INCENTIVE GRANTS.

SEC. 503. INCENTIVE GRANTS. (a) In General.— Beginning on July 1, 2000, the Secretary shall award a grant to each State that exceeds the State adjusted 112 STAT. 1245levels of performance for title I, the expected levels of performance for title II, and the levels of performance for programs under Public Law 88–210 (as amended; 20 U.S.C. 2301 et seq.), for the purpose of carrying out an innovative program consistent with the requirements of any one or more of the programs within title I, title II, or such Public Law, respectively. (b) Application.— (1) In general.— The Secretary may provide a grant to a State under subsection (a) only if the State submits an application to the Secretary for the grant that meets the requirements of paragraph (2). (2) Requirements.— The Secretary may review an application described in paragraph (1) only to ensure that the application contains the following assurances: (A) The legislature of the State was consulted with respect to the development of the application. (B) The application was approved by the Governor, the eligible agency (as defined in section 203), and the State agency responsible for programs established under Public Law 88–210 (as amended; 20 U.S.C. 2301 et seq.). (C) The State and the eligible agency, as appropriate, exceeded the State adjusted levels of performance for title I, the expected levels of performance for title II, and the levels of performance for programs under Public Law 88–210 (as amended; 20 U.S.C. 2301 et seq.). (c) Amount.— (1) Minimum and maximum grant amounts.— Subject to paragraph (2), a grant provided to a State under subsection(a) shall be awarded in an amount that is not less than $750,000and not more than $3,000,000. (2) Proportionate reduction.— If the amount available for grants under this section for a fiscal year is insufficient to award a grant to each State or eligible agency that is eligible for a grant, the Secretary shall reduce the minimum and maximum grant amount by a uniform percentage.