this part will receive a stipend which shall not exceed the cost of tuition at the institution of higher education plus a stipend of not to exceed $750 for each academic year of study for which the scholarship is awarded;

(5) set forth policies and procedures to assure that whenever the application includes a local educational agency, to the extent consistent with the number and location of children in the school district of such agency who are enrolled in private elementary and secondary schools, provision is made for the participation of such children in the program assisted under this part;

(6) provide assurances that consideration is given to programs and activities designed to meet the needs of underrepresented and underserved populations;

(7) provide assurances that in the consideration of applications submitted under section 307(a) that equitable consideration is given to applications submitted by private and public institutions of higher education; and

(8) provide such additional assurances as the Secretary determines essential to ensure compliance with the requirements of this part.

(b) A regional consortium of applicants in two or more States may file a joint application under the provisions of subsection (a) of this section.

SUBMISSION OF APPLICATIONS

SEC. 307. [20 U.S.C. 3986] Each applicant within a State which desires to receive a grant under this part shall submit the application prepared in accordance with section 306 to the State agency on higher education or the State educational agency, as the case may be, for approval and shall submit the approved application to the Foundation under section 306. Each such application shall be submitted jointly by the local educational agency in the case of activities described in section 305(a), or an institution of higher education in the case of activities described in section 305(b), and each business concern or other party that is to participate in the program for which assistance is sought.

APPROVAL OF APPLICATIONS

SEC. 308. [20 U.S.C. 3987] (a)(1) The Secretary shall establish criteria for approval of applications under this part.

(2) No application may be approved by the Secretary unless the State educational agency or the State agency for higher education, as the case may be, determines that the application is consistent with State plans for elementary and secondary education or State plans for higher education, as the case may be, in the State.

(b) The Secretary shall adopt approval procedures designed to assure that there is equitable distribution of grants among the States.

PAYMENTS; FEDERAL SHARE; LIMITATION

SEC. 309. [20 U.S.C. 3988] (a)(1) The Secretary shall pay, to each applicant having an application approved under section 308, the Federal share of the cost of the program described in the application.

(2) The Federal share for each fiscal year shall be 50 per centum.

(3) The non-Federal share of payments under this part may be in cash or in kind, fairly evaluated, including plant, equipment, or services.

(b) Not more than 15 per centum of the funds appropriated under this part in any fiscal year may be paid to applicants in any single State.

PART B-ELEMENTARY AND SECONDARY EDUCATION PARTNERSHIPS

PURPOSE

SEC. 321. [20 U.S.C. 3991] It is the purpose of this part to supplement State and local resources to—

(1) improve the quality of instruction in the fields of mathematics and science in elementary and secondary schools;

(2) furnish additional resources and support for the acquisition of equipment, and instructional and reference materials and improvement of laboratory facilities in elementary and secondary schools; and

(3) encourage partnerships in science and mathematics education between the business community, museums, libraries, professional mathematics and scientific associations, private nonprofit organizations, appropriate State agencies and elementary and secondary schools.

PROGRAMS AUTHORIZED

SEC. 322. [20 U.S.C. 3992] (a) GRANTS.-The Secretary may make grants to States to pay the Federal share of the cost of the programs described in section 324.

(b) AUTHORIZATION OF APPROPRIATIONS.-There are authorized to be appropriated for purposes of carrying out this chapter $20,000,000 for fiscal year 1988.

AMENDMENT TO STATE APPLICATION

SEC. 323. [20 U.S.C. 3993] (a) APPLICATION.-A State shall be eligible to receive a grant under this part if—

(1) the State submits to the Secretary as part of its application under section 2091 such information and assurances as the Secretary may require at such time as the Secretary shall establish; and

(2) the Secretary approves such application.

(b) APPLICATION REQUIREMENTS.-The Secretary shall require each application to include

1 Title II of P.L. 98-377 entitled the "Education for Economic Security Act" was repealed by section 2303 of P.L. 100-297 (102 Stat. 324).

(1) a description of the State's procedures relating to the use of funds from grants received under this part, including the approval process for local applications;

(2) an assurance that not more than 1 percent of the amount received shall be used for administrative expenses; and

(3) an assurance that the State will, to the extent possible, assist local school districts in economically depressed areas to obtain matching funds from business concerns.

ELIGIBLE PROGRAMS

SEC. 324. [20 U.S.C. 3994] (a) IN GENERAL.-A State may use funds from grants received in any fiscal year under this part for elementary and secondary programs described in this section. The State educational agency shall administer such funds, which shall be awarded to such programs on a competitive basis.

(b) USE OF FUNDS.-Funds from grants received under this part may be used for the following:

(1) IMPROVEMENT OF ELEMENTARY AND SECONDARY RESOURCES. Such funds may be used for acquisition of equipment, instructional and reference materials, and partnership in education programs designed to—

(A) improve instruction in mathematics and science education at the elementary and secondary level;

(B) improve laboratory facilities, classroom and library resources in elementary and secondary mathematics and science education; and

(C) attract matching dollars and in kind contributions of equipment, learning resources or shared time from business concerns, libraries, museums, nonprofit private organizations, professional mathematics and scientific associations, and appropriate State agencies.

(2) ADVANCED PLACEMENT PROGRAMS. (A) Such funds may be used for advanced placement programs operated by local educational agencies that are designed to allow qualified secondary students to attend college preparatory schools, colleges, or universities on a part-time or full-time basis with respect to science and mathematics instruction.

(B) A local educational agency that receives funds from a grant under this part for an advanced placement program described in subparagraph (A) shall allocate to such program a percentage of funds received from the State on a per student basis according to

(i) the number of students participating in the program; and

(ii) the instruction time such students receive under the program.

LOCAL APPLICATIONS

SEC. 325. [20 U.S.C. 3995] (a) ELIGIBILITY.-An applicant that desires to receive a grant under this part shall submit an application to the State educational agency, at such time, and in such manner, as the State may require. Such application may take the

form of an amendment to an assessment submitted by the local educational agency under section 2101, if appropriate.

(b) REQUIREMENTS FOR APPLICATION.-The State shall require each application to include

(1) a description of the activities for which assistance under this part is sought;

(2) assurances that not more than 5 percent of the amount received by the applicant in any fiscal year shall be expended on administrative expenses;

(3) if the funds are to be used for improvement of elementary and secondary resources as described in subsection (b)(1)—

(A) an estimate of the amount to be spent on equipment, facilities improvement, library resources, and classroom instructional material;

(B) an estimate of the number of elementary and secondary students who will be aided by activities and expenditures under the grant;

(C) assurances that

(i) except as provided in subsection (c), a minimum of 25 percent of the funds for each project will be supplied by business concerns within the community;

(ii) no stipend shall be paid directly to employees of a profitmaking business concern;

(iii) provision shall be made for the equitable participation in the project of children who are enrolled in private elementary and secondary schools; and

(iv) consideration will be given to programs and activities designed to meet the needs of educationally disadvantaged and other traditionally underserved populations; and

(4) if the funds are to be used for advanced placement programs as described in subsection (b)(2), a commitment as to the percentage of funds received from the State on a per student basis that shall be used by the local educational agency to defray costs of the advanced placement program.

(c) WAIVER.-The State may waive or reduce the amount of matching funds required under subsection (b)(3)(C)(i) if the State determines that

(1) substantial need exists in the area served by the applicant for a grant under this part; and

(2) the required amount of matching funds cannot be made available.

(d) JOINT APPLICATIONS.-A regional consortium of applicants in 2 or more local school districts may file a joint application under subsection (a).

SUBMISSION OF APPLICATIONS

SEC. 326. [20 U.S.C. 3996] An applicant within a State that desires to receive a grant under this chapter shall submit an application prepared in accordance with section 325 to the State edu

1 Title II of P.L. 98-377 entitled the "Education for Economic Security Act" was repealed by section 2303 of P.L. 100-297 (102 Stat. 324).

cational agency for approval. Each application with respect to funds for improvement of elementary and secondary resources under section 324(b)(1) shall be submitted jointly by the local educational agency and each business concern or other party that is to participate in the activities for which assistance is sought.

APPROVAL OF APPLICATIONS

SEC. 327. [20 U.S.C. 3997] (a) CRITERIA.-The State shall establish criteria for approval of applications under this section. Such criteria shall include

(1) consideration of the local district's need for, and inability to locally provide for, the activities, equipment, library and instructional materials requested;

(2) the number and nature of elementary and secondary students who will benefit from the planned program; and

(3) the expressed level of financial and in-kind commitment from other parties to the program.

(b) APPROVAL PROCEDURES.-The State shall adopt approval procedures designed to ensure that grants are equitably distributed among

(1) rural, urban, and suburban areas; and

(2) small, medium, and large local educational agencies.

COMPUTATION OF GRANT AMOUNTS

SEC. 328. [20 U.S.C. 3998] (a) PAYMENTS TO GRANTEES.

(1) PAYMENT BY STATE.-The State shall pay to the extent of amounts received by it from the Secretary under this part, to each applicant having an application approved under section 327, the Federal share of the cost of the program described in the application.

(2) AMOUNT. (A) Except as provided in subparagraph (B), the Federal share for each fiscal year shall be 75 percent.

(B) In the case of an applicant that receives a waiver under section 325(c), the Federal share for each fiscal year may be as much as 100 percent.

(3) NON-FEDERAL SHARE.-The non-Federal share of payments under this part may be in cash or in kind, fairly evaluated, including plant, equipment, or services.

(b) PAYMENTS TO STATES.-Except as provided in subsection (c), each State shall receive under this part the greater of—

(1) an amount equal to its share of funds appropriated under chapter 1 of the Education Consolidation and Improvement Act; or

(2) $225,000.

(c) REDUCTION FOR INSUFFICIENT FUNDING.-If sums appropriated to carry out this part are not sufficient to permit the Secretary to pay in full the grants which States may receive under subsection (b), the amount of such grants shall be ratably reduced.