 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
              Part A--Fund for the Improvement of Education
 
Sec. 8003. Partnerships in character education pilot project


(a) Program authorized

                           (1) In general

        The Secretary is authorized to make up to a total of ten grants 
    annually to partnerships of State educational agencies and local 
    educational agencies for the design and implementation of character 
    education programs that incorporate the elements of character listed 
    in subsection (d) of this section, as well as other character 
    elements identified by applicants.

                     (2) Maximum amount of grant

        No State educational agency shall receive more than a total of 
    $1,000,000 in grants under this part.

                            (3) Duration

        Each grant under this section shall be awarded for a period not 
    to exceed five years, of which the State educational agency shall 
    not use more than one year for planning and program design.

(b) State educational agency applications

                           (1) Requirement

        Each State educational agency desiring a grant under this 
    section shall submit an application to the Secretary at such time 
    and in such manner as the Secretary may require.

                          (2) Partnerships

        Each State educational agency desiring a grant under this 
    section shall form a partnership with at least one local educational 
    agency to be eligible for funding. The partnership shall pursue 
    State and local initiatives to meet the objectives of this section.

                           (3) Application

        Each application under this section shall include--
            (A) a list of the local educational agencies entering into 
        the partnership with the State educational agency;
            (B) a description of the goals of the partnership;
            (C) a description of activities that will be pursued by the 
        participating local educational agencies, including--
                (i) how parents, students, and other members of the 
            community, including members of private and nonprofit 
            organizations, will be involved in the design and 
            implementation of the program;
                (ii) curriculum and instructional practices;
                (iii) methods of teacher training and parent education 
            that will be used or developed; and
                (iv) examples of activities that will be carried out 
            under this part;

            (D) a description of how the State educational agency will 
        provide technical and professional assistance to its local 
        educational agency partners in the development and 
        implementation of character education programs;
            (E) a description of how the State educational agency will 
        evaluate the success of local programs and how local educational 
        agencies will evaluate the progress of their own programs;
            (F) a description of how the State educational agency will 
        assist other interested local educational agencies that are not 
        members of the original partnership in designing and 
        establishing programs;
            (G) a description of how the State educational agency will 
        establish a clearinghouse for information on model programs, 
        materials, and other information the State and local educational 
        agencies determine to be appropriate;
            (H) an assurance that the State educational agency will 
        annually provide to the Secretary such information as may be 
        required to determine the effectiveness of the program; and
            (I) any other information that the Secretary may require.

             (4) Non-partner local educational agencies

        Any local educational agency that was not a partner with the 
    State when the application was submitted may become a partner by 
    submitting an application for partnership to the State educational 
    agency, containing such information that the State educational 
    agency may require.

(c) Evaluation and program development

                           (1) Requirement

        Each State educational agency receiving a grant under this 
    section shall submit to the Secretary a comprehensive evaluation of 
    the program assisted under this part, including the impact on 
    students, teachers, administrators, parents, and others--
            (A) by the mid-term of the program; and
            (B) not later than one year after completion of such 
        program.

                    (2) Contracts for evaluation

        Each State educational agency receiving a grant under this 
    section may contract with outside sources, including institutions of 
    higher education, and private and nonprofit organizations, for 
    purposes of evaluating their program and measuring the success of 
    the program toward fostering in students the elements of character 
    listed in subsection (b) of this section.

                             (3) Factors

        Factors which may be considered in evaluating the success of the 
    program may include--
            (A) discipline problems;
            (B) students' grades;
            (C) participation in extracurricular activities;
            (D) parental and community involvement;
            (E) faculty and administration involvement; and
            (F) student and staff morale.

                (4) Materials and program development

        Local educational agencies, after consulting with the State 
    educational agency, may contract with outside sources, including 
    institutions of higher education, and private and nonprofit 
    organizations, for assistance in developing curriculum, materials, 
    teacher training, and other activities related to character 
    education.

(d) Elements of character

                           (1) In general

        Applicants desiring funding under this part shall develop 
    character education programs that incorporate the following elements 
    of character:
            (A) Caring.
            (B) Civic virtue and citizenship.
            (C) Justice and fairness.
            (D) Respect.
            (E) Responsibility.
            (F) Trustworthiness.
            (G) Any other elements deemed appropriate by the members of 
        the partnership.

                (2) Additional elements of character

        A local educational agency participating under this section may, 
    after consultation with schools and communities of such agency, 
    define additional elements of character that the agency determines 
    to be important to the schools and communities of such agency.

(e) Use of funds

    Of the total funds received by a State educational agency in any 
fiscal year under this section--
        (1) not more than 30 percent of such funds may be retained by 
    the State educational agency, of which--
            (A) not more than 10 percent of such funds may be used for 
        administrative purposes; and
            (B) the remainder of such funds may be used for--
                (i) collaborative initiatives with local educational 
            agencies;
                (ii) the establishment of the clearinghouse, preparation 
            of materials, teacher training; and
                (iii) other appropriate activities; and

        (2) the remaining of such funds shall be used to award subgrants 
    to local educational agencies, of which--
            (A) not more than 10 percent of such funds may be retained 
        for administrative purposes; and
            (B) the remainder of such funds may be used to--
                (i) award subgrants to schools within the local 
            educational agency; and
                (ii) pursue collaborative efforts with the State 
            educational agency.

(f) Selection of grantees

                            (1) Criteria

        The Secretary shall select, through peer review, partnerships to 
    receive grants under this section on the basis of the quality of the 
    applications submitted under subsection (b) of this section, taking 
    into consideration such factors as--
            (A) the quality of the activities proposed by local 
        educational agencies;
            (B) the extent to which the program fosters in students the 
        elements of character;
            (C) the extent of parental, student, and community 
        involvement;
            (D) the number of local educational agencies involved in the 
        effort;
            (E) the quality of the plan for measuring and assessing 
        success; and
            (F) the likelihood that the goals of the program will be 
        realistically achieved.

                      (2) Diversity of projects

        The Secretary shall approve applications under this section in a 
    manner that ensures, to the extent practicable, that programs 
    assisted under this section--
            (A) serve different areas of the Nation, including urban, 
        suburban, and rural areas; and
            (B) serve schools that serve minorities, Native Americans, 
        students of limited-English proficiency, and disadvantaged 
        students.

(Pub. L. 89-10, title X, Sec. 10103, as added Pub. L. 103-382, title I, 
Sec. 101, Oct. 20, 1994, 108 Stat. 3815.)

                  Section Referred to in Other Sections

    This section is referred to in section 8001 of this title.
