Page:United States Statutes at Large Volume 115 Part 2.djvu/530

 115 STAT. 1514 PUBLIC LAW 107-110—JAN. 8, 2002 in paragraph (3), except that the amount reserved to carry out such competition shall not exceed $5,000,000. " (3) LIMITATION FOR COMPETITIVE GRANTS. — "(A) COMPETITIVE GRANTS.—The Secretary shall use funds described in paragraph (2) to award grants to the outlying areas and freely associated States to carry out the purposes of this part. "(B) AWARD BASIS.— The Secretary shall award grants under subparagraph (A) on a competitive basis, taking into consideration the recommendations of the Pacific Region Educational Laboratory in Honolulu, Hawaii. "(C) USES. —Except as provided in subparagraph (D), grant funds awarded under this paragraph may be used only— "(i) for programs described in this Act, including teacher training, curriculum development, instructional materials, or general school improvement and reform; and "(ii) to provide direct educational services that assist all students with meeting challenging State academic content standards. "(D) ADMINISTRATIVE COSTS. —The Secretary may provide not more than 5 percent of the amount reserved for grants under this paragraph to pay the administrative costs of the Pacific Region Educational Laboratory under subparagraph (B). "(4) SPECIAL RULE.—The provisions of Public Law 95-134, permitting the consolidation of grants by the outlying areas, shall not apply to funds provided to the freely associated States under this section. "(c) DEFINITIONS. —For the purpose of subsections (a) and (b)— "(1) the term 'freely associated states' means the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau; and "(2) the term 'outlying area' means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. "(d) ALLOTMENT TO THE SECRETARY OF THE INTERIOR.— "(1) IN GENERAL.— The amount allotted for payments to the Secretary of the Interior under subsection (a)(2) for any fiscal year shall be, as determined pursuant to criteria established by the Secretary, the amount necessary to meet the special educational needs of— "(A) Indian children on reservations served by elementary schools and secondary schools for Indian children operated or supported by the Department of the Interior; and "(B) out-of-State Indian children in elementary schools and secondary schools in local educational agencies under special contracts with the Department of the Interior. "(2) PAYMENTS. —From the amount allotted for payments to the Secretary of the Interior under subsection (a)(2), the Secretary of the Interior shall make payments to local educational agencies, on such terms as the Secretary determines will best carry out the purposes of this part, with respect to out-of-State Indian children described in paragraph (1). The

�