PUBLIC LAW 103-382—OCT. 20, 1994 108 STAT. 3817 "(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), taking into consideration such factors as— "(A) the quality of the activities proposed by local educational agencies;
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