers to the training and employment of people with 
disabilities. Such office shall be headed by an Assistant Secretary: 
Provided further, That of amounts provided under this head, not more 
than $23,002,000 is for this purpose.

                    veterans employment and training

    Not to exceed $186,913,000 may be derived from the Employment 
Security Administration account in the Unemployment Trust Fund to carry 
out the provisions of 38 U.S.C. 4100-4110A, 4212, 4214, and 4321-4327, 
and Public Law 103-353, and which shall be available for obligation by 
the States through December 31, 2001. To carry out the Stewart B. 
McKinney Homeless Assistance Act and section 168 of the Workforce 
Investment Act of 1998, $24,800,000, of which $7,300,000 shall be 
available for obligation for the period July 1, 2001 through June 30, 
2002.

                      office of inspector general

    For salaries and expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $50,015,000, together with not to exceed $4,770,000, which may 
be expended from the Employment Security Administration account in the 
Unemployment Trust Fund.

                           GENERAL PROVISIONS

    Sec. 101. None of the funds appropriated in this title for the Job 
Corps shall be used to pay the compensation of an individual, either as 
direct costs or any proration as an indirect cost, at a rate in excess 
of Executive Level II.

                          (transfer of funds)

    Sec. 102. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended) which are appropriated for the current fiscal year 
for the Department of Labor in this Act may be transferred between 
appropriations, but no such appropriation shall be increased by more 
than 3 percent by any such transfer: Provided, That the Appropriations 
Committees of both Houses of Congress are notified at least 15 days in 
advance of any transfer.
    Sec. 103. Section 403(a)(5)(C)(viii) of the Social Security Act (42 
U.S.C. 603(a)(5)(C)(viii)) (as amended by section 801(b)(1)(A) of the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Act, 2000 (as enacted into law by 
section 1000(a)(4) of Public Law 106-113)) is amended by striking ``3 
years'' and inserting ``5 years''.
    Sec. 104. No funds appropriated in this Act or any other Act making 
appropriations for fiscal year 2001 may be used to implement or enforce 
the proposed and final regulations appearing in 65 Fed. Reg. 43528-
43583, regarding temporary alien labor certification applications and 
petitions for admission of nonimmigrant workers, or any similar or 
successor rule with an effective date prior to October 1, 2001: 
Provided, That nothing in this section shall prohibit the development 
or revision of such a rule, or the publication of any similar or 
successor proposed or final rule, or the provision of training or 
technical assistance, or other activities necessary and appropriate in 
preparing to implement such a rule with an effective date after 
September 30, 2001.
    Sec. 105. Section 218(c)(4) of the Immigration and Nationality Act 
(8 U.S.C. 1188(c)(4)) is amended by adding at the end the following new 
sentence: ``The determination as to whether the housing furnished by an 
employer for an H-2A worker meets the requirements imposed by this 
paragraph must be made prior to the date specified in paragraph (3)(A) 
by which the Secretary of Labor is required to make a certification 
described in subsection (a)(1) with respect to a petition for the 
importation of such worker.''.
    Sec. 106. Section 286(s)(6) of the Immigration and Naturalization 
Act (8 U.S.C. 1356(s)(6)) is amended by inserting ``and section 
212(a)(5)(A)'' after the second reference to ``section 212(n)(1)''.
    Sec. 107. (a) Section 403(a)(5) of the Social Security Act (as 
amended by section 806(b) of the Departments of Labor, Health and Human 
Services, and Education, and Related Agencies Appropriations Act, 2000 
(as enacted into law by section 1000(a)(4) of Public Law 106-113)) is 
amended by striking subparagraph (E) and redesignating subparagraphs 
(F) through (K) as subparagraphs (E) through (J), respectively.
    (b) The Social Security Act (as amended by section 806(b) of the 
Departments of Labor, Health and Human Services, and Education, and 
Related Agencies Appropriations Act, 2000 (as enacted into law by 
section 1000(a)(4) of Public Law 106-113)) is further amended as 
follows:
            (1) Section 403(a)(5)(A)(i) (42 U.S.C. 603(a)(5)(A)(i)) is 
        amended by striking ``subparagraph (I)'' and inserting 
        ``subparagraph (H)''.
            (2) Subclause (I) of each of subparagraphs (A)(iv) and 
        (B)(v) of section 403(a)(5) (42 U.S.C. 603(a)(5)(A)(iv)(I) and 
        (B)(v)(I)) is amended--
                    (A) in item (aa)--
                            (i) by striking ``(I)'' and inserting 
                        ``(H)''; and
                            (ii) by striking ``(G), and (H)'' and 
                        inserting ``and (G)''; and
                    (B) in item (bb), by striking ``(F)'' and inserting 
                ``(E)''.
            (3) Section 403(a)(5)(B)(v) (42 U.S.C. 603(a)(5)(B)(v)) is 
        amended in the matter preceding subclause (I) by striking 
        ``(I)'' and inserting ``(H)''.
            (4) Subparagraphs (E), (F), and (G)(i) of section 403(a)(5) 
        (42 U.S.C. 603(a)(5)), as so redesignated by subsection (a) of 
        this section, are each amended by striking ``(I)'' and 
        inserting ``(H)''.
            (5) Section 412(a)(3)(A) (42 U.S.C. 612(a)(3)(A)) is 
        amended by striking ``403(a)(5)(I)'' and inserting 
        ``403(a)(5)(H)''.
    (c) Section 403(a)(5)(H)(i)(II) of such Act (42 U.S.C. 
603(a)(5)(H)(i)(II)) (as redesignated by subsection (a) of this section 
and as amended by section 806(b) of the Departments of Labor, Health 
and Human Services, and Education, and Related Agencies Appropriations 
Act, 2000 (as enacted into law by section 1000(a)(4) of Public Law 106-
113)) is further amended by striking ``$1,450,000,000'' and inserting 
``$1,400,000,000''.
    (d) The amendments made by subsections (a), (b), and (c) of this 
section shall take effect on October 1, 2000.
    This title may be cited as the ``Department of Labor Appropriations 
Act, 2001''.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

                     health resources and services

    For carrying out titles II, III, VII, VIII, X, XII, XIX, and XXVI 
of the Public Health Service Act, section 427(a) of the Federal Coal 
Mine Health and Safety Act, title V and section 1820 of the Social 
Security Act, the Health Care Quality Improvement Act of 1986, as 
amended, the Native Hawaiian Health Care Act of 1988, as amended, and 
the Poison Control Center Enhancement and Awareness Act, 
$5,525,476,000, of which $226,224,000 shall be available for the 
construction and renovation of health care and other facilities, and of 
which $25,000,000 from general revenues, notwithstanding section 
1820(j) of the Social Security Act, shall be available for carrying out 
the Medicare rural hospital flexibility grants program under section 
1820 of such Act: Provided, That the Division of Federal Occupational 
Health may utilize personal services contracting to employ professional 
management/administrative and occupational health professionals: 
Provided further, That of the funds made available under this heading, 
$250,000 shall be available until expended for facilities renovations 
at the Gillis W. Long Hansen's Disease Center: Provided further, That 
in addition to fees authorized by section 427(b) of the Health Care 
Quality Improvement Act of 1986, fees shall be collected for the full 
disclosure of information under the Act sufficient to recover the full 
costs of operating the National Practitioner Data Bank, and shall 
remain available until expended to carry out that Act: Provided 
further, That fees collected for the full disclosure of information 
under the ``Health Care Fraud and Abuse Data Collection Program,'' 
authorized by section 1128E(d)(2) of the Social Security Act, shall be 
sufficient to recover the full costs of operating the program, and 
shall remain available until expended to carry out that Act: Provided 
further, That no more than $5,000,000 is available for carrying out the 
provisions of Public Law 104-73: Provided further, That of the funds 
made available under this heading, $253,932,000 shall be for the 
program under title X of the Public Health Service Act to provide for 
voluntary family planning projects: Provided further, That amounts 
provided to said projects under such title shall not be expended for 
abortions, that all pregnancy counseling shall be nondirective, and 
that such amounts shall not be expended for any activity (including the 
publication or distribution of literature) that in any way tends to 
promote public support or opposition to any legislative proposal or 
candidate for public office: Provided further, That $589,000,000 shall 
be for State AIDS Drug Assistance Programs authorized by section 2616 
of the Public Health Service Act: Provided further, That of the amount 
provided under this heading, $700,000 shall be for the American 
Federation of Negro Affairs Education and Research Fund of 
Philadelphia, $900,000 shall be for the Des Moines University 
Osteopathic Medical Center, $250,000 shall be for the University of 
Alaska, Anchorage, to train Alaska Natives as psychologists, $900,000 
shall be for Northeastern University in Boston, Massachusetts, to train 
doctors to serve in low-income communities, $500,000 shall be for the 
University of Alaska, Anchorage, to recruit and train nurses in rural 
areas, and $230,000 shall be for the Illinois Poison Center: Provided 
further, That, notwithstanding section 502(a)(1) of the Social Security 
Act, not to exceed $113,728,000 is available for carrying out special 
projects of regional and national significance pursuant to section 
501(a)(2) of such Act, of which $5,000,000 is for Columbia Hospital for 
Women Medical Center in Washington, D.C., to support community outreach 
programs for women, $5,000,000 is for continuation of the traumatic 
brain injury State demonstration projects, and $100,000 is for St. 
Joseph's Health Services of Rhode Island for the Providence Smiles 
dental program for low-income children.
    For special projects of regional and national significance under 
section 501(a)(2) of the Social Security Act, $30,000,000, which shall 
become available on October 1, 2001, and shall remain available until 
September 30, 2002: Provided, That such amount shall not be counted 
toward compliance with the allocation required in section 502(a)(1) of 
such Act: Provided further, That such amount shall be used only for 
making competitive grants to provide abstinence education (as defined 
in section 510(b)(2) of such Act) to adolescents and for evaluations 
(including longitudinal evaluations) of activities under the grants and 
for Federal costs of administering the grants: Provided further, That 
grants shall be made only to public and private entities which agree 
that, with respect to an adolescent to whom the entities provide 
abstinence education under such grant, the entities will not provide to 
that adolescent any other education regarding sexual conduct, except 
that, in the case of an entity expressly required by law to provide 
health information or services the adolescent shall not be precluded 
from seeking health information or services from the entity in a 
different setting than the setting in which the abstinence education 
was provided: Provided further, That the funds expended for such 
evaluations may not exceed 3.5 percent of such amount.

               health education assistance loans program

    Such sums as may be necessary to carry out the purpose of the 
program, as authorized by title VII of the Public Health Service Act, 
as amended. For administrative expenses to carry out the guaranteed 
loan program, including section 709 of the Public Health Service Act, 
$3,679,000.

             vaccine injury compensation program trust fund

    For payments from the Vaccine Injury Compensation Program Trust 
Fund, such sums as may be necessary for claims associated with vaccine-
related injury or death with respect to vaccines administered after 
September 30, 1988, pursuant to subtitle 2 of title XXI of the Public 
Health Service Act, to remain available until expended: Provided, That 
for necessary administrative expenses, not to exceed $2,992,000 shall 
be available from the Trust Fund to the Secretary of Health and Human 
Services.

               Centers for Disease Control and Prevention

                disease control, research, and training

    To carry out titles II, III, VII, XI, XV, XVII, XIX, and XXVI of 
the Public Health Service Act, sections 101, 102, 103, 201, 202, 203, 
301, and 501 of the Federal Mine Safety and Health Act of 1977, 
sections 20, 21, and 22 of the Occupational Safety and Health Act of 
1970, title IV of the Immigration and Nationality Act, and section 501 
of the Refugee Education Assistance Act of 1980; including insurance of 
official motor vehicles in foreign countries; and hire, maintenance, 
and operation of aircraft, $3,868,027,000, of which $175,000,000 shall 
remain available until expended for the facilities master plan for 
equipment and construction and renovation of facilities, and in 
addition, such sums as may be derived from authorized user fees, which 
shall be credited to this account, and of which $104,527,000 for 
international HIV/AIDS programs shall remain available until September 
30, 2002: Provided, That in addition to amounts provided herein, up to 
$71,690,000 shall be available from amounts available under section 241 
of the Public Health Service Act to carry out the National Center for 
Health Statistics Surveys: Provided further, That none of the funds 
made available for injury prevention and control at the Centers for 
Disease Control and Prevention may be used to advocate or promote gun 
control: Provided further, That the Director may redirect the total 
amount made available under authority of Public Law 101-502, section 3, 
dated November 3, 1990, to activities the Director may so designate: 
Provided further, That the Congress is to be notified promptly of any 
such transfer: Provided further, That not to exceed $10,000,000 may be 
available for making grants under section 1509 of the Public Health 
Service Act to not more than 15 States: Provided further, That 
notwithstanding any other provision of law, a single contract or 
related contracts for development and construction of facilities may be 
employed which collectively include the full scope of the project: 
Provided further, That the solicitation and contract shall contain the 
clause ``availability of funds'' found at 48 CFR 52.232-18: Provided 
further, That funds obligated for influenza vaccine stockpile in fiscal 
year 2000 and fiscal year 2001 shall be considered as appropriated 
under section 3 of Public Law 101-502.

                     National Institutes of Health

                       national cancer institute

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to cancer, $3,757,242,000.

               national heart, lung, and blood institute

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to cardiovascular, lung, and blood diseases, 
and blood and blood products, $2,299,866,000.

         national institute of dental and craniofacial research

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to dental disease, $306,448,000.

    national institute of diabetes and digestive and kidney diseases

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to diabetes and digestive and kidney disease, 
$1,303,385,000.

        national institute of neurological disorders and stroke

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to neurological disorders and stroke, 
$1,176,482,000.

         national institute of allergy and infectious diseases

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to allergy and infectious diseases, 
$2,043,208,000.

             national institute of general medical sciences

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to general medical sciences, $1,535,823,000.

        national institute of child health and human development

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to child health and human development, 
$976,455,000.

                         national eye institute

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to eye diseases and visual disorders, 
$510,611,000.

          national institute of environmental health sciences

    For carrying out sections 301 and 311 and title IV of the Public 
Health Service Act with respect to environmental health sciences, 
$502,549,000.

                      national institute on aging

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to aging, $786,039,000.

 national institute of arthritis and musculoskeletal and skin diseases

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to arthritis and musculoskeletal and skin 
diseases, $396,687,000.

    national institute on deafness and other communication disorders

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to deafness and other communication disorders, 
$300,581,000.

                 national institute of nursing research

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to nursing research, $104,370,000.

           national institute on alcohol abuse and alcoholism

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to alcohol abuse and alcoholism, $340,678,000.

                    national institute on drug abuse

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to drug abuse, $781,327,000.

                  national institute of mental health

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to mental health, $1,107,028,000.

                national human genome research institute

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to human genome research, $382,384,000.

                 national center for research resources

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to research resources and general research 
support grants, $817,475,000: Provided, That none of these funds shall 
be used to pay recipients of the general research support grants 
program any amount for indirect expenses in connection with such 
grants: Provided further, That $75,000,000 shall be for extramural 
facilities construction grants.

                  john e. fogarty international center

    For carrying out the activities at the John E. Fogarty 
International Center, $50,514,000.

                      national library of medicine

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to health information communications, 
$246,801,000, of which $4,000,000 shall be available until expended for 
improvement of information systems: Provided, That in fiscal year 2001, 
the Library may enter into personal services contracts for the 
provision of services in facilities owned, operated, or constructed 
under the jurisdiction of the National Institutes of Health.

       national center for complementary and alternative medicine

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to complementary and alternative medicine, 
$89,211,000.

       national center on minority health and health disparities

    For carrying out section 301 and title IV of the Public Health 
Service Act with respect to minority health and health disparities 
research, $130,200,000.

                         office of the director

                     (including transfer of funds)

    For carrying out the responsibilities of the Office of the 
Director, National Institutes of Health, $213,581,000, of which 
$48,271,000 shall be for the Office of AIDS Research: Provided, That 
funding shall be available for the purchase of not to exceed 20 
passenger motor vehicles for replacement only: Provided further, That 
the Director may direct up to 1 percent of the total amount made 
available in this or any other Act to all National Institutes of Health 
appropriations to activities the Director may so designate: Provided 
further, That no such appropriation shall be decreased by more than 1 
percent by any such transfers and that the Congress is promptly 
notified of the transfer: Provided further, That the National 
Institutes of Health is authorized to collect third party payments for 
the cost of clinical services that are incurred in National Institutes 
of Health research facilities and that such payments shall be credited 
to the National Institutes of Health Management Fund: Provided further, 
That all funds credited to the National Institutes of Health Management 
Fund shall remain available for 1 fiscal year after the fiscal year in 
which they are deposited: Provided further, That up to $500,000 shall 
be available to carry out section 499 of the Public Health Service Act: 
Provided further, That, notwithstanding section 499(k)(10) of the 
Public Health Service Act, funds from the Foundation for the National 
Institutes of Health may be transferred to the National Institutes of 
Health.

                        buildings and facilities

    For the study of, construction of, and acquisition of equipment 
for, facilities of or used by the National Institutes of Health, 
including the acquisition of real property, $153,790,000, to remain 
available until expended, of which $47,300,000 shall be for the 
National Neuroscience Research Center: Provided, That notwithstanding 
any other provision of law, a single contract or related contracts for 
the development and construction of the first phase of the National 
Neuroscience Research Center may be employed which collectively include 
the full scope of the project: Provided further, That the solicitation 
and contract shall contain the clause ``availability of funds'' found 
at 48 CFR 52.232-18.

       Substance Abuse and Mental Health Services Administration

               substance abuse and mental health services

    For carrying out titles V and XIX of the Public Health Service Act 
with respect to substance abuse and mental health services, the 
Protection and Advocacy for Mentally Ill Individuals Act of 1986, and 
section 301 of the Public Health Service Act with respect to program 
management, $2,958,001,000, of which $24,605,000 shall be available for 
the projects and in the amounts specified in the statement of the 
managers on the conference report accompanying this Act.

               Agency for Healthcare Research and Quality

                    healthcare research and quality

    For carrying out titles III and IX of the Public Health Service 
Act, and part A of title XI of the Social Security Act, $104,963,000; 
in addition, amounts received from Freedom of Information Act fees, 
reimbursable and interagency agreements, and the sale of data shall be 
credited to this appropriation and shall remain available until 
expended: Provided, That the amount made available pursuant to section 
926(b) of the Public Health Service Act shall not exceed $164,980,000.

                  Health Care Financing Administration

                     grants to states for medicaid

    For carrying out, except as otherwise provided, titles XI and XIX 
of the Social Security Act, $93,586,251,000, to remain available until 
expended.
    For making, after May 31, 2001, payments to States under title XIX 
of the Social Security Act for the last quarter of fiscal year 2001 for 
unanticipated costs, incurred for the current fiscal year, such sums as 
may be necessary.
    For making payments to States or in the case of section 1928 on 
behalf of States under title XIX of the Social Security Act for the 
first quarter of fiscal year 2002, $36,207,551,000, to remain available 
until expended.
    Payment under title XIX may be made for any quarter with respect to 
a State plan or plan amendment in effect during such quarter, if 
submitted in or prior to such quarter and approved in that or any 
subsequent quarter.

                  payments to health care trust funds

    For payment to the Federal Hospital Insurance and the Federal 
Supplementary Medical Insurance Trust Funds, as provided under sections 
217(g) and 1844 of the Social Security Act, sections 103(c) and 111(d) 
of the Social Security Amendments of 1965, section 278(d) of Public Law 
97-248, and for administrative expenses incurred pursuant to section 
201(g) of the Social Security Act, $70,381,600,000.

                           program management

    For carrying out, except as otherwise provided, titles XI, XVIII, 
XIX, and XXI of the Social Security Act, titles XIII and XXVII of the 
Public Health Service Act, and the Clinical Laboratory Improvement 
Amendments of 1988, not to exceed $2,246,326,000, to be transferred 
from the Federal Hospital Insurance and the Federal Supplementary 
Medical Insurance Trust Funds, as authorized by section 201(g) of the 
Social Security Act; together with all funds collected in accordance 
with section 353 of the Public Health Service Act and such sums as may 
be collected from authorized user fees and the sale of data, which 
shall remain available until expended, and together with administrative 
fees collected relative to Medicare overpayment recovery activities, 
which shall remain available until expended: Provided, That all funds 
derived in accordance with 31 U.S.C. 9701 from organizations 
established under title XIII of the Public Health Service Act shall be 
credited to and available for carrying out the purposes of this 
appropriation: Provided further, That $18,000,000 appropriated under 
this heading for the managed care system redesign shall remain 
available until expended: Provided further, That $20,000,000 of the 
amount available for research, demonstration, and evaluation activities 
shall be available to continue carrying out demonstration projects on 
Medicaid coverage of community-based attendant care services for people 
with disabilities which ensures maximum control by the consumer to 
select and manage their attendant care services: Provided further, That 
the Secretary of Health and Human Services is directed to enter into an 
agreement with the Mind-Body Institute of Boston, Massachusetts, to 
conduct a demonstration of a lifestyle modification program: Provided 
further, That $2,800,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded for 
administration, evaluation, quality monitoring and peer review of this 
lifestyle modification demonstration: Provided further, That $2,800,000 
of the amount available for research, demonstration, and evaluation 
activities shall be awarded to a joint application from the University 
of Pittsburgh, Case Western Reserve in Cleveland, Ohio, and Mt. Sinai 
Hospital in Miami, Florida, to use integrated nursing services and 
technology to implement daily monitoring of congestive heart failure 
patients in underserved populations in accordance with established 
clinical guidelines: Provided further, That $500,000 of the amount 
available for research, demonstration, and evaluation activities shall 
be awarded to the University of Pittsburgh Medical Center and 
University of Pennsylvania for a study of the efficacy of surgical 
versus non-surgical management of abdominal aneurysms: Provided 
further, That $650,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the 
Vascular Surgery Outcome Initiative at Dartmouth College: Provided 
further, That up to $300,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the United 
States-Mexico Border Counties Coalition for a study to determine the 
unreimbursed costs incurred to treat undocumented aliens for medical 
emergencies in southwest border States, their border counties, and 
hospitals within the jurisdiction of these States and counties: 
Provided further, That $1,700,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the AIDS 
Healthcare Foundation in Los Angeles for a demonstration of residential 
and outpatient treatment facilities: Provided further, That $350,000 of 
the amount available for research, demonstration, and evaluation 
activities shall be awarded to the Cook County, Illinois Bureau of 
Health for the Asthma Champion Initiative demonstration to reduce 
morbidity and mortality from asthma in high prevalence areas: Provided 
further, That $1,000,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to the West 
Virginia University School of Medicine's Eye Center to test 
interventions and improve the quality of life for individuals with low 
vision, with a particular focus on the elderly: Provided further, That 
$1,000,000 of the amount available for research, demonstration, and 
evaluation activities shall be awarded to the Iowa Department of Public 
Health for the establishment and operation of a mercantile prescription 
drug purchasing cooperative or non-profit corporation demonstration: 
Provided further, That $691,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to Ohio State 
University to determine the benefits of compliance packaging: Provided 
further, That $855,000 of the amount available for research, 
demonstration, and evaluation activities shall be awarded to Children's 
Hospice International for a demonstration project to provide a 
continuum of care for children with life-threatening conditions and 
their families: Provided further, That $921,000 of the amount available 
for research, demonstration, and evaluation activities shall be awarded 
to Equip for Equality for a demonstration project to document the 
impact of an independent investigative unit that will examine deaths or 
other serious allegations of abuse and neglect of people with 
disabilities at facilities in Illinois: Provided further, That 
$1,000,000 of the amount available for research, demonstration, and 
evaluation activities shall be awarded to Duke University Medical 
Center to demonstrate the potential savings in the Medicare program of 
a reimbursement system based on preventative care: Provided further, 
That $1,843,000 of the amount available for research, demonstration, 
and evaluation activities shall be awarded to Bucks County, 
Pennsylvania, for a health improvement project: Provided further, That 
$255,000 of the amount available for research, demonstration, and 
evaluation activities shall be awarded to the LA Care Health Plan in 
Los Angeles, California, for a demonstration program to improve 
clinical data coordination among Medicaid providers: Provided further, 
That $646,000 of the amount available for research, demonstration, and 
evaluation activities shall be for the Shelby County Regional Medical 
Center to establish a Master Patient Index to determine patient 
Medicaid/TennCare eligibility: Provided further, That the Secretary of 
Health and Human Services is directed to collect fees in fiscal year 
2001 from Medicare+Choice organizations pursuant to section 1857(e)(2) 
of the Social Security Act and from eligible organizations with risk-
sharing contracts under section 1876 of that Act pursuant to section 
1876(k)(4)(D) of that Act.

      health maintenance organization loan and loan guarantee fund

    For carrying out subsections (d) and (e) of section 1308 of the 
Public Health Service Act, any amounts received by the Secretary in 
connection with loans and loan guarantees under title XIII of the 
Public Health Service Act, to be available without fiscal year 
limitation for the payment of outstanding obligations. During fiscal 
year 2001, no commitments for direct loans or loan guarantees shall be 
made.

                Administration for Children and Families

  payments to states for child support enforcement and family support 
                                programs

    For making payments to States or other non-Federal entities under 
titles I, IV-D, X, XI, XIV, and XVI of the Social Security Act and the 
Act of July 5, 1960 (24 U.S.C. ch. 9), $2,441,800,000, to remain 
available until expended; and for such purposes for the first quarter 
of fiscal year 2002, $1,000,000,000, to remain available until 
expended.
    For making payments to each State for carrying out the program of 
Aid to Families with Dependent Children under title IV-A of the Social 
Security Act before the effective date of the program of Temporary 
Assistance to Needy Families (TANF) with respect to such State, such 
sums as may be necessary: Provided, That the sum of the amounts 
available to a State with respect to expenditures under such title IV-A 
in fiscal year 1997 under this appropriation and under such title IV-A 
as amended by the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 shall not exceed the limitations under 
section 116(b) of such Act.
    For making, after May 31 of the current fiscal year, payments to 
States or other non-Federal entities under titles I, IV-D, X, XI, XIV, 
and XVI of the Social Security Act and the Act of July 5, 1960 (24 
U.S.C. ch. 9), for the last 3 months of the current year for 
unanticipated costs, incurred for the current fiscal year, such sums as 
may be necessary.

                   low income home energy assistance

    For making payments under title XXVI of the Omnibus Budget 
Reconciliation Act of 1981, in addition to amounts already appropriated 
for fiscal year 2001, $300,000,000.
    For making payments under title XXVI of the Omnibus Reconciliation 
Act of 1981, $300,000,000: Provided, That these funds are hereby 
designated by the Congress to be emergency requirements pursuant to 
section 251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985: Provided further, That these funds shall be made 
available only after submission to the Congress of a formal budget 
request by the President that includes designation of the entire amount 
of the request as an emergency requirement as defined in such Act.

                     refugee and entrant assistance

    For making payments for refugee and entrant assistance activities 
authorized by title IV of the Immigration and Nationality Act and 
section 501 of the Refugee Education Assistance Act of 1980 (Public Law 
96-422), $423,109,000: Provided, That funds appropriated pursuant to 
section 414(a) of the Immigration and Nationality Act for fiscal year 
2001 shall be available for the costs of assistance provided and other 
activities through September 30, 2003: Provided further, That up to 
$5,000,000 is available to carry out the Trafficking Victims Protection 
Act of 2000.
    For carrying out section 5 of the Torture Victims Relief Act of 
1998 (Public Law 105-320), $10,000,000.

   payments to states for the child care and development block grant

    For carrying out sections 658A through 658R of the Omnibus Budget 
Reconciliation Act of 1981 (The Child Care and Development Block Grant 
Act of 1990), in addition to amounts already appropriated for fiscal 
year 2001, $817,328,000, such funds shall be used to supplement, not 
supplant State general revenue funds for child care assistance for low-
income families: Provided, That of the funds appropriated for fiscal 
year 2001, $19,120,000 shall be available for child care resource and 
referral and school-aged child care activities, of which $1,000,000 
shall be for the Child Care Aware toll free hotline: Provided further, 
That of the funds appropriated for fiscal year 2001, in addition to the 
amounts required to be reserved by the States under section 658G, 
$272,672,000 shall be reserved by the States for activities authorized 
under section 658G, of which $100,000,000 shall be for activities that 
improve the quality of infant and toddler child care: Provided further, 
That of the funds appropriated for fiscal year 2001, $10,000,000 shall 
be for use by the Secretary for child care research, demonstration, and 
evaluation activities.

                      social services block grant

    For making grants to States pursuant to section 2002 of the Social 
Security Act, $1,725,000,000: Provided, That notwithstanding section 
2003(c) of such Act, as amended, the amount specified for allocation 
under such section for fiscal year 2001 shall be $1,725,000,000: 
Provided further, That, notwithstanding subparagraph (B) of section 
404(d)(2) of such Act, the applicable percent specified under such 
subparagraph for a State to carry out State programs pursuant to title 
XX of such Act shall be 10 percent.

                children and families services programs

                        (including rescissions)

    For carrying out, except as otherwise provided, the Runaway and 
Homeless Youth Act, the Developmental Disabilities Assistance and Bill 
of Rights Act, the Head Start Act, the Child Abuse Prevention and 
Treatment Act, the Native American Programs Act of 1974, title II of 
Public Law 95-266 (adoption opportunities), the Adoption and Safe 
Families Act of 1997 (Public Law 105-89), the Abandoned Infants 
Assistance Act of 1988, the Early Learning Opportunities Act, part B(1) 
of title IV and sections 413, 429A, 1110, and 1115 of the Social 
Security Act, and sections 40155, 40211, and 40241 of Public law 103-
322; for making payments under the Community Services Block Grant Act, 
section 473A of the Social Security Act, and title IV of Public Law 
105-285, and for necessary administrative expenses to carry out said 
Acts and titles I, IV, X, XI, XIV, XVI, and XX of the Social Security 
Act, the Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus Budget 
Reconciliation Act of 1981, title IV of the Immigration and Nationality 
Act, section 501 of the Refugee Education Assistance Act of 1980, 
section 5 of the Torture Victims Relief Act of 1998 (Public Law 105-
320), sections 40155, 40211, and 40241 of Public Law 103-322 and 
section 126 and titles IV and V of Public Law 100-485, $7,956,345,000, 
of which $43,000,000, to remain available until September 30, 2002, 
shall be for grants to States for adoption incentive payments, as 
authorized by section 473A of title IV of the Social Security Act (42 
U.S.C. 670-679) and may be made for adoptions completed in fiscal years 
1999 and 2000; of which $682,876,000 shall be for making payments under 
the Community Services Block Grant Act; and of which $6,200,000,000 
shall be for making payments under the Head Start Act, of which 
$1,400,000,000 shall become available October 1, 2001 and remain 
available through September 30, 2002: Provided, That to the extent 
Community Services Block Grant funds are distributed as grant funds by 
a State to an eligible entity as provided under the Act, and have not 
been expended by such entity, they shall remain with such entity for 
carryover into the next fiscal year for expenditure by such entity 
consistent with program purposes: Provided further, That the Secretary 
shall establish procedures regarding the disposition of intangible 
property which permits grant funds, or intangible assets acquired with 
funds authorized under section 680 of the Community Services Block 
Grant Act, as amended, to become the sole property of such grantees 
after a period of not more than 12 years after the end of the grant for 
purposes and uses consistent with the original grant.
    Funds appropriated for fiscal year 2001 under section 429A(e), part 
B of title IV of the Social Security Act shall be reduced by 
$6,000,000.
    Funds appropriated for fiscal year 2001 under section 413(h)(1) of 
the Social Security Act shall be reduced by $15,000,000.

                   promoting safe and stable families

    For carrying out section 430 of the Social Security Act, 
$305,000,000.

       payments to states for foster care and adoption assistance

    For making payments to States or other non-Federal entities under 
title IV-E of the Social Security Act, $4,863,100,000.
    For making payments to States or other non-Federal entities under 
title IV-E of the Social Security Act, for the first quarter of fiscal 
year 2002, $1,735,900,000.

                        Administration on Aging

                        aging services programs

    For carrying out, to the extent not otherwise provided, the Older 
Americans Act of 1965, as amended, and section 398 of the Public Health 
Service Act, $1,103,135,000, of which $5,000,000 shall be available for 
activities regarding medication management, screening, and education to 
prevent incorrect medication and adverse drug reactions: Provided, That 
notwithstanding section 308(b)(1) of the Older Americans Act of 1965, 
as amended, the amounts available to each State for administration of 
the State plan under title III of such Act shall be reduced not more 
than 5 percent below the amount that was available to such State for 
such purpose for fiscal year 1995.

                        Office of the Secretary

                    general departmental management

    For necessary expenses, not otherwise provided, for general 
departmental management, including hire of six sedans, and for carrying 
out titles III, XVII, and XX of the Public Health Service Act, and the 
United States-Mexico Border Health Commission Act, $285,224,000, 
together with $5,851,000, to be transferred and expended as authorized 
by section 201(g)(1) of the Social Security Act from the Hospital 
Insurance Trust Fund and the Supplemental Medical Insurance Trust Fund: 
Provided further, That of the funds made available under this heading 
for carrying out title XX of the Public Health Service Act, $10,377,000 
shall be for activities specified under section 2003(b)(2), of which 
$10,157,000 shall be for prevention service demonstration grants under 
section 510(b)(2) of title V of the Social Security Act, as amended, 
without application of the limitation of section 2010(c) of said title 
XX: Provided further, That no funds shall be obligated for minority 
AIDS prevention and treatment activities until the Department of Health 
and Human Services submits an operating plan to the House and Senate 
Committees on Appropriations.

                      office of inspector general

    For expenses necessary for the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $33,849,000: Provided, That of such amount, necessary sums are 
available for providing protective services to the Secretary and 
investigating non-payment of child support cases for which non-payment 
is a Federal offense under 18 U.S.C. 228, each of which activities is 
hereby authorized in this and subsequent fiscal years.

                        office for civil rights

    For expenses necessary for the Office for Civil Rights, 
$24,742,000, together with not to exceed $3,314,000, to be transferred 
and expended as authorized by section 201(g)(1) of the Social Security 
Act from the Hospital Insurance Trust Fund and the Supplemental Medical 
Insurance Trust Fund.

                            policy research

    For carrying out, to the extent not otherwise provided, research 
studies under section 1110 of the Social Security Act, $16,738,000.

     retirement pay and medical benefits for commissioned officers

    For retirement pay and medical benefits of Public Health Service 
Commissioned Officers as authorized by law, for payments under the 
Retired Serviceman's Family Protection Plan and Survivor Benefit Plan, 
for medical care of dependents and retired personnel under the 
Dependents' Medical Care Act (10 U.S.C. ch. 55), and for payments 
pursuant to section 229(b) of the Social Security Act (42 U.S.C. 
429(b)), such amounts as may be required during the current fiscal 
year.

            public health and social services emergency fund

    For expenses necessary to support activities related to countering 
potential biological, disease and chemical threats to civilian 
populations, $241,231,000: Provided, That this amount is distributed as 
follows: Centers for Disease Control and Prevention, $181,131,000, of 
which $32,000,000 shall be for the Health Alert Network and $18,040,000 
shall be for the continued study of the anthrax vaccine; and Office of 
Emergency Preparedness, $60,100,000.

                           GENERAL PROVISIONS

    Sec. 201. Funds appropriated in this title shall be available for 
not to exceed $37,000 for official reception and representation 
expenses when specifically approved by the Secretary.
    Sec. 202. The Secretary shall make available through assignment not 
more than 60 employees of the Public Health Service to assist in child 
survival activities and to work in AIDS programs through and with funds 
provided by the Agency for International Development, the United 
Nations International Children's Emergency Fund or the World Health 
Organization.
    Sec. 203. None of the funds appropriated under this Act may be used 
to implement section 399L(b) of the Public Health Service Act or 
section 1503 of the National Institutes of Health Revitalization Act of 
1993, Public Law 103-43.
    Sec. 204. None of the funds appropriated in this Act for the 
National Institutes of Health and the Substance Abuse and Mental Health 
Services Administration shall be used to pay the salary of an 
individual, through a grant or other extramural mechanism, at a rate in 
excess of Executive Level I.
    Sec. 205. None of the funds appropriated in this Act may be 
expended pursuant to section 241 of the Public Health Service Act, 
except for funds specifically provided for in this Act, or for other 
taps and assessments made by any office located in the Department of 
Health and Human Services, prior to the Secretary's preparation and 
submission of a report to the Committee on Appropriations of the Senate 
and of the House detailing the planned uses of such funds.

                          (transfer of funds)

    Sec. 206. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended) which are appropriated for the current fiscal year 
for the Department of Health and Human Services in this Act may be 
transferred between appropriations, but no such appropriation shall be 
increased by more than 3 percent by any such transfer: Provided, That 
the Appropriations Committees of both Houses of Congress are notified 
at least 15 days in advance of any transfer.
    Sec. 207. The Director of the National Institutes of Health, 
jointly with the Director of the Office of AIDS Research, may transfer 
up to 3 percent among institutes, centers, and divisions from the total 
amounts identified by these two Directors as funding for research 
pertaining to the human immunodeficiency virus: Provided, That the 
Congress is promptly notified of the transfer.
    Sec. 208. Of the amounts made available in this Act for the 
National Institutes of Health, the amount for research related to the 
human immunodeficiency virus, as jointly determined by the Director of 
the National Institutes of Health and the Director of the Office of 
AIDS Research, shall be made available to the ``Office of AIDS 
Research'' account. The Director of the Office of AIDS Research shall 
transfer from such account amounts necessary to carry out section 
2353(d)(3) of the Public Health Service Act.
    Sec. 209. None of the funds appropriated in this Act may be made 
available to any entity under title X of the Public Health Service Act 
unless the applicant for the award certifies to the Secretary that it 
encourages family participation in the decision of minors to seek 
family planning services and that it provides counseling to minors on 
how to resist attempts to coerce minors into engaging in sexual 
activities.
    Sec. 210. None of the funds appropriated by this Act (including 
funds appropriated to any trust fund) may be used to carry out the 
Medicare+Choice program if the Secretary denies participation in such 
program to an otherwise eligible entity (including a Provider Sponsored 
Organization) because the entity informs the Secretary that it will not 
provide, pay for, provide coverage of, or provide referrals for 
abortions: Provided, That the Secretary shall make appropriate 
prospective adjustments to the capitation payment to such an entity 
(based on an actuarially sound estimate of the expected costs of 
providing the service to such entity's enrollees): Provided further, 
That nothing in this section shall be construed to change the Medicare 
program's coverage for such services and a Medicare+Choice organization 
described in this section shall be responsible for informing enrollees 
where to obtain information about all Medicare covered services.
    Sec. 211. Notwithstanding any other provision of law, no provider 
of services under title X of the Public Health Service Act shall be 
exempt from any State law requiring notification or the reporting of 
child abuse, child molestation, sexual abuse, rape, or incest.
    Sec. 212. The Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1990 (Public Law 101-167) is amended--
            (1) in section 599D (8 U.S.C. 1157 note)--
                    (A) in subsection (b)(3), by striking ``1997, 1998, 
                1999, and 2000'' and inserting ``1997, 1998, 1999, 
                2000, and 2001''; and
                    (B) in subsection (e), by striking ``October 1, 
                2000'' each place it appears and inserting ``October 1, 
                2001''; and
            (2) in section 599E (8 U.S.C. 1255 note) in subsection 
        (b)(2), by striking ``September 30, 2000'' and inserting 
        ``September 30, 2001''.
    Sec. 213. None of the funds provided in this Act or in any other 
Act making appropriations for fiscal year 2001 may be used to 
administer or implement in Arizona or in the Kansas City, Missouri or 
in the Kansas City, Kansas area the Medicare Competitive Pricing 
Demonstration Project (operated by the Secretary of Health and Human 
Services).
    Sec. 214. (a) Except as provided by subsection (e) none of the 
funds appropriated by this Act may be used to withhold substance abuse 
funding from a State pursuant to section 1926 of the Public Health 
Service Act (42 U.S.C. 300x-26) if such State certifies to the 
Secretary of Health and Human Services by March 1, 2001 that the State 
will commit additional State funds, in accordance with subsection (b), 
to ensure compliance with State laws prohibiting the sale of tobacco 
products to individuals under 18 years of age.
    (b) The amount of funds to be committed by a State under subsection 
(a) shall be equal to 1 percent of such State's substance abuse block 
grant allocation for each percentage point by which the State misses 
the retailer compliance rate goal established by the Secretary of 
Health and Human Services under section 1926 of such Act.
    (c) The State is to maintain State expenditures in fiscal year 2001 
for tobacco prevention programs and for compliance activities at a 
level that is not less than the level of such expenditures maintained 
by the State for fiscal year 2000, and adding to that level the 
additional funds for tobacco compliance activities required under 
subsection (a). The State is to submit a report to the Secretary on all 
fiscal year 2000 State expenditures and all fiscal year 2001 
obligations for tobacco prevention and compliance activities by program 
activity by July 31, 2001.
    (d) The Secretary shall exercise discretion in enforcing the timing 
of the State obligation of the additional funds required by the 
certification described in subsection (a) as late as July 31, 2001.
    (e) None of the funds appropriated by this Act may be used to 
withhold substance abuse funding pursuant to section 1926 from a 
territory that receives less than $1,000,000.
    Sec. 215. Section 448 of the Public Health Service Act (42 U.S.C. 
285g) is amended by inserting ``gynecologic health,'' after ``with 
respect to''.
    Sec. 216. None of the funds appropriated under this Act shall be 
expended by the National Institutes of Health on a contract for the 
care of the 288 chimpanzees acquired by the National Institutes of 
Health from the Coulston Foundation, unless the contractor is 
accredited by the Association for the Assessment and Accreditation of 
Laboratory Animal Care International or has a Public Health Services 
assurance, and has not been charged multiple times with egregious 
violations of the Animal Welfare Act: Provided, That the requirements 
of section 481(A)(e)(1) shall not apply to funds awarded to nonhuman 
primate research facilities of special interest to NIH.
    Sec. 217. No grants may be awarded under the first paragraph under 
the heading ``Department of Health and Human Services, Health Resources 
and Services Administration, Health Resources and Services'' in chapter 
4 of title II of the Emergency Supplemental Act, 2000 (Public Law 106-
246, division B) until March 1, 2001.
    Sec. 218. (a) The second sentence of section 5948(d) of title 5, 
United States Code, is amended to read as follows: ``No agreement shall 
be entered into under this section later than September 30, 2005, nor 
shall any agreement cover a period of service extending beyond 
September 30, 2007.''.
    (b) Section 3 of the Federal Physicians Comparability Allowance Act 
of 1978 (5 U.S.C. 5948 note) is amended by striking ``September 30, 
2002'' and inserting ``September 30, 2007''.
    Sec. 219. (a) Congress makes the following findings:
            (1) Organ procurement organizations play an important role 
        in the effort to increase organ donation in the United States.
            (2) The current process for the certification and 
        recertification of organ procurement organizations conducted by 
        the Department of Health and Human Services has created a level 
        of uncertainty that is interfering with the effectiveness of 
        organ procurement organizations in raising the level of organ 
        donation.
            (3) The General Accounting Office, the Institute of 
        Medicine, and the Harvard School of Public Health have 
        identified substantial limitations in the organ procurement 
        organization certification and recertification process and have 
        recommended changes in that process.
            (4) The limitations in the recertification process include:
                    (A) An exclusive reliance on population-based 
                measures of performance that do not account for the 
                potential in the population for organ donation and do 
                not permit consideration of other outcome and process 
                standards that would more accurately reflect the 
                relative capability and performance of each organ 
                procurement organization.
                    (B) A lack of due process to appeal to the 
                Secretary of Health and Human Services for 
                recertification on either substantive or procedural 
                grounds.
            (5) The Secretary of Health and Human Services has the 
        authority under section 1138(b)(1)(A)(i) of the Social Security 
        Act (42 U.S.C. 1320b-8(b)(1)(A)(i)) to extend the period for 
        recertification of an organ procurement organization from 2 to 
        4 years on the basis of its past practices in order to avoid 
        the inappropriate disruption of the nation's organ system.
            (6) The Secretary of Health and Human Services can use the 
        extended period described in paragraph (5) for recertification 
        of all organ procurement organizations to--
                    (A) develop improved performance measures that 
                would reflect organ donor potential and interim 
                outcomes, and to test these measures to ensure that 
                they accurately measure performance differences among 
                the organ procurement organizations; and
                    (B) improve the overall certification process by 
                incorporating process as well as outcome performance 
                measures, and developing equitable processes for 
                appeals.
    (b) Section 371(b)(1) of the Public Health Service Act (42 U.S.C. 
273(b)(1)) is amended--
            (1) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively;
            (2) by realigning the margin of subparagraph (F) (as so 
        redesignated) so as to align with subparagraph (E) (as so 
        redesignated); and
            (3) by inserting after subparagraph (C) the following:
            ``(D) notwithstanding any other provision of law, has met 
        the other requirements of this section and has been certified 
        or recertified by the Secretary within the previous 4-year 
        period as meeting the performance standards to be a qualified 
        organ procurement organization through a process that either--
                    ``(i) granted certification or recertification 
                within such 4-year period with such certification or 
                recertification in effect as of January 1, 2000, and 
                remaining in effect through the earlier of--
                            ``(I) January 1, 2002; or
                            ``(II) the completion of recertification 
                        under the requirements of clause (ii); or
                    ``(ii) is defined through regulations that are 
                promulgated by the Secretary by not later than January 
                1, 2002, that--
                            ``(I) require recertifications of qualified 
                        organ procurement organizations not more 
                        frequently than once every 4 years;
                            ``(II) rely on outcome and process 
                        performance measures that are based on 
                        empirical evidence, obtained through reasonable 
                        efforts, of organ donor potential and other 
                        related factors in each service area of 
                        qualified organ procurement organizations;
                            ``(III) use multiple outcome measures as 
                        part of the certification process; and
                            ``(IV) provide for a qualified organ 
                        procurement organization to appeal a 
                        decertification to the Secretary on substantive 
                        and procedural grounds;''.
    Sec. 220. (a) In order for the Centers for Disease Control and 
Prevention to carry out international HIV/AIDS and other infectious 
disease, chronic and environmental disease, and other health activities 
abroad during fiscal year 2001, the Secretary of Health and Human 
Services is authorized to--
            (1) utilize the authorities contained in subsection 2(c) of 
        the State Department Basic Authorities Act of 1956, as amended, 
        subject to the limitations set forth in subsection (b), and
            (2) enter into reimbursable agreements with the Department 
        of State using any funds appropriated to the Department of 
        Health and Human Services, for the purposes for which the funds 
        were appropriated in accordance with authority granted to the 
        Secretary of Health and Human Services or under authority 
        governing the activities of the Department of State.
    (b) In exercising the authority set forth in subsection (a)(1), the 
Secretary of Health and Human Services--
            (1) shall not award contracts for performance of an 
        inherently governmental function; and
            (2) shall follow otherwise applicable Federal procurement 
        laws and regulations to the maximum extent practicable.
    Sec. 221. Notwithstanding any other provision of law, the Director, 
National Institutes of Health, may enter into and administer a long-
term lease for facilities for the purpose of providing laboratory, 
office and other space for biomedical and behavioral research at the 
Bayview Campus in Baltimore, Maryland: Provided, That the House and 
Senate Appropriations Committees will be notified of the terms and 
conditions of the lease upon its execution.
    Sec. 222. Of the funds appropriated in this Act for the National 
Institutes of Health, $5,800,000 shall be transferred to the Office of 
the Secretary, General Departmental Management to support the newly 
established Office for Human Research Protections.
    Sec. 223. Section 487E(a)(1) of the Public Health Service Act is 
amended by striking ``as employees of the National Institutes of 
Health''.
    Sec. 224. Notwithstanding any other provision of law relating to 
vacancies in offices for which appointments must be made by the 
President, including any time limitation on serving in an acting 
capacity, the Acting Director of the National Institutes of Health as 
of January 12, 2000, may serve in that position until a new Director of 
the National Institutes of Health is confirmed by the Senate.
    Sec. 225. The National Neuroscience Research Center to be 
constructed on the National Institutes of Health Bethesda campus is 
hereby named the John Edward Porter Neuroscience Research Center.
    This title may be cited as the ``Department of Health and Human 
Services Appropriations Act, 2001''.

                   TITLE III--DEPARTMENT OF EDUCATION

                            education reform

    For carrying out activities authorized by title IV of the Goals 
2000: Educate America Act as in effect prior to September 30, 2000, and 
sections 3122, 3132, 3136, and 3141, parts B, C, and D of title III, 
and section 10105 and part I of title X of the Elementary and Secondary 
Education Act of 1965, $1,880,710,000, of which $38,000,000 shall be 
for the Goals 2000: Educate America Act, and of which $191,950,000 
shall be for section 3122: Provided, That up to one-half of 1 percent 
of the amount available under section 3132 shall be set aside for the 
outlying areas, to be distributed on the basis of their relative need 
as determined by the Secretary in accordance with the purposes of the 
program: Provided further, That if any State educational agency does 
not apply for a grant under section 3132, that State's allotment under 
section 3131 shall be reserved by the Secretary for grants to local 
educational agencies in that State that apply directly to the Secretary 
according to the terms and conditions published by the Secretary in the 
Federal Register: Provided further, That with respect to all funds 
appropriated to carry out section 10901 et seq. in this Act, the 
Secretary shall strongly encourage applications for grants that are to 
be submitted jointly by a local educational agency (or a consortium of 
local educational agencies) and a community-based organization that has 
experience in providing before- and after-school services and all 
applications submitted to the Secretary shall contain evidence that the 
project contains elements that are designed to assist students in 
meeting or exceeding State and local standards in core academic 
subjects, as appropriate to the needs of participating children: 
Provided further, That $125,000,000, which shall become available on 
July 1, 2001, and remain available through September 30, 2002, shall be 
available to support activities under section 10105 of part A of title 
X of the Elementary and Secondary Education Act of 1965, of which up to 
6 percent shall become available October 1, 2000, and be available for 
evaluation, technical assistance, school networking, peer review of 
applications, and program outreach activities: Provided further, That 
funds made available to local educational agencies under this section 
shall be used only for activities related to establishing smaller 
learning communities in high schools: Provided further, That 
$46,328,000 of the funds available to carry out section 3136 of the 
Elementary and Secondary Education Act of 1965, $8,768,000 of the funds 
available to carry out part B of title III of that Act and $20,614,000 
of the funds available to carry out part I of title X of that Act shall 
be available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying this 
Act.

                    education for the disadvantaged

    For carrying out title I of the Elementary and Secondary Education 
Act of 1965, and section 418A of the Higher Education Act of 1965, 
$9,532,621,000, of which $2,731,921,000 shall become available on July 
1, 2001, and shall remain available through September 30, 2002, and of 
which $6,758,300,000 shall become available on October 1, 2001 and 
shall remain available through September 30, 2002, for academic year 
2001-2002: Provided, That $7,332,721,000 shall be available for basic 
grants under section 1124: Provided further, That $225,000,000 of these 
funds shall be allocated among the States in the same proportion as 
funds are allocated among the States under section 1122, to carry out 
section 1116(c): Provided further, That 100 percent of these funds 
shall be allocated by States to local educational agencies for the 
purposes of carrying out section 1116(c): Provided further, That all 
local educational agencies receiving an allocation under the preceding 
proviso, and all other local educational agencies that are within a 
State that receives funds under part A of title I of the Elementary and 
Secondary Education Act of 1965 (other than a local educational agency 
within a State receiving a minimum grant under section 1124(d) or 
1124A(a)(1)(B) of such Act), shall provide all students enrolled in a 
school identified under section 1116(c) with the option to transfer to 
another public school within the local educational agency, including a 
public charter school, that has not been identified for school 
improvement under section 1116(c), unless such option to transfer is 
prohibited by State law, or local law, which includes school board-
approved local educational agency policy: Provided further, That if the 
local educational agency demonstrates to the satisfaction of the State 
educational agency that the local educational agency lacks the capacity 
to provide all students with the option to transfer to another public 
school, and after giving notice to the parents of children affected 
that it is not possible, consistent with State and local law, to 
accommodate the transfer request of every student, the local 
educational agency shall permit as many students as possible (who shall 
be selected by the local educational agency on an equitable basis) to 
transfer to a public school that has not been identified for school 
improvement under section 1116(c): Provided further, That up to 
$3,500,000 of these funds shall be available to the Secretary on 
October 1, 2000, to obtain updated local educational agency level 
census poverty data from the Bureau of the Census: Provided further, 
That $1,364,000,000 shall be available for concentration grants under 
section 1124A: Provided further, That grant awards under sections 1124 
and 1124A of title I of the Elementary and Secondary Education Act of 
1965 shall be not less than the greater of 100 percent of the amount 
each State and local educational agency received under this authority 
for fiscal year 2000 or the amount such State and local educational 
agency would receive if $6,883,503,000 for Basic Grants and 
$1,222,397,000 for Concentration Grants were allocated in accordance 
with section 1122(c)(3) of title I: Provided further, That 
notwithstanding any other provision of law, grant awards under section 
1124A of title I of the Elementary and Secondary Education Act of 1965 
shall be made to those local educational agencies that received a 
Concentration Grant under the Department of Education Appropriations 
Act, 2000, but are not eligible to receive such a grant for fiscal year 
2001: Provided further, That the Secretary shall not take into account 
the hold harmless provisions in this section in determining State 
allocations under any other program administered by the Secretary in 
any fiscal year: Provided further, That $8,900,000 shall be available 
for evaluations under section 1501 and not more than $8,500,000 shall 
be reserved for section 1308, of which not more than $3,000,000 shall 
be reserved for section 1308(d): Provided further, That $210,000,000 
shall be available under section 1002(g)(2) to demonstrate effective 
approaches to comprehensive school reform to be allocated and expended 
in accordance with the instructions relating to this activity in the 
statement of the managers on the conference report accompanying Public 
Law 105-78 and in the statement of the managers on the conference 
report accompanying Public Law 105-277: Provided further, That in 
carrying out this initiative, the Secretary and the States shall 
support only approaches that show the most promise of enabling children 
served by title I to meet challenging State content standards and 
challenging State student performance standards based on reliable 
research and effective practices, and include an emphasis on basic 
academics and parental involvement.

                               impact aid

    For carrying out programs of financial assistance to federally 
affected schools authorized by title VIII of the Elementary and 
Secondary Education Act of 1965, $993,302,000, of which $882,000,000 
shall be for basic support payments under section 8003(b), $50,000,000 
shall be for payments for children with disabilities under section 
8003(d), $12,802,000 shall be for construction under section 8007, 
$40,500,000 shall be for Federal property payments under section 8002, 
and $8,000,000, to remain available until expended, shall be for 
facilities maintenance under section 8008: Provided, That $6,802,000 of 
the funds for section 8007 shall be available for the local educational 
agencies and in the amounts specified in the statement of the managers 
on the conference report accompanying this Act: Provided further, That 
from the amount appropriated for section 8002, the Secretary shall 
treat as timely filed, and shall process for payment, an application 
for a fiscal year 1999 payment from Academy School District 20, 
Colorado, under that section if the Secretary has received that 
application not later than 30 days after the enactment of this Act: 
Provided further, That the Secretary of Education shall consider the 
local educational agency serving the Kadoka School District, 35-1, in 
South Dakota, eligible for payments under section 8002 for fiscal year 
2001 and each succeeding fiscal year, with respect to land in 
Washabaugh and Jackson Counties, South Dakota, that is owned by the 
Department of Defense and used as a bombing range: Provided further, 
That from the amount appropriated for section 8002, the Secretary shall 
first increase the payment of any local educational agency that was 
denied funding or had its payment reduced under that section for fiscal 
year 1998 due to section 8002(b)(1)(C) to the amount that would have 
been made without the limitation of that section: Provided further, 
That from the amount appropriated for section 8002, $500,000 shall be 
for subsection 8002(j).

                      school improvement programs

    For carrying out school improvement activities authorized by titles 
II, IV, V-A and B, VI, IX, X, and XIII of the Elementary and Secondary 
Education Act of 1965 (``ESEA''); the McKinney-Vento Homeless 
Assistance Act; and the Civil Rights Act of 1964 and part B of title 
VIII of the Higher Education Amendments of 1998; $4,872,084,000, of 
which $2,403,750,000 shall become available on July 1, 2001, and remain 
available through September 30, 2002, and of which $1,765,000,000 shall 
become available on October 1, 2001 and shall remain available through 
September 30, 2002 for academic year 2001-2002: Provided, That 
$485,000,000 shall be available for Eisenhower professional development 
State grants under part B of title II of the Elementary and Secondary 
Education Act of 1965: Provided further, That each local educational 
agency shall use funds in excess of the allocation it received under 
such part for the preceding fiscal year to improve teacher quality by 
reducing the percentage of teachers who do not have State certification 
or are certified through emergency or provisional means; are teaching 
out of field in some or all of the subject areas and grade levels in 
which they teach; or who lack sufficient content knowledge to teach 
effectively in the areas they teach to obtain that knowledge: Provided 
further, That the local educational agency may also use such excess 
funds for: activities authorized under section 2210 of the Elementary 
and Secondary Education Act of 1965; mentoring programs for new 
teachers; providing opportunities for teachers to attend multi-week 
institutes, such as those provided in the summer months, that provide 
intensive professional development in partnership with local 
educational agencies; and carrying out initiatives to promote the 
retention of highly qualified teachers who have a record of success in 
helping low-achieving students improve their academic success: Provided 
further, That each State educational agency may use such excess funds 
to carry out activities under section 2207 of the Elementary and 
Secondary Education Act of 1965: Provided further, That each State 
agency for higher education may use such excess funds to carry out 
activities under section 2211 of the Elementary and Secondary Education 
Act of 1965: Provided further, That both State educational agencies and 
State agencies for higher education may also use such excess funds for 
multi-week institutes, such as those provided in the summer months, 
that provide intensive professional development in partnership with 
local educational agencies; and grants to partnerships of such entities 
as local educational agencies, institutions of higher education, and 
private business, to recruit, and prepare, and provide professional 
development to, and help retain, school principals and superintendents, 
especially for such individuals who serve, or are preparing to serve, 
in high-poverty, low-performing schools and local educational agencies: 
Provided further, That such activities may be undertaken in consortium 
with other States: Provided further, That of the funds appropriated for 
part B of title II of the Elementary and Secondary Education Act of 
1965, $45,000,000 shall be available to States and allocated in 
accordance with section 2202(b) of that Act (except that the 
requirements of section 2203 shall not apply): Provided further, That 
notwithstanding any other provision of law, each State shall use the 
amount made available under the preceding proviso to support efforts to 
meet the requirements for State eligibility for the Ed-Flex Partnership 
Act of 1999 or the requirements under section 1111 of title I of the 
Elementary and Secondary Education Act of 1965: Provided further, That 
$44,000,000 shall be available for national activities under section 
2102 of the Elementary and Secondary Education Act of 1965: Provided 
further, That of the amount available in the preceding proviso, 
$3,000,000 shall be made available to the Secretary for the Troops-to-
Teachers Program for transfer to the Defense Activity for Non-
Traditional Education Support of the Department of Defense: Provided 
further, That the funds transferred under the preceding proviso shall 
be used by the Secretary of Defense to administer the Troops-to-
Teachers Program, including the selection of participants in the 
Program under the Troops-to-Teachers Program Act of 1999 (title XVII of 
Public Law 106-65; 20 U.S.C. 9301 et seq.): Provided further, That for 
purposes of sections 1702(b) and (c) of the Troops-to-Teachers Program 
Act of 1999, the Secretary of Education shall be the administering 
Secretary and may, at the Secretary's discretion, carry out the 
activities under section 1702(c) of that Act and retain a portion of 
the funds made available for the Troops-to-Teachers Program to carry 
out section 1702(b) and (c) of that Act: Provided further, That of the 
amount made available under this heading for national activities under 
section 2102 of the Elementary and Secondary Education Act of 1965, the 
Secretary is authorized to use a portion of such funds to carry out 
activities to improve the knowledge and skills of early childhood 
educators and caregivers who work in urban or rural communities with 
high concentrations of young children living in poverty: Provided 
further, That of the amount appropriated, $3,208,000,000 shall be for 
title VI of the Elementary and Secondary Education Act of 1965 and to 
carry out activities under part B of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411 et seq.): Provided further, That of the 
amount made available for title VI, $1,623,000,000 shall be available, 
notwithstanding any other provision of law, in accordance with section 
306 of this Act in order to reduce class size, particularly in the 
early grades, using highly qualified teachers to improve educational 
achievement for regular and special needs children: Provided further, 
That of the amount made available for title VI, $1,200,000,000 shall be 
available, notwithstanding any other provision of law, for grants for 
school repair and renovation, activities under part B of the 
Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.), 
and technology activities, in accordance with section 321 of this Act: 
Provided further, That funds made available under this heading to carry 
out section 6301(b) of the Elementary and Secondary Education Act of 
1965 shall be available for education reform projects that provide same 
gender schools and classrooms, consistent with applicable law: Provided 
further, That of the amount made available to carry out activities 
authorized under part C of title IX of the Elementary and Secondary 
Education Act of 1965, $1,000,000 shall be for the Alaska Humanities 
Forum for operation of the Rose student exchange program and $1,000,000 
shall be for the Alaska Native Heritage Center to support its program 
of cultural education activities: Provided further, That of the amount 
made available for subpart 2 of part A of title IV of the Elementary 
and Secondary Education Act of 1965, $10,000,000, to remain available 
until expended, shall be for Project School Emergency Response to 
Violence to provide education-related services to local educational 
agencies in which the learning environment has been disrupted due to a 
violent or traumatic crisis.

                           reading excellence

    For necessary expenses to carry out the Reading Excellence Act, 
$91,000,000, which shall become available on July 1, 2001 and shall 
remain available through September 30, 2002 and $195,000,000 which 
shall become available on October 1, 2001 and remain available through 
September 30, 2002.

                            indian education

    For expenses necessary to carry out, to the extent not otherwise 
provided, title IX, part A of the Elementary and Secondary Education 
Act of 1965, as amended, $115,500,000.

                   bilingual and immigrant education

    For carrying out, to the extent not otherwise provided, bilingual, 
foreign language and immigrant education activities authorized by parts 
A and C and section 7203 of title VII of the Elementary and Secondary 
Education Act of 1965, $460,000,000: Provided, That State educational 
agencies may use all, or any part of, their part C allocation for 
competitive grants to local educational agencies.

                           special education

    For carrying out the Individuals with Disabilities Education Act, 
$7,439,948,000, of which $2,090,452,000 shall become available for 
obligation on July 1, 2001, and shall remain available through 
September 30, 2002, and of which $5,072,000,000 shall become available 
on October 1, 2001 and shall remain available through September 30, 
2002, for academic year 2001-2002: Provided, That $9,500,000 shall be 
for Recording for the Blind and Dyslexic to support the development, 
production, and circulation of recorded educational materials: Provided 
further, That $1,500,000 shall be for the recipient of funds provided 
by Public Law 105-78 under section 687(b)(2)(G) of the Act to provide 
information on diagnosis, intervention, and teaching strategies for 
children with disabilities: Provided further, That $7,353,000 of the 
funds for section 672 of the Act shall be available for the projects 
and in the amounts specified in the statement of the managers on the 
conference report accompanying this Act.

            rehabilitation services and disability research

    For carrying out, to the extent not otherwise provided, the 
Rehabilitation Act of 1973, the Assistive Technology Act of 1998, and 
the Helen Keller National Center Act, $2,805,339,000: Provided, That 
the funds provided for title I of the Assistive Technology Act of 1998 
(``the AT Act'') shall be allocated notwithstanding section 105(b)(1) 
of the AT Act: Provided further, That each State shall be provided 
$50,000 for activities under section 102 of the AT Act: Provided 
further, That $15,000,000 shall be used to support grants for up to 3 
years to States under title III of the AT Act, of which the Federal 
share shall not exceed 75 percent in the first year, 50 percent in the 
second year, and 25 percent in the third year, and that the 
requirements in section 301(c)(2) and section 302 of that Act shall not 
apply to such grants: Provided further, That $4,600,000 of the funds 
for section 303 of the Rehabilitation Act of 1973 shall be available 
for the projects and in the amounts specified in the statement of the 
managers on the conference report accompanying this Act: Provided 
further, That $400,000 of the funds for title II of the Rehabilitation 
Act of 1973 shall be for the Cerebral Palsy Research Foundation in 
Wichita, Kansas for the establishment of a Rehabilitation Research and 
Training Center to study and recommend incentives for employers to hire 
persons with significant disabilities.

           Special Institutions for Persons With Disabilities

                 american printing house for the blind

    For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 
101 et seq.), $12,000,000.

               national technical institute for the deaf

    For the National Technical Institute for the Deaf under titles I 
and II of the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et 
seq.), $53,376,000, of which $5,376,000 shall be for construction and 
shall remain available until expended: Provided, That from the total 
amount available, the Institute may at its discretion use funds for the 
endowment program as authorized under section 207.

                          gallaudet university

    For the Kendall Demonstration Elementary School, the Model 
Secondary School for the Deaf, and the partial support of Gallaudet 
University under titles I and II of the Education of the Deaf Act of 
1986 (20 U.S.C. 4301 et seq.), $89,400,000: Provided, That from the 
total amount available, the University may at its discretion use funds 
for the endowment program as authorized under section 207.

                     vocational and adult education

    For carrying out, to the extent not otherwise provided, the Carl D. 
Perkins Vocational and Technical Education Act, the Adult Education and 
Family Literacy Act, and title VIII-D of the Higher Education Act of 
1965, as amended, and Public Law 102-73, $1,825,600,000, of which 
$1,000,000 shall remain available until expended, and of which 
$1,028,000,000 shall become available on July 1, 2001 and shall remain 
available through September 30, 2002 and of which $791,000,000 shall 
become available on October 1, 2001 and shall remain available through 
September 30, 2002: Provided, That of the amounts made available for 
the Carl D. Perkins Vocational and Technical Education Act, $5,600,000 
shall be for tribally controlled postsecondary vocational and technical 
institutions under section 117: Provided further, That $9,000,000 shall 
be for carrying out section 118 of such Act: Provided further, That of 
the amounts made available for the Carl D. Perkins Vocational and 
Technical Education Act, $5,000,000 shall be for demonstration 
activities authorized by section 207: Provided further, That of the 
amount provided for Adult Education State Grants, $70,000,000 shall be 
made available for integrated English literacy and civics education 
services to immigrants and other limited English proficient 
populations: Provided further, That of the amount reserved for 
integrated English literacy and civics education, notwithstanding 
section 211 of the Adult Education and Family Literacy Act, 65 percent 
shall be allocated to States based on a State's absolute need as 
determined by calculating each State's share of a 10-year average of 
the Immigration and Naturalization Service data for immigrants admitted 
for legal permanent residence for the 10 most recent years, and 35 
percent allocated to States that experienced growth as measured by the 
average of the 3 most recent years for which Immigration and 
Naturalization Service data for immigrants admitted for legal permanent 
residence are available, except that no State shall be allocated an 
amount less than $60,000: Provided further, That of the amounts made 
available for the Adult Education and Family Literacy Act, $14,000,000 
shall be for national leadership activities under section 243 and 
$6,500,000 shall be for the National Institute for Literacy under 
section 242: Provided further, That $22,000,000 shall be for Youth 
Offender Grants, of which $5,000,000 shall be used in accordance with 
section 601 of Public Law 102-73 as that section was in effect prior to 
the enactment of Public Law 105-220.

                      student financial assistance

    For carrying out subparts 1, 3, and 4 of part A, section 428K, part 
C and part E of title IV of the Higher Education Act of 1965, as 
amended, $10,674,000,000, which shall remain available through 
September 30, 2002.
    The maximum Pell Grant for which a student shall be eligible during 
award year 2001-2002 shall be $3,750: Provided, That notwithstanding 
section 401(g) of the Act, if the Secretary determines, prior to 
publication of the payment schedule for such award year, that the 
amount included within this appropriation for Pell Grant awards in such 
award year, and any funds available from the fiscal year 2000 
appropriation for Pell Grant awards, are insufficient to satisfy fully 
all such awards for which students are eligible, as calculated under 
section 401(b) of the Act, the amount paid for each such award shall be 
reduced by either a fixed or variable percentage, or by a fixed dollar 
amount, as determined in accordance with a schedule of reductions 
established by the Secretary for this purpose.

             federal family education loan program account

    For Federal administrative expenses to carry out guaranteed student 
loans authorized by title IV, part B, of the Higher Education Act of 
1965, as amended, $48,000,000.

                            higher education

    For carrying out, to the extent not otherwise provided, section 121 
and titles II, III, IV, V, VI, and VII of the Higher Education Act of 
1965, as amended, section 1543 of the Higher Education Amendments of 
1992 and title VIII of the Higher Education Amendments of 1998, and the 
Mutual Educational and Cultural Exchange Act of 1961, $1,911,710,000, 
of which $10,000,000 for interest subsidies authorized by section 121 
of the Higher Education Act of 1965, shall remain available until 
expended: Provided, That $10,000,000, to remain available through 
September 30, 2002, shall be available to fund fellowships for academic 
year 2002-2003 under part A, subpart 1 of title VII of said Act, under 
the terms and conditions of part A, subpart 1: Provided further, That 
$3,000,000 is for data collection and evaluation activities for 
programs under the Higher Education Act of 1965, including such 
activities needed to comply with the Government Performance and Results 
Act of 1993: Provided further, That $15,000,000 shall be available for 
tribally controlled colleges and universities under section 316 of the 
Higher Education Act of 1965, of which $5,000,000 shall be used for 
construction and renovation: Provided further, That $250,000 shall be 
for the Web-Based Education Commission to continue activities 
authorized under part J of title VIII of the Higher Education 
Amendments of 1998: Provided further, That $115,487,000 of the funds 
for part B of title VII of the Higher Education Act of 1965 shall be 
available for the projects and in the amounts specified in the 
statement of the managers on the conference report accompanying this 
Act.

                           howard university

    For partial support of Howard University (20 U.S.C. 121 et seq.), 
$232,474,000, of which not less than $3,600,000 shall be for a matching 
endowment grant pursuant to the Howard University Endowment Act (Public 
Law 98-480) and shall remain available until expended.

         college housing and academic facilities loans program

    For Federal administrative expenses authorized under section 121 of 
the Higher Education Act of 1965, $762,000 to carry out activities 
related to existing facility loans entered into under the Higher 
Education Act of 1965.

  historically black college and university capital financing program 
                                account

    The total amount of bonds insured pursuant to section 344 of title 
III, part D of the Higher Education Act of 1965 shall not exceed 
$357,000,000, and the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of such bonds shall not exceed zero.
    For administrative expenses to carry out the Historically Black 
College and University Capital Financing Program entered into pursuant 
to title III, part D of the Higher Education Act of 1965, as amended, 
$208,000.

            education research, statistics, and improvement

    For carrying out activities authorized by the Educational Research, 
Development, Dissemination, and Improvement Act of 1994, including part 
E; the National Education Statistics Act of 1994, including sections 
411 and 412; section 2102 of title II, parts A, B, K, and L and 
sections 10102 and 10601 of title X, and part C of title XIII of the 
Elementary and Secondary Education Act of 1965, as amended, and title 
VI of Public Law 103-227, $732,721,000: Provided, That of the funds 
appropriated for part A of title X of the Elementary and Secondary 
Education Act of 1965, as amended, $5,000,000 shall be made available 
for a high school reform program of grants to State educational 
agencies to improve academic performance and provide technical skills 
training: Provided further, That of the funds appropriated for part A 
of title X of the Elementary and Secondary Education Act of 1965, as 
amended, $5,000,000 shall be made available to carry out part L of 
title X of the Act: Provided further, That of the amount available for 
part A of title X of the Elementary and Secondary Education Act of 
1965, as amended, $5,000,000 shall be available for grants to State and 
local educational agencies, in collaboration with other agencies and 
organizations, for school dropout prevention programs designed to 
address the needs of populations or communities with the highest 
dropout rates: Provided further, That of the amount made available for 
part A of title X of the Elementary and Secondary Education Act of 
1965, as amended, $50,000,000 shall be made available to enable the 
Secretary of Education to award grants to develop, implement, and 
strengthen programs to teach American history (not social studies) as a 
separate subject within school curricula: Provided further, That 
$53,000,000 of the amount available for the national education research 
institutes shall be allocated notwithstanding section 912(m)(1)(B-F) 
and subparagraphs (B) and (C) of section 931(c)(2) of Public Law 103-
227 and $20,000,000 of that $53,000,000 shall be made available for the 
Interagency Education Research Initiative: Provided further, That of 
the funds appropriated for part A of title X of the Elementary and 
Secondary Education Act, as amended, $50,000,000 shall be available to 
demonstrate effective approaches to comprehensive school reform, to be 
allocated and expended in accordance with the instructions relating to 
this activity in the statement of managers on the conference report 
accompanying Public Law 105-78 and in the statement of the managers on 
the conference report accompanying Public Law 105-277: Provided 
further, That the funds made available for comprehensive school reform 
shall become available on July 1, 2001, and remain available through 
September 30, 2002, and in carrying out this initiative, the Secretary 
and the States shall support only approaches that show the most promise 
of enabling children to meet challenging State content standards and 
challenging State student performance standards based on reliable 
research and effective practices, and include an emphasis on basic 
academics and parental involvement: Provided further, That $139,624,000 
of the funds for section 10101 of the Elementary and Secondary 
Education Act of 1965 shall be available for the projects and in the 
amounts specified in the statement of the managers on the conference 
report accompanying this Act: Provided further, That of the funds 
appropriated under section 10601 of title X of the Elementary and 
Secondary Education Act of 1965, as amended, $2,000,000 shall be used 
to conduct a violence prevention demonstration program: Provided 
further, That of the funds available for section 10601 of title X of 
the Elementary and Secondary Education Act of 1965, as amended, 
$150,000 shall be awarded to the Center for Educational Technologies to 
complete production and distribution of an effective CD-ROM product 
that would complement the ``We the People: The Citizen and the 
Constitution'' curriculum: Provided further, That, of the funds for 
title VI of Public Law 103-227 and notwithstanding the provisions of 
section 601(c)(1)(C) of that Act, $1,200,000 shall be available to the 
Center for Civic Education to conduct a civic education program with 
Northern Ireland and the Republic of Ireland and, consistent with the 
civics and Government activities authorized in section 601(c)(3) of 
Public Law 103-227, to provide civic education assistance to 
democracies in developing countries. The term ``developing countries'' 
shall have the same meaning as the term ``developing country'' in the 
Education for the Deaf Act.

                        Departmental Management

                         program administration

    For carrying out, to the extent not otherwise provided, the 
Department of Education Organization Act, including rental of 
conference rooms in the District of Columbia and hire of two passenger 
motor vehicles, $413,184,000.

                        office for civil rights

    For expenses necessary for the Office for Civil Rights, as 
authorized by section 203 of the Department of Education Organization 
Act, $76,000,000.

                    office of the inspector general

    For expenses necessary for the Office of the Inspector General, as 
authorized by section 212 of the Department of Education Organization 
Act, $36,500,000.

                           GENERAL PROVISIONS

    Sec. 301. No funds appropriated in this Act may be used for the 
transportation of students or teachers (or for the purchase of 
equipment for such transportation) in order to overcome racial 
imbalance in any school or school system, or for the transportation of 
students or teachers (or for the purchase of equipment for such 
transportation) in order to carry out a plan of racial desegregation of 
any school or school system.
    Sec. 302. None of the funds contained in this Act shall be used to 
require, directly or indirectly, the transportation of any student to a 
school other than the school which is nearest the student's home, 
except for a student requiring special education, to the school 
offering such special education, in order to comply with title VI of 
the Civil Rights Act of 1964. For the purpose of this section an 
indirect requirement of transportation of students includes the 
transportation of students to carry out a plan involving the 
reorganization of the grade structure of schools, the pairing of 
schools, or the clustering of schools, or any combination of grade 
restructuring, pairing or clustering. The prohibition described in this 
section does not include the establishment of magnet schools.
    Sec. 303. No funds appropriated under this Act may be used to 
prevent the implementation of programs of voluntary prayer and 
meditation in the public schools.

                          (transfer of funds)

    Sec. 304. Not to exceed 1 percent of any discretionary funds 
(pursuant to the Balanced Budget and Emergency Deficit Control Act of 
1985, as amended) which are appropriated for the Department of 
Education in this Act may be transferred between appropriations, but no 
such appropriation shall be increased by more than 3 percent by any 
such transfer: Provided, That the Appropriations Committees of both 
Houses of Congress are notified at least 15 days in advance of any 
transfer.
    Sec. 305. The Comptroller General of the United States shall 
evaluate the extent to which funds made available under part A of title 
I of the Elementary and Secondary Education Act of 1965 are allocated 
to schools and local educational agencies with the greatest 
concentrations of school-age children from low-income families, the 
extent to which allocations of such funds adjust to shifts in 
concentrations of pupils from low-income families in different regions, 
States, and substate areas, the extent to which the allocation of such 
funds encourages the targeting of State funds to areas with higher 
concentrations of children from low-income families, and the 
implications of current distribution methods for such funds, shall make 
formula and other policy recommendations to improve the targeting of 
such funds to more effectively serve low-income children in both rural 
and urban areas, and shall prepare interim and final reports based on 
the results of the study, to be submitted to Congress not later than 
February 1, 2001, and April 1, 2001.
    Sec. 306. (a) From the amount appropriated for title VI of the 
Elementary and Secondary Education Act of 1965 in accordance with this 
section, the Secretary of Education--
            (1) shall make available a total of $6,000,000 to the 
        Secretary of the Interior (on behalf of the Bureau of Indian 
        Affairs) and the outlying areas for activities under this 
        section; and
            (2) shall allocate the remainder by providing each State 
        the same percentage of that remainder as it received of the 
        funds allocated to States under section 307(a)(2) of the 
        Department of Education Appropriations Act, 1999.
    (b)(1) Each State that receives funds under this section shall 
distribute 100 percent of such funds to local educational agencies, of 
which--
            (A) 80 percent of such amount shall be allocated to such 
        local educational agencies in proportion to the number of 
        children, aged 5 to 17, who reside in the school district 
        served by such local educational agency from families with 
        incomes below the poverty line (as defined by the Office of 
        Management and Budget and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2))) applicable to a family of the size involved 
        for the most recent fiscal year for which satisfactory data are 
        available compared to the number of such individuals who reside 
        in the school districts served by all the local educational 
        agencies in the State for that fiscal year; and
            (B) 20 percent of such amount shall be allocated to such 
        local educational agencies in accordance with the relative 
        enrollments of children, aged 5 to 17, in public and private 
        nonprofit elementary and secondary schools within the 
        boundaries of such agencies.
    (2) Notwithstanding paragraph (1), if the award to a local 
educational agency under this section is less than the starting salary 
for a new fully qualified teacher in that agency, who is certified 
within the State (which may include certification through State or 
local alternative routes), has a baccalaureate degree, and demonstrates 
the general knowledge, teaching skills, and subject matter knowledge 
required to teach in his or her content areas, that agency may use 
funds under this section to (A) help pay the salary of a full- or part-
time teacher hired to reduce class size, which may be in combination 
with other Federal, State, or local funds; or (B) pay for activities 
described in subsection (c)(2)(A)(iii) which may be related to teaching 
in smaller classes.
    (c)(1) The basic purpose and intent of this section is to reduce 
class size with fully qualified teachers. Each local educational agency 
that receives funds under this section shall use such funds to carry 
out effective approaches to reducing class size with fully qualified 
teachers who are certified within the State, including teachers 
certified through State or local alternative routes, and who 
demonstrate competency in the areas in which they teach, to improve 
educational achievement for both regular and special needs children, 
with particular consideration given to reducing class size in the early 
elementary grades for which some research has shown class size 
reduction is most effective.
    (2)(A) Each such local educational agency may use funds under this 
section for--
            (i) recruiting (including through the use of signing 
        bonuses, and other financial incentives), hiring, and training 
        fully qualified regular and special education teachers (which 
        may include hiring special education teachers to team-teach 
        with regular teachers in classrooms that contain both children 
        with disabilities and non-disabled children) and teachers of 
        special-needs children who are certified within the State, 
        including teachers certified through State or local alternative 
        routes, have a baccalaureate degree and demonstrate the general 
        knowledge, teaching skills, and subject matter knowledge 
        required to teach in their content areas;
            (ii) testing new teachers for academic content knowledge 
        and to meet State certification requirements that are 
        consistent with title II of the Higher Education Act of 1965; 
        and
            (iii) providing professional development (which may include 
        such activities as those described in section 2210 of the 
        Elementary and Secondary Education Act of 1965, opportunities 
        for teachers to attend multi-week institutes, such as those 
        made available during the summer months that provide intensive 
        professional development in partnership with local educational 
        agencies and initiatives that promote retention and mentoring), 
        to teachers, including special education teachers and teachers 
        of special-needs children, in order to meet the goal of 
        ensuring that all instructional staff have the subject matter 
        knowledge, teaching knowledge, and teaching skills necessary to 
        teach effectively in the content area or areas in which they 
        provide instruction, consistent with title II of the Higher 
        Education Act of 1965.
    (B)(i) Except as provided under clause (ii), a local educational 
agency may use not more than a total of 25 percent of the award 
received under this section for activities described in clauses (ii) 
and (iii) of subparagraph (A).
            (ii) A local educational agency in which 10 percent or more 
        of teachers in elementary schools, as defined by section 
        14101(14) of the Elementary and Secondary Education Act of 
        1965, have not met applicable State and local certification 
        requirements (including certification through State or local 
        alternative routes), or if such requirements have been waived, 
        may use more than 25 percent of the funds it receives under 
        this section for activities described in subparagraph (A)(iii) 
        to help teachers who are not certified by the State become 
        certified, including through State or local alternative routes, 
        or to help teachers affected by class size reduction who lack 
        sufficient content knowledge to teach effectively in the areas 
        they teach to obtain that knowledge, if the local educational 
        agency notifies the State educational agency of the percentage 
        of the funds that it will use for the purpose described in this 
        clause.
    (C) A local educational agency that has already reduced class size 
in the early grades to 18 or less children (or has already reduced 
class size to a State or local class size reduction goal that was in 
effect on the day before the enactment of the Department of Education 
Appropriations Act, 2000, if that State or local educational agency 
goal is 20 or fewer children) may use funds received under this 
section--
            (i) to make further class size reductions in grades 
        kindergarten through 3;
            (ii) to reduce class size in other grades; or
            (iii) to carry out activities to improve teacher quality 
        including professional development.
    (D) If a local educational agency has already reduced class size in 
the early grades to 18 or fewer children and intends to use funds 
provided under this section to carry out professional development 
activities, including activities to improve teacher quality, then the 
State shall make the award under subsection (b) to the local 
educational agency.
    (3) Each such agency shall use funds under this section only to 
supplement, and not to supplant, State and local funds that, in the 
absence of such funds, would otherwise be spent for activities under 
this section.
    (4) No funds made available under this section may be used to 
increase the salaries or provide benefits, other than participation in 
professional development and enrichment programs, to teachers who are 
not hired under this section. Funds under this section may be used to 
pay the salary of teachers hired under section 307 of the Department of 
Education Appropriations Act, 1999, or under section 310 of the 
Department of Education Appropriations Act, 2000.
    (d)(1) Each State receiving funds under this section shall report 
on activities in the State under this section, consistent with section 
6202(a)(2) of the Elementary and Secondary Education Act of 1965.
    (2) Each State and local educational agency receiving funds under 
this section shall publicly report to parents on its progress in 
reducing class size, increasing the percentage of classes in core 
academic areas taught by fully qualified teachers who are certified 
within the State and demonstrate competency in the content areas in 
which they teach, and on the impact that hiring additional highly 
qualified teachers and reducing class size, has had, if any, on 
increasing student academic achievement.
    (3) Each school receiving funds under this section shall provide to 
parents, upon request, the professional qualifications of their child's 
teacher.
    (e) If a local educational agency uses funds made available under 
this section for professional development activities, the agency shall 
ensure for the equitable participation of private nonprofit elementary 
and secondary schools in such activities. Section 6402 of the 
Elementary and Secondary Education Act of 1965 shall not apply to other 
activities under this section.
    (f) A local educational agency that receives funds under this 
section may use not more than 3 percent of such funds for local 
administrative costs.
    (g) Each local educational agency that desires to receive funds 
under this section shall include in the application required under 
section 6303 of the Elementary and Secondary Education Act of 1965 a 
description of the agency's program to reduce class size by hiring 
additional highly qualified teachers.
    (h) No funds under this section may be used to pay the salary of 
any teacher hired with funds under section 307 of the Department of 
Education Appropriations Act, 1999, unless, by the start of the 2001-
2002 school year, the teacher is certified within the State (which may 
include certification through State or local alternative routes) and 
demonstrates competency in the subject areas in which he or she 
teaches.
    (i) Not later than 30 days after the date of the enactment of this 
Act, the Secretary shall provide specific notification to each local 
educational agency eligible to receive funds under this part regarding 
the flexibility provided under subsection (c)(2)(B)(ii) and the ability 
to use such funds to carry out activities described in subsection 
(c)(2)(A)(iii).
    Sec. 307. Section 412 of the National Education Statistics Act of 
1994 (Public Law 103-382) is amended--
            (1) in subsection 412(c)(1), after ``period of'' and before 
        ``years,'', by striking ``3'' and inserting ``4''; and
            (2) after ``expiration of such term.'', by adding the 
        following new subsection:
            ``(4) Conforming provision.--Members of the Board 
        previously granted 3 year terms, whose terms are in effect on 
        the date of enactment of the Department of Education 
        Appropriations Act, 2001, shall have their terms extended by 1 
        year.''.
    Sec. 308. (a) Section 435(a)(2) of the Higher Education Act of 1965 
(20 U.S.C. 1085(a)(2)) is amended by adding at the end thereof the 
following new subparagraph:
    ``(D) Notwithstanding the first sentence of subparagraph (A), the 
Secretary shall restore the eligibility to participate in a program 
under subpart 1 of part A, part B, or part D of an institution that did 
not appeal its loss of eligibility within 30 days of receiving 
notification if the Secretary determines, on a case-by-case basis, that 
the institution's failure to appeal was substantially justified under 
the circumstances, and that--
            ``(i) the institution made a timely request that the 
        appropriate guaranty agency correct errors in the draft data 
        used to calculate the institution's cohort default rate;
            ``(ii) the guaranty agency did not correct the erroneous 
        data in a timely fashion; and
            ``(iii) the institution would have been eligible if the 
        erroneous data had been corrected by the guaranty agency.''.
    (b) The amendment made by subsection (a) of this section shall be 
effective for cohort default rate calculations for fiscal years 1997 
and 1998.
    Sec. 309. Section 439(r)(2) of the Higher Education Act of 1965 (20 
U.S.C. 1087-2(r)(2)) is amended--
            (1) in clause (A)(i), by striking ``auditors and 
        examiners'' and inserting ``and fix the compensation of such 
        auditors and examiners as may be necessary''; and
            (2) by inserting at the end of subparagraph (E) the 
        following new subparagraph:
                    ``(F) Compensation of auditors and examiners.--
                            ``(i) Rates of pay.--Rates of basic pay for 
                        all auditors and examiners appointed pursuant 
                        to subparagraph (A) may be set and adjusted by 
                        the Secretary of the Treasury without regard to 
                        the provisions of chapter 51 or subchapter III 
                        of chapter 53 of title 5, United States Code.
                            ``(ii) Comparability.--
                                    ``(I) In general.--Subject to 
                                section 5373 of title 5, United States 
                                Code, the Secretary of the Treasury may 
                                provide additional compensation and 
                                benefits to auditors and examiners 
                                appointed pursuant to subparagraph (A) 
                                if the same type of compensation or 
                                benefits are then being provided by any 
                                agency referred to in section 1206 of 
                                the Financial Institutions Reform, 
                                Recovery, and Enforcement Act of 1989 
                                (12 U.S.C. 1833b) or, if not then being 
                                provided, could be provided by such an 
                                agency under applicable provisions of 
                                law, rule, or regulation.
                                    ``(II) Consultation.--In setting 
                                and adjusting the total amount of 
                                compensation and benefits for auditors 
                                and examiners appointed pursuant to 
                                subparagraph (A), the Secretary of the 
                                Treasury shall consult with, and seek 
                                to maintain comparability with, the 
                                agencies referred to in section 1206 of 
                                the Financial Institutions Reform, 
                                Recovery, and Enforcement Act of 1989 
                                (12 U.S.C. 1833b).''.
    Sec. 310. Section 117(i) of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2327(i)) is amended by 
inserting ``such sums as may be necessary for'' before ``each of the 4 
succeeding fiscal years.''.
    Sec. 311. Section 432(m)(1) of the Higher Education Act of 1965 (20 
U.S.C. 1082(m)(1)) is amended--
            (1) by striking clause (iv) of subparagraph (D); and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Perfection of security interests in student 
                loans.--
                            ``(i) In general.--Notwithstanding the 
                        provisions of any State law to the contrary, 
                        including the Uniform Commercial Code as in 
                        effect in any State, a security interest in 
                        loans made under this part, on behalf of any 
                        eligible lender (as defined in section 435(d)) 
                        shall attach, be perfected, and be assigned 
                        priority in the manner provided by the 
                        applicable State's law for perfection of 
                        security interests in accounts, as such law may 
                        be amended from time to time (including 
                        applicable transition provisions). If any such 
                        State's law provides for a statutory lien to be 
                        created in such loans, such statutory lien may 
                        be created by the entity or entities governed 
                        by such State law in accordance with the 
                        applicable statutory provisions that created 
                        such a statutory lien.
                            ``(ii) Collateral description.--In addition 
                        to any other method for describing collateral 
                        in a legally sufficient manner permitted under 
                        the laws of the State, the description of 
                        collateral in any financing statement filed 
                        pursuant to this subparagraph shall be deemed 
                        legally sufficient if it lists such loans, or 
                        refers to records (identifying such loans) 
                        retained by the secured party or any designee 
                        of the secured party identified in such 
                        financing statement, including the debtor or 
                        any loan servicer.
                            ``(iii) Sales.--Notwithstanding clauses (i) 
                        and (ii) and any provisions of any State law to 
                        the contrary, other than any such State's law 
                        providing for creation of a statutory lien, an 
                        outright sale of loans made under this part 
                        shall be effective and perfected automatically 
                        upon attachment as defined in the Uniform 
                        Commercial Code of such State.''.
    Sec. 312. Section 435(a)(5) of the Higher Education Act of 1965 (20 
U.S.C. 1085(a)(5)) is amended--
            (1) in subparagraph (A)(i), by striking ``July 1, 2002,'' 
        and inserting ``July 1, 2004,''; and
            (2) in subparagraph (B), by striking ``1999, 2000, and 
        2001'' and inserting ``1999 through 2003''.
    Sec. 313. From the amounts made available for the ``Fund for the 
Improvement of Education'' under the heading ``Education Research, 
Statistics, and Improvement'', $10,000,000, to remain available until 
expended, shall be available to the Secretary of Education to be 
transferred to the Secretary of the Interior for an award to the 
National Constitution Center for construction activities authorized 
under Public Law 100-433.
    Sec. 314. Section 4116(b)(4) of the Elementary and Secondary 
Education Act of 1965 is amended by striking subparagraph (D) and 
inserting in lieu thereof: ``(D) the development and implementation of 
character education and training programs that reflect the values of 
parents, teachers, and local communities, and incorporate elements of 
good character, including honesty, citizenship, courage, justice, 
respect, personal responsibility, and trustworthiness; and''.
    Sec. 315. The Secretary of Education shall review the nursing 
program operated by Graceland University in Lamoni, Iowa, and may 
exercise the waiver authority provided in section 102(a)(3)(B) of the 
Higher Education Act of 1965, without regard to the provisions of 34 
CFR 600.7(b)(3)(ii), if the Secretary determines that such a waiver is 
appropriate.
    Sec. 316. Section 415 of the Higher Education Act of 1965 is 
amended--
            (1) in section 415A(a)(2), by striking ``section 415F'' and 
        inserting ``section 415E''; and
            (2) in section 415E, by striking 415E(c) and inserting in 
        lieu thereof the following:
    ``(c) Authorized Activities.--Each State receiving a grant under 
this section may use the grant funds for--
            ``(1) making awards that--
                    ``(A) supplement grants received under section 
                415C(b)(2) by eligible students who demonstrate 
                financial need; or
                    ``(B) provide grants under section 415C(b)(2) to 
                additional eligible students who demonstrate financial 
                need;
            ``(2) providing scholarships for eligible students--
                    ``(A) who demonstrate financial need; and
                    ``(B) who--
                            ``(i) desire to enter a program of study 
                        leading to a career in--
                                    ``(I) information technology;
                                    ``(II) mathematics, computer 
                                science, or engineering;
                                    ``(III) teaching; or
                                    ``(IV) another field determined by 
                                the State to be critical to the State's 
                                workforce needs; or
                            ``(ii) demonstrate merit or academic 
                        achievement; and
            ``(3) making awards that--
                    ``(A) supplement community service work-study 
                awards received under section 415C(b)(2) by eligible 
                students who demonstrate financial need; or
                    ``(B) provide community service work-study awards 
                under section 415C(b)(2) to additional eligible 
                students who demonstrate financial need.''.
            (3) in section 415E, adding at the end the following new 
        subsections:
    ``(f) Special Rule.--Notwithstanding subsection (d), for purposes 
of determining a State's share of the cost of the authorized activities 
described in subsection (c), the State shall consider only those 
expenditures from non-Federal sources that exceed its total 
expenditures for need-based grants, scholarships, and work-study 
assistance for fiscal year 1999 (including any such assistance provided 
under this subpart).
    ``(g) Use of Funds for Administrative Costs Prohibited.--A State 
receiving a grant under this section shall not use any of the grant 
funds to pay administrative costs associated with any of the authorized 
activities described in subsection (c).''.
    Sec. 317. (a) Section 402D of the Higher Education Act of 1965 (20 
U.S.C. 1070a-14) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Special Rule.--
            ``(1) Use for student aid.--A recipient of a grant that 
        undertakes any of the permissible services identified in 
        subsection (b) may, in addition, use such funds to provide 
        grant aid to students. A grant provided under this paragraph 
        shall not exceed the maximum appropriated Pell Grant or, be 
        less than the minimum appropriated Pell Grant, for the current 
        academic year. In making grants to students under this 
        subsection, an institution shall ensure that adequate 
        consultation takes place between the student support service 
        program office and the institution's financial aid office.
            ``(2) Eligible students.--For purposes of receiving grant 
        aid under this subsection, eligible students shall be current 
        participants in the student support services program offered by 
        the institution and be--
                    ``(A) students who are in their first 2 years of 
                postsecondary education and who are receiving Federal 
                Pell Grants under subpart 1; or
                    ``(B) students who have completed their first 2 
                years of postsecondary education and who are receiving 
                Federal Pell Grants under subpart 1 if the institution 
                demonstrates to the satisfaction of the Secretary 
                that--
                            ``(i) these students are at high risk of 
                        dropping out; and
                            ``(ii) it will first meet the needs of all 
                        its eligible first- and second-year students 
                        for services under this paragraph.
            ``(3) Determination of need.--A grant provided to a student 
        under paragraph (1) shall not be considered in determining that 
        student's need for grant or work assistance under this title, 
        except that in no case shall the total amount of student 
        financial assistance awarded to a student under this title 
        exceed that student's cost of attendance, as defined in section 
        472.
            ``(4) Matching required.--A recipient of a grant who uses 
        such funds for the purpose described in paragraph (1) shall 
        match the funds used for such purpose, in cash, from non-
        Federal funds, in an amount that is not less than 33 percent of 
        the total amount of funds used for that purpose. This paragraph 
        shall not apply to any grant recipient that is an institution 
        of higher education eligible to receive funds under part A or B 
        of title III or title V.
            ``(5) Reservation.--In no event may a recipient use more 
        than 20 percent of the funds received under this section for 
        grant aid.
            ``(6) Supplement, not supplant.--Funds received by a grant 
        recipient that are used under this subsection shall be used to 
        supplement, and not supplant, non-Federal funds expended for 
        student support services programs.''.
    (b) The amendments made by subsection (a) shall apply with respect 
to student support services grants awarded on or after the date of 
enactment of this Act.
    Sec. 318. (a) Subparagraph (B) of section 427A(c)(4) of the Higher 
Education Act of 1965 (20 U.S.C. 1077a(c)(4)) is amended to read as 
follows:
                    ``(B)(i) For any 12-month period beginning on July 
                1 and ending on or before June 30, 2001, the rate 
                determined under this subparagraph is determined on the 
                preceding June 1 and is equal to--
                            ``(I) the bond equivalent rate of 52-week 
                        Treasury bills auctioned at the final auction 
                        held prior to such June 1; plus
                            ``(II) 3.25 percent.
                    ``(ii) For any 12-month period beginning on July 1 
                of 2001 or any succeeding year, the rate determined 
                under this subparagraph is determined on the preceding 
                June 26 and is equal to--
                            ``(I) the weekly average 1-year constant 
                        maturity Treasury yield, as published by the 
                        Board of Governors of the Federal Reserve 
                        System, for the last calendar week ending on or 
                        before such June 26; plus
                            ``(II) 3.25 percent.''.
    (b) Subparagraph (A) of section 455(b)(4) of such Act (20 U.S.C. 
1087e(b)(4)) is amended to read as follows:
                    ``(A)(i) For Federal Direct PLUS Loans for which 
                the first disbursement is made on or after July 1, 
                1994, the applicable rate of interest shall, during any 
                12-month period beginning on July 1 and ending on or 
                before June 30, 2001, be determined on the preceding 
                June 1 and be equal to--
                            ``(I) the bond equivalent rate of 52-week 
                        Treasury bills auctioned at final auction held 
                        prior to such June 1; plus
                            ``(II) 3.1 percent,
                except that such rate shall not exceed 9 percent.
                    ``(ii) For any 12-month period beginning on July 1 
                of 2001 or any succeeding year, the applicable rate of 
                interest determined under this subparagraph shall be 
                determined on the preceding June 26 and be equal to--
                            ``(I) the weekly average 1-year constant 
                        maturity Treasury yield, as published by the 
                        Board of Governors of the Federal Reserve 
                        System, for the last calendar week ending on or 
                        before such June 26; plus
                            ``(II) 3.1 percent,
                except that such rate shall not exceed 9 percent.''.
    Sec. 319. Section 1543 of the Higher Education Amendments of 1992 
(20 U.S.C. 1070 note) is amended by adding at the end the following new 
subsection:
    ``(e) Designation.--Scholarships awarded under this section shall 
be known as `B.J. Stupak Olympic Scholarships'.''.
    Sec. 320. (a) Subject to subsection (c), the Secretary of Education 
shall release the reversionary interests that were retained by the 
United States, as part of the conveyance of certain real property 
situated in the County of Marin, State of California, in an April 3, 
1978 Quitclaim Deed, which was filed for record on June 5, 1978, in 
Book 3384, at page 33, of the official Records of Marin County, 
California.
    (b) The Secretary shall execute the release of the reversionary 
interests under subsection (a) without consideration.
    (c) The Secretary shall execute and file in the appropriate office 
or offices a deed of release, amended deed, or other appropriate 
instruments effectuating the release of the reversionary interests 
under subsection (a). In all other respects the provisions of the April 
3, 1978 Quitclaim Deed shall remain intact.
    Sec. 321. (a) Grants to Native American Schools and State 
Educational Agencies.--
            (1) Allocation of funds.--Of the amount made available 
        under the heading ``School improvement programs'' for grants 
        made in accordance with this section for school repair and 
        renovation, activities under part B of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1411 et seq.), and 
        technology activities, the Secretary of Education shall 
        allocate--
                    (A) $75,000,000 for grants to impacted local 
                educational agencies (as defined in paragraph (3)) for 
                school repair, renovation, and construction;
                    (B) $3,250,000 for grants to outlying areas for 
                school repair and renovation in high-need schools and 
                communities, allocated on such basis, and subject to 
                such terms and conditions, as the Secretary determines 
                appropriate;
                    (C) $25,000,000 for grants to public entities, 
                private nonprofit entities, and consortia of such 
                entities, for use in accordance with subpart 2 of part 
                C of title X of the Elementary and Secondary Education 
                Act of 1965; and
                    (D) the remainder to State educational agencies in 
                proportion to the amount each State received under part 
                A of title I of the Elementary and Secondary Education 
                Act of 1965 (20 U.S.C. 6311 et seq.) for fiscal year 
                2000, except that no State shall receive less than 0.5 
                percent of the amount allocated under this 
                subparagraph.
            (2) Determination of grant amount.--
                    (A) Determination of weighted student units.--For 
                purposes of computing the grant amounts under paragraph 
                (1)(A) for fiscal year 2001, the Secretary shall 
                determine the results obtained by the computation made 
                under section 8003 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 7703) with respect to 
                children described in subsection (a)(1)(C) of such 
                section and computed under subsection (a)(2)(B) of such 
                section for such year--
                            (i) for each impacted local educational 
                        agency that receives funds under this section; 
                        and
                            (ii) for all such agencies together.
                    (B) Computation of payment.--For fiscal year 2001, 
                the Secretary shall calculate the amount of a grant to 
                an impacted local educational agency by--
                            (i) dividing the amount described in 
                        paragraph (1)(A) by the results of the 
                        computation described in subparagraph (A)(ii); 
                        and
                            (ii) multiplying the number derived under 
                        clause (i) by the results of the computation 
                        described in subparagraph (A)(i) for such 
                        agency.
            (3) Definition.--For purposes of this section, the term 
        ``impacted local educational agency'' means, for fiscal year 
        2001--
                    (A) a local educational agency that receives a 
                basic support payment under section 8003(b) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7703(b)) for such fiscal year; and
                    (B) with respect to which the number of children 
                determined under section 8003(a)(1)(C) of such Act for 
                the preceding school year constitutes at least 50 
                percent of the total student enrollment in the schools 
                of the agency during such school year.
    (b) Within-State Allocations.--
            (1) Administrative costs.--
                    (A) State educational agency administration.--
                Except as provided in subparagraph (B), each State 
                educational agency may reserve not more than 1 percent 
                of its allocation under subsection (a)(1)(D) for the 
                purpose of administering the distribution of grants 
                under this subsection.
                    (B) State entity administration.--If the State 
                educational agency transfers funds to a State entity 
                described in paragraph (2)(A), the agency shall 
                transfer to such entity 0.75 of the amount reserved 
                under this paragraph for the purpose of administering 
                the distribution of grants under this subsection.
            (2) Reservation for competitive school repair and 
        renovation grants to local educational agencies.--
                    (A) In general.--Subject to the reservation under 
                paragraph (1), of the funds allocated to a State 
                educational agency under subsection (a)(1)(D), the 
                State educational agency shall distribute 75 percent of 
                such funds to local educational agencies or, if such 
                State educational agency is not responsible for the 
                financing of education facilities, the agency shall 
                transfer such funds to the State entity responsible for 
                the financing of education facilities (referred to in 
                this section as the ``State entity'') for distribution 
                by such entity to local educational agencies in 
                accordance with this paragraph, to be used, consistent 
                with subsection (c), for school repair and renovation.
                    (B) Competitive grants to local educational 
                agencies.--
                            (i) In general.--The State educational 
                        agency or State entity shall carry out a 
                        program of competitive grants to local 
                        educational agencies for the purpose described 
                        in subparagraph (A). Of the total amount 
                        available for distribution to such agencies 
                        under this paragraph, the State educational 
                        agency or State entity, shall, in carrying out 
                        the competition--
                                    (I) award to high poverty local 
                                educational agencies described in 
                                clause (ii), in the aggregate, at least 
                                an amount which bears the same 
                                relationship to such total amount as 
                                the aggregate amount such local 
                                educational agencies received under 
                                part A of title I of the Elementary and 
                                Secondary Education Act of 1965 for 
                                fiscal year 2000 bears to the aggregate 
                                amount received for such fiscal year 
                                under such part by all local 
                                educational agencies in the State;
                                    (II) award to rural local 
                                educational agencies in the State, in 
                                the aggregate, at least an amount which 
                                bears the same relationship to such 
                                total amount as the aggregate amount 
                                such rural local educational agencies 
                                received under part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 for fiscal year 2000 bears to 
                                the aggregate amount received for such 
                                fiscal year under such part by all 
                                local educational agencies in the 
                                State; and
                                    (III) award the remaining funds to 
                                local educational agencies not 
                                receiving an award under subclause (I) 
                                or (II), including high poverty and 
                                rural local educational agencies that 
                                did not receive such an award.
                            (ii) High poverty local educational 
                        agencies.--A local educational agency is 
                        described in this clause if--
                                    (I) the percentage described in 
                                subparagraph (C)(i) with respect to the 
                                agency is 30 percent or greater; or
                                    (II) the number of children 
                                described in such subparagraph with 
                                respect to the agency is at least 
                                10,000.
                    (C) Criteria for awarding grants.--In awarding 
                competitive grants under this paragraph, a State 
                educational agency or State entity shall take into 
                account the following criteria:
                            (i) The percentage of poor children 5 to 17 
                        years of age, inclusive, in a local educational 
                        agency.
                            (ii) The need of a local educational agency 
                        for school repair and renovation, as 
                        demonstrated by the condition of its public 
                        school facilities.
                            (iii) The fiscal capacity of a local 
                        educational agency to meet its needs for repair 
                        and renovation of public school facilities 
                        without assistance under this section, 
                        including its ability to raise funds through 
                        the use of local bonding capacity and 
                        otherwise.
                            (iv) In the case of a local educational 
                        agency that proposes to fund a repair or 
                        renovation project for a charter school or 
                        schools, the extent to which the school or 
                        schools have access to funding for the project 
                        through the financing methods available to 
                        other public schools or local educational 
                        agencies in the State.
                            (v) The likelihood that the local 
                        educational agency will maintain, in good 
                        condition, any facility whose repair or 
                        renovation is assisted under this section.
                    (D) Possible matching requirement.--
                            (i) In general.--A State educational agency 
                        or State entity may require local educational 
                        agencies to match funds awarded under this 
                        subsection.
                            (ii) Match amount.--The amount of a match 
                        described in clause (i) may be established by 
                        using a sliding scale that takes into account 
                        the relative poverty of the population served 
                        by the local educational agency.
            (3) Reservation for competitive idea or technology grants 
        to local educational agencies.--
                    (A) In general.--Subject to the reservation under 
                paragraph (1), of the funds allocated to a State 
                educational agency under subsection (a)(1)(D), the 
                State educational agency shall distribute 25 percent of 
                such funds to local educational agencies through 
                competitive grant processes, to be used for the 
                following:
                            (i) To carry out activities under part B of 
                        the Individuals with Disabilities Education Act 
                        (20 U.S.C. 1411 et seq.).
                            (ii) For technology activities that are 
                        carried out in connection with school repair 
                        and renovation, including--
                                    (I) wiring;
                                    (II) acquiring hardware and 
                                software;
                                    (III) acquiring connectivity 
                                linkages and resources; and
                                    (IV) acquiring microwave, fiber 
                                optics, cable, and satellite 
                                transmission equipment.
                    (B) Criteria for awarding idea grants.--In awarding 
                competitive grants under subparagraph (A) to be used to 
                carry out activities under part B of the Individuals 
                with Disabilities Education Act (20 U.S.C. 1411 et 
                seq.), a State educational agency shall take into 
                account the following criteria:
                            (i) The need of a local educational agency 
                        for additional funds for a student whose 
                        individually allocable cost for expenses 
                        related to the Individuals with Disabilities 
                        Education Act substantially exceeds the State's 
                        average per-pupil expenditure (as defined in 
                        section 14101(2) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        8801(2))).
                            (ii) The need of a local educational agency 
                        for additional funds for special education and 
                        related services under part B of the 
                        Individuals with Disabilities Education Act (20 
                        U.S.C. 1411 et seq.).
                            (iii) The need of a local educational 
                        agency for additional funds for assistive 
                        technology devices (as defined in section 602 
                        of the Individuals with Disabilities Education 
                        Act (20 U.S.C. 1401)) or assistive technology 
                        services (as so defined) for children being 
                        served under part B of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1411 et 
                        seq.).
                            (iv) The need of a local educational agency 
                        for additional funds for activities under part 
                        B of the Individuals with Disabilities 
                        Education Act (20 U.S.C. 1411 et seq.) in order 
                        for children with disabilities to make progress 
                        toward meeting the performance goals and 
                        indicators established by the State under 
                        section 612(a)(16) of such Act (20 U.S.C. 
                        1412).
                    (C) Criteria for awarding technology grants.--In 
                awarding competitive grants under subparagraph (A) to 
                be used for technology activities that are carried out 
                in connection with school repair and renovation, a 
                State educational agency shall take into account the 
                need of a local educational agency for additional funds 
                for such activities, including the need for the 
                activities described in subclauses (I) through (IV) of 
                subparagraph (A)(ii).
    (c) Rules Applicable to School Repair and Renovation.--With respect 
to funds made available under this section that are used for school 
repair and renovation, the following rules shall apply:
            (1) Permissible uses of funds.--School repair and 
        renovation shall be limited to one or more of the following:
                    (A) Emergency repairs or renovations to public 
                school facilities only to ensure the health and safety 
                of students and staff, including--
                            (i) repairing, replacing, or installing 
                        roofs, electrical wiring, plumbing systems, or 
                        sewage systems;
                            (ii) repairing, replacing, or installing 
                        heating, ventilation, or air conditioning 
                        systems (including insulation); and
                            (iii) bringing public schools into 
                        compliance with fire and safety codes.
                    (B) School facilities modifications necessary to 
                render public school facilities accessible in order to 
                comply with the Americans with Disabilities Act of 1990 
                (42 U.S.C. 12101 et seq.).
                    (C) School facilities modifications necessary to 
                render public school facilities accessible in order to 
                comply with section 504 of the Rehabilitation Act of 
                1973 (29 U.S.C. 794).
                    (D) Asbestos abatement or removal from public 
                school facilities.
                    (E) Renovation, repair, and acquisition needs 
                related to the building infrastructure of a charter 
                school.
            (2) Impermissible uses of funds.--No funds received under 
        this section may be used for--
                    (A) payment of maintenance costs in connection with 
                any projects constructed in whole or in part with 
                Federal funds provided under this section;
                    (B) the construction of new facilities, except for 
                facilities for an impacted local educational agency (as 
                defined in subsection (a)(3)); or
                    (C) stadiums or other facilities primarily used for 
                athletic contests or exhibitions or other events for 
                which admission is charged to the general public.
            (3) Charter schools.--A public charter school that 
        constitutes a local educational agency under State law shall be 
        eligible for assistance under the same terms and conditions as 
        any other local educational agency (as defined in section 
        14101(18) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 8801(18))).
            (4) Supplement, not supplant.--Excluding the uses described 
        in subparagraphs (B) and (C) of paragraph (1), a local 
        educational agency shall use Federal funds subject to this 
        subsection only to supplement the amount of funds that would, 
        in the absence of such Federal funds, be made available from 
        non-Federal sources for school repair and renovation.
    (d) Special Rule.--Each local educational agency that receives 
funds under this section shall ensure that, if it carries out repair or 
renovation through a contract, any such contract process ensures the 
maximum number of qualified bidders, including small, minority, and 
women-owned businesses, through full and open competition.
    (e) Public Comment.--Each local educational agency receiving funds 
under paragraph (2) or (3) of subsection (b)--
            (1) shall provide parents, educators, and all other 
        interested members of the community the opportunity to consult 
        on the use of funds received under such paragraph;
            (2) shall provide the public with adequate and efficient 
        notice of the opportunity described in paragraph (1) in a 
        widely read and distributed medium; and
            (3) shall provide the opportunity described in paragraph 
        (1) in accordance with any applicable State and local law 
        specifying how the comments may be received and how the 
        comments may be reviewed by any member of the public.
    (f) Reporting.--
            (1) Local reporting.--Each local educational agency 
        receiving funds under subsection (a)(1)(D) shall submit a 
        report to the State educational agency, at such time as the 
        State educational agency may require, describing the use of 
        such funds for--
                    (A) school repair and renovation (and construction, 
                in the case of an impacted local educational agency (as 
                defined in subsection (a)(3)));
                    (B) activities under part B of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1411 et seq.); 
                and
                    (C) technology activities that are carried out in 
                connection with school repair and renovation, including 
                the activities described in subclauses (I) through (IV) 
                of subsection (b)(3)(A)(ii).
            (2) State reporting.--Each State educational agency shall 
        submit to the Secretary of Education, not later than December 
        31, 2002, a report on the use of funds received under 
        subsection (a)(1)(D) by local educational agencies for--
                    (A) school repair and renovation (and construction, 
                in the case of an impacted local educational agency (as 
                defined in subsection (a)(3)));
                    (B) activities under part B of the Individuals with 
                Disabilities Education Act (20 U.S.C. 1411 et seq.); 
                and
                    (C) technology activities that are carried out in 
                connection with school repair and renovation, including 
                the activities described in subclauses (I) through (IV) 
                of subsection (b)(3)(A)(ii).
            (3) Additional reports.--Each entity receiving funds 
        allocated under subsection (a)(1)(A) or (B) shall submit to the 
        Secretary, not later than December 31, 2002, a report on its 
        uses of funds under this section, in such form and containing 
        such information as the Secretary may require.
    (g) Applicability of Part B of IDEA.--If a local educational agency 
uses funds received under this section to carry out activities under 
part B of the Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.), such part (including provisions respecting the 
participation of private school children), and any other provision of 
law that applies to such part, shall apply to such use.
    (h) Reallocation.--If a State educational agency does not apply for 
an allocation of funds under subsection (a)(1)(D) for fiscal year 2001, 
or does not use its entire allocation for such fiscal year, the 
Secretary may reallocate the amount of the State educational agency's 
allocation (or the remainder thereof, as the case may be) to the 
remaining State educational agencies in accordance with subsection 
(a)(1)(D).
    (i) Participation of Private Schools.--
            (1) In general.--Section 6402 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7372) shall apply to 
        subsection (b)(2) in the same manner as it applies to 
        activities under title VI of such Act, except that--
                    (A) such section shall not apply with respect to 
                the title to any real property renovated or repaired 
                with assistance provided under this section;
                    (B) the term ``services'' as used in section 6402 
                of such Act with respect to funds under this section 
                shall be provided only to private, nonprofit elementary 
                or secondary schools with a rate of child poverty of at 
                least 40 percent and may include for purposes of 
                subsection (b)(2) only--
                            (i) modifications of school facilities 
                        necessary to meet the standards applicable to 
                        public schools under the Americans with 
                        Disabilities Act of 1990 (42 U.S.C. 12101 et 
                        seq.);
                            (ii) modifications of school facilities 
                        necessary to meet the standards applicable to 
                        public schools under section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 794); and
                            (iii) asbestos abatement or removal from 
                        school facilities; and
                    (C) notwithstanding the requirements of section 
                6402(b) of the Elementary and Secondary Education Act 
                of 1965 (20 U.S.C. 7372(b)), expenditures for services 
                provided using funds made available under subsection 
                (b)(2) shall be considered equal for purposes of such 
                section if the per-pupil expenditures for services 
                described in subparagraph (B) for students enrolled in 
                private nonprofit elementary and secondary schools that 
                have child poverty rates of at least 40 percent are 
                consistent with the per-pupil expenditures under this 
                section for children enrolled in the public schools in 
                the school district of the local educational agency 
                receiving funds under this section.
            (2) Remaining funds.--If the expenditure for services 
        described in paragraph (1)(B) is less than the amount 
        calculated under paragraph (1)(C) because of insufficient need 
        for such services, the remainder shall be available to the 
        local educational agency for renovation and repair of public 
        school facilities.
            (3) Application.--If any provision of this section, or the 
        application thereof, to any person or circumstances is 
        judicially determined to be invalid, the provisions of the 
        remainder of the section and the application to other persons 
        or circumstances shall not be affected thereby.
    (j) Definitions.--For purposes of this section:
            (1) Charter school.--The term ``charter school'' has the 
        meaning given such term in section 10310(1) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8066(1)).
            (2) Elementary school.--The term ``elementary school'' has 
        the meaning given such term in section 14101(14) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801(14)).
            (3) Local educational agency.--The term ``local educational 
        agency'' has the meaning given such term in subparagraphs (A) 
        and (B) of section 14101(18) of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 8801(18)).
            (4) Outlying area.--The term ``outlying area'' has the 
        meaning given such term in section 14101(21) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 8801(21)).
            (5) Poor children and child poverty.--The terms ``poor 
        children'' and ``child poverty'' refer to children 5 to 17 
        years of age, inclusive, who are from families with incomes 
        below the poverty line (as defined by the Office of Management 
        and Budget and revised annually in accordance with section 
        673(2) of the Community Services Block Grant (42 U.S.C. 
        9902(2)) applicable to a family of the size involved for the 
        most recent fiscal year for which data satisfactory to the 
        Secretary are available.
            (6) Rural local educational agency.--The term ``rural local 
        educational agency'' means a local educational agency that the 
        State determines is located in a rural area using objective 
        data and a commonly employed definition of the term ``rural''.
            (7) Secondary school.--The term ``secondary school'' has 
        the meaning given such term in section 14101(25) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        8801(25)).
            (8) State.--The term ``State'' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.
    Sec. 322. (a) Part C of title X of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8061 et seq.) is amended--
            (1) by inserting after the part heading the following:

           ``Subpart 1--Basic Charter School Grant Program'';

        and
            (2) by adding at the end the following:

 ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``SEC. 10321. PURPOSE.

    ``The purpose of this subpart is to provide one-time grants to 
eligible entities to permit them to demonstrate innovative credit 
enhancement initiatives that assist charter schools to address the cost 
of acquiring, constructing, and renovating facilities.

``SEC. 10322. GRANTS TO ELIGIBLE ENTITIES.

    ``(a) In General.--The Secretary shall use 100 percent of the 
amount available to carry out this subpart to award not less than three 
grants to eligible entities having applications approved under this 
subpart to demonstrate innovative methods of assisting charter schools 
to address the cost of acquiring, constructing, and renovating 
facilities by enhancing the availability of loans or bond financing.
    ``(b) Grantee Selection.--The Secretary shall evaluate each 
application submitted, and shall make a determination of which are 
sufficient to merit approval and which are not. The Secretary shall 
award at least one grant to an eligible entity described in section 
10330(2)(A), at least one grant to an eligible entity described in 
section 10330(2)(B), and at least one grant to an eligible entity 
described in section 10330(2)(C), if applications are submitted that 
permit the Secretary to do so without approving an application that is 
not of sufficient quality to merit approval.
    ``(c) Grant Characteristics.--Grants under this subpart shall be of 
a sufficient size, scope, and quality so as to ensure an effective 
demonstration of an innovative means of enhancing credit for the 
financing of charter school acquisition, construction, or renovation.
    ``(d) Special Rule.--In the event the Secretary determines that the 
funds available are insufficient to permit the Secretary to award not 
less than three grants in accordance with subsections (a) through (c), 
such three-grant minimum and the second sentence of subsection (b) 
shall not apply, and the Secretary may determine the appropriate number 
of grants to be awarded in accordance with subsection (c).

``SEC. 10323. APPLICATIONS.

    ``(a) In General.--To receive a grant under this subpart, an 
eligible entity shall submit to the Secretary an application in such 
form as the Secretary may reasonably require.
    ``(b) Contents.--An application under subsection (a) shall 
contain--
            ``(1) a statement identifying the activities proposed to be 
        undertaken with funds received under this subpart, including 
        how the applicant will determine which charter schools will 
        receive assistance, and how much and what types of assistance 
        charter schools will receive;
            ``(2) a description of the involvement of charter schools 
        in the application's development and the design of the proposed 
        activities;
            ``(3) a description of the applicant's expertise in capital 
        market financing;
            ``(4) a description of how the proposed activities will 
        leverage the maximum amount of private-sector financing capital 
        relative to the amount of government funding used and otherwise 
        enhance credit available to charter schools;
            ``(5) a description of how the applicant possesses 
        sufficient expertise in education to evaluate the likelihood of 
        success of a charter school program for which facilities 
        financing is sought;
            ``(6) in the case of an application submitted by a State 
        governmental entity, a description of the actions that the 
        entity has taken, or will take, to ensure that charter schools 
        within the State receive the funding they need to have adequate 
        facilities; and
            ``(7) such other information as the Secretary may 
        reasonably require.

``SEC. 10324. CHARTER SCHOOL OBJECTIVES.

    ``An eligible entity receiving a grant under this subpart shall use 
the funds deposited in the reserve account established under section 
10325(a) to assist one or more charter schools to access private sector 
capital to accomplish one or both of the following objectives:
            ``(1) The acquisition (by purchase, lease, donation, or 
        otherwise) of an interest (including an interest held by a 
        third party for the benefit of a charter school) in improved or 
        unimproved real property that is necessary to commence or 
        continue the operation of a charter school.
            ``(2) The construction of new facilities, or the 
        renovation, repair, or alteration of existing facilities, 
        necessary to commence or continue the operation of a charter 
        school.

``SEC. 10325. RESERVE ACCOUNT.

    ``(a) Use of Funds.--To assist charter schools to accomplish the 
objectives described in section 10324, an eligible entity receiving a 
grant under this subpart shall, in accordance with State and local law, 
directly or indirectly, alone or in collaboration with others, deposit 
the funds received under this subpart (other than funds used for 
administrative costs in accordance with section 10326) in a reserve 
account established and maintained by the entity for this purpose. 
Amounts deposited in such account shall be used by the entity for one 
or more of the following purposes:
            ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
        evidences of debt, loans, and interests therein, the proceeds 
        of which are used for an objective described in section 10324.
            ``(2) Guaranteeing and insuring leases of personal and real 
        property for an objective described in section 10324.
            ``(3) Facilitating financing by identifying potential 
        lending sources, encouraging private lending, and other similar 
        activities that directly promote lending to, or for the benefit 
        of, charter schools.
            ``(4) Facilitating the issuance of bonds by charter 
        schools, or by other public entities for the benefit of charter 
        schools, by providing technical, administrative, and other 
        appropriate assistance (including the recruitment of bond 
        counsel, underwriters, and potential investors and the 
        consolidation of multiple charter school projects within a 
        single bond issue).
    ``(b) Investment.--Funds received under this subpart and deposited 
in the reserve account shall be invested in obligations issued or 
guaranteed by the United States or a State, or in other similarly low-
risk securities.
    ``(c) Reinvestment of Earnings.--Any earnings on funds received 
under this subpart shall be deposited in the reserve account 
established under subsection (a) and used in accordance with such 
subsection.

``SEC. 10326. LIMITATION ON ADMINISTRATIVE COSTS.

    ``An eligible entity may use not more than 0.25 percent of the 
funds received under this subpart for the administrative costs of 
carrying out its responsibilities under this subpart.

``SEC. 10327. AUDITS AND REPORTS.

    ``(a) Financial Record Maintenance and Audit.--The financial 
records of each eligible entity receiving a grant under this subpart 
shall be maintained in accordance with generally accepted accounting 
principles and shall be subject to an annual audit by an independent 
public accountant.
    ``(b) Reports.--
            ``(1) Grantee annual reports.--Each eligible entity 
        receiving a grant under this subpart annually shall submit to 
        the Secretary a report of its operations and activities under 
        this subpart.
            ``(2) Contents.--Each such annual report shall include--
                    ``(A) a copy of the most recent financial 
                statements, and any accompanying opinion on such 
                statements, prepared by the independent public 
                accountant reviewing the financial records of the 
                eligible entity;
                    ``(B) a copy of any report made on an audit of the 
                financial records of the eligible entity that was 
                conducted under subsection (a) during the reporting 
                period;
                    ``(C) an evaluation by the eligible entity of the 
                effectiveness of its use of the Federal funds provided 
                under this subpart in leveraging private funds;
                    ``(D) a listing and description of the charter 
                schools served during the reporting period;
                    ``(E) a description of the activities carried out 
                by the eligible entity to assist charter schools in 
                meeting the objectives set forth in section 10324; and
                    ``(F) a description of the characteristics of 
                lenders and other financial institutions participating 
                in the activities undertaken by the eligible entity 
                under this subpart during the reporting period.
            ``(3) Secretarial report.--The Secretary shall review the 
        reports submitted under paragraph (1) and shall provide a 
        comprehensive annual report to Congress on the activities 
        conducted under this subpart.

``SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

    ``No financial obligation of an eligible entity entered into 
pursuant to this subpart (such as an obligation under a guarantee, 
bond, note, evidence of debt, or loan) shall be an obligation of, or 
guaranteed in any respect by, the United States. The full faith and 
credit of the United States is not pledged to the payment of funds 
which may be required to be paid under any obligation made by an 
eligible entity pursuant to any provision of this subpart.

``SEC. 10329. RECOVERY OF FUNDS.

    ``(a) In General.--The Secretary, in accordance with chapter 37 of 
title 31, United States Code, shall collect--
            ``(1) all of the funds in a reserve account established by 
        an eligible entity under section 10325(a) if the Secretary 
        determines, not earlier than 2 years after the date on which 
        the entity first received funds under this subpart, that the 
        entity has failed to make substantial progress in carrying out 
        the purposes described in section 10325(a); or
            ``(2) all or a portion of the funds in a reserve account 
        established by an eligible entity under section 10325(a) if the 
        Secretary determines that the eligible entity has permanently 
        ceased to use all or a portion of the funds in such account to 
        accomplish any purpose described in section 10325(a).
    ``(b) Exercise of Authority.--The Secretary shall not exercise the 
authority provided in subsection (a) to collect from any eligible 
entity any funds that are being properly used to achieve one or more of 
the purposes described in section 10325(a).
    ``(c) Procedures.--The provisions of sections 451, 452, and 458 of 
the General Education Provisions Act (20 U.S.C. 1234 et seq.) shall 
apply to the recovery of funds under subsection (a).
    ``(d) Construction.--This section shall not be construed to impair 
or affect the authority of the Secretary to recover funds under part D 
of the General Education Provisions Act (20 U.S.C. 1234 et seq.).

``SEC. 10330. DEFINITIONS.

    ``In this subpart:
            ``(1) The term `charter school' has the meaning given such 
        term in section 10310.
            ``(2) The term `eligible entity' means--
                    ``(A) a public entity, such as a State or local 
                governmental entity;
                    ``(B) a private nonprofit entity; or
                    ``(C) a consortium of entities described in 
                subparagraphs (A) and (B).

``SEC. 10331. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are 
authorized to be appropriated $100,000,000 for fiscal year 2001.''.
    (b) Part C of title X of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 8061 et seq.) is amended in each of the following 
provisions by striking ``part'' each place such term appears and 
inserting ``subpart'':
            (1) Sections 10301 through 10305.
            (2) Section 10307.
            (3) Sections 10309 through 10311.
    Sec. 323. (a) Section 8003(b)(2)(F) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 7703(b)(2)(F)) is amended--
            (1) by striking ``the Secretary shall use'' and inserting 
        ``the Secretary--
                            ``(i) shall use'';
            (2) by striking the period at the end and inserting ``; 
        and''; and
            (3) by adding at the end the following:
                            ``(ii) except as provided in subparagraph 
                        (C)(i)(I), shall include all of the children 
                        described in subparagraphs (F) and (G) of 
                        subsection (a)(1) enrolled in schools of the 
                        local educational agency in determining (I) the 
                        eligibility of the agency for assistance under 
                        this paragraph, and (II) the amount of such 
                        assistance if the number of such children meet 
                        the requirements of subsection (a)(3).''.
    (b) Section 8003(b)(2) of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7703(b)(2)) is amended by adding at the end the 
following:
                    ``(G) Determination of average tax rates for 
                general fund purposes.--For the purpose of determining 
                average tax rates for general fund purposes for local 
                educational agencies in a State under this paragraph 
                (except under subparagraph (C)(i)(II)(bb)), the 
                Secretary shall use either--
                            ``(i) the average tax rate for general fund 
                        purposes for comparable local educational 
                        agencies, as determined by the Secretary in 
                        regulations; or
                            ``(ii) the average tax rate of all the 
                        local educational agencies in the State.''.
    This title may be cited as the ``Department of Education 
Appropriations Act, 2001''.

                       TITLE IV--RELATED AGENCIES

                      Armed Forces Retirement Home

    For expenses necessary for the Armed Forces Retirement Home to 
operate and maintain the United States Soldiers' and Airmen's Home and 
the United States Naval Home, to be paid from funds available in the 
Armed Forces Retirement Home Trust Fund, $69,832,000, of which 
$9,832,000 shall remain available until expended for construction and 
renovation of the physical plants at the United States Soldiers' and 
Airmen's Home and the United States Naval Home: Provided, That, 
notwithstanding any other provision of law, a single contract or 
related contracts for development and construction, to include 
construction of a long-term care facility at the United States Naval 
Home, may be employed which collectively include the full scope of the 
project: Provided further, That the solicitation and contract shall 
contain the clause ``availability of funds'' found at 48 CFR 52.232-18 
and 252.232-7007, Limitation of Government Obligations.

             Corporation for National and Community Service

        domestic volunteer service programs, operating expenses

    For expenses necessary for the Corporation for National and 
Community Service to carry out the provisions of the Domestic Volunteer 
Service Act of 1973, as amended, $303,850,000: Provided, That none of 
the funds made available to the Corporation for National and Community 
Service in this Act for activities authorized by part E of title II of 
the Domestic Volunteer Service Act of 1973 shall be used to provide 
stipends or other monetary incentives to volunteers or volunteer 
leaders whose incomes exceed 125 percent of the national poverty level.

                  Corporation for Public Broadcasting

    For payment to the Corporation for Public Broadcasting, as 
authorized by the Communications Act of 1934, an amount which shall be 
available within limitations specified by that Act, for the fiscal year 
2003, $365,000,000: Provided, That no funds made available to the 
Corporation for Public Broadcasting by this Act shall be used to pay 
for receptions, parties, or similar forms of entertainment for 
Government officials or employees: Provided further, That none of the 
funds contained in this paragraph shall be available or used to aid or 
support any program or activity from which any person is excluded, or 
is denied benefits, or is discriminated against, on the basis of race, 
color, national origin, religion, or sex: Provided further, That in 
addition to the amounts provided above, $20,000,000, to remain 
available until expended, shall be for digitalization, pending 
enactment of authorizing legislation.

               Federal Mediation and Conciliation Service

                         salaries and expenses

    For expenses necessary for the Federal Mediation and Conciliation 
Service to carry out the functions vested in it by the Labor Management 
Relations Act, 1947 (29 U.S.C. 171-180, 182-183), including hire of 
passenger motor vehicles; for expenses necessary for the Labor-
Management Cooperation Act of 1978 (29 U.S.C. 175a); and for expenses 
necessary for the Service to carry out the functions vested in it by 
the Civil Service Reform Act, Public Law 95-454 (5 U.S.C. ch. 71), 
$38,200,000, including $1,500,000, to remain available through 
September 30, 2002, for activities authorized by the Labor-Management 
Cooperation Act of 1978 (29 U.S.C. 175a): Provided, That 
notwithstanding 31 U.S.C. 3302, fees charged, up to full-cost recovery, 
for special training activities and other conflict resolution services 
and technical assistance, including those provided to foreign 
governments and international organizations, and for arbitration 
services shall be credited to and merged with this account, and shall 
remain available until expended: Provided further, That fees for 
arbitration services shall be available only for education, training, 
and professional development of the agency workforce: Provided further, 
That the Director of the Service is authorized to accept and use on 
behalf of the United States gifts of services and real, personal, or 
other property in the aid of any projects or functions within the 
Director's jurisdiction.

            Federal Mine Safety and Health Review Commission

                         salaries and expenses

    For expenses necessary for the Federal Mine Safety and Health 
Review Commission (30 U.S.C. 801 et seq.), $6,320,000.

                Institute of Museum and Library Services

         office of library services: grants and administration

    For carrying out subtitle B of the Museum and Library Services Act, 
$207,219,000: Provided, That of the amount provided, $1,000,000 shall 
be awarded to the National Museum of Women in the Arts in Washington, 
D.C., $700,000 shall be awarded to the University of Idaho Institute 
for the Historic Study of Jazz, $2,600,000 shall be awarded to 
Southeast Missouri State University River Campus and Museum, $900,000 
shall be awarded to the Heritage Harbor Museum in Rhode Island, 
$500,000 shall be awarded to the Alaska Native Heritage Center, 
$576,000 shall be awarded to the Franklin Institute in Philadelphia, 
$925,000 shall be awarded to the Please Touch Museum, $250,000 shall be 
awarded to the Pittsburgh Children's Museum, $510,000 shall be awarded 
to the Temple University Library, $1,800,000 shall be awarded to 
Franklin Pierce College in New Hampshire, $500,000 shall be awarded to 
the Louisville Zoo in Kentucky, $150,000 shall be awarded to the Oregon 
Historical Society, $1,200,000 shall be awarded to the Mississippi 
River Museum and Discovery Center in Dubuque, Iowa, $650,000 shall be 
awarded to the Salisbury House Foundation in Des Moines, Iowa, $150,000 
shall be awarded to the History Center for the Linn County Historical 
Museum in Iowa, $4,000,000 shall be awarded to the Newsline for the 
Blind, of which $100,000 shall be awarded to the Iowa Newsline for the 
Blind and $100,000 shall be awarded to the West Virginia Newsline for 
the Blind, $1,000,000 shall be awarded to the Clay Center for the Arts 
and Sciences, $650,000 shall be awarded to Bishops Museum in Hawaii, 
$500,000 shall be awarded to the Wisconsin Maritime Museum, $250,000 
shall be awarded to the Natural History Museum of Los Angeles, $400,000 
shall be awarded to the Perkins Geology Museum at the University of 
Vermont, $400,000 shall be awarded to the Walt Whitman Cultural Arts 
Center in Camden, New Jersey, $400,000 shall be awarded to the 
Plainfield Public Library in Plainfield, New Jersey, $150,000 shall be 
awarded to the Ducktown Arts District in Atlantic City, New Jersey, 
$400,000 shall be awarded to the Lake Champlain Science Center in 
Vermont, $250,000 shall be awarded to the Foundation for the Arts, 
Music, and Entertainment of Shreveport-Bossier, Inc., $100,000 shall be 
awarded to Bryant College in Rhode Island, $120,000 shall be awarded to 
the Fenton Historical Museum of Jamestown, New York, $921,000 shall be 
awarded to the Mariners' Museum in Newport News, Virginia, $461,000 
shall be awarded to DuPage County Children's Museum in Naperville, 
Illinois, $369,000 shall be awarded to the National Baseball Hall of 
Fame Library in Cooperstown, New York, $92,000 shall be awarded to the 
City of Corona, Riverside, California, $6,000 shall be awarded to the 
City of Murrieta, California Public Library, $1,382,000 shall be 
awarded to the Sierra Madre, California Public Library, $23,000 shall 
be awarded to the Brooklyn Public Library in Brooklyn, New York, 
$46,000 shall be awarded to the New York Public Library Staten Island 
branch, $266,000 shall be awarded to the Edward H. Nabb Research Center 
at Salisbury State University in Salisbury, Maryland, $461,000 shall be 
awarded to Texas Tech University, $230,000 shall be awarded to the City 
of Ontario, California Public Library, $461,000 shall be awarded to the 
Southern Oregon University in Ashland, Oregon, $1,106,000 shall be 
awarded to Christopher Newport University in Newport News, Virginia, 
$128,000 shall be awarded to the Nassau County Museum of Art in Roslyn 
Harbor, New York, $850,000 shall be awarded to the Children's Museum of 
Los Angeles, $43,000 shall be awarded to Sumter County Library in 
Sumter, South Carolina, $298,000 shall be awarded to Columbia College 
Center for Black Music Research in Chicago, Illinois, $723,000 shall be 
awarded to Old Sturbridge Village in Sturbridge, Massachusetts, 
$723,000 shall be awarded to New Bedford Whaling Museum in 
Massachusetts, $298,000 shall be awarded to Mystic Seaport Museum of 
America and the Sea in Connecticut, $468,000 shall be awarded to the 
City of Houston Public Library, $128,000 shall be awarded to the 
Roberson Museum and Science Center in Binghampton, New York, $850,000 
shall be awarded to Berman Museum of Art at Ursinus College in 
Collegeville, Pennsylvania, $680,000 shall be awarded to AMISTAD 
Research Center at Tulane University, $2,125,000 shall be awarded to 
Silas Bronson Library in Waterbury, Connecticut, $213,000 shall be 
awarded to Fitchburg Art Museum in Fitchburg, Massachusetts, $128,000 
shall be awarded to North Carolina Museum of Life and Science, 
$2,435,000 shall be awarded to New York Public Library, $85,000 shall 
be awarded to the New York Botanical Garden in Bronx, New York, 
$170,000 shall be awarded to George Eastman House in Rochester, New 
York, $425,000 shall be awarded to The National Aviary in Pittsburgh, 
Pennsylvania, $723,000 shall be awarded to the George C. Page Museum in 
Los Angeles, California, $461,000 shall be awarded to the Abraham 
Lincoln Bicentennial Commission, and $410,000 shall be awarded to the 
AE Seaman Mineral Museum in Houghton, Michigan.

                  Medicare Payment Advisory Commission

                         salaries and expenses

    For expenses necessary to carry out section 1805 of the Social 
Security Act, $8,000,000, to be transferred to this appropriation from 
the Federal Hospital Insurance and the Federal Supplementary Medical 
Insurance Trust Funds.

        National Commission on Libraries and Information Science

                         salaries and expenses

    For necessary expenses for the National Commission on Libraries and 
Information Science, established by the Act of July 20, 1970 (Public 
Law 91-345, as amended), $1,495,000.

                     National Council on Disability

                         salaries and expenses

    For expenses necessary for the National Council on Disability as 
authorized by title IV of the Rehabilitation Act of 1973, as amended, 
$2,615,000.

                     National Education Goals Panel

    For expenses necessary for the National Education Goals Panel, as 
authorized by title II, part A of the Goals 2000: Educate America Act, 
$1,500,000.

                     National Labor Relations Board

                         salaries and expenses

    For expenses necessary for the National Labor Relations Board to 
carry out the functions vested in it by the Labor-Management Relations 
Act, 1947, as amended (29 U.S.C. 141-167), and other laws, 
$216,438,000: Provided, That no part of this appropriation shall be 
available to organize or assist in organizing agricultural laborers or 
used in connection with investigations, hearings, directives, or orders 
concerning bargaining units composed of agricultural laborers as 
referred to in section 2(3) of the Act of July 5, 1935 (29 U.S.C. 152), 
and as amended by the Labor-Management Relations Act, 1947, as amended, 
and as defined in section 3(f) of the Act of June 25, 1938 (29 U.S.C. 
203), and including in said definition employees engaged in the 
maintenance and operation of ditches, canals, reservoirs, and waterways 
when maintained or operated on a mutual, nonprofit basis and at least 
95 percent of the water stored or supplied thereby is used for farming 
purposes.

                        National Mediation Board

                         salaries and expenses

    For expenses necessary to carry out the provisions of the Railway 
Labor Act, as amended (45 U.S.C. 151-188), including emergency boards 
appointed by the President, $10,400,000.

            Occupational Safety and Health Review Commission

                         salaries and expenses

    For expenses necessary for the Occupational Safety and Health 
Review Commission (29 U.S.C. 661), $8,720,000.

                       Railroad Retirement Board

                     dual benefits payments account

    For payment to the Dual Benefits Payments Account, authorized under 
section 15(d) of the Railroad Retirement Act of 1974, $160,000,000, 
which shall include amounts becoming available in fiscal year 2001 
pursuant to section 224(c)(1)(B) of Public Law 98-76; and in addition, 
an amount, not to exceed 2 percent of the amount provided herein, shall 
be available proportional to the amount by which the product of 
recipients and the average benefit received exceeds $160,000,000: 
Provided, That the total amount provided herein shall be credited in 12 
approximately equal amounts on the first day of each month in the 
fiscal year.

          federal payments to the railroad retirement accounts

    For payment to the accounts established in the Treasury for the 
payment of benefits under the Railroad Retirement Act for interest 
earned on unnegotiated checks, $150,000, to remain available through 
September 30, 2002, which shall be the maximum amount available for 
payment pursuant to section 417 of Public Law 98-76.

                      limitation on administration

    For necessary expenses for the Railroad Retirement Board for 
administration of the Railroad Retirement Act and the Railroad 
Unemployment Insurance Act, $95,000,000, to be derived in such amounts 
as determined by the Board from the railroad retirement accounts and 
from moneys credited to the railroad unemployment insurance 
administration fund.

             limitation on the office of inspector general

    For expenses necessary for the Office of Inspector General for 
audit, investigatory and review activities, as authorized by the 
Inspector General Act of 1978, as amended, not more than $5,700,000, to 
be derived from the railroad retirement accounts and railroad 
unemployment insurance account: Provided, That none of the funds made 
available in any other paragraph of this Act may be transferred to the 
Office; used to carry out any such transfer; used to provide any office 
space, equipment, office supplies, communications facilities or 
services, maintenance services, or administrative services for the 
Office; used to pay any salary, benefit, or award for any personnel of 
the Office; used to pay any other operating expense of the Office; or 
used to reimburse the Office for any service provided, or expense 
incurred, by the Office.

                     Social Security Administration

                payments to social security trust funds

    For payment to the Federal Old-Age and Survivors Insurance and the 
Federal Disability Insurance trust funds, as provided under sections 
201(m), 228(g), and 1131(b)(2) of the Social Security Act, $20,400,000.

               special benefits for disabled coal miners

    For carrying out title IV of the Federal Mine Safety and Health Act 
of 1977, $365,748,000, to remain available until expended.
    For making, after July 31 of the current fiscal year, benefit 
payments to individuals under title IV of the Federal Mine Safety and 
Health Act of 1977, for costs incurred in the current fiscal year, such 
amounts as may be necessary.
    For making benefit payments under title IV of the Federal Mine 
Safety and Health Act of 1977 for the first quarter of fiscal year 
2002, $114,000,000, to remain available until expended.

                  supplemental security income program

    For carrying out titles XI and XVI of the Social Security Act, 
section 401 of Public Law 92-603, section 212 of Public Law 93-66, as 
amended, and section 405 of Public Law 95-216, including payment to the 
Social Security trust funds for administrative expenses incurred 
pursuant to section 201(g)(1) of the Social Security Act, 
$23,043,000,000, to remain available until expended: Provided, That any 
portion of the funds provided to a State in the current fiscal year and 
not obligated by the State during that year shall be returned to the 
Treasury.
    In addition, $210,000,000, to remain available until September 30, 
2002, for payment to the Social Security trust funds for administrative 
expenses for continuing disability reviews as authorized by section 103 
of Public Law 104-121 and section 10203 of Public Law 105-33. The term 
``continuing disability reviews'' means reviews and redeterminations as 
defined under section 201(g)(1)(A) of the Social Security Act, as 
amended.
    For making, after June 15 of the current fiscal year, benefit 
payments to individuals under title XVI of the Social Security Act, for 
unanticipated costs incurred for the current fiscal year, such sums as 
may be necessary.
    For making benefit payments under title XVI of the Social Security 
Act for the first quarter of fiscal year 2002, $10,470,000,000, to 
remain available until expended.

                 limitation on administrative expenses

    For necessary expenses, including the hire of two passenger motor 
vehicles, and not to exceed $10,000 for official reception and 
representation expenses, not more than $6,583,000,000 may be expended, 
as authorized by section 201(g)(1) of the Social Security Act, from any 
one or all of the trust funds referred to therein: Provided, That not 
less than $1,800,000 shall be for the Social Security Advisory Board: 
Provided further, That unobligated balances at the end of fiscal year 
2001 not needed for fiscal year 2001 shall remain available until 
expended to invest in the Social Security Administration information 
technology and telecommunications hardware and software infrastructure, 
including related equipment and non-payroll administrative expenses 
associated solely with this information technology and 
telecommunications infrastructure: Provided further, That reimbursement 
to the trust funds under this heading for expenditures for official 
time for employees of the Social Security Administration pursuant to 
section 7131 of title 5, United States Code, and for facilities or 
support services for labor organizations pursuant to policies, 
regulations, or procedures referred to in section 7135(b) of such title 
shall be made by the Secretary of the Treasury, with interest, from 
amounts in the general fund not otherwise appropriated, as soon as 
possible after such expenditures are made.
    From funds provided under the previous paragraph, notwithstanding 
the provision under this heading in Public Law 106-113 regarding 
unobligated balances at the end of fiscal year 2000 not needed for such 
fiscal year, an amount not to exceed $50,000,000 from such unobligated 
balances shall, in addition to funding already available under this 
heading for fiscal year 2001, be available for necessary expenses.
    From funds provided under the first paragraph, not less than 
$200,000,000 shall be available for conducting continuing disability 
reviews.
    In addition to funding already available under this heading, and 
subject to the same terms and conditions, $450,000,000, to remain 
available until September 30, 2002, for continuing disability reviews 
as authorized by section 103 of Public Law 104-121 and section 10203 of 
Public Law 105-33. The term ``continuing disability reviews'' means 
reviews and redeterminations as defined under section 201(g)(1)(A) of 
the Social Security Act, as amended.
    In addition, $91,000,000 to be derived from administration fees in 
excess of $5.00 per supplementary payment collected pursuant to section 
1616(d) of the Social Security Act or section 212(b)(3) of Public Law 
93-66, which shall remain available until expended. To the extent that 
the amounts collected pursuant to such section 1616(d) or 212(b)(3) in 
fiscal year 2001 exceed $91,000,000, the amounts shall be available in 
fiscal year 2002 only to the extent provided in advance in 
appropriations Acts.
    From funds previously appropriated for this purpose, any 
unobligated balances at the end of fiscal year 2000 shall be available 
to continue Federal-State partnerships which will evaluate means to 
promote Medicare buy-in programs targeted to elderly and disabled 
individuals under titles XVIII and XIX of the Social Security Act.
    From funds provided under the first paragraph, up to $6,000,000 
shall be available for implementation, development, evaluation, and 
other costs associated with administration of section 302 of the Ticket 
to Work and Work Incentives Improvement Act.

                      office of inspector general

                     (including transfer of funds)

    For expenses necessary for the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $16,944,000, together with not to exceed $52,500,000, to be 
transferred and expended as authorized by section 201(g)(1) of the 
Social Security Act from the Federal Old-Age and Survivors Insurance 
Trust Fund and the Federal Disability Insurance Trust Fund.
    In addition, an amount not to exceed 3 percent of the total 
provided in this appropriation may be transferred from the ``Limitation 
on Administrative Expenses'', Social Security Administration, to be 
merged with this account, to be available for the time and purposes for 
which this account is available: Provided, That notice of such 
transfers shall be transmitted promptly to the Committees on 
Appropriations of the House and Senate.

                    United States Institute of Peace

                           operating expenses

    For necessary expenses of the United States Institute of Peace as 
authorized in the United States Institute of Peace Act, $15,000,000.

                      TITLE V--GENERAL PROVISIONS

    Sec. 501. The Secretaries of Labor, Health and Human Services, and 
Education are authorized to transfer unexpended balances of prior 
appropriations to accounts corresponding to current appropriations 
provided in this Act: Provided, That such transferred balances are used 
for the same purpose, and for the same periods of time, for which they 
were originally appropriated.
    Sec. 502. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 503. (a) No part of any appropriation contained in this Act 
shall be used, other than for normal and recognized executive-
legislative relationships, for publicity or propaganda purposes, for 
the preparation, distribution, or use of any kit, pamphlet, booklet, 
publication, radio, television, or video presentation designed to 
support or defeat legislation pending before the Congress or any State 
legislature, except in presentation to the Congress or any State 
legislature itself.
    (b) No part of any appropriation contained in this Act shall be 
used to pay the salary or expenses of any grant or contract recipient, 
or agent acting for such recipient, related to any activity designed to 
influence legislation or appropriations pending before the Congress or 
any State legislature.
    Sec. 504. The Secretaries of Labor and Education are authorized to 
make available not to exceed $20,000 and $15,000, respectively, from 
funds available for salaries and expenses under titles I and III, 
respectively, for official reception and representation expenses; the 
Director of the Federal Mediation and Conciliation Service is 
authorized to make available for official reception and representation 
expenses not to exceed $2,500 from the funds available for ``Salaries 
and expenses, Federal Mediation and Conciliation Service''; and the 
Chairman of the National Mediation Board is authorized to make 
available for official reception and representation expenses not to 
exceed $2,500 from funds available for ``Salaries and expenses, 
National Mediation Board''.
    Sec. 505. Notwithstanding any other provision of this Act, no funds 
appropriated under this Act shall be used to carry out any program of 
distributing sterile needles or syringes for the hypodermic injection 
of any illegal drug.
    Sec. 506. (a) It is the sense of the Congress that, to the greatest 
extent practicable, all equipment and products purchased with funds 
made available in this Act should be American-made.
    (b) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (a) by the Congress.
    (c) If it has been finally determined by a court or Federal agency 
that any person intentionally affixed a label bearing a ``Made in 
America'' inscription, or any inscription with the same meaning, to any 
product sold in or shipped to the United States that is not made in the 
United States, the person shall be ineligible to receive any contract 
or subcontract made with funds made available in this Act, pursuant to 
the debarment, suspension, and ineligibility procedures described in 
sections 9.400 through 9.409 of title 48, Code of Federal Regulations.
    Sec. 507. When issuing statements, press releases, requests for 
proposals, bid solicitations and other documents describing projects or 
programs funded in whole or in part with Federal money, all grantees 
receiving Federal funds included in this Act, including but not limited 
to State and local governments and recipients of Federal research 
grants, shall clearly state: (1) the percentage of the total costs of 
the program or project which will be financed with Federal money; (2) 
the dollar amount of Federal funds for the project or program; and (3) 
percentage and dollar amount of the total costs of the project or 
program that will be financed by non-governmental sources.
    Sec. 508. (a) None of the funds appropriated under this Act, and 
none of the funds in any trust fund to which funds are appropriated 
under this Act, shall be expended for any abortion.
    (b) None of the funds appropriated under this Act, and none of the 
funds in any trust fund to which funds are appropriated under this Act, 
shall be expended for health benefits coverage that includes coverage 
of abortion.
    (c) The term ``health benefits coverage'' means the package of 
services covered by a managed care provider or organization pursuant to 
a contract or other arrangement.
    Sec. 509. (a) The limitations established in the preceding section 
shall not apply to an abortion--
            (1) if the pregnancy is the result of an act of rape or 
        incest; or
            (2) in the case where a woman suffers from a physical 
        disorder, physical injury, or physical illness, including a 
        life-endangering physical condition caused by or arising from 
        the pregnancy itself, that would, as certified by a physician, 
        place the woman in danger of death unless an abortion is 
        performed.
    (b) Nothing in the preceding section shall be construed as 
prohibiting the expenditure by a State, locality, entity, or private 
person of State, local, or private funds (other than a State's or 
locality's contribution of Medicaid matching funds).
    (c) Nothing in the preceding section shall be construed as 
restricting the ability of any managed care provider from offering 
abortion coverage or the ability of a State or locality to contract 
separately with such a provider for such coverage with State funds 
(other than a State's or locality's contribution of Medicaid matching 
funds).
    Sec. 510. (a) None of the funds made available in this Act may be 
used for--
            (1) the creation of a human embryo or embryos for research 
        purposes; or
            (2) research in which a human embryo or embryos are 
        destroyed, discarded, or knowingly subjected to risk of injury 
        or death greater than that allowed for research on fetuses in 
        utero under 45 CFR 46.208(a)(2) and section 498(b) of the 
        Public Health Service Act (42 U.S.C. 289g(b)).
    (b) For purposes of this section, the term ``human embryo or 
embryos'' includes any organism, not protected as a human subject under 
45 CFR 46 as of the date of the enactment of this Act, that is derived 
by fertilization, parthenogenesis, cloning, or any other means from one 
or more human gametes or human diploid cells.
    Sec. 511. (a) None of the funds made available in this Act may be 
used for any activity that promotes the legalization of any drug or 
other substance included in schedule I of the schedules of controlled 
substances established by section 202 of the Controlled Substances Act 
(21 U.S.C. 812).
    (b) The limitation in subsection (a) shall not apply when there is 
significant medical evidence of a therapeutic advantage to the use of 
such drug or other substance or that federally sponsored clinical 
trials are being conducted to determine therapeutic advantage.
    Sec. 512. None of the funds made available in this Act may be 
obligated or expended to enter into or renew a contract with an entity 
if--
            (1) such entity is otherwise a contractor with the United 
        States and is subject to the requirement in section 4212(d) of 
        title 38, United States Code, regarding submission of an annual 
        report to the Secretary of Labor concerning employment of 
        certain veterans; and
            (2) such entity has not submitted a report as required by 
        that section for the most recent year for which such 
        requirement was applicable to such entity.
    Sec. 513. (a) Section 403(a)(5)(H)(iii) of the Social Security Act 
(42 U.S.C. 603(a)(5)(H)(iii)) is amended by striking ``2001'' and 
inserting ``2005''.
    (b) Section 403(a)(5)(H) of such Act (42 U.S.C. 603(a)(5)(G)) is 
amended by adding at the end the following:
                            ``(iv) Interim report.--Not later than 
                        January 1, 2002, the Secretary shall submit to 
                        the Congress an interim report on the 
                        evaluations referred to in clause (i).''.
    Sec. 514. None of the funds made available in this Act may be used 
to promulgate or adopt any final standard under section 1173(b) of the 
Social Security Act (42 U.S.C. 1320d-2(b)) providing for, or providing 
for the assignment of, a unique health identifier for an individual 
(except in an individual's capacity as an employer or a health care 
provider), until legislation is enacted specifically approving the 
standard.
    Sec. 515. Section 410(b) of The Ticket to Work and Work Incentives 
Improvement Act of 1999 (Public Law 106-170) is amended by striking 
``2009'' both places it appears and inserting ``2001''.
    Sec. 516. (a) Human Papillomavirus.--Part B of title III of the 
Public Health Services Act (42 U.S.C. 243 et seq.) is amended by 
inserting before section 318 the following section:

                         ``human papillomavirus

    ``Sec. 317P. (a) Surveillance.--
            ``(1) In general.--The Secretary, acting through the 
        Centers for Disease Control and Prevention, shall--
                    ``(A) enter into cooperative agreements with States 
                and other entities to conduct sentinel surveillance or 
                other special studies that would determine the 
                prevalence in various age groups and populations of 
                specific types of human papillomavirus (referred to in 
                this section as `HPV') in different sites in various 
                regions of the United States, through collection of 
                special specimens for HPV using a variety of 
                laboratory-based testing and diagnostic tools; and
                    ``(B) develop and analyze data from the HPV 
                sentinel surveillance system described in subparagraph 
                (A).
            ``(2) Report.--The Secretary shall make a progress report 
        to the Congress with respect to paragraph (1) no later than 1 
        year after the effective date of this section.
    ``(b) Prevention Activities; Education Program.--
            ``(1) In general.--The Secretary, acting through the 
        Centers for Disease Control and Prevention, shall conduct 
        prevention research on HPV, including--
                    ``(A) behavioral and other research on the impact 
                of HPV-related diagnosis on individuals;
                    ``(B) formative research to assist with the 
                development of educational messages and information for 
                the public, for patients, and for their partners about 
                HPV;
                    ``(C) surveys of physician and public knowledge, 
                attitudes, and practices about genital HPV infection; 
                and
                    ``(D) upon the completion of and based on the 
                findings under subparagraphs (A) through (C), develop 
                and disseminate educational materials for the public 
                and health care providers regarding HPV and its impact 
                and prevention.
            ``(2) Report; final proposal.--The Secretary shall make a 
        progress report to the Congress with respect to paragraph (1) 
        not later than 1 year after the effective date of this section, 
        and shall develop a final report not later than 3 years after 
        such effective date, including a detailed summary of the 
        significant findings and problems and the best strategies to 
        prevent future infections, based on available science.
    ``(c) HPV Education and Prevention.--
            ``(1) In general.--The Secretary shall prepare and 
        distribute educational materials for health care providers and 
        the public that include information on HPV. Such materials 
        shall address--
                    ``(A) modes of transmission;
                    ``(B) consequences of infection, including the link 
                between HPV and cervical cancer;
                    ``(C) the available scientific evidence on the 
                effectiveness or lack of effectiveness of condoms in 
                preventing infection with HPV; and
                    ``(D) the importance of regular Pap smears, and 
                other diagnostics for early intervention and prevention 
                of cervical cancer purposes in preventing cervical 
                cancer.
            ``(2) Medically accurate information.--Educational material 
        under paragraph (1), and all other relevant educational and 
        prevention materials prepared and printed from this date 
        forward for the public and health care providers by the 
        Secretary (including materials prepared through the Food and 
        Drug Administration, the Centers for Disease Control and 
        Prevention, and the Health Resources and Services 
        Administration), or by contractors, grantees, or subgrantees 
        thereof, that are specifically designed to address STDs 
        including HPV shall contain medically accurate information 
        regarding the effectiveness or lack of effectiveness of condoms 
        in preventing the STD the materials are designed to address. 
        Such requirement only applies to materials mass produced for 
        the public and health care providers, and not to routine 
        communications.''.
    (b) labeling of condoms.--The Secretary of Health and Human 
Services shall reexamine existing condom labels that are authorized 
pursuant to the Federal Food, Drug, and Cosmetic Act to determine 
whether the labels are medically accurate regarding the overall 
effectiveness or lack of effectiveness of condoms in preventing 
sexually transmitted diseases, including HPV.
    Sec. 517. Section 403(o) of the Food, Drug, and Cosmetic Act (21 
U.S.C. 343(o)) is repealed. Subsections (c) and (d) of section 4 of the 
Saccharin Study and Labeling Act are repealed.
    Sec. 518. (a) Title VIII of the Social Security Act is amended by 
inserting after section 810 (42 U.S.C. 1010) the following new section:

``SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION 
              PAYMENTS.

    ``(a) In General.--The Commissioner of Social Security may enter 
into an agreement with any State (or political subdivision thereof) 
that provides cash payments on a regular basis to individuals entitled 
to benefits under this title under which the Commissioner of Social 
Security shall make such payments on behalf of such State (or 
subdivision).
    ``(b) Agreement Terms.--
            ``(1) In general.--Such agreement shall include such terms 
        as the Commissioner of Social Security finds necessary to 
        achieve efficient and effective administration of both this 
        title and the State program.
            ``(2) Financial terms.--Such agreement shall provide for 
        the State to pay the Commissioner of Social Security, at such 
        times and in such installments as the parties may specify--
                    ``(A) an amount equal to the expenditures made by 
                the Commissioner of Social Security pursuant to such 
                agreement as payments to individuals on behalf of such 
                State; and
                    ``(B) an administration fee to reimburse the 
                administrative expenses incurred by the Commissioner of 
                Social Security in making payments to individuals on 
                behalf of the State.
    ``(c) Special Disposition of Administration Fees.--Administration 
fees, upon collection, shall be credited to a special fund established 
in the Treasury of the United States for State recognition payments for 
certain World War II veterans. The amounts so credited, to the extent 
and in the amounts provided in advance in appropriations Acts, shall be 
available to defray expenses incurred in carrying out this title.''.
    (b) Conforming Amendments.--
            (1) The table of contents of title VIII of the Social 
        Security Act is amended by inserting after

``Sec. 810. Other administrative provisions.''
        the following:

``Sec. 810A. Optional Federal administration of State recognition 
                            payments.''.
            (2) Section 1129A(e) of the Social Security Act (42 U.S.C. 
        1320a-8a(e)) is amended--
                    (A) by inserting ``VIII or'' after ``benefits 
                under'';
                    (B) by inserting ``810A or'' after ``agreement 
                under section'';
                    (C) by inserting ``1010A or'' before 
                ``1382(e)(a)''; and
                    (D) by inserting ``, as the case may be'' 
                immediately before the period.
    Sec. 519. Section 1612(a)(1) of the Social Security Act (42 U.S.C. 
1382(a) is amended--
            (1) in subparagraph (A), by inserting ``but without the 
        application of section 210(j)(3)'' immediately before the 
        semicolon; and
            (2) in subparagraph (B), by--
                    (A) striking ``and the last'' and inserting ``the 
                last''; and
                    (B) inserting ``, and section 210(j)(3)'' after 
                ``subsection (a)''.
    Sec. 520. Amounts made available under this Act for the 
administrative and related expenses for departmental management for the 
Department of Labor, the Department of Health and Human Services, and 
the Department of Education shall be reduced on a pro rata basis by 
$25,000,000: Provided, That this provision shall not apply to the Food 
and Drug Administration and the Indian Health Service.

                   TITLE VI--ASSETS FOR INDEPENDENCE

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Assets for Independence Act 
Amendments of 2000''.

SEC. 602. MATCHING CONTRIBUTIONS UNAVAILABLE FOR EMERGENCY WITHDRAWALS.

    Section 404(5)(A)(v) of the Assets for Independence Act (42 U.S.C. 
604 note) is amended by striking ``, or enabling the eligible 
individual to make an emergency withdrawal''.

 SEC. 603. ADDITIONAL QUALIFIED ENTITIES.

    Section 404(7)(A) of the Assets for Independence Act (42 U.S.C. 604 
note) is amended--
            (1) in clause (i), by striking ``or'' at the end thereof;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following new clause:
                            ``(iii) an entity that--
                                    ``(I) is--
                                            ``(aa) a credit union 
                                        designated as a low-income 
                                        credit union by the National 
                                        Credit Union Administration 
                                        (NCUA); or
                                            ``(bb) an organization 
                                        designated as a community 
                                        development financial 
                                        institution by the Secretary of 
                                        the Treasury (or the Community 
                                        Development Financial 
                                        Institutions Fund); and
                                    ``(II) can demonstrate a 
                                collaborative relationship with a local 
                                community-based organization whose 
                                activities are designed to address 
                                poverty in the community and the needs 
                                of community members for economic 
                                independence and stability.''.

 SEC. 604. HOME PURCHASE COSTS.

    Section 404(8)(B)(i) of the Assets for Independence Act (42 U.S.C. 
604 note) is amended by striking ``100'' and inserting ``120''.

SEC. 605. INCREASED SET-ASIDE FOR ECONOMIC LITERACY TRAINING AND 
              ADMINISTRATIVE COSTS.

    Section 407(c)(3) of the Assets for Independence Act (42 U.S.C. 604 
note) is amended--
            (1) by striking ``9.5'' and inserting ``15''; and
            (2) by inserting after the first sentence the following: 
        ``Of the total amount specified in this paragraph, not more 
        than 7.5 percent shall be used for administrative functions 
        under paragraph (1)(C), including program management, reporting 
        requirements, recruitment and enrollment of individuals, and 
        monitoring. The remainder of the total amount specified in this 
        paragraph (not including the amount specified for use for the 
        purposes described in paragraph (1)(D)) shall be used for 
        nonadministrative functions described in paragraph (1)(A), 
        including case management, budgeting, economic literacy, and 
        credit counseling. If the cost of nonadministrative functions 
        described in paragraph (1)(A) is less than 5.5 percent of the 
        total amount specified in this paragraph, such excess funds may 
        be used for administrative functions.''.

SEC. 606. ALTERNATIVE ELIGIBILITY CRITERIA.

    Section 408(a)(1) of the Assets for Independence Act (42 U.S.C. 604 
note) is amended by striking ``does not exceed'' and inserting ``is 
equal to or less than 200 percent of the poverty line (as determined by 
the Office of Management and Budget) or''.

SEC. 607. REVISED ANNUAL PROGRESS REPORT DEADLINE.

    (a) In General.--Section 412(c) of the Assets for Independence Act 
(42 U.S.C. 604 note) is amended by striking ``calendar'' and inserting 
``project''.
    (b) Transitional Deadline.--Notwithstanding the amendment made by 
subsection (a), the submission of the initial report of a qualified 
entity under section 412(c) shall not be required prior to the date 
that is 90 days after the date of enactment of this title.

SEC. 608. REVISED INTERIM EVALUATION REPORT DEADLINE.

    (a) In General.--Section 414(d)(1) of the Assets for Independence 
Act (42 U.S.C. 604 note) is amended by striking ``calendar'' and 
inserting ``project''.
    (b) Transitional Deadline.--Notwithstanding the amendment made by 
subsection (a), the submission of the initial interim report of the 
Secretary under section 412(c) shall not be required prior to the date 
that is 90 days after the date of enactment of this title.

SEC. 609. INCREASED APPROPRIATIONS FOR EVALUATION EXPENSES.

    Subsection (e) of section 414 of the Assets for Independence Act 
(42 U.S.C. 604 note) is amended to read as follows:
    ``(e) Evaluation Expenses.--Of the amount appropriated under 
section 416 for a fiscal year, the Secretary may expend not more than 
$500,000 for such fiscal year to carry out the objectives of this 
section.''.

SEC. 610. NO REDUCTION IN BENEFITS.

    Section 415 of the Assets for Independence Act (42 U.S.C. 604 note) 
is amended to read as follows:

``SEC. 415. NO REDUCTION IN BENEFITS.

    ``Notwithstanding any other provision of Federal law (other than 
the Internal Revenue Code of 1986) that requires consideration of one 
or more financial circumstances of an individual, for the purpose of 
determining eligibility to receive, or the amount of, any assistance or 
benefit authorized by such law to be provided to or for the benefit of 
such individual, funds (including interest accruing) in an individual 
development account under this Act shall be disregarded for such 
purpose with respect to any period during which such individual 
maintains or makes contributions into such an account.''.

             TITLE VII--PHYSICAL EDUCATION FOR PROGRESS ACT

    Sec. 701. Physical Education for Progress. Title X of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8001 et seq.) 
is amended by adding at the end the following:

               ``PART L--PHYSICAL EDUCATION FOR PROGRESS

``SEC. 10999A. SHORT TITLE.

    ``This part may be cited as the `Physical Education for Progress 
Act'.

``SEC. 10999B. PURPOSE.

    ``The purpose of this part is to award grants and contracts to 
local educational agencies to enable the local educational agencies to 
initiate, expand and improve physical education programs for all 
kindergarten through 12th grade students.

``SEC. 10999C. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Physical education is essential to the development of 
        growing children.
            ``(2) Physical education helps improve the overall health 
        of children by improving their cardiovascular endurance, 
        muscular strength and power, and flexibility, and by enhancing 
        weight regulation, bone development, posture, skillful moving, 
        active lifestyle habits, and constructive use of leisure time.
            ``(3) Physical education helps improve the self esteem, 
        interpersonal relationships, responsible behavior, and 
        independence of children.
            ``(4) Children who participate in high quality daily 
        physical education programs tend to be more healthy and 
        physically fit.
            ``(5) The percentage of young people who are overweight has 
        more than doubled in the 30 years preceding 1999.
            ``(6) Low levels of activity contribute to the high 
        prevalence of obesity among children in the United States.
            ``(7) Obesity related diseases cost the United States 
        economy more than $100,000,000,000 every year.
            ``(8) Inactivity and poor diet cause at least 300,000 
        deaths a year in the United States.
            ``(9) Physically fit adults have significantly reduced risk 
        factors for heart attacks and stroke.
            ``(10) Children are not as active as they should be and 
        fewer than one in four children get 20 minutes of vigorous 
        activity every day of the week.
            ``(11) The Surgeon General's 1996 Report on Physical 
        Activity and Health, and the Centers for Disease Control and 
        Prevention, recommend daily physical education for all students 
        in kindergarten through grade 12.
            ``(12) Twelve years after Congress passed House Concurrent 
        Resolution 97, 100th Congress, agreed to December 11, 1987, 
        encouraging State and local governments and local educational 
        agencies to provide high quality daily physical education 
        programs for all children in kindergarten through grade 12, 
        little progress has been made.
            ``(13) Every student in our Nation's schools, from 
        kindergarten through grade 12, should have the opportunity to 
        participate in quality physical education. It is the unique 
        role of quality physical education programs to develop the 
        health-related fitness, physical competence, and cognitive 
        understanding about physical activity for all students so that 
        the students can adopt healthy and physically active 
        lifestyles.

``SEC. 10999D. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants to, and enter into 
contracts with, local educational agencies to pay the Federal share of 
the costs of initiating, expanding, and improving physical education 
programs for kindergarten through grade 12 students by--
            ``(1) providing equipment and support to enable students to 
        actively participate in physical education activities; and
            ``(2) providing funds for staff and teacher training and 
        education.

``SEC. 10999E. APPLICATIONS; PROGRAM ELEMENTS.

    ``(a) Applications.--Each local educational agency desiring a grant 
or contract under this part shall submit to the Secretary an 
application that contains a plan to initiate, expand, or improve 
physical education programs in the schools served by the agency in 
order to make progress toward meeting State standards for physical 
education.
    ``(b) Program Elements.--A physical education program described in 
any application submitted under subsection (a) may provide--
            ``(1) fitness education and assessment to help children 
        understand, improve, or maintain their physical well-being;
            ``(2) instruction in a variety of motor skills and physical 
        activities designed to enhance the physical, mental, and social 
        or emotional development of every child;
            ``(3) development of cognitive concepts about motor skill 
        and physical fitness that support a lifelong healthy lifestyle;
            ``(4) opportunities to develop positive social and 
        cooperative skills through physical activity participation;
            ``(5) instruction in healthy eating habits and good 
        nutrition; and
            ``(6) teachers of physical education the opportunity for 
        professional development to stay abreast of the latest 
        research, issues, and trends in the field of physical 
        education.
    ``(c) Special Rule.--For the purpose of this part, extracurricular 
activities such as team sports and Reserve Officers' Training Corps 
(ROTC) program activities shall not be considered as part of the 
curriculum of a physical education program assisted under this part.

``SEC. 10999F. PROPORTIONALITY.

    ``The Secretary shall ensure that grants awarded and contracts 
entered into under this part shall be equitably distributed between 
local educational agencies serving urban and rural areas, and between 
local educational agencies serving large and small numbers of students.

``SEC. 10999G. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STUDENTS.

    ``An application for funds under this part may provide for the 
participation, in the activities funded under this part, of--
            ``(1) home-schooled children, and their parents and 
        teachers; or
            ``(2) children enrolled in private nonprofit elementary 
        schools or secondary schools, and their parents and teachers.

``SEC. 10999H. REPORT REQUIRED FOR CONTINUED FUNDING.

    ``As a condition to continue to receive grant or contract funding 
after the first year of a multiyear grant or contract under this part, 
the administrator of the grant or contract for the local educational 
agency shall submit to the Secretary an annual report that describes 
the activities conducted during the preceding year and demonstrates 
that progress has been made toward meeting State standards for physical 
education.

``SEC. 10999I. REPORT TO CONGRESS.

    ``The Secretary shall submit a report to Congress not later than 
June 1, 2003, that describes the programs assisted under this part, 
documents the success of such programs in improving physical fitness, 
and makes such recommendations as the Secretary determines appropriate 
for the continuation and improvement of the programs assisted under 
this part.

``SEC. 10999J. ADMINISTRATIVE COSTS.

    ``Not more than 5 percent of the grant or contract funds made 
available to a local educational agency under this part for any fiscal 
year may be used for administrative costs.

``SEC. 10999K. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.

    ``(a) Federal Share.--The Federal share under this part may not 
exceed--
            ``(1) 90 percent of the total cost of a project for the 
        first year for which the project receives assistance under this 
        part; and
            ``(2) 75 percent of such cost for the second and each 
        subsequent such year.
    ``(b) Supplement Not Supplant.--Funds made available under this 
part shall be used to supplement and not supplant other Federal, State 
and local funds available for physical education activities.

``SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $30,000,000 for fiscal 
year 2001, $70,000,000 for fiscal year 2002, and $100,000,000 for each 
of the fiscal years 2003 through 2005, to carry out this part. Such 
funds shall remain available until expended.''.

                TITLE VIII--EARLY LEARNING OPPORTUNITIES

SEC. 801. SHORT TITLE; FINDINGS.

    (a) Short Title.--This title may be cited as the ``Early Learning 
Opportunities Act''.
    (b) Findings.--Congress finds that--
            (1) medical research demonstrates that adequate stimulation 
        of a young child's brain between birth and age 5 is critical to 
        the physical development of the young child's brain;
            (2) parents are the most significant and effective teachers 
        of their children, and they alone are responsible for choosing 
        the best early learning opportunities for their child;
            (3) parent education and parent involvement are critical to 
        the success of any early learning program or activity;
            (4) the more intensively parents are involved in their 
        child's early learning, the greater the cognitive and 
        noncognitive benefits to their children;
            (5) many parents have difficulty finding the information 
        and support the parents seek to help their children grow to 
        their full potential;
            (6) each day approximately 13,000,000 young children, 
        including 6,000,000 infants or toddlers, spend some or all of 
        their day being cared for by someone other than their parents;
            (7) quality early learning programs, including those 
        designed to promote effective parenting, can increase the 
        literacy rate, the secondary school graduation rate, the 
        employment rate, and the college enrollment rate for children 
        who have participated in voluntary early learning programs and 
        activities;
            (8) early childhood interventions can yield substantial 
        advantages to participants in terms of emotional and cognitive 
        development, education, economic well-being, and health, with 
        the latter two advantages applying to the children's families 
        as well;
            (9) participation in quality early learning programs, 
        including those designed to promote effective parenting, can 
        decrease the future incidence of teenage pregnancy, welfare 
        dependency, at-risk behaviors, and juvenile delinquency for 
        children;
            (10) several cost-benefit analysis studies indicate that 
        for each $1 invested in quality early learning programs, the 
        Federal Government can save over $5 by reducing the number of 
        children and families who participate in Federal Government 
        programs like special education and welfare;
            (11) for children placed in the care of others during the 
        workday, the low salaries paid to the child care staff, the 
        lack of career progression for the staff, and the lack of child 
        development specialists involved in early learning and child 
        care programs, make it difficult to attract and retain the 
        quality of staff necessary for a positive early learning 
        experience;
            (12) Federal Government support for early learning has 
        primarily focused on out-of-home care programs like those 
        established under the Head Start Act, the Child Care and 
        Development Block Grant of 1990, and part C of the Individuals 
        with Disabilities Education Act, and these programs--
                    (A) serve far fewer than half of all eligible 
                children;
                    (B) are not primarily designed to provide support 
                for parents who care for their young children in the 
                home; and
                    (C) lack a means of coordinating early learning 
                opportunities in each community; and
            (13) by helping communities increase, expand, and better 
        coordinate early learning opportunities for children and their 
        families, the productivity and creativity of future generations 
        will be improved, and the Nation will be prepared for continued 
        leadership in the 21st century.

SEC. 802. PURPOSES.

    The purposes of this title are--
            (1) to increase the availability of voluntary programs, 
        services, and activities that support early childhood 
        development, increase parent effectiveness, and promote the 
        learning readiness of young children so that young children 
        enter school ready to learn;
            (2) to support parents, child care providers, and 
        caregivers who want to incorporate early learning activities 
        into the daily lives of young children;
            (3) to remove barriers to the provision of an accessible 
        system of early childhood learning programs in communities 
        throughout the United States;
            (4) to increase the availability and affordability of 
        professional development activities and compensation for 
        caregivers and child care providers; and
            (5) to facilitate the development of community-based 
        systems of collaborative service delivery models characterized 
        by resource sharing, linkages between appropriate supports, and 
        local planning for services.

SEC. 803. DEFINITIONS.

    In this title:
            (1) Caregiver.--The term ``caregiver'' means an individual, 
        including a relative, neighbor, or family friend, who regularly 
        or frequently provides care, with or without compensation, for 
        a child for whom the individual is not the parent.
            (2) Child care provider.--The term ``child care provider'' 
        means a provider of non-residential child care services 
        (including center-based, family-based, and in-home child care 
        services) for compensation who or that is legally operating 
        under State law, and complies with applicable State and local 
        requirements for the provision of child care services.
            (3) Early learning.--The term ``early learning'', used with 
        respect to a program or activity, means learning designed to 
        facilitate the development of cognitive, language, motor, and 
        social-emotional skills for, and to promote learning readiness 
        in, young children.
            (4) Early learning program.--The term ``early learning 
        program'' means--
                    (A) a program of services or activities that helps 
                parents, caregivers, and child care providers 
                incorporate early learning into the daily lives of 
                young children; or
                    (B) a program that directly provides early learning 
                to young children.
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (6) Local council.--The term ``Local Council'' means a 
        Local Council established or designated under section 814(a) 
        that serves one or more localities.
            (7) Locality.--The term ``locality'' means a city, county, 
        borough, township, or area served by another general purpose 
        unit of local government, an Indian tribe, a Regional 
        Corporation, or a Native Hawaiian entity.
            (8) Parent.--The term ``parent'' means a biological parent, 
        an adoptive parent, a stepparent, a foster parent, or a legal 
        guardian of, or a person standing in loco parentis to, a child.
            (9) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (10) Regional corporation.--The term ``Regional 
        Corporation'' means an entity listed in section 419(4)(B) of 
        the Social Security Act (42 U.S.C. 619(4)(B)).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (12) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (13) Training.--The term ``training'' means instruction in 
        early learning that--
                    (A) is required for certification under State and 
                local laws, regulations, and policies;
                    (B) is required to receive a nationally or State 
                recognized credential or its equivalent;
                    (C) is received in a postsecondary education 
                program focused on early learning or early childhood 
                development in which the individual is enrolled; or
                    (D) is provided, certified, or sponsored by an 
                organization that is recognized for its expertise in 
                promoting early learning or early childhood 
                development.
            (14) Young child.--The term ``young child'' means any child 
        from birth to the age of mandatory school attendance in the 
        State where the child resides.

SEC. 804. PROHIBITIONS.

    (a) Participation Not Required.--No person, including a parent, 
shall be required to participate in any program of early childhood 
education, early learning, parent education, or developmental screening 
pursuant to the provisions of this title.
    (b) Rights of Parents.--Nothing in this title shall be construed to 
affect the rights of parents otherwise established in Federal, State, 
or local law.
    (c) Particular Methods or Settings.--No entity that receives funds 
under this title shall be required to provide services under this title 
through a particular instructional method or in a particular 
instructional setting to comply with this title.
    (d) Nonduplication.--No funds provided under this title shall be 
used to carry out an activity funded under another provision of law 
providing for Federal child care or early learning programs, unless an 
expansion of such activity is identified in the local needs assessment 
and performance goals under this title.

SEC. 805. AUTHORIZATION AND APPROPRIATION OF FUNDS.

    There are authorized to be appropriated to the Department of Health 
and Human Services to carry out this title--
            (1) $750,000,000 for fiscal year 2001;
            (2) $1,000,000,000 for fiscal year 2002;
            (3) $1,500,000,000 for fiscal year 2003; and
            (4) such sums as may be necessary for each of the fiscal 
        years 2004 and 2005.

SEC. 806. COORDINATION OF FEDERAL PROGRAMS.

    (a) Coordination.--The Secretary and the Secretary of Education 
shall develop mechanisms to resolve administrative and programmatic 
conflicts between Federal programs that would be a barrier to parents, 
caregivers, service providers, or children related to the coordination 
of services and funding for early learning programs.
    (b) Use of Equipment and Supplies.--In the case of a collaborative 
activity funded under this title and another provision of law providing 
for Federal child care or early learning programs, the use of equipment 
and nonconsumable supplies purchased with funds made available under 
this title or such provision shall not be restricted to children 
enrolled or otherwise participating in the program carried out under 
this title or such provision, during a period in which the activity is 
predominately funded under this title or such provision.

SEC. 807. PROGRAM AUTHORIZED.

    (a) Grants.--From amounts appropriated under section 805 the 
Secretary shall award grants to States to enable the States to award 
grants to Local Councils to pay the Federal share of the cost of 
carrying out early learning programs in the locality served by the 
Local Council.
    (b) Federal Share.--
            (1) In general.--The Federal share of the cost described in 
        subsections (a) and (e) shall be 85 percent for the first and 
        second years of the grant, 80 percent for the third and fourth 
        years of the grant, and 75 percent for the fifth and subsequent 
        years of the grant.
            (2) Non-federal share.--The non-Federal share of the cost 
        described in subsections (a) and (e) may be contributed in cash 
        or in kind, fairly evaluated, including facilities, equipment, 
        or services, which may be provided from State or local public 
        sources, or through donations from private entities. For the 
        purposes of this paragraph the term ``facilities'' includes the 
        use of facilities, but the term ``equipment'' means donated 
        equipment and not the use of equipment.
    (c) Maintenance of Effort.--The Secretary shall not award a grant 
under this title to any State unless the Secretary first determines 
that the total expenditures by the State and its political subdivisions 
to support early learning programs (other than funds used to pay the 
non-Federal share under subsection (b)(2)) for the fiscal year for 
which the determination is made is equal to or greater than such 
expenditures for the preceding fiscal year.
    (d) Supplement Not Supplant.--Amounts received under this title 
shall be used to supplement and not supplant other Federal, State, and 
local public funds expended to promote early learning.
    (e) Special Rule.--If funds appropriated to carry out this title 
are less than $150,000,000 for any fiscal year, the Secretary shall 
award grants for the fiscal year directly to Local Councils, on a 
competitive basis, to pay the Federal share of the cost of carrying out 
early learning programs in the locality served by the Local Council. In 
carrying out the preceding sentence--
            (1) subsection (c), subsections (b) and (c) of section 810, 
        and paragraphs (1), (2), and (3) of section 811(a) shall not 
        apply;
            (2) State responsibilities described in section 811(d) 
        shall be carried out by the Local Council with regard to the 
        locality;
            (3) the Secretary shall provide such technical assistance 
        and monitoring as necessary to ensure that the use of the funds 
        by Local Councils and the distribution of the funds to Local 
        Councils are consistent with this title; and
            (4) subject to paragraph (1), the Secretary shall assume 
        the responsibilities of the Lead State Agency under this title, 
        as appropriate.

SEC. 808. USES OF FUNDS.

    (a) In General.--Subject to section 810, grant funds under this 
title shall be used to pay for developing, operating, or enhancing 
voluntary early learning programs that are likely to produce sustained 
gains in early learning.
    (b) Limited Uses.--Subject to section 810, Lead State Agencies and 
Local Councils shall ensure that funds made available under this title 
to the agencies and Local Councils are used for three or more of the 
following activities:
            (1) Helping parents, caregivers, child care providers, and 
        educators increase their capacity to facilitate the development 
        of cognitive, language comprehension, expressive language, 
        social-emotional, and motor skills, and promote learning 
        readiness.
            (2) Promoting effective parenting.
            (3) Enhancing early childhood literacy.
            (4) Developing linkages among early learning programs 
        within a community and between early learning programs and 
        health care services for young children.
            (5) Increasing access to early learning opportunities for 
        young children with special needs, including developmental 
        delays, by facilitating coordination with other programs 
        serving such young children.
            (6) Increasing access to existing early learning programs 
        by expanding the days or times that the young children are 
        served, by expanding the number of young children served, or by 
        improving the affordability of the programs for low-income 
        families.
            (7) Improving the quality of early learning programs 
        through professional development and training activities, 
        increased compensation, and recruitment and retention 
        incentives, for early learning providers.
            (8) Removing ancillary barriers to early learning, 
        including transportation difficulties and absence of programs 
        during nontraditional work times.
    (c) Requirements.--Each Lead State Agency designated under section 
810(c) and Local Councils receiving a grant under this title shall 
ensure--
            (1) that Local Councils described in section 814 work with 
        local educational agencies to identify cognitive, social, 
        emotional, and motor developmental abilities which are 
        necessary to support children's readiness for school;
            (2) that the programs, services, and activities assisted 
        under this title will represent developmentally appropriate 
        steps toward the acquisition of those abilities; and
            (3) that the programs, services, and activities assisted 
        under this title collectively provide benefits for children 
        cared for in their own homes as well as children placed in the 
        care of others.
    (d) Sliding Scale Payments.--States and Local Councils receiving 
assistance under this title shall ensure that programs, services, and 
activities assisted under this title which customarily require a 
payment for such programs, services, or activities, adjust the cost of 
such programs, services, and activities provided to the individual or 
the individual's child based on the individual's ability to pay.

SEC. 809. RESERVATIONS AND ALLOTMENTS.

    (a) Reservation for Indian Tribes, Alaska Natives, and Native 
Hawaiians.--The Secretary shall reserve 1 percent of the total amount 
appropriated under section 805 for each fiscal year, to be allotted to 
Indian tribes, Regional Corporations, and Native Hawaiian entities, of 
which--
            (1) 0.5 percent shall be available to Indian tribes; and
            (2) 0.5 percent shall be available to Regional Corporations 
        and Native Hawaiian entities.
    (b) Allotments.--From the funds appropriated under this title for 
each fiscal year that are not reserved under subsection (a), the 
Secretary shall allot to each State the sum of--
            (1) an amount that bears the same ratio to 50 percent of 
        such funds as the number of children 4 years of age and younger 
        in the State bears to the number of such children in all 
        States; and
            (2) an amount that bears the same ratio to 50 percent of 
        such funds as the number of children 4 years of age and younger 
        living in families with incomes below the poverty line in the 
        State bears to the number of such children in all States.
    (c) Minimum Allotment.--No State shall receive an allotment under 
subsection (b) for a fiscal year in an amount that is less than .40 
percent of the total amount appropriated for the fiscal year under this 
title.
    (d) Availability of Funds.--Any portion of the allotment to a State 
that is not expended for activities under this title in the fiscal year 
for which the allotment is made shall remain available to the State for 
two additional years, after which any unexpended funds shall be 
returned to the Secretary. The Secretary shall use the returned funds 
to carry out a discretionary grant program for research-based early 
learning demonstration projects.
    (e) Data.--The Secretary shall make allotments under this title on 
the basis of the most recent data available to the Secretary.

SEC. 810. GRANT ADMINISTRATION.

    (a) Federal Administrative Costs.--The Secretary may use not more 
than 3 percent of the amount appropriated under section 805 for a 
fiscal year to pay for the administrative costs of carrying out this 
title, including the monitoring and evaluation of State and local 
efforts.
    (b) State Administrative Costs.--A State that receives a grant 
under this title may use--
            (1) not more than 2 percent of the funds made available 
        through the grant to carry out activities designed to 
        coordinate early learning programs on the State level, 
        including programs funded or operated by the State educational 
        agency, health, children and family, and human service 
        agencies, and any State-level collaboration or coordination 
        council involving early learning and education, such as the 
        entities funded under section 640(a)(5) of the Head Start Act 
        (42 U.S.C. 9835(a)(5));
            (2) not more than 2 percent of the funds made available 
        through the grant for the administrative costs of carrying out 
        the grant program and the costs of reporting State and local 
        efforts to the Secretary; and
            (3) not more than 3 percent of the funds made available 
        through the grant for training, technical assistance, and wage 
        incentives provided by the State to Local Councils.
    (c) Lead State Agency.--
            (1) In general.--To be eligible to receive an allotment 
        under this title, the Governor of a State shall appoint, after 
        consultation with the leadership of the State legislature, a 
        Lead State Agency to carry out the functions described in 
        paragraph (2).
            (2) Lead state agency.--
                    (A) Allocation of funds.--The Lead State Agency 
                described in paragraph (1) shall allocate funds to 
                Local Councils as described in section 812.
                    (B) Functions of agency.--In addition to allocating 
                funds pursuant to subparagraph (A), the Lead State 
                Agency shall--
                            (i) advise and assist Local Councils in the 
                        performance of their duties under this title;
                            (ii) develop and submit the State 
                        application;
                            (iii) evaluate and approve applications 
                        submitted by Local Councils under section 813;
                            (iv) ensure collaboration with respect to 
                        assistance provided under this title between 
                        the State agency responsible for education and 
                        the State agency responsible for children and 
                        family services;
                            (v) prepare and submit to the Secretary, an 
                        annual report on the activities carried out in 
                        the State under this title, which shall include 
                        a statement describing how all funds received 
                        under this title are expended and documentation 
                        of the effects that resources under this title 
                        have had on--
                                    (I) parental capacity to improve 
                                learning readiness in their young 
                                children;
                                    (II) early childhood literacy;
                                    (III) linkages among early learning 
                                programs;
                                    (IV) linkages between early 
                                learning programs and health care 
                                services for young children;
                                    (V) access to early learning 
                                activities for young children with 
                                special needs;
                                    (VI) access to existing early 
                                learning programs through expansion of 
                                the days or times that children are 
                                served;
                                    (VII) access to existing early 
                                learning programs through expansion of 
                                the number of young children served;
                                    (VIII) access to and affordability 
                                of existing early learning programs for 
                                low-income families;
                                    (IX) the quality of early learning 
                                programs resulting from professional 
                                development, and recruitment and 
                                retention incentives for caregivers; 
                                and
                                    (X) removal of ancillary barriers 
                                to early learning, including 
                                transportation difficulties and absence 
                                of programs during nontraditional work 
                                times; and
                            (vi) ensure that training and research is 
                        made available to Local Councils and that such 
                        training and research reflects the latest 
                        available brain development and early childhood 
                        development research related to early learning.

SEC. 811. STATE REQUIREMENTS.

    (a) Eligibility.--To be eligible for a grant under this title, a 
State shall--
            (1) ensure that funds received by the State under this 
        title shall be subject to appropriation by the State 
        legislature, consistent with the terms and conditions required 
        under State law;
            (2) designate a Lead State Agency under section 810(c) to 
        administer and monitor the grant and ensure State-level 
        coordination of early learning programs;
            (3) submit to the Secretary an application at such time, in 
        such manner, and accompanied by such information as the 
        Secretary may require;
            (4) ensure that funds made available under this title are 
        distributed on a competitive basis throughout the State to 
        Local Councils serving rural, urban, and suburban areas of the 
        State; and
            (5) assist the Secretary in developing mechanisms to ensure 
        that Local Councils receiving funds under this title comply 
        with the requirements of this title.
    (b) State Preference.--In awarding grants to Local Councils under 
this title, the State, to the maximum extent possible, shall ensure 
that a broad variety of early learning programs that provide a 
continuity of services across the age spectrum assisted under this 
title are funded under this title, and shall give preference to 
supporting--
            (1) a Local Council that meets criteria, that are specified 
        by the State and approved by the Secretary, for qualifying as 
        serving an area of greatest need for early learning programs; 
        and
            (2) a Local Council that demonstrates, in the application 
        submitted under section 813, the Local Council's potential to 
        increase collaboration as a means of maximizing use of 
        resources provided under this title with other resources 
        available for early learning programs.
    (c) Local Preference.--In awarding grants under this title, Local 
Councils shall give preference to supporting--
            (1) projects that demonstrate their potential to 
        collaborate as a means of maximizing use of resources provided 
        under this title with other resources available for early 
        learning programs;
            (2) programs that provide a continuity of services for 
        young children across the age spectrum, individually, or 
        through community-based networks or cooperative agreements; and
            (3) programs that help parents and other caregivers promote 
        early learning with their young children.
    (d) Performance Goals.--
            (1) Assessments.--Based on information and data received 
        from Local Councils, and information and data available through 
        State resources, the State shall biennially assess the needs 
        and available resources related to the provision of early 
        learning programs within the State.
            (2) Performance goals.--Based on the analysis of 
        information described in paragraph (1), the State shall 
        establish measurable performance goals to be achieved through 
        activities assisted under this title.
            (3) Requirement.--The State shall award grants to Local 
        Councils only for purposes that are consistent with the 
        performance goals established under paragraph (2).
            (4) Report.--The State shall report to the Secretary 
        annually regarding the State's progress toward achieving the 
        performance goals established in paragraph (2) and any 
        necessary modifications to those goals, including the rationale 
        for the modifications.
            (5) Improvement plans.--If the Secretary determines, based 
        on the State report submitted under paragraph (4), that the 
        State is not making progress toward achieving the performance 
        goals described in paragraph (2), then the State shall submit a 
        performance improvement plan to the Secretary, and demonstrate 
        reasonable progress in implementing such plan, in order to 
        remain eligible for funding under this title.

SEC. 812. LOCAL ALLOCATIONS.

    (a) In General.--The Lead State Agency shall allocate to Local 
Councils in the State not less than 93 percent of the funds provided to 
the State under this title for a fiscal year.
    (b) Limitation.--The Lead State Agency shall allocate funds 
provided under this title on the basis of the population of the 
locality served by the Local Council.

SEC. 813. LOCAL APPLICATIONS.

    (a) In General.--To be eligible to receive assistance under this 
title, the Local Council shall submit an application to the Lead State 
Agency at such time, in such manner, and containing such information as 
the Lead State Agency may require.
    (b) Contents.--Each application submitted pursuant to subsection 
(a) shall include a statement ensuring that the local government 
entity, Indian tribe, Regional Corporation, or Native Hawaiian entity 
has established or designated a Local Council under section 814, and 
the Local Council has developed a local plan for carrying out early 
learning programs under this title that includes--
            (1) a needs and resources assessment concerning early 
        learning services and a statement describing how early learning 
        programs will be funded consistent with the assessment;
            (2) a statement of how the Local Council will ensure that 
        early learning programs will meet the performance goals 
        reported by the Lead State Agency under this title; and
            (3) a description of how the Local Council will form 
        collaboratives among local youth, social service, and 
        educational providers to maximize resources and concentrate 
        efforts on areas of greatest need.

SEC. 814. LOCAL ADMINISTRATION.

    (a) Local Council.--
            (1) In general.--To be eligible to receive funds under this 
        title, a local government entity, Indian tribe, Regional 
        Corporation, or Native Hawaiian entity, as appropriate, shall 
        establish or designate a Local Council, which shall be composed 
        of--
                    (A) representatives of local agencies directly 
                affected by early learning programs assisted under this 
                title;
                    (B) parents;
                    (C) other individuals concerned with early learning 
                issues in the locality, such as representative entities 
                providing elementary education, child care resource and 
                referral services, early learning opportunities, child 
                care, and health services; and
                    (D) other key community leaders.
            (2) Designating existing entity.--If a local government 
        entity, Indian tribe, Regional Corporation, or Native Hawaiian 
        entity has, before the date of enactment of the Early Learning 
        Opportunities Act, a Local Council or a regional entity that is 
        comparable to the Local Council described in paragraph (1), the 
        entity, tribe, or corporation may designate the council or 
        entity as a Local Council under this title, and shall be 
        considered to have established a Local Council in compliance 
        with this subsection.
            (3) Functions.--The Local Council shall be responsible for 
        preparing and submitting the application described in section 
        813.
    (b) Administration.--
            (1) Administrative costs.--Not more than 3 percent of the 
        funds received by a Local Council under this title shall be 
        used to pay for the administrative costs of the Local Council 
        in carrying out this title.
            (2) Fiscal agent.--A Local Council may designate any 
        entity, with a demonstrated capacity for administering grants, 
        that is affected by, or concerned with, early learning issues, 
        including the State, to serve as fiscal agent for the 
        administration of grant funds received by the Local Council 
        under this title.

             TITLE IX--RURAL EDUCATION ACHIEVEMENT PROGRAM

SEC. 901. RURAL EDUCATION INITIATIVE.

    Subpart 2 of part J of title X of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 8291 et seq.) is amended to read as 
follows:

                ``Subpart 2--Rural Education Initiative

``SEC. 10971. SHORT TITLE.

    ``This subpart may be cited as the `Rural Education Achievement 
Program'.

``SEC. 10972. PURPOSE.

    ``It is the purpose of this subpart to address the unique needs of 
rural school districts that frequently--
            ``(1) lack the personnel and resources needed to compete 
        for Federal competitive grants; and
            ``(2) receive formula allocations in amounts too small to 
        be effective in meeting their intended purposes.

``SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$62,500,000 for fiscal year 2001.

``SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the 
        applicable funding, that the agency is eligible to receive from 
        the State educational agency for a fiscal year, to carry out 
        local activities authorized in part A of title I, section 
        2210(b), section 3134, or section 4116.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
use the applicable funding in accordance with subsection (a) if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary of Education.
    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II, IV, and VI, 
except for funds made available under section 321 of the Department of 
Education Appropriations Act, 2001.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other State or 
local education funds.
    ``(f) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.
    ``(g) Construction.--Nothing in this subpart shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State 
law or a written agreement from entering into similar arrangements for 
the use or the coordination of the use of the funds made available 
under this subpart.

``SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to carry out local activities authorized in part A of title I, 
section 2210(b), section 3134, or section 4116.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
receive a grant under this section if--
            ``(1) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary of Education.
    ``(c) Amount.--
            ``(1) In general.--The Secretary shall award a grant to a 
        local educational agency under this section for a fiscal year 
        in an amount equal to the amount determined under paragraph (2) 
        for the fiscal year minus the total amount received under the 
        provisions of law described under section 10974(c) for the 
        fiscal year.
            ``(2) Determination.--The amount referred to in paragraph 
        (1) is equal to $100 multiplied by the total number of students 
        in excess of 50 students that are in average daily attendance 
        at the schools served by the local educational agency, plus 
        $20,000, except that the amount may not exceed $60,000.
            ``(3) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall determine for 
                each year the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency during the 
                period beginning or the first day of classes and ending 
                on December 1.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
            ``(4) Penalty.--If the Secretary determines that a local 
        educational agency has knowingly submitted false information 
        under paragraph (3) for the purpose of gaining additional funds 
        under this section, then the local educational agency shall be 
        fined an amount equal to twice the difference between the 
        amount the local educational agency received under this 
        section, and the correct amount the local educational agency 
        would have received under this section if the agency had 
        submitted accurate information under paragraph (3).
    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other State or 
local education funds.

``SEC. 10976. ACCOUNTABILITY.

    ``(a) Academic Achievement.--
            ``(1) In general.--Each local educational agency that uses 
        or receives funds under section 10974 or 10975 for a fiscal 
        year shall--
                    ``(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the academic 
                achievement of students in the schools served by the 
                local educational agency; or
                    ``(B) in the case of a local educational agency for 
                which there is no statewide assessment described in 
                subparagraph (A), administer a test, that is selected 
                by the local educational agency, to assess the academic 
                achievement of students in the schools served by the 
                local educational agency.
            ``(2) Special rule.--Each local educational agency that 
        uses or receives funds under section 10974 or 10975 shall use 
        the same assessment or test described in paragraph (1) for each 
        year of participation in the program carried out under such 
        section.
    ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 10974(c) shall--
            ``(1) after the third year that a local educational agency 
        in the State participates in a program authorized under section 
        10974 or 10975 and on the basis of the results of the 
        assessments or tests described in subsection (a), determine 
        whether the students served by the local educational agency 
        participating in the program performed better on the 
        assessments or tests after the third year of the participation 
        than the students performed on the assessments or tests after 
        the first year of the participation;
            ``(2) permit only the local educational agencies that 
        participated in the program and served students that performed 
        better on the assessments or tests, as described in paragraph 
        (1), to continue to participate in the program for an 
        additional period of 3 years; and
            ``(3) prohibit the local educational agencies that 
        participated in the program and served students that did not 
        perform better on the assessments or tests, as described in 
        paragraph (1), from participating in the program, for a period 
        of 3 years from the date of the determination.

``SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT 
              APPROPRIATIONS.

    ``(a) In General.--If the amount appropriated for any fiscal year 
and made available for grants under this subpart is insufficient to pay 
the full amount for which all agencies are eligible under this subpart, 
the Secretary shall ratably reduce each such amount.
    ``(b) Additional Amounts.--If additional funds become available for 
making payments under paragraph (1) for such fiscal year, payments that 
were reduced under subsection (a) shall be increased on the same basis 
as such payments were reduced.

``SEC. 10978. APPLICABILITY.

    ``Sections 10951 and 10952 shall not apply to this subpart.''.
    This Act may be cited as the ``Departments of Labor, Health and 
Human Services, and Education, and Related Agencies Appropriations Act, 
2001''.
                                 <all>
Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2001

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