This report recommends that the House of Representatives pass the School Dropout Prevention and Basic Skills Improvement Act of 1990. The bill would amend the Elementary and Secondary Education Act of 1965 to improve secondary school programs for basic skills improvement, dropout prevention, and dropout reentry by strengthening reporting requirements and altering fiscal allocations. Local school districts and states would be required to submit plans describing how they will increase graduation rates and annual reports on progress toward decreasing dropout rates. Funds would be allocated for replication and dissemination of successful dropout programs. Funds would also be allocated for community based organizations to establish and operate Community Education and Employment Centers (CEECs) to serve at-risk youth with comprehensive academic and vocational-technical education programs. CEECs would also provide the following special courses: (1) health; (2) safety; (3) nutrition; (4) parenting; and (5) environmental issues. The following on-site services would be included: (1) career guidance; (2) employment counseling; (3) labor market information; (4) job placement; (5) mentoring; (6) referral to social services; and (7) parent counseling. CEECs should provide transportation and day care, and emphasize participation by parents and community representatives. The bill also requires the Secretary of Education to create an information base on dropout prevention. A section-by-section analysis of the amendments is included. (FMW)