A r c h i v e d  I n f o r m a t i o n

``SEC. 4113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

``(a) Use of Funds.--
``(1) In general.--Except as provided in paragraph (2), an amount equal to 80 percent of the total amount allocated to a State under section 4111 for each fiscal year shall be used by the State educational agency and its local educational agencies for drug and violence prevention activities in accordance with this section.
``(2) Exception.--
``(A) If a State has, on or before January 1, 1994, established an independent State agency for the purpose of administering all of the funds described in section 5121 of this Act (as such section was in effect on the day preceding the date of the enactment of the Improving America's Schools Act of 1994), then--
``(i) an amount equal to 80 percent of the total amount allocated to such State under section 4111 for each fiscal year shall be used by the State educational agency and its local educational agencies for drug and violence prevention activities in accordance with this section; and
``(ii) an amount equal to 20 percent of such total amount shall be used by such independent State agency for drug and violence prevention activities in accordance with this section.
``(B) Not more than 5 percent of the amount reserved under subparagraph (A)(ii) may be used for administrative costs of the independent State agency incurred in carrying out the activities described in such subparagraph.
``(C) For purposes of this paragraph, the term `independent State agency' means an independent agency with a board of directors or a cabinet level agency whose chief executive officer is appointed by the chief executive officer of the State and confirmed with the advice and consent of the senate of such State.
``(b) State Level Programs.--
``(1) In general.--A State educational agency shall use not more than 5 percent of the amount available under subsection (a) for activities such as--
``(A) training and technical assistance concerning drug and violence prevention for local educational agencies and educational service agencies, including teachers, administrators, coaches and athletic directors, other staff, parents, students, community leaders, health service providers, local law enforcement officials, and judicial officials;
``(B) the development, identification, dissemination, and evaluation of the most readily available, accurate, and up-to-date curriculum materials (including videotapes, software, and other technology-based learning resources), for consideration by local educational agencies;
``(C) making available to local educational agencies cost effective programs for youth violence and drug abuse prevention;
``(D) demonstration projects in drug and violence prevention;
``(E) training, technical assistance, and demonstration projects to address violence associated with prejudice and intolerance;
``(F) financial assistance to enhance resources available for drug and violence prevention in areas serving large numbers of economically disadvantaged children or sparsely populated areas, or to meet other special needs consistent with the purposes of this subpart; and
``(G) the evaluation of activities carried out within the State under this part.
``(2) Special rule.--A State educational agency may carry out activities under this subsection directly, or through grants or contracts.
``(c) State Administration.--A State educational agency may use not more than 4 percent of the amount reserved under subsection (a) for the administrative costs of carrying out its responsibilities under this part.
``(d) Local Educational Agency Programs.--
``(1) In general.--A State educational agency shall distribute not less than 91 percent of the amount made available under subsection (a) for each fiscal year to local educational agencies in accordance with this subsection.
``(2) Distribution.--
``(A) Of the amount distributed under paragraph (1), a State educational agency shall distribute--
``(i) 70 percent of such amount to local educational agencies, based on the relative enrollments in public and private nonprofit elementary and secondary schools within the boundaries of such agencies; and
``(ii) 30 percent of such amount to local educational agencies that the State educational agency determines have the greatest need for additional funds to carry out drug and violence prevention programs authorized by this subpart.
``(B) Where appropriate and to the extent consistent with the needs assessment conducted by the State, not less than 25 percent of the amount distributed under subparagraph (A)(ii) for a fiscal year shall be distributed to local educational agencies located in rural and urban areas.
``(C)
``(i) A State educational agency shall distribute funds under subparagraph (A)(ii) to not more than 10 percent of the local educational agencies in the State, or five such agencies, whichever is greater.
``(ii) In determining which local educational agencies have the greatest need for additional funds, the State educational agency shall consider objective data such as--
``(I) high rates of alcohol or drug use among youth;
``(II) high rates of victimization of youth by violence and crime;
``(III) high rates of arrests and convictions of youth for violent or drug- or alcohol-related crime;
``(IV) the extent of illegal gang activity;
``(V) high incidence of violence associated with prejudice and intolerance;
``(VI) high rates of referrals of youths to drug and alcohol abuse treatment and rehabilitation programs;
``(VII) high rates of referrals of youths to juvenile court;
``(VIII) high rates of expulsions and suspensions of students from schools; and
``(IX) high rates of reported cases of child abuse and domestic violence.
``(e) Reallocation of Funds.--If a local educational agency chooses not to apply to receive the amount allocated to such agency under subsection (d), or if such agency's application under section 4115 is disapproved by the State educational agency, the State educational agency shall reallocate such amount to one or more of the local educational agencies determined by the State educational agency under subsection (d)(2)(C)(ii) to have the greatest need for additional funds.
``(f) Return of Funds to State Educational Agency; Reallocation.--
``(1) Return.--Except as provided in paragraph (2), upon the expiration of the 1-year period beginning on the date that a local educational agency or educational service agency under this title receives its allocation under this title--
``(A) such agency shall return to the State educational agency any funds from such allocation that remain unobligated; and
``(B) the State educational agency shall reallocate any such amount to local educational agencies or educational service agencies that have plans for using such amount for programs or activities on a timely basis.
``(2) Reallocation.--In any fiscal year, a local educational agency, may retain for obligation in the succeeding fiscal year--
``(A) an amount equal to not more than 25 percent of the allocation it receives under this title for such fiscal year; or
``(B) upon a demonstration of good cause by such agency or consortium, a greater amount approved by the State educational agency.

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SEC. 4112. STATE APPLICATIONS. Table of Contents SEC. 4114. GOVERNOR'S PROGRAMS.